Document And Entity Information
Document And Entity Information - shares | 12 Months Ended | |
Dec. 31, 2020 | Apr. 29, 2021 | |
Document Information Line Items | ||
Entity Registrant Name | Ebang International Holdings Inc. | |
Document Type | 20-F | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Entity Central Index Key | 0001799290 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Well-known Seasoned Issuer | No | |
Document Period End Date | Dec. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | FY | |
Entity Emerging Growth Company | true | |
Entity Shell Company | false | |
Entity Ex Transition Period | true | |
Document Annual Report | true | |
Document Shell Company Report | false | |
Document Transition Report | false | |
Entity File Number | 333-237843 | |
Entity Incorporation, State or Country Code | E9 | |
Entity Interactive Data Current | Yes | |
Class A ordinary shares | ||
Document Information Line Items | ||
Entity Common Stock, Shares Outstanding | 139,209,554 | |
Class B ordinary Shares | ||
Document Information Line Items | ||
Entity Common Stock, Shares Outstanding | 46,625,783 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 13,669,439 | $ 3,464,262 |
Restricted cash, current | 406,857 | 2,270,588 |
Debt investments | 40,835,000 | |
Accounts receivable, net | 7,205,113 | 8,128,178 |
Notes receivable | 765,967 | |
Advances to suppliers | 221,186 | 1,062,049 |
Inventories, net | 3,845,091 | 13,088,542 |
Prepayments | 522,808 | 591,031 |
Other current assets, net | 1,128,599 | 224,452 |
Total current assets | 68,600,060 | 28,829,102 |
Non-current assets: | ||
Property, plant and equipment, net | 29,123,243 | 13,224,761 |
Intangible assets, net | 23,077,435 | 3,784,153 |
Operating lease right-of-use assets | 898,335 | 1,280,076 |
Operating lease right-of-use assets - related party | 17,701 | 37,266 |
Restricted cash, non-current | 47,455 | 43,317 |
Deferred tax assets | 8,542,715 | |
VAT recoverable | 21,897,063 | 21,954,169 |
Other assets | 538,934 | 4,915,487 |
Total non-current assets | 75,600,166 | 53,781,944 |
Total assets | 144,200,226 | 82,611,046 |
Current liabilities: | ||
Accounts payable | 2,762,187 | 11,832,003 |
Notes payable | 1,087,673 | |
Accrued liabilities and other payables | 21,921,614 | 13,739,041 |
Loans due within one year, less unamortized debt issuance costs | 765,967 | 4,864,697 |
Operating lease liabilities, current | 659,807 | 793,521 |
Operating lease liabilities – related party, current | 17,701 | 37,266 |
Income taxes payable | 556,137 | 521,648 |
Due to related party | 5,652,833 | 6,242,824 |
Advances from customers | 832,842 | 1,015,675 |
Total current liabilities | 34,256,761 | 39,046,675 |
Non-current liabilities: | ||
Long-term loans – related party | 17,632,000 | |
Deferred tax liabilities | 872 | |
Operating lease liabilities, non-current | 118,827 | 361,747 |
Total non-current liabilities | 119,699 | 17,993,747 |
Total liabilities | 34,376,460 | 57,040,422 |
Equity: | ||
Ordinary share, HKD0.001 par value, 380,000,000 shares authorized, nil and 111,771,000 shares issued and outstanding at December 31, 2020 and 2019, respectively | 14,330 | |
Additional paid-in capital | 138,288,921 | 23,888,023 |
Statutory reserves | 11,049,847 | 11,049,847 |
Accumulated deficit | (38,581,419) | (7,905,999) |
Accumulated other comprehensive loss | (7,648,332) | (9,066,842) |
Total Ebang International Holdings Inc. shareholders’ equity | 103,126,406 | 17,979,359 |
Non-controlling interest | 6,697,360 | 7,591,265 |
Total equity | 109,823,766 | 25,570,624 |
Total liabilities and equity | 144,200,226 | 82,611,046 |
Class A ordinary share | ||
Equity: | ||
Ordinary share value | 11,411 | |
Total equity | 11,411 | |
Class B ordinary share | ||
Equity: | ||
Ordinary share value | 5,978 | |
Total equity | $ 5,978 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Ordinary share, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Ordinary share, shares authorized | 380,000,000 | 380,000,000 |
Ordinary share, shares issued | 111,771,000 | |
Ordinary share, shares outstanding | 111,771,000 | |
Class A ordinary share | ||
Ordinary share, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Ordinary share, shares authorized | 333,374,217 | 333,374,217 |
Ordinary share, shares issued | 89,009,554 | |
Ordinary share, shares outstanding | 89,009,554 | |
Class B ordinary share | ||
Ordinary share, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Ordinary share, shares authorized | 46,625,783 | 46,625,783 |
Ordinary share, shares issued | 46,625,783 | |
Ordinary share, shares outstanding | 46,625,783 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Product revenue | $ 9,677,278 | $ 93,255,813 | $ 310,856,407 |
Service revenue | 9,327,023 | 15,804,253 | 8,185,386 |
Total revenues | 19,004,301 | 109,060,066 | 319,041,793 |
Cost of revenues | 21,903,644 | 139,623,799 | 294,596,001 |
Gross profit (loss) | (2,899,343) | (30,563,733) | 24,445,792 |
Operating expenses: | |||
Selling expenses | 925,373 | 1,213,294 | 4,095,835 |
General and administrative expenses | 22,822,085 | 18,870,794 | 51,410,864 |
Total operating expenses | 23,747,458 | 20,084,088 | 55,506,699 |
Loss from operations | (26,646,801) | (50,647,821) | (31,060,907) |
Other income (expenses): | |||
Interest income | 824,435 | 217,200 | 453,991 |
Interest expenses | (728,346) | (2,041,491) | (921,047) |
Other income | 81,733 | 84,992 | 1,139,514 |
Exchange gain (loss) | (288,346) | 5,693,798 | (403,544) |
Government grants | 4,006,567 | 6,298,893 | 798,680 |
VAT refund | 9,138 | 27,368,030 | |
Other expenses | (108,624) | (287,530) | (8,289,391) |
Total other income | 3,787,419 | 9,975,000 | 20,146,233 |
Loss before income taxes provision | (22,859,382) | (40,672,821) | (10,914,674) |
Income taxes provision | 9,251,542 | 400,311 | 899,586 |
Net Loss | (32,110,924) | (41,073,132) | (11,814,260) |
Less: net income (loss) attributable to non-controlling interest | (1,435,504) | 1,330,237 | 494,234 |
Net loss attributable to Ebang International Holdings Inc. | (30,675,420) | (42,403,369) | (12,308,494) |
Comprehensive loss | |||
Net loss | (32,110,924) | (41,073,132) | (11,814,260) |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | 1,960,109 | (1,188,488) | (11,363,682) |
Total comprehensive loss | (30,150,815) | (42,261,620) | (23,177,942) |
Less: comprehensive income (loss) attributable to non-controlling interest | (893,905) | 1,330,237 | 494,234 |
Comprehensive loss attributable to Ebang International Holdings Inc. | $ (29,256,910) | $ (43,591,857) | $ (23,672,176) |
Net loss per ordinary share attributable to Ebang International Holdings Inc. | |||
Basic (in Dollars per share) | $ (0.25) | $ (0.38) | $ (0.36) |
Diluted (in Dollars per share) | $ (0.25) | $ (0.38) | $ (0.36) |
Weighted average ordinary shares outstanding | |||
Basic (in Shares) | 121,941,226 | 111,771,000 | 33,808,506 |
Diluted (in Shares) | 121,941,226 | 111,771,000 | 33,808,506 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) | Class A Ordinary Shares | Class B Ordinary Shares | Ordinary Shares | Additional Paid-in Capital | Statutory Reserves | Accumulated Deficit | Accumulated Other Comprehensive Loss | Non-controlling Interest | Total |
Balance at beginning at Dec. 31, 2017 | $ 29,811,812 | $ 7,115,524 | $ 50,740,187 | $ 3,485,328 | $ 5,766,794 | $ 96,919,645 | |||
Balance at beginning (in Shares) at Dec. 31, 2017 | |||||||||
Capital contribution from shareholder | $ 7,700 | 7,700 | |||||||
Capital contribution from shareholder (in Shares) | 60,056,829 | ||||||||
Issuance of ordinary shares for cash | $ 6,630 | 579,109 | 585,739 | ||||||
Issuance of ordinary shares for cash (in Shares) | 51,714,171 | ||||||||
Distribution to owners | (6,502,898) | (6,502,898) | |||||||
Net income (loss) | (12,308,494) | 494,234 | (11,814,260) | ||||||
Transfer to reserve | 3,397,003 | (3,397,003) | |||||||
Foreign currency translation adjustment | (11,363,682) | (11,363,682) | |||||||
Balance at ending at Dec. 31, 2018 | $ 14,330 | 23,888,023 | 10,512,527 | 35,034,690 | (7,878,354) | 6,261,028 | 67,832,244 | ||
Balance at ending (in Shares) at Dec. 31, 2018 | 111,771,000 | ||||||||
Net income (loss) | (42,403,369) | 1,330,237 | (41,073,132) | ||||||
Transfer to reserve | 537,320 | (537,320) | |||||||
Foreign currency translation adjustment | (1,188,488) | (1,188,488) | |||||||
Balance at ending at Dec. 31, 2019 | $ 14,330 | 23,888,023 | 11,049,847 | (7,905,999) | (9,066,842) | 7,591,265 | 25,570,624 | ||
Balance at ending (in Shares) at Dec. 31, 2019 | 111,771,000 | ||||||||
Net income (loss) | (30,675,420) | (1,435,504) | (32,110,924) | ||||||
Foreign currency translation adjustment | 1,418,510 | 541,599 | 1,960,109 | ||||||
Balance at ending at Dec. 31, 2020 | $ 11,411 | $ 5,978 | 138,288,921 | $ 11,049,847 | $ (38,581,419) | $ (7,648,332) | $ 6,697,360 | 109,823,766 | |
Balance at ending (in Shares) at Dec. 31, 2020 | 89,009,554 | 46,625,783 | |||||||
Re-designation of ordinary shares to Class A and Class B ordinary shares immediately prior to the completion of initial public offering | $ 8,352 | $ 5,978 | $ (14,330) | ||||||
Re-designation of ordinary shares to Class A and Class B ordinary shares immediately prior to the completion of initial public offering (in Shares) | 65,145,217 | 46,625,783 | (111,771,000) | ||||||
Share issuance upon initial public offering, net of issuance cost | $ 2,470 | 91,682,290 | 91,684,760 | ||||||
Share issuance upon initial public offering, net of issuance cost (in Shares) | 19,264,337 | ||||||||
Share issuance following initial public offering, net of issuance cost | $ 589 | 22,506,246 | 22,506,835 | ||||||
Share issuance following initial public offering, net of issuance cost (in Shares) | 4,600,000 | ||||||||
Increase in capital from disposal of subsidiary | $ 212,362 | $ 212,362 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net loss | $ (32,110,924) | $ (41,073,132) | $ (11,814,260) |
Depreciation and amortization expenses | 7,152,958 | 8,855,750 | 4,799,350 |
Allowance for doubtful accounts | 2,740,639 | 26,297 | 19,778 |
Loss (gain) on disposal of property, plant and equipment | 92,172 | (18,796) | 23,403 |
Amortization of debt issuance cost | 7,098 | 235,686 | 153,370 |
Inventory write-down | 3,644,243 | 6,341,957 | 61,771,039 |
Loss (gain) on short-term investment | (1,366) | 17,968 | |
Deferred income taxes | 8,627,604 | (132,767) | (9,672,294) |
Noncash lease expenses | 659,082 | 286,774 | |
Accounts receivable, net | (1,351,955) | 13,251,422 | (7,045,434) |
Notes receivable | (724,627) | 42,193 | |
Inventories, net | 9,725,152 | 49,197,114 | (83,666,057) |
Advances to suppliers | (3,601,544) | 1,554,824 | 121,148,949 |
VAT recoverable | 1,429,649 | (6,118,957) | (13,952,636) |
Prepayments and other current assets, net | 3,287,612 | (48,399) | (684,840) |
Accounts payable | (9,234,394) | (31,546,450) | 13,633,755 |
Notes payable | 1,028,971 | (7,688,440) | 2,409,880 |
Income taxes payable | (660) | (7,817,075) | 233,904 |
Advances from customers | (204,926) | (980,958) | (181,799,117) |
Accrued liabilities and other payables | (6,993,438) | 2,416,318 | (3,850,987) |
NET CASH USED IN OPERATING ACTIVITIES | (15,827,288) | (13,260,198) | (108,232,036) |
Purchases of property, plant and equipment | (10,833,436) | (5,832,609) | (5,940,856) |
Purchases of intangible assets | (11,927,846) | (371,999) | |
Proceeds from disposal of property, plant and equipment | 362,314 | 25,764 | 5,140 |
Cash paid for debt investments | (79,915,000) | ||
Cash paid for short-term investment | (130,906) | ||
Proceeds from redemption of debt investments | 39,080,000 | ||
Proceeds from maturity of short-term investment | 128,520 | 23,116 | |
Proceeds from sale of subsidiary, net of cash disposed of | 53,435 | ||
NET CASH USED IN INVESTING ACTIVITIES | (63,180,533) | (5,809,231) | (6,284,599) |
Capital contribution from shareholder | 7,700 | ||
Distribution to owners | (6,502,898) | ||
Proceeds from short-term loans | 765,967 | 7,068,283 | 10,908,195 |
Repayment of short-term loans | (4,871,795) | (14,115,485) | (3,848,048) |
Proceeds from long-term loan | 13,205,128 | ||
Repayment of long-term loan | (8,333,333) | ||
Payment of debt issuance cost | (396,154) | ||
Proceeds from related party loans | 9,631,014 | 27,366,576 | |
Repayment to related parties | (27,657,811) | (3,438,258) | |
Issuance of ordinary shares for cash | 114,191,595 | 585,739 | |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 92,058,970 | 8,547,783 | 13,959,662 |
EFFECT OF FOREIGN EXCHANGE ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (4,705,565) | (3,181,463) | (12,970,856) |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 8,345,584 | (13,703,109) | (113,527,829) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR | 5,778,167 | 19,481,276 | 133,009,105 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF YEAR | 14,123,751 | 5,778,167 | 19,481,276 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Interest | 1,493,469 | 1,323,827 | 480,543 |
Income taxes | 293,028 | 8,119,721 | 11,755,012 |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||
Liabilities assumed in connection with purchase of property, plant and equipment | 5,731,084 | 3,010,849 | 4,083,805 |
Liabilities assumed in connection with purchase of intangible assets | 7,951,897 | 322,082 | |
Operating lease right-of-use asset obtained in exchange for operating lease liability | 192,395 | 1,142,321 | |
Transfer from other assets to property, plant and equipment | 4,454,011 | 1,048 | 4,912,272 |
Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheets | |||
Cash and cash equivalents | 13,669,439 | 3,464,262 | 9,997,593 |
Restricted cash, current | 406,857 | 2,270,588 | 7,271,849 |
Restricted cash, noncurrent | 47,455 | 43,317 | 2,211,834 |
Total cash, cash equivalents and restricted cash | $ 14,123,751 | $ 5,778,167 | $ 19,481,276 |
Nature of Business and Organiza
Nature of Business and Organization | 12 Months Ended |
Dec. 31, 2020 | |
Nature of Business and Organization [Abstract] | |
Nature of business and organization | Note 1 – Nature of business and organization Ebang International Holdings Inc. (“Ebang International”) was incorporated on May 17, 2018, a holding company, as an exempted company with limited liability in the Cayman Islands. Ebang International principally engages in manufacturing high performance bitcoin mining machines and telecommunication products and conducts business through its subsidiaries in the People’s Republic of China (the “PRC”). In January 2010, Mr. Dong Hu, chairman of board of directors and chief executive officer, founded Zhejiang Ebang Communication Technology Co., Ltd. (“Zhejiang Ebang”), which established Zhejiang Ebang Information Technology Co., Ltd. (“Ebang IT”) to conduct development and sales of communications network access devices and related equipment. In August 2015, Zhejiang Ebang was listed on the National Equities Exchange and Quotations (“NEEQ”). In August 2016, Zhejiang Ebang acquired 51.05% of the equity interest in Hangzhou Dewang Information Technology Co., Ltd. (“Hangzhou Dewang”) through capital injection in Hangzhou Dewang. In March 2018, Zhejiang Ebang was delisted from the NEEQ in preparation for the reorganizations. Ebang International underwent a series of onshore and offshore reorganizations, which were completed on May 22, 2018. Immediately before and after the reorganization, the controlling shareholder of Zhejiang Ebang controlled Zhejiang Ebang and Ebang International; therefore, for accounting purposes, the reorganization is accounted for as a transaction of entities under common control. Accordingly, the accompanying consolidated financial statements have been prepared as if the current corporate structure had been in existence throughout the periods presented. Ebang International and its consolidated subsidiaries are collectively referred to herein as the “Company”, “we” and “us”, unless specific reference is made to an entity. Corporate Structure Ebang International Holdings Inc. is a holding company incorporated in Cayman Islands that does not have substantive operations. We conduct our businesses through our subsidiaries. As of December 31, 2020, our principal subsidiaries consist of the following entities (in chronological order based on their dates of incorporation): ● Zhejiang Ebang Communication Technology Co., Ltd., or Zhejiang Ebang, our majority-owned subsidiary and an onshore holding company established in the PRC on January 21, 2010 principally for holding our businesses in the design, manufacture and sale of telecommunications and blockchain processing equipment; ● Zhejiang Ebang Information Technology Co., Ltd., or Ebang IT, our majority-owned subsidiary and an operating entity established in the PRC on August 11, 2010 principally for the design, manufacture and sale of telecommunications and blockchain processing equipment; ● Hangzhou Dewang Information Technology Co., Ltd., or Hangzhou Dewang, our majority-owned subsidiary and an operating entity established in the PRC on December 31, 2015 principally for the design and manufacture of blockchain chips; ● Ebang Communications (HK) Technology Limited, or HK Ebang Communications (formerly known as Hong Kong Bite Co., Ltd. or HK Bite), our wholly-owned subsidiary and an operating entity established in Hong Kong on February 12, 2016 principally for the trading of blockchain chips; ● Yunnan Ebang Information Technology Co., Ltd., or Yunnan Ebang, our majority-owned subsidiary and an operating entity established in the PRC on June 28, 2016 principally for the assembly line of blockchain processing equipment; ● Wuhai Ebang Information Technology Co., Ltd., or Wuhai Ebang, our wholly-owned subsidiary and an operating entity established in the PRC on September 18, 2017 principally for the assembly line of blockchain processing equipment; and ● Hangzhou Ebang Jusheng Technology Co., Ltd., or Ebang Jusheng, our wholly-owned subsidiary and an operating entity established in the PRC on January 3, 2018 principally for the trading of telecommunications and blockchain processing equipment. The accompanying consolidated financial statements reflect the activities of Ebang International and each of the following major entities: Name Background Ownership Orient Plus International Limited (“Orient Plus”) ● A British Virgin Islands (“BVI”) company 100% owned by Ebang International ● Incorporated on June 6, 2018 ● A holding company Ebang Communications (HK) Technology Limited (“HK Ebang Communications”), formerly known as Hong Kong Bite Co., Ltd. or HK Bite ● A Hong Kong company 100% owned by Orient Plus ● Incorporated on February 12, 2016 ● A Trading company Power Ebang Limited (“Power Ebang”) ● A British Virgin Islands company 100% owned by Ebang International ● Incorporated on February 26, 2018 ● A holding company Hong Kong Ebang Technology Co., Ltd. (“HK Ebang Technology”) ● A Hong Kong company 100% owned by Power Ebang ● Incorporated on February 12, 2018 ● A holding company Leader Forever Holdings Limited (“Leader Forever”) ● A British Virgin Islands company 100% owned by Ebang International ● Incorporated on January 7, 2019 ● A holding company Hong Kong Ebang Information Co., Ltd. (“HK Ebang Information”) ● A Hong Kong company 100% owned by Leader Forever ● Incorporated on April 1, 2019 ● A Trading company Hangzhou Ebang Hongfa Technology Co., Ltd. (“Ebang Hongfa”) ● A PRC limited liability company and deemed a wholly foreign owned enterprise (“WFOE”) 100% owned by HK Ebang Technology ● Incorporated on February 11, 2018 ● A holding company Hangzhou Ebang Hongling Technology Co., Ltd. (“Ebang Hongling”) ● A PRC limited liability company 100% owned by Ebang Hongfa ● Incorporated on July 3, 2019 Wuhai Ebang Information Technology Co., Ltd. (“Wuhai Ebang”) ● A PRC limited liability company 100% owned by Ebang Hongling ● Incorporated on September 18, 2017 Zhejiang Ebang Communication Technology Co., Ltd. (“Zhejiang Ebang”) ● A PRC limited liability company 99.99% owned by Ebang Hongfa ● Incorporated on January 21, 2010 Zhejiang Ebang Information Technology Co., Ltd. (“Ebang IT”) ● A PRC limited liability company 100% owned by Zhejiang Ebang ● Incorporated on August 11, 2010 Yunnan Ebang Information Technology Co., Ltd. (“Yunnan Ebang”) ● A PRC limited liability company 100% owned by Zhejiang Ebang ● Incorporated on June 28, 2016 Hangzhou Yiquansheng Communication Technology Co., Ltd. (formerly known as Suzhou Yiquansheng Communication Technology Co., Ltd.) (“Hangzhou Yiquansheng”)* ● A PRC limited liability company 100% owned by Zhejiang Ebang before disposed by the Company in Dec. 2020* ● Incorporated on April 2, 2018 Hangzhou Ebang Jusheng Technology Co., Ltd. (“Ebang Jusheng”) ● A PRC limited liability company 100% owned by Ebang Hongfa ● Incorporated on January 3, 2018 Hangzhou Dewang Information Technology Co., Ltd. (“Hangzhou Dewang”) ● A PRC limited liability company 51.05% owned by Ebang Hongfa ● Incorporated on December 31, 2015 * In December 2020, the Company sold 100% of the equity ownership of Hangzhou Yiquansheng to an affiliate controlled by Mr. Dong Hu, CEO of the Company. Hangzhou Yiquansheng did not conduct significant operation for the Company and the disposal does not cause a shift in the Company’s operating strategy. As a result, the disposal is accounted for as a sale of asset to an entity under common control. The gain on disposal of Hangzhou Yiquansheng is included in the statements of changes in equity. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | Note 2 – Summary of significant accounting policies Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for information pursuant to the rules and regulations of the SEC. Principles of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. Reclassification Certain prior year amounts have been reclassified to conform to the current period presentation. These reclassifications had no impact on net earnings or equity. Non-controlling Interest Non-controlling interest on the consolidated balance sheets is resulted from the consolidation of Hangzhou Dewang, a 51.05% owned subsidiary. The portion of the income or loss applicable to the non-controlling interest in subsidiary is reflected in the consolidated statements of operations and comprehensive loss. Use of estimates and assumptions The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the balance sheet date and revenues and expenses during the reporting periods. Significant accounting estimates reflected in the Company’s consolidated financial statements including, but not limited to, estimates for inventory write-down, useful lives and impairment of long-lived assets, income taxes including valuation allowance for deferred tax assets, and allowance for doubtful accounts. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences may be material to the consolidated financial statements. Foreign currency translation and transaction The accompanying consolidated financial statements are presented in the United States dollar (“$”), which is the reporting currency of the Company. The functional currency of HK Ebang Communications and HK Ebang Information is United State dollars, and the functional currency of Ebang International, HK Ebang Technology and all BVI entities is Hong Kong dollar (“HKD”). The functional currency of the PRC subsidiaries is Renminbi (“RMB”). Assets and liabilities denominated in currencies other than the reporting currency are translated into the reporting currency at the rates of exchange ruling at the balance sheet date. Translation gains and losses are recognized in the consolidated statements of operations and comprehensive loss as other comprehensive income or loss. Transactions in currencies other than the reporting currency are measured and recorded in the reporting currency at the exchange rate prevailing on the transaction date. The cumulative gain or loss from foreign currency transactions is reflected in the consolidated statements of operations and comprehensive loss as other income (other expenses). For Ebang International, HK Ebang Technology and all BVI entities, except for the equity, the balance sheet accounts at December 31, 2020 and 2019 and results of operations and cash flows for the years ended December 31, 2020, 2019 and 2018 were translated at HKD7.8 to $1.00. For all PRC subsidiaries, the balance sheet accounts, with the exception of equity, at December 31, 2020 and 2019 were translated at RMB6.5277 and RMB6.9680 to $1.00, respectively. The equity accounts were translated at their historical rate. The average translation rates applied to statements of operations for the years ended December 31, 2020, 2019 and 2018 were RMB6.9001, RMB6.9088 and RMB6.6146 to $1.00, respectively. Cash flows were also translated at average translation rates for the periods, therefore, amounts reported on the statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Cash and cash equivalents Cash and cash equivalents consist of cash on hand, demand deposits and time deposits placed with banks or other financial institutions and have original maturities of less than three months. Restricted cash Restricted cash mainly represents the bank deposit used to pledge the bank acceptance notes and bank deposit pledged in exchange for guarantee services. It also represents the bank deposits judicially frozen by the court. As of December 31, 2020 and 2019, the Company had restricted cash balance of $454,312 and $2,313,905, respectively. See Note 17 – Contingencies for more details. Notes receivable and notes payable Notes receivable, generally due within twelve months and with specific payment terms and definitive due dates, are comprised of the bank acceptance notes issued by some customers to pay certain outstanding receivable balances to the Company. Notes payable represents bank acceptance notes issued by the Company to its vendors in the normal course of business. Bank acceptance notes do not bear interest. As of December 31, 2020 and 2019, notes receivables in the amount of $765,967 and nil, respectively, were pledged to endorsing banks to issue bank acceptance notes payable. Debt investments Debt investments include the Company's investments in bonds and such investments are recorded as available-for-sale securities. Available-for-sale securities are reported at fair value, with unrealized gains and losses recorded in accumulated other comprehensive loss on the consolidated balance sheets. Realized gains and losses from the sale of available-for-sale securities are determined on an aggregate approach basis and are included in the consolidated statements of operations and comprehensive loss. If the fair value of an available-for-sale debt security is below its amortized cost, the Company assesses whether it intends to sell the security or if it is more likely than not the Company will be required to sell the security before recovery. If either of those two conditions is met, the Company would recognize a charge in earnings equal to the entire difference between the security's amortized cost basis and its fair value. If the Company does not intend to sell a security or it is not more likely than not that it will be required to sell the security before recovery, the unrealized loss is separated into an amount representing the credit loss, which is recognized in earnings, and the amount related to all other factors, which is recognized in accumulated other comprehensive loss. Premiums and discounts are amortized or accreted over the life of the related available-for-sale security as an adjustment to yield using the effective-interest method. Interest income are recognized when earned. Current expected credit losses In 2016, the FASB issued ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (including all amendment subsequently issued thereto, “ASC Topic 326”), which amends previously issued guidance regarding the impairment of financial instruments by creating an impairment model that is based on expected losses rather than incurred losses. The Company adopted this ASC Topic 326 on January 1, 2020 using a modified retrospective approach. The adoption did not have a material impact on the Company’s previously reported consolidated financial statements in any prior period nor did it result in a cumulative effect adjustment to beginning accumulated deficit. As of January 1, 2020, the Company’s financial assets, primarily accounts receivable and other receivable, are within the scope of ASC Topic 326. The Company has identified the relevant risk characteristics of its customers and the related receivables and other current assets which include type of the products and services the Company provides, nature of the customers or a combination of these characteristics. Receivables with similar risk characteristics have been grouped into pools. For each pool, the Company considers the historical credit loss experience, current economic conditions, supportable forecasts of future economic conditions, and any recoveries in assessing the lifetime expected credit losses. Other key factors that influence the expected credit loss analysis include customer demographics, payment terms offered in the normal course of business to customers, and industry-specific factors that could impact the Company’s receivables. Additionally, external data and macroeconomic factors are also considered. Inventories, net Inventories, consisting of finished goods, work in process, and raw materials. Inventories are stated at the lower of cost and net realizable value. Cost of inventory is determined using the weighted average cost method. Adjustments are recorded to write down the cost of inventory to the estimated net realizable value due to slow-moving and obsolete inventory, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. The Company takes ownership, risks and rewards of the products purchased. Property, plant and equipment, net Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The estimated useful lives are as follows: Buildings 20 years Computer software 10 years Leasehold improvements Over the shorter of the lease term or expected useful lives Office equipment 3-5 years Motor vehicles 5 years Mechanical equipment 3-10 years The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the consolidated statements of operations and comprehensive loss. Expenditures for maintenance and repairs are charged to earnings as incurred, while additions, renewals and betterments, which are expected to extend the useful life of assets, are capitalized. Construction in progress represents assets under construction. All direct costs relating to the construction are capitalized as construction in progress. Construction in progress is not depreciated until the asset is placed in service. Intangible assets, net The Company’s intangible assets with definite useful lives primarily consist of software, non-patent technology, license and land use right. The Company typically amortizes its software, non-patent technology and license with definite useful lives on a straight-line basis over the shorter of the contractual terms or the estimated useful lives. According to the law of PRC, the government owns all the land in the PRC. Companies or individuals are authorized to possess and use the land only through land use rights granted by the Chinese government for a specified period of time. The Company amortizes its land use rights using the straight-line method over the periods the rights are granted. The estimated useful lives are as follows: Land use right 50 years Software 65 months License 10 year Non-patent technology 1 year Impairment for long-lived assets Long-lived assets, including property, plant and equipment, right-of-use assets and intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, the Company would reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. For the years ended December 31, 2020, 2019 and 2018, no impairment of long-lived assets was recognized. Fair value measurement The accounting standard regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company. The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures. The three levels are defined as follow: ● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. Unobservable inputs reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information. ASC 820 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. In August 2018, the FASB issued ASU No. 2018-13 “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement”. This ASU modifies the disclosures related to recurring and nonrecurring fair value measurements. Disclosures related to the transfer of assets between Level 1 and Level 2 hierarchies have been eliminated and various additional disclosures related to Level 3 fair value measurements have been added, modified or removed. The Company adopted this ASU on January 1, 2020 and it did not have a material impact on its consolidated financial statements. The financial asset carried at fair value on a recurring basis at December 31, 2020 and 2019 is as follows: Quoted Significant Significant Total Debt investments As of December 31, 2020 $ - 40,835,000 - 40,835,000 As of December 31, 2019 $ - - - - Financial instruments included in current assets and current liabilities except for debt investments, operating lease liability – related party, current and due to related party are reported in the consolidated balance sheets at face value or cost, which approximate fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rates of interest. Related party transactions 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 operational decisions. Parties are also considered to be related if they are subject to common control or common significant influence. Related parties may be individuals or corporate entities. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated. It is not, however, practical to determine the fair value of amounts due from/to related parties due to their related party nature. Revenue recognition The Company has adopted the new revenue standard, ASC 606, Revenue from Contracts with Customers (Topic 606) for all periods presented. Consistent with the criteria of Topic 606, the Company recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to receive in exchange for those goods or services. Value-added tax that the Company collects concurrent with revenue-producing activities is excluded from revenue. Products revenue The Company generates revenue primarily from the sale of bitcoin mining machines and related accessories directly to a customer, such as a business or individual engaged in bitcoin mining activities. The Company recognizes revenue at a point in time when the control of the products has been transferred to customers. The transfer of control is considered complete when products have been picked up by or shipped to customers. The Company’s sales arrangements for bitcoin mining machines usually require a full prepayment before the delivery of products. The advance payment is not considered a significant financing component because the period between the Company transfers a promised good to a customer and when the customer pays for that good is short. As the bitcoin price experienced a significant downtrend during 2018, the Company started to offer credit sales to certain customers. The payment terms under credit sales generally consist of full payment of consideration within one year after shipping date. The Company also generates revenue from the sale of telecommunication products directly to a customer, such as a business or individual engaged in telecommunication businesses. The Company recognizes revenue at a point in time when products are delivered and customer acceptance is made. For the sales arrangements of telecommunications products, the Company generally requires payment upon issuance of invoices. The Company elected to account for shipping and handling fees that occur after the customer has obtained control of goods, for instance, free onboard shipping point arrangements, as a fulfilment cost and accrues for such costs. Service revenue The Company also generate a small portion of revenue from management and maintenance services under separate contracts. Revenue from management and maintenance services include service fees for provision of mining machine hosting services to customers, and provision of maintenance service. Revenue from the maintenance service to the customer is recognized at a point in time when services are provided. Revenue from the management service to the customer is recognized as the performance obligation is satisfied over time over the service period. Revenue disaggregation Management has concluded that the disaggregation level is the same under both the revenue standard and the segment reporting standard. Revenue under the segment reporting standard is measured on the same basis as under the revenue standard. See Note 14 for information regarding revenue disaggregation by product lines and countries. Contract liabilities Contract liabilities are recorded when consideration is received from a customer prior to transferring the goods or services to the customer or other conditions under the terms of a sales contract. As of December 31, 2020 and 2019, the Company recorded contract liabilities of $832,842 and $1,015,675, respectively, which was presented as advances from customers on the accompanying consolidated balance sheets. During the years ended December 31, 2020, 2019 and 2018, the Company recognized $279,423, $1,832,391 and $121,604,493, of contract liabilities as revenue, respectively. Segment reporting The Company uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. The Company’s chief operating decision maker has been identified as the chief executive officer of the Company who reviews financial information based on U.S. GAAP. The chief operating decision maker now reviews results analyzed by marketing channel. This analysis is only presented at the revenue level with no allocation of direct or indirect costs. Consequently, the Company has determined that it has only one operating segment. Selling and handling expenses Selling and handling costs amounted to $96,997, $97,719 and $1,233,527 for the years ended December 31, 2020, 2019 and 2018, respectively. Selling and handling costs are expensed as incurred and included in selling expenses. General and administrative expenses General and administrative expenses consist primarily of research and development expenses, salary and welfare for general and administrative personnel, rental expenses, depreciation and amortization in associated with general and administrative personnel, allowance for doubtful accounts, entertainment expense, general office expense and professional service fees. The Company recognizes research and development expenses as expense when incurred. Research and development expenses amounted to $8,459,765, $13,367,396 and $43,488,851 for the years ended December 31, 2020, 2019 and 2018, respectively. Operating leases Prior to the adoption of ASC 842 on January 1, 2019: Leases, mainly leases of factory buildings, offices and employee dormitories, 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 Company had no finance leases for any of the periods stated herein. Upon and hereafter the adoption of ASC 842 on January 1, 2019: 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 used an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company has elected to adopt the following lease policies in conjunction with the adoption of ASU 2016-02: (i) 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 (ii) 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. Government grants Government grants represent cash subsidies received from PRC government. Cash subsidies which have no defined rules and regulations to govern the criteria necessary for companies to enjoy the benefits are recognized when received. Such subsidies are generally provided as incentives from the local government to encourage the expansion of local business. Total government grants received amounted to $4,006,567, $6,298,893 and $798,680 for the years ended December 31, 2020, 2019 and 2018, respectively. Value-added taxes Revenue is recognized net of value-added taxes (“VAT”). VAT is based on gross sales price and the VAT rate applicable to the Company is 17% for the period from the beginning of 2018 till the end of April 2018, then changed to 16% from May 2018 to the end of March 2019, and changed to 13% since April 2019. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded as VAT payable if output VAT is larger than input VAT and is recorded as VAT recoverable if input VAT is larger than output VAT. All of the VAT returns filed by the Company’s subsidiaries in China, have been and remain subject to examination by the tax authorities. Pursuant to Caishui (2011) No. 100 issued by the State Tax Bureau of the PRC, Zhejiang Ebang and Ebang IT are qualified as enterprises selling self-developed software products and enjoying a tax refund for the excess of 3% of their actual tax burden after the VAT is levied at the 17% or 16% or 13% tax rate since January 2011. Tax refund is recognized when received. During the years ended December 31, 2020, 2019 and 2018, total VAT refund received was nil, $9,138 and $27,368,030 from the sales of bitcoin mining machine, respectively. Income taxes The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. The charge for taxation is based on the results for the fiscal year as adjusted for items, which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred taxes are accounted for using the asset and liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the consolidated financial statements and the corresponding tax basis used in the computation of assessable tax profit. In principle, deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which deductible temporary differences can be utilized. Deferred tax is calculated using tax rates that are expected to apply to the period when the asset is realized or the liability is settled. Deferred tax is charged or credited in the income statement, except when it is related to items credited or charged directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities. An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. No penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. Comprehensive loss Comprehensive loss consists of two components, net loss and other comprehensive loss. Other comprehensive loss refers to revenues, expenses, gains and losses that under GAAP are recorded as an element of shareholders’ equity but are excluded from net loss. Other comprehensive loss consists of a foreign currency translation adjustment resulting from the Company not using the United States dollar as its functional currencies. Earnings per share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share”. ASC 260 requires companies to present basic and diluted EPS. Basic EPS is measured as net income (loss) attributable to Ebang International Holdings Inc. divided by the weighted average ordinary share outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of the potential ordinary shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential ordinary shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. As the Company recognized a net loss for the year ended December 31, 2020, the outstanding warrants were not recognized in the diluted EPS calculations as they would be antidilutive. There were no dilutive shares or other instruments outstanding as of December 31, 2019 and 2018. Statutory reserves Pursuant to the laws applicable to the PRC, PRC entities must make appropriations from after-tax profit to the non-distributable “statutory surplus reserve fund”. Subject to certain cumulative limits, the “statutory surplus reserve fund” requires annual appropriations of 10% of after-tax profit until the aggregated appropriations reach 50% of the registered capital (as determined under accounting principles generally accepted in the PRC (“PRC GAAP”) at each year-end). For foreign invested enterprises and joint ventures in the PRC, annual appropriations should be made to the “reserve fund”. For foreign invested enterprises, the annual appropriation for the “reserve fund” cannot be less than 10% of after-tax profits until the aggregated appropriations reach 50% of the registered capital (as determined under PRC GAAP at each year-end). If the Company has accumulated loss from prior periods, the Company is able to use the current period net income after tax to offset against the accumulate loss. Concentration of credit risk Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company places the cash and cash equivalents with financial institutions with high credit ratings and quality. The Company conducts credit evaluations of customers, and generally do not require collateral or other security from its customers. The Company establishes an allowance for doubtful accounts primarily based upon various factors surrounding the credit risk of specific customers and general economic conditions, refer to the current expected credit loss policy. Recently issued accounting pronouncements In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”. ASU 2019-12 simplifies the accounting for income taxes by removing exceptions within the general principles of Topic 740 regarding the calculation of deferred tax liabilities, the incremental approach for intraperiod tax allocation, and calculating income taxes in an interim period. In addition, the ASU adds clarifications to the accounting for franchise tax (or similar tax), which is partially based on income, evaluating tax basis of goodwill recognized from a business combination, and reflecting the effect of any enacted changes in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The ASU is effective for fiscal years beginning after December 15, 2020, and will be applied either retrospectively or prospectively based upon the applicable amendments. Early adoption is permitted. The adoption of this guidance will not have a material impact on the Company’s consolidated financial statements. Except as mentioned above, the Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company’s consolidated financial statements. |
Debt investments
Debt investments | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Debt investments | Note 3 – Debt investments Debt investments consist of the following: As of As of 2020 2019 Available-for-sale debt investments $ 40,835,000 $ - For the years ended December 31, 2020, 2019 and 2018, the Company purchased bonds facilitated by a third-party broker for the aggregate amount of approximately $104 million, nil and nil, approximately $63 million, nil and nil was redeemed during the same period, respectively. Approximately $41 million, nil and nil, was redeemed subsequent to the respective balance sheet dates. An aggregate interest income of approximately $0.8 million, nil and nil were included in the interest income in the consolidated statements of operations and comprehensive loss for the respective periods presented. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Accounts receivable, net | Note 4– Accounts receivable, net Accounts receivable, net consist of the following: As of As of 2020 2019 Accounts receivable $ 11,993,968 $ 9,900,458 Less: Allowance for doubtful accounts (4,788,855 ) (1,772,280 ) Accounts receivable, net $ 7,205,113 $ 8,128,178 Movements of allowance for doubtful accounts are as follows: For the year For the year For the year 2020 2019 2018 Allowance for doubtful accounts, beginning balance $ 1,772,280 $ 1,769,468 $ 1,849,985 Add: Provision for doubtful accounts 2,740,639 26,297 19,778 Effects of foreign exchange rate 275,936 (23,485 ) (100,295 ) Allowance for doubtful accounts, ending balance $ 4,788,855 $ 1,772,280 $ 1,769,468 |
Inventories, Net
Inventories, Net | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories, net | Note 5 – Inventories, net As of As of 2020 2019 Finished goods $ 2,230,580 $ 2,959,783 Work in process 31,303,333 48,177,240 Raw materials 28,370,424 18,131,911 61,904,337 69,268,934 Less: inventory write-down (58,059,246 ) (56,180,392 ) Inventories, net $ 3,845,091 $ 13,088,542 During the years ended December 31, 2020, 2019 and 2018, the Company recorded write-down for the potentially obsolete, slow-moving inventories and lower of cost or market adjustment of $3,644,243, $6,341,957 and $61,771,039 in cost of revenues, respectively. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, plant and equipment, net | Note 6 – Property, plant and equipment, net Property, plant and equipment, net consist of the following: As of As of 2020 2019 Buildings $ 3,927,085 $ 4,135,656 Mechanical equipment 19,562,087 18,432,857 Motor vehicles 348,941 321,719 Office equipment 6,772,941 1,678,977 Computer software 174,740 147,665 Leasehold improvement 218,004 219,370 Construction in progress 21,059,285 4,457,380 Total 52,063,083 29,393,624 Accumulated depreciation (22,939,840 ) (16,168,863 ) Property, plant and equipment, net $ 29,123,243 $ 13,224,761 For the year ended December 31, 2020, the Company paid approximately $11 million in cash and $6 million on credit primarily for the project-in-progress related to the construction of the Company’s facilities, primarily including manufacturing plants, warehouses and office buildings. Depreciation expense for the years ended December 31, 2020, 2019 and 2018 amounted to $6,347,738, $7,994,727 and $3,902,271, respectively. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets, net | Note 7 – Intangible assets, net The following table presents the Company’s intangible assets as of the respective balance sheet dates: As of As of 2020 2019 Land use right $ 2,927,874 $ 2,742,866 Non-patent technology 470,117 440,410 Software 3,345,742 3,134,328 License 19,879,743 - Total 26,623,476 6,317,604 Accumulated amortization (3,546,041 ) (2,533,451 ) Intangible assets, net $ 23,077,435 $ 3,784,153 During the year ended December 31, 2020, the Company paid approximately $12 million in cash and $8 million on credit primarily to obtain an exclusive license of a proprietary patent owned by Circle Line International Limited. The license grants the Company exclusive right to use the patent in Korea and export the product derived from such patent from Korea to other countries. The land use right with original cost of RMB18,117,700 (approximately $2,600,000) judicially frozen by the court from October 11, 2018 has been released on January 9, 2020. Please refer to note 17 – Contingencies for more details. Amortization expense for the years ended December 31, 2020, 2019 and 2018 amounted to $805,220, $861,023 and $897,079, respectively. Estimated future amortization expense related to intangible assets held as of December 31, 2020: Year 2021 $ 2,664,207 2022 2,608,606 2023 2,046,532 2024 2,046,532 2025 2,046,532 Thereafter 11,665,026 Total $ 23,077,435 |
Accrued Expenses and Other Paya
Accrued Expenses and Other Payables | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accrued expenses and other payables | Note 8 – Accrued expenses and other payables The components of accrued expenses and other payables are as follows: As of As of 2020 2019 Salary payable $ 794,022 $ 1,014,296 Interest payable - 772,218 Payable to consultants 1,527,340 1,576,278 License payable 7,951,898 - Refundable deposit to customers 1,230,142 6,255,741 Payable to property, plant and equipment suppliers 9,375,507 3,008,802 Other accrued liabilities 1,042,705 1,111,706 Total accrued liabilities and other payables $ 21,921,614 $ 13,739,041 Other accrued liabilities mainly consist of insurance payables, social security payables and accrued professional service fees. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Loans | Note 9 – Loans Outstanding balances of loans consist of the following: As of December 31, 2020 Balance Maturity Effective Collateral/ Hangzhou United Bank $ 765,967 September 7, 2021 5.50 % N/A As of December 31, 2019 Balance Maturity Effective Collateral/ Haitong International Credit Company Limited $ 4,871,795 January 10, 2020 8.6641 % See below Total short-term loan 4,871,795 Less: unamortized debt issuance costs 7,098 Loan due within one year, less unamortized debt issuance costs $ 4,864,697 The loan borrowed from Haitong International Credit Company Limited was secured by all of the assets, rights, title, interests and benefits of HK Ebang Technology and was guaranteed by Mr. Hu, the controlling shareholder and chief executive officer. Top Max Limited, principal shareholder of the Company, also mortgaged 48,061,530 of its shares for the loan. The loan has been paid off as of December 31, 2020. Interest expenses for the years ended December 31, 2020, 2019 and 2018 amounted to $728,346, $2,041,420 and $921,047, respectively. As of December 31, 2020, the Company’s future loan obligations according to the terms of the loan, including long-term loans from related party are as follows: 2021 $ 765,967 2022 and thereafter - Total $ 765,967 Also see Note 16 for related party loans. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Note 10 – Income taxes Cayman Islands Under the current laws of the Cayman Islands, Ebang International is not subject to tax on income or capital gain. Additionally, upon payments of dividends to the shareholders, no Cayman Islands withholding tax will be imposed. British Virgin Islands (“BVI”) The Company’s subsidiaries, Orient Plus, Power Ebang and Leader Forever, are incorporated in the BVI and under the current laws of the BVI, Orient Plus, Power Ebang and Leader Forever are not subject to tax on income or capital gain, In addition, payments of dividend by these subsidiaries to their shareholders are not subject to withholding tax in the BVI. Hong Kong HK Ebang Communications, HK Ebang Technology and HK Ebang Information are incorporated in Hong Kong and are subject to Hong Kong Profits Tax on the taxable income as reported in its statutory financial statements adjusted in accordance with relevant Hong Kong tax laws. The applicable tax rate is 8.25% on assessable profits arising in or derived from Hong Kong up to HKD2,000,000 and 16.5% on any part of assessable profits over HKD2,000,000. HK Ebang Communications, HK Ebang Technology and HK Ebang Information did not make any provisions for Hong Kong profit tax as there were no assessable profits derived from or earned in Hong Kong since inception. PRC Ebang Hongfa, Ebang Hongling, Wuhai Ebang, Zhejiang Ebang, Ebang IT, Yunnan Ebang, Hangzhou Yiquansheng, Hangzhou Dewang and Ebang Jusheng are governed by the income tax laws of the PRC and the income tax provision in respect to operations in the PRC is calculated at the applicable tax rates on the taxable income for the periods based on existing legislation, interpretations and practices in respect thereof. Under the Enterprise Income Tax Laws of the PRC (the “EIT Laws”), domestic enterprises and Foreign Investment Enterprises (the “FIE”) are usually subject to a unified 25% enterprise income tax rate while preferential tax rates, tax holidays and even tax exemption may be granted on case-by-case basis. EIT grants preferential tax treatment to certain High and New Technology Enterprises (“HNTEs”). Under this preferential tax treatment, HNTEs are entitled to an income tax rate of 15%, subject to a requirement that they re-apply for HNTE status every three years. Zhejiang Ebang obtained the “high-tech enterprise” tax status in November 2017, which reduced its statutory income tax rate to 15% from November 2017 to November 2020. Zhejiang Ebang further re-applied and obtained the HNTE status in December 2020. Hangzhou Dewang obtained the “high-tech enterprise” tax status in November 2018, which reduced its statutory income tax rate to 15% from November 2018 to November 2021. In addition, Ebang IT, was qualified as a software enterprise in 2018, and thus was entitled to a five-year tax holiday (full exemption for the first two years and a 50% reduction in the statutory income tax rate for the following three years) in 2018 until its software enterprise qualification expired in 2019. Reconciliation of the differences between statutory income tax rate and the effective tax rate The reconciliation of tax computed by applying the statutory income tax rate of 25% for the years ended December 31, 2020, 2019 and 2018 applicable to the PRC operations to income tax expenses is as follows: For the year For the year For the year 2020 2019 2018 Loss before income taxes 25.00 % 25.00 % 25.00 % Effect of expenses not deductible for tax purposes 0.00 % (0.03 )% (0.39 )% Effect of additional deduction of research and development expense 6.70 % 6.33 % 76.11 % Effect of income tax exemptions and reliefs (0.70 )% 0.01 % 23.18 % Effect of valuation allowance on deferred income tax assets (67.10 )% (29.70 )% (116.08 )% Income tax difference under different tax jurisdictions (2.20 )% - - Others (2.10 )% (2.59 )% (16.06 )% Total (40.40 )% (0.98 )% (8.24 )% Significant components of the provision for income taxes are as follows: For the year For the year For the year Current income tax expense $ 623,938 $ 533,078 $ 10,571,880 Deferred tax expense (benefit) 8,627,604 (132,767 ) (9,672,294 ) Income taxes provision $ 9,251,542 $ 400,311 $ 899,586 For the purpose of presentation in the consolidated balance sheets, deferred income tax assets and liabilities have been offset. Significant component of deferred tax assets and liabilities are as follows: As of As of 2020 2019 Provision for doubtful accounts $ 8,701,439 $ 8,530,250 Net operating loss carryforward 5,036,643 7,120,737 Accrued expenses and others 3,510,029 287,467 17,248,111 15,938,454 Less: valuation allowance (17,095,950 ) (7,120,737 ) Deferred tax assets $ 152,161 $ 8,817,717 Intangible assets $ 153,033 $ 263,278 Revenue and expense - 11,724 Deferred tax liabilities $ 153,033 $ 275,002 Total deferred tax assets (liabilities) $ (872 ) $ 8,542,715 In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the cumulative earnings and projected future taxable income in making this assessment. Recovery of substantially all of the Company’s deferred tax assets is dependent upon the generation of future income, exclusive of reversing taxable temporary differences. Uncertain tax positions The PRC tax authorities conduct periodic and ad hoc tax filing reviews on business enterprises operating in the PRC after those enterprises complete their relevant tax filings. In general, the PRC tax authorities have up to five years to conduct examinations of the tax filings of the Company’s PRC entities. Accordingly, the PRC subsidiaries’ tax years of 2015 through 2019 remain open to examination by the respective tax authorities. It is therefore uncertain as to whether the PRC tax authorities may take different views about the Company’s PRC entities’ tax filings, which may lead to additional tax liabilities. The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated with the tax positions. As of December 31, 2020 and 2019, the Company did not have any significant unrecognized uncertain tax positions. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Equity | Note 11 – Equity Ordinary shares Ebang International was established under the laws of the Cayman Islands on May 17, 2018. The authorized number of ordinary shares is 380,000,000 shares with a par value of HKD0.001 per ordinary share. Immediately upon the completion of the initial public offering (IPO), the Company adopted a dual-class share structure, consisting of Class A ordinary shares and Class B ordinary shares, with par value of HKD0.001 per share. 46,625,783 ordinary shares, beneficially owned by its incorporator Top Max Limited, were re-designated into Class B ordinary shares on a one-for-one basis, the remaining 65,145,217 ordinary shares were re-designated into Class A ordinary shares on a one-for-one basis. Each Class A ordinary share is entitled to one vote per share and each Class B ordinary share is entitled to twenty votes per share. Each Class B ordinary share can be converted into one Class A ordinary share at any time, while Class A ordinary shares cannot be converted into Class B ordinary shares. As of December 31, 2020, the Company completed the IPO with new issuance of totaling 19,264,337 Class A ordinary shares at a price of $5.23 per share. Net proceeds raised by the Company from the IPO amounted to approximately $92 million after deducting underwriting discounts and commissions and other offering expenses. The Company received all the net proceeds on July 2, 2020. The Company commenced an additional offering with new issuance of totaling 8,000,000 units at a price of $5.25 per unit in November 2020 (the “November 2020 Offering”), intending to raise $42 million funding prior to deducting underwriting discounts and commissions and other offering expenses. Each unit consists of one share of Class A ordinary shares and one warrant to purchase one-half of a Class A ordinary share. As of December 31, 2020, the Company issued 4,600,000 Class A ordinary shares following the sale of 4,600,000 units in relation to the November 2020 Offering and received a net proceeds of approximately $23 million. Warrants In connection with the 4,600,000 units sold in the November 2020 Offering, the Company issued 4,600,000 warrants to purchase 2,300,000 shares of Class A ordinary shares. The warrants are immediately exercisable and expire on the fifth anniversary of the original issuance date. The exercise price of each two warrant is $5.50. The warrants may be exercised only for a whole number of shares and the Company does not issue fractional shares upon exercise of the warrants. The following table sets forth the Company’s warrant activities for the years ended December 31, 2020, 2019 and 2018: Number of Weight- issuable exercise price Description Balance at January 1, 2018 - $ - Outstanding and exercisable at January 1, 2018 - - Balance at December 31, 2018 - - Outstanding and exercisable at December 31, 2018 - - Balance at December 31, 2019 - - Outstanding and exercisable at December 31, 2019 - - Granted 2,300,000 5.50 Balance at December 31, 2020 2,300,000 5.50 Outstanding and exercisable at December 31, 2020 2,300,000 $ 5.50 The intrinsic value of these warrants was approximately $1.3 million and nil as of December 31, 2020 and 2019, respectively. |
Operating leases
Operating leases | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Text Block [Abstract] | |
Operating leases | Note 12 – Operating leases The Company entered into operating lease agreements for factory buildings, office spaces and employee dormitories including lease agreements with its related party, with various initial term expiration dates through 2022 and various renewal and termination options. None of the amounts disclosed below for these leases contains variable payments, residual value guarantees or options that were recognized as part of the right-of-use assets and lease liabilities. As the Company’s leases did not provide an implicit discount rate, the Company used an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. As of December 31, 2020 and 2019, the Company recognized operating lease liabilities, including current and noncurrent, in the amount of $796,335 and $1,192,534, respectively, and the corresponding operating lease right-of-use assets of $916,036 and $1,317,342, respectively. Also see Note 16 for related party operating lease commitments. The following component of lease cost are included in the Company’s consolidated statements of operations and comprehensive loss: For the year For the year 2020 2019 Operating lease cost $ 704,264 $ 662,505 Short-term lease cost 29,007 116,728 Total lease cost $ 733,271 $ 779,233 Rent expense for the year ended December 31, 2018 was $627,565. Supplemental cash flow information related to operating leases were as follows: For the year For the year December 31, December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 690,626 $ 854,431 Supplemental lease cash flow disclosure Operating lease right-of-use assets obtained in exchange for operating lease liabilities $ 192,395 $ 1,142,321 Supplemental balance sheet information related to operating leases were as follows: As of As of December 31, December 31, 2020 2019 Operating lease right-of-use assets $ 898,335 $ 1,280,076 Operating lease right-of-use assets – related party 17,701 37,266 Total operating lease right-of-use assets 916,036 1,317,342 Operating lease liabilities, current $ 659,807 $ 793,521 Operating lease liabilities – related party, current 17,701 37,266 Operating lease liabilities, non-current 118,827 361,747 Total operating lease liabilities 796,335 1,192,534 Weighted average remaining lease term of operating leases 1.51 Years 2.36 years Weighted average discount rate of operating leases 6.5250 % 6.5250 % The Company’s maturity analysis of operating lease liabilities as of December 31, 2020 is as follows: Operating Leases 2021 $ 794,717 2022 26,995 2023 - 2024 - 2025 - Thereafter - Total lease payment 821,712 Less: imputed interest (25,377 ) Present value of operating lease liabilities 796,335 Less: current obligation (677,508 ) Long-term obligation at December 31, 2020 $ 118,827 |
Statutory reserves and restrict
Statutory reserves and restricted net assets | 12 Months Ended |
Dec. 31, 2020 | |
Statutory Reserves And Restricted Net Assets [Abstract] | |
Statutory reserves and restricted net assets | Note 13 – Statutory reserves and restricted net assets As a result of the PRC laws and regulations and the requirement that distributions by PRC entities can only be paid out of distributable profits computed in accordance with PRC GAAP, the PRC entities are restricted from transferring a portion of their net assets to the Company. Amounts restricted include paid-in capital, additional paid-in capital, and the statutory reserves of the Company’s PRC subsidiaries. As of As of PRC entities Additional paid-in capital $ 23,919,850 $ 23,707,488 Statutory reserves 11,049,847 11,049,847 Total restricted net assets $ 34,969,697 $ 34,757,335 As of December 31, 2020 and 2019, total restricted net assets were $34,969,697 and $34,757,335, respectively. |
Segment and revenue analysis
Segment and revenue analysis | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment and Revenue Analysis | Note 14 – Segment and revenue analysis The Company operates in a single operating segment that includes the selling of bitcoin mining machines and related accessories, telecommunication products and providing management and maintenance services. The following table summarizes the revenue generated from different revenue streams: For the year For the year For the year Revenue Product sale - Bitcoin mining machines and related accessories $ 7,951,296 $ 89,919,400 $ 307,126,878 Product sale - Telecommunication 1,725,982 3,336,413 3,729,529 Service - Management and maintenance 9,327,023 15,804,253 8,185,386 $ 19,004,301 $ 109,060,066 $ 319,041,793 The following table summarizes the revenues generated from different geographic region: For the year ended For the year ended For the year ended Geographic region Revenue Mainland China $ 18,962,130 $ 95,373,150 $ 291,523,362 United States of America 9,338 1,407,546 6,713,837 Hong Kong - 1,673,300 18,800,733 Other foreign countries 32,833 10,606,070 2,003,861 $ 19,004,301 $ 109,060,066 $ 319,041,793 |
Credit Risk and Major Customers
Credit Risk and Major Customers | 12 Months Ended |
Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Credit risk and major customers | Note 15 – Credit risk and major customers Accounts receivable concentration of credit risk is as below: As of As of 2020 2019 Customer A 19 % 15 % Customer B * % 12 % Customer C * % 15 % Customer D 24 % * % Customer E 10 % * % Supplier concentration of credit risk is as below: For the year For the year For the year 2020 2019 2018 Supplier F * % * % 61 % Supplier G * % 45 % * % Supplier H 44 % 18 % * % Supplier I 28 % * % * % Revenue concentration of credit risk is as below: For the year For the year For the year 2020 2019 2018 Customer J * * 13 % Customer K * 16 % * Customer E 20 % * * Customer L 18 % * * Customer D 12 % * * Customer M 10 % * * Customer N 10 % * * Customer O 10 % * * * Less than 10% |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related party transactions | Note 16 – Related party transactions a) Related parties Name of related parties Relationship with the Company Dong Hu Chief executive officer (CEO) of the Company Hong Kong Dewang Limited Wholly owned by Zhengqian Jiang, father-in-law of Dong Hu Zhejiang Wansi Computer Manufacturing Company Limited 68% owned by Aiqun Jiang, spouse of Dong Hu Hangzhou Yibang Zhiyang Technology Co., Ltd. Controlled by Dong Hu Top Max Limited Controlled by Dong Hu Shubo Qian Brother-in-law of Dong Hu Jun Hu Sister of Dong Hu b) Long-term loans from related party As of As of Hong Kong Dewang Limited $ - $ 17,632,000 During the year ended December 31, 2020, the Company obtained loans in the amount of $6,481,700 from Hong Kong Dewang Limited with interest rate of 4.7500% per annum. As of December 31, 2020, the Company has fully repaid the loan related to Hong Kong Dewang Limited. The interest associated with this loan for the amount of approximately $678,000, was included in the consolidated statement of operations and comprehensive loss. During the year ended December 31, 2019, the Company obtained loans in the amount of $17,632,000 from Hong Kong Dewang Limited with interest rate of 4.7500% per annum. The maturity dates of the loans existing as of December 31, 2019 ranged from June 5, 2022 to September 30, 2022. The principal and interests shall be repaid in full on the maturity date. c) Operating leases with related party: The Company leases office space from Zhejiang Wansi Computer Manufacturing Company Limited under non-cancellable operating lease agreements with lease terms ranging from two to three years. Lease expense from related party for the years ended December 31, 2020, 2019 and 2018 amounted to $29,582, $29,545 and $37,198, respectively. d) Due to related party The balance of due to related party represents advances the Company obtained from a related party. The balances owed to the related party are unsecured, non-interest bearing and payable on demand. As of December 31, 2020 and 2019, due to related party consisted of the followings: As of As of December 31, December 31, 2020 2019 Zhejiang Wansi Computer Manufacturing Company Limited $ 5,652,833 $ 6,242,824 For the year ended December 31, 2020, the Company borrowed approximately $1.8 million from and repaid approximately $2.8 million to Zhejiang Wansi Computer Manufacturing Company Limited, respectively. For the year ended December 31, 2019, the Company borrowed approximately $6.5 million from and repaid approximately $217,000 to Zhejiang Wansi Computer Manufacturing Company Limited, respectively. e) Interest free loans from related party During the year ended December 31, 2020, the Company borrowed $749,949 from Dong Hu and fully repaid the loan in the same period. The loan is unsecured, non-interest bearing and payable on demand. During the year ended December 31, 2019, the Company borrowed $1,050,000 from Shubo Qian, a related party and fully repaid the loan in the same period. The loan is unsecured, non-interest bearing and payable on demand. During the year ended December 31, 2019, the Company borrowed RMB14,500,000 (approximately $2,081,000) from Jun Hu, a related party and fully repaid the loan in the same period. The loan is unsecured, non-interest bearing and payable on demand. f) Disposal of a subsidiary to a related party In December 2020, the Company disposed Hangzhou Yiquansheng to an affiliate controlled by Mr. Dong Hu, CEO of the Company, for RMB500,000. The gain on disposal of Hangzhou Yiquansheng is accounted for as a capital contribution from Dong Hu, CEO as a result of this transaction between entities under common control of Dong Hu. The disposal of Hangzhou Yiquansheng does not constitute a strategic shift of the Company’s operation. During the year ended December 31, 2020, Hangzhou Yiquansheng borrowed approximately $562,000 from the affiliate controlled by Mr. Dong Hu. The liability was extinguished in connection with the disposal of Hangzhou Yiquansheng, related gain on extinguishment is included in the gain on disposal, accounted for as a capital contribution. g) Loan guarantee and pledge provided by related parties During the year ended December 31, 2018, the Company entered into a facility agreement with Haitong International Credit Company Limited. The loan was pledged, among other things, by the Company’s ordinary shares owned by Top Max Limited and guaranteed by Dong Hu. The pledge and guarantee were released upon the full repaid of the loan in the year ended December 31, 2020. See Note 9. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Note 17 – Contingencies On July 16, 2018, Wangjing Technology (Suzhou) Co., Ltd. (“Wangjing Technology”) filed a copyright infringement dispute against Zhejiang Ebang and three other defendants. On January 1, 2016, due to production and operation needs, Zhejiang Ebang entrusted the fourth defendant Suzhou Qiao Network Technology Co., Ltd. (“Suzhou Qiao”) to carry out technical development (involving products: embedded software for gateway). In the process of technical cooperation, the software developed by the fourth defendant Suzhou Qiao was charged for copyright infringement and Zhejiang Ebang is thereby involved in the case. The plaintiff, Wangjing Technology sued the defendants in this case to jointly compensate the plaintiff for the economic losses and reasonable rights maintenance costs totalling RMB3 million (approximately $431,000). On August 6, 2020, Zhejiang Ebang received the judgment of the first trial of the case, and the judgment was as follows: 1) Zhejiang Ebang and Suzhou Qiao should immediately cease the infringement of the plaintiff’s software copyright. 2) Zhejiang Ebang and Suzhou Qiao should jointly compensate the plaintiff by RMB0.5 million (approximately $71,000). 3) Zhejiang Ebang should publish notices on its official website regarding the copyright infringement involved in the case for no less than 15 consecutive days. 4) The Court rejected the plaintiff’s other claims. Zhejiang Ebang has filed an appeal and the judgement of the first trial has not yet become effective due to the appeal. On January 27, 2021, the case has been held online for trail investigation. The result of this case is still pending. Further, at this stage, the management of the Company, together with the trial counsel of this case, do not believe the possibility and magnitude of the outcomes of the aforementioned lawsuit can be reasonably estimated. On September 3, 2018, one of the customers filed a civil action in the Hangzhou Intermediate People’s Court against the Company in relation to the sales orders placed by the customer in December 2017 for 500 units of mining machines, primarily alleging (1) the late delivery of certain of the products and (2) the failure of the products to meet advertised performance and product quality specifications. The plaintiff claimed damages totaling approximately RMB53.9 million (approximately $7,735,000) and demanded rescission of the original purchase contract. The Court has forced to restrict cash amounted to RMB14,934,103 (approximately $2,143,000) from the Company’s bank accounts for the period from September 18, 2018 to September 17, 2019. On November 5, 2019, the Hangzhou Intermediate People’s Court ruled that Zhejiang Ebang shall pay the plaintiff, within 10 days after the verdict becoming effective, liquidity damages and logistics expenses totaling RMB178,611 (approximately $26,000) and rejected the plaintiff’s other requests. The plaintiff has filed an appeal, and in April 2020, the Hangzhou Higher People’s Court dismissed the appeal and affirmed the original judgement. An aggregate amount of RMB13,319,900 (approximately $1,912,000) was judicially frozen by the court has been released on April 15, 2020. The land use right with original cost of RMB18,117,700 (approximately $2,600,000) judicially frozen by the court from October 11, 2018 has been released on January 9, 2020. On January 29, 2019, the Company filed a civil action in the Hangzhou Intermediate People’s Court against one of its customers. The defendant had purchased from the Company, and the Company had delivered 90,000 units of mining machines for a total amount of RMB453.6 million (approximately $65,098,000) pursuant to an executed sales contract. The defendant has paid RMB380 million (approximately $54,535,000), and the Company is seeking payment of the remaining balance of RMB73.6 million (approximately $10,563,000) plus interest and legal expenses. On August 15, 2019, the defendant filed a counterclaim against the Company, primarily alleging incompletion of delivery of products, only 65,000 units out of 90,000 units of mining machines were delivered and accepted, and the defendant sought for the refund of the payment of the alleged undelivered products of 25,000 mining machines amounted to RMB52.4 million (approximately $7,520,000) plus interest and legal expenses. On July 17, 2020, the Hangzhou Intermediate People’s Court ruled that it had no jurisdiction over these claims, and the Company has filed an appeal, and such application was accepted on August 31, 2020. On October 15, 2020, the Zhejiang High People’s Court ruled that this case shall be tried in the Hangzhou Intermediate People’s Court. Both claims are now under trial. Further, at this stage, the management of the Company, together with the trail counsel of this case, do not believe the possibility and magnitude of the outcomes of the aforementioned lawsuit can be reasonably estimated. On March 18, 2019, the Company filed a civil action in the Baoshan Intermediate People’s Court against one of its customers. The defendant had purchased from the Company, and the Company had delivered 10,000 units of mining machines for a total amount of RMB50.4 million (approximately $7,233,000). The defendant has paid RMB20 million (approximately $2,870,000), and the Company is seeking the payment of the outstanding balance of RMB30.4 million (approximately $4,363,000). On September 23, 2019, the defendant filed a counterclaim against the Company, primarily alleging failure to deliver products of 10,000 units of mining machines, and sought for the refund of the payment of the alleged undelivered products amounted to RMB10 million (approximately $1,435,000) plus interest and legal expenses. On December 29, 2020, the court dismissed the counterclaim and rendered a judgement in the Company’s favor where it held that the defendant should pay the outstanding balance of RMB30.4 million (approximately US$4.4 million) within 30 days of the date of such judgement. As of December 31, 2020, the defendant has appealed such judgement and the date of the hearing has not been determined. Further, at this stage, the management of the Company, together with the trail counsel of this case, do not believe the possibility and magnitude of the outcomes of the aforementioned lawsuit can be reasonably estimated. On June 24, 2019, one of our customers filed a civil action in the Hangzhou Intermediate People’s Court against the Company in relation to the sales of 80,000 units of mining machines amounting to RMB403.2 million (approximately $57,865,000) pursuant to an executed sales contract. The plaintiff claimed that only 24,000 units out of the 80,000 units were received, and the remaining 56,000 units were still pending to be delivered. For the delivered 24,000 units of mining machines, the quality did not meet the plaintiff’s specifications. The plaintiff sought to rescind the sales contract and supplementary contract, return the 24,000 units of mining machines, which cannot meet the agreed performance, and asked for the return of partial payment totaling RMB120.96 million (approximately $17,359,000) under the sales contract and undertake the legal expenses. On June 29, 2020, the Hangzhou Intermediate People’s Court ruled to allow the plaintiff to withdraw the lawsuit and the case was closed. On November 22, 2019, the Company brought a counterclaim against the customer and the ultimate beneficial owner of the mining machines, alleging that the Company have delivered all 80,000 units of mining machines and sought for the remaining payment of RMB282.2 million (approximately $40,499,000) plus interest. The Company subsequently withdrew such claim in order to amend the pleading and add one more defendant. On December 8, 2020, the Hangzhou Intermediate People’s Court approved such withdrawal. On December 24, 2020, the Company filed a new claim in the Hangzhou Intermediate People’s Court based on the same cause of action. As of December 31, 2020, the case is still under review by the court. Further, at this stage, the management of the Company, together with the trail counsel of this case, do not believe the possibility and magnitude of the outcomes of the aforementioned lawsuit can be reasonably estimated. On November 19, 2019, the Company filed a civil action in the High Court of the Hong Kong Special Administrative Region, Court of First Instance against one of the Company’s suppliers, alleging breach of contract for delivering defective products and seeking damages in the total of $25.1 million plus interest and costs. Further, at this stage, the management of the Company, together with the trail counsel of this case, do not believe the possibility and magnitude of the outcomes of the aforementioned lawsuit can be reasonably estimated. In April 2021, the Company was made aware that class action lawsuits had been filed by several law firms on behalf of the Company’s investors, alleging, among other things, that the Company made materially false and misleading statements regarding the Company's business. As of the date of this annual report, the Company has not been served with any notice of lawsuits and therefore cannot reasonably assess the likelihood of any unfavorable outcome. From time to time, the Company is subject to legal proceedings and claims in the ordinary course of business. The Company records a liability when it is both probable that a liability will be incurred and the amount of the loss can be reasonably estimated. The Company reviews the need for any such liability on a regular basis and has not recorded any material liabilities in this regard during 2020, 2019 and 2018. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent events | Note 18 – Subsequent events The Company has evaluated subsequent events through the date the consolidated financial statements were issued and filed with the Securities and Exchange Commission. Based on the Company’s evaluation, no other event has occurred requiring adjustment or disclosure in the notes to the consolidated financial statements, except the following: As of March 11, 2021, the Company has fully repaid the loans to Zhejiang Wansi Computer Manufacturing Company Limited. In January 2021, the Company completed the November 2020 Offering by selling another 3,400,000 units for net proceeds of approximately $17 million. The units issued consisting an aggregate of 3,400,000 shares of Class A ordinary shares and 3,400,000 warrant which can be exercised for 1,700,000 shares of Class A ordinary shares. In February 2021, the Company launched another offering for an aggregate of 19,200,000 units at $5 per Unit (the “February 2021 Offering”). Each unit offered in the February 2021 Offering consist of one Class A ordinary share and one warrant to purchase one-half of one Class A ordinary share. The warrants are immediately exercisable and expire on the fifth anniversary of the original issuance date. The exercise price of each two warrant is $5.25. The warrants may be exercised only for a whole number of shares and the Company does not issue fractional shares upon exercise of the warrants. Upon completion of the February 2021 Offering, the Company received net proceeds of approximately $90 million. The Company also entered into inducement agreements with certain investors (the “Holders”) in February 2021 to induce them to exercise the warrants issued to them in connection with the November 2020 Offering and the February 2021 Offering for all 13,600,000 Class A ordinary shares available for exercise thereunder (the “Warrant Inducement Offering”). The Holders exercised these warrants, in full, and were issued 13,600,000 Class A ordinary shares as a result of such exercises, with the Company receiving aggregate net proceeds of approximately $68 million after deducting sales commissions payable to the warrant solicitation agents and related expenses. Additionally, as consideration for their exercise of such warrants, the Company issued to the Holders the new warrants, which are exercisable, anytime within five (5) years from the date on which they became exercisable, at an exercise price of $11.06 per share, for an aggregate of up to the 13,600,000 Class A ordinary shares. In March 2021, the Company launched another offering for an aggregate of 14,000,000 units at $6.1 per unit (the “March 2021 Offering”). Each unit offered in the March 2021 Offering consist of one Class A ordinary share and one warrant to purchase one-half of one Class A ordinary share. The warrants are immediately exercisable and expire on the fifth anniversary of the original issuance date. The exercise price of each two warrant is $6.59. The warrants may be exercised only for a whole number of shares and the Company does not issue fractional shares upon exercise of the warrants. Upon completion of the March 2021 Offering, the Company received net proceeds of approximately $80 million. In April 2021, the Company was made aware that several class action lawsuits had been filed by law firms on behalf of the Company’s investors, alleging, among other things, that the Company made materially false and misleading statements regarding the Company's business. See Note 17. |
Condensed financial information
Condensed financial information of the parent company | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed financial information of the parent company | Note 19 – Condensed financial information of the parent company The Company performed a test on the restricted net assets of consolidated subsidiaries in accordance with Securities and Exchange Commission Regulation S-X Rule 5-04 and concluded that it was applicable for the Company to disclose the financial statements for the parent company. 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. The Parent Company and its subsidiaries were included in the consolidated financial statements whereby the inter-company balances and transactions were eliminated upon consolidation. The Parent Company’s share of loss from its subsidiaries is reported as “share of loss from subsidiaries” 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 US GAAP have been condensed or omitted. The subsidiaries did not pay any dividend to the Company for the years presents. As of December 31, 2020 and 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. (a) Condensed balance sheets December 31, December 31, 2020 2019 Assets Current assets: Cash and cash equivalents $ 8,318,219 $ 21,770 Debt investments 40,835,000 - Other current assets, net 868,949 - Due from subsidiaries 46,448,162 - Total current assets 96,470,330 21,770 Non-current assets: Intangible assets, net 19,714,079 - Investment in subsidiaries (5,030,523 ) 18,022,460 Total non-current assets 14,683,556 18,022,460 Total assets $ 111,153,886 $ 18,044,230 Liabilities and Shareholders’ Equity Current liabilities: Accrued liabilities and other payables $ 8,027,480 - Due to subsidiaries - $ 64,871 Total current liabilities 8,027,480 64,871 Total liabilities $ 8,027,480 $ 64,871 Shareholders’ equity: Ordinary share, HKD0.001 par value, 380,000,000 shares authorized, nil and 111,771,000 shares issued and outstanding at December 31, 2020 and 2019, respectively - 14,330 Class A ordinary share, HKD0.001 par value, 333,374,217 shares authorized, 89,009,554 and nil shares issued and outstanding as of December 31, 2020 and 2019, respectively 11,411 - Class B ordinary share, HKD0.001 par value, 46,625,783 shares authorized, 46,625,783 and nil shares issued and outstanding as of December 31, 2020 and 2019, respectively 5,978 - Additional paid-in capital 138,288,921 23,888,023 Accumulated deficit (38,581,419 ) (7,905,999 ) Statutory reserves 11,049,847 11,049,847 Accumulated other comprehensive loss (7,648,332 ) (9,066,842 ) Total shareholders’ equity 103,126,406 17,979,359 Total liabilities and shareholders’ equity $ 111,153,886 $ 18,044,230 (b) Condensed statements of operations and comprehensive loss For the year ended For the year ended For the year ended Operating expenses: General and administrative expenses $ 6,401,580 $ 385,865 $ 249,107 Total operating expenses 6,401,580 385,865 249,107 Loss from operations (6,401,580 ) (385,865 ) (249,107 ) Interest income 798,328 4 12 Other expenses (4,162 ) (1,390 ) (724 ) Exchange gain 340,643 529 - Share of loss from subsidiaries (25,408,649 ) (42,016,647 ) (12,058,675 ) Net loss (30,675,420 ) (42,403,369 ) (12,308,494 ) Comprehensive loss Net loss $ (30,675,420 ) $ (42,403,369 ) $ (12,308,494 ) Other comprehensive income (loss): Foreign currency translation adjustment 1,418,510 (1,188,488 ) (11,363,682 ) Comprehensive loss $ (29,256,910 ) $ (43,591,857 ) $ (23,672,176 ) (c) Condensed statements of cash flows For the year ended For the year ended For the year ended Cash Flows from Operating Activities: Net loss $ (30,675,420 ) $ (42,403,369 ) $ (12,308,494 ) Adjustments to reconcile net loss to net cash used in operating activities: Share of loss from subsidiaries 25,408,649 42,016,647 12,058,675 Amortization Expense 165,664 - - Changes in assets and liabilities: Due from subsidiaries (46,448,162 ) 193,591 (193,590 ) Other current assets, net (868,949 ) - - Accrued liabilities and other payables 75,583 - - Due to subsidiaries (64,871 ) 64,871 - Net Cash Used in Operating Activities (52,407,506 ) (128,260 ) (443,409 ) Cash Flows from Investing Activities Cash paid for debt investments (79,915,000 ) - - Proceeds from redemption of debt investments 39,080,000 - - Purchases of intangible assets (11,927,846 ) - - Net Cash Used in Investing Activities (52,762,846 ) - - Cash Flows from Financing Activities Sale of subsidiary 76,566 - - Capital contribution from shareholder - - 7,700 Issuance of ordinary shares for cash 114,191,595 - 585,739 Net Cash Provided by Financing Activities 114,268,161 - 593,439 Effect of Foreign Exchange on Cash (801,360 ) - - Net Increase (Decrease) in Cash and Cash Equivalents 8,296,449 (128,260 ) 150,030 Cash and Cash Equivalents at Beginning of Year 21,770 150,030 - Cash and Cash Equivalents at End of Year 8,318,219 $ 21,770 $ 150,030 |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for information pursuant to the rules and regulations of the SEC. |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. |
Reclassification | Reclassification Certain prior year amounts have been reclassified to conform to the current period presentation. These reclassifications had no impact on net earnings or equity. |
Non-controlling Interest | Non-controlling Interest Non-controlling interest on the consolidated balance sheets is resulted from the consolidation of Hangzhou Dewang, a 51.05% owned subsidiary. The portion of the income or loss applicable to the non-controlling interest in subsidiary is reflected in the consolidated statements of operations and comprehensive loss. |
Use of estimates and assumptions | Use of estimates and assumptions The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the balance sheet date and revenues and expenses during the reporting periods. Significant accounting estimates reflected in the Company’s consolidated financial statements including, but not limited to, estimates for inventory write-down, useful lives and impairment of long-lived assets, income taxes including valuation allowance for deferred tax assets, and allowance for doubtful accounts. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences may be material to the consolidated financial statements. |
Foreign currency translation and transaction | Foreign currency translation and transaction The accompanying consolidated financial statements are presented in the United States dollar (“$”), which is the reporting currency of the Company. The functional currency of HK Ebang Communications and HK Ebang Information is United State dollars, and the functional currency of Ebang International, HK Ebang Technology and all BVI entities is Hong Kong dollar (“HKD”). The functional currency of the PRC subsidiaries is Renminbi (“RMB”). Assets and liabilities denominated in currencies other than the reporting currency are translated into the reporting currency at the rates of exchange ruling at the balance sheet date. Translation gains and losses are recognized in the consolidated statements of operations and comprehensive loss as other comprehensive income or loss. Transactions in currencies other than the reporting currency are measured and recorded in the reporting currency at the exchange rate prevailing on the transaction date. The cumulative gain or loss from foreign currency transactions is reflected in the consolidated statements of operations and comprehensive loss as other income (other expenses). For Ebang International, HK Ebang Technology and all BVI entities, except for the equity, the balance sheet accounts at December 31, 2020 and 2019 and results of operations and cash flows for the years ended December 31, 2020, 2019 and 2018 were translated at HKD7.8 to $1.00. For all PRC subsidiaries, the balance sheet accounts, with the exception of equity, at December 31, 2020 and 2019 were translated at RMB6.5277 and RMB6.9680 to $1.00, respectively. The equity accounts were translated at their historical rate. The average translation rates applied to statements of operations for the years ended December 31, 2020, 2019 and 2018 were RMB6.9001, RMB6.9088 and RMB6.6146 to $1.00, respectively. Cash flows were also translated at average translation rates for the periods, therefore, amounts reported on the statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents consist of cash on hand, demand deposits and time deposits placed with banks or other financial institutions and have original maturities of less than three months. |
Restricted cash | Restricted cash Restricted cash mainly represents the bank deposit used to pledge the bank acceptance notes and bank deposit pledged in exchange for guarantee services. It also represents the bank deposits judicially frozen by the court. As of December 31, 2020 and 2019, the Company had restricted cash balance of $454,312 and $2,313,905, respectively. See Note 17 – Contingencies for more details. |
Notes receivable and notes payable | Notes receivable and notes payable Notes receivable, generally due within twelve months and with specific payment terms and definitive due dates, are comprised of the bank acceptance notes issued by some customers to pay certain outstanding receivable balances to the Company. Notes payable represents bank acceptance notes issued by the Company to its vendors in the normal course of business. Bank acceptance notes do not bear interest. As of December 31, 2020 and 2019, notes receivables in the amount of $765,967 and nil, respectively, were pledged to endorsing banks to issue bank acceptance notes payable. |
Debt investments | Debt investments Debt investments include the Company's investments in bonds and such investments are recorded as available-for-sale securities. Available-for-sale securities are reported at fair value, with unrealized gains and losses recorded in accumulated other comprehensive loss on the consolidated balance sheets. Realized gains and losses from the sale of available-for-sale securities are determined on an aggregate approach basis and are included in the consolidated statements of operations and comprehensive loss. If the fair value of an available-for-sale debt security is below its amortized cost, the Company assesses whether it intends to sell the security or if it is more likely than not the Company will be required to sell the security before recovery. If either of those two conditions is met, the Company would recognize a charge in earnings equal to the entire difference between the security's amortized cost basis and its fair value. If the Company does not intend to sell a security or it is not more likely than not that it will be required to sell the security before recovery, the unrealized loss is separated into an amount representing the credit loss, which is recognized in earnings, and the amount related to all other factors, which is recognized in accumulated other comprehensive loss. Premiums and discounts are amortized or accreted over the life of the related available-for-sale security as an adjustment to yield using the effective-interest method. Interest income are recognized when earned. |
Current expected credit losses | Current expected credit losses In 2016, the FASB issued ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (including all amendment subsequently issued thereto, “ASC Topic 326”), which amends previously issued guidance regarding the impairment of financial instruments by creating an impairment model that is based on expected losses rather than incurred losses. The Company adopted this ASC Topic 326 on January 1, 2020 using a modified retrospective approach. The adoption did not have a material impact on the Company’s previously reported consolidated financial statements in any prior period nor did it result in a cumulative effect adjustment to beginning accumulated deficit. As of January 1, 2020, the Company’s financial assets, primarily accounts receivable and other receivable, are within the scope of ASC Topic 326. The Company has identified the relevant risk characteristics of its customers and the related receivables and other current assets which include type of the products and services the Company provides, nature of the customers or a combination of these characteristics. Receivables with similar risk characteristics have been grouped into pools. For each pool, the Company considers the historical credit loss experience, current economic conditions, supportable forecasts of future economic conditions, and any recoveries in assessing the lifetime expected credit losses. Other key factors that influence the expected credit loss analysis include customer demographics, payment terms offered in the normal course of business to customers, and industry-specific factors that could impact the Company’s receivables. Additionally, external data and macroeconomic factors are also considered. |
Inventories, net | Inventories, net Inventories, consisting of finished goods, work in process, and raw materials. Inventories are stated at the lower of cost and net realizable value. Cost of inventory is determined using the weighted average cost method. Adjustments are recorded to write down the cost of inventory to the estimated net realizable value due to slow-moving and obsolete inventory, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. The Company takes ownership, risks and rewards of the products purchased. |
Property, plant and equipment, net | Property, plant and equipment, net Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The estimated useful lives are as follows: Buildings 20 years Computer software 10 years Leasehold improvements Over the shorter of the lease term or expected useful lives Office equipment 3-5 years Motor vehicles 5 years Mechanical equipment 3-10 years The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the consolidated statements of operations and comprehensive loss. Expenditures for maintenance and repairs are charged to earnings as incurred, while additions, renewals and betterments, which are expected to extend the useful life of assets, are capitalized. Construction in progress represents assets under construction. All direct costs relating to the construction are capitalized as construction in progress. Construction in progress is not depreciated until the asset is placed in service. |
Intangible assets, net | Intangible assets, net The Company’s intangible assets with definite useful lives primarily consist of software, non-patent technology, license and land use right. The Company typically amortizes its software, non-patent technology and license with definite useful lives on a straight-line basis over the shorter of the contractual terms or the estimated useful lives. According to the law of PRC, the government owns all the land in the PRC. Companies or individuals are authorized to possess and use the land only through land use rights granted by the Chinese government for a specified period of time. The Company amortizes its land use rights using the straight-line method over the periods the rights are granted. The estimated useful lives are as follows: Land use right 50 years Software 65 months License 10 year Non-patent technology 1 year |
Impairment for long-lived assets | Impairment for long-lived assets Long-lived assets, including property, plant and equipment, right-of-use assets and intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, the Company would reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. For the years ended December 31, 2020, 2019 and 2018, no impairment of long-lived assets was recognized. |
Fair value measurement | Fair value measurement The accounting standard regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company. The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures. The three levels are defined as follow: ● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. Unobservable inputs reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information. ASC 820 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. In August 2018, the FASB issued ASU No. 2018-13 “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement”. This ASU modifies the disclosures related to recurring and nonrecurring fair value measurements. Disclosures related to the transfer of assets between Level 1 and Level 2 hierarchies have been eliminated and various additional disclosures related to Level 3 fair value measurements have been added, modified or removed. The Company adopted this ASU on January 1, 2020 and it did not have a material impact on its consolidated financial statements. The financial asset carried at fair value on a recurring basis at December 31, 2020 and 2019 is as follows: Quoted Significant Significant Total Debt investments As of December 31, 2020 $ - 40,835,000 - 40,835,000 As of December 31, 2019 $ - - - - Financial instruments included in current assets and current liabilities except for debt investments, operating lease liability – related party, current and due to related party are reported in the consolidated balance sheets at face value or cost, which approximate fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rates of interest. |
Related party transactions | Related party transactions 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 operational decisions. Parties are also considered to be related if they are subject to common control or common significant influence. Related parties may be individuals or corporate entities. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated. It is not, however, practical to determine the fair value of amounts due from/to related parties due to their related party nature. |
Revenue recognition | Revenue recognition The Company has adopted the new revenue standard, ASC 606, Revenue from Contracts with Customers (Topic 606) for all periods presented. Consistent with the criteria of Topic 606, the Company recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to receive in exchange for those goods or services. Value-added tax that the Company collects concurrent with revenue-producing activities is excluded from revenue. Products revenue The Company generates revenue primarily from the sale of bitcoin mining machines and related accessories directly to a customer, such as a business or individual engaged in bitcoin mining activities. The Company recognizes revenue at a point in time when the control of the products has been transferred to customers. The transfer of control is considered complete when products have been picked up by or shipped to customers. The Company’s sales arrangements for bitcoin mining machines usually require a full prepayment before the delivery of products. The advance payment is not considered a significant financing component because the period between the Company transfers a promised good to a customer and when the customer pays for that good is short. As the bitcoin price experienced a significant downtrend during 2018, the Company started to offer credit sales to certain customers. The payment terms under credit sales generally consist of full payment of consideration within one year after shipping date. The Company also generates revenue from the sale of telecommunication products directly to a customer, such as a business or individual engaged in telecommunication businesses. The Company recognizes revenue at a point in time when products are delivered and customer acceptance is made. For the sales arrangements of telecommunications products, the Company generally requires payment upon issuance of invoices. The Company elected to account for shipping and handling fees that occur after the customer has obtained control of goods, for instance, free onboard shipping point arrangements, as a fulfilment cost and accrues for such costs. Service revenue The Company also generate a small portion of revenue from management and maintenance services under separate contracts. Revenue from management and maintenance services include service fees for provision of mining machine hosting services to customers, and provision of maintenance service. Revenue from the maintenance service to the customer is recognized at a point in time when services are provided. Revenue from the management service to the customer is recognized as the performance obligation is satisfied over time over the service period. Revenue disaggregation Management has concluded that the disaggregation level is the same under both the revenue standard and the segment reporting standard. Revenue under the segment reporting standard is measured on the same basis as under the revenue standard. See Note 14 for information regarding revenue disaggregation by product lines and countries. Contract liabilities Contract liabilities are recorded when consideration is received from a customer prior to transferring the goods or services to the customer or other conditions under the terms of a sales contract. As of December 31, 2020 and 2019, the Company recorded contract liabilities of $832,842 and $1,015,675, respectively, which was presented as advances from customers on the accompanying consolidated balance sheets. During the years ended December 31, 2020, 2019 and 2018, the Company recognized $279,423, $1,832,391 and $121,604,493, of contract liabilities as revenue, respectively. |
Segment reporting | Segment reporting The Company uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. The Company’s chief operating decision maker has been identified as the chief executive officer of the Company who reviews financial information based on U.S. GAAP. The chief operating decision maker now reviews results analyzed by marketing channel. This analysis is only presented at the revenue level with no allocation of direct or indirect costs. Consequently, the Company has determined that it has only one operating segment. |
Selling and handling expenses | Selling and handling expenses Selling and handling costs amounted to $96,997, $97,719 and $1,233,527 for the years ended December 31, 2020, 2019 and 2018, respectively. Selling and handling costs are expensed as incurred and included in selling expenses. |
General and administrative expenses | General and administrative expenses General and administrative expenses consist primarily of research and development expenses, salary and welfare for general and administrative personnel, rental expenses, depreciation and amortization in associated with general and administrative personnel, allowance for doubtful accounts, entertainment expense, general office expense and professional service fees. The Company recognizes research and development expenses as expense when incurred. Research and development expenses amounted to $8,459,765, $13,367,396 and $43,488,851 for the years ended December 31, 2020, 2019 and 2018, respectively. |
Operating leases | Operating leases Prior to the adoption of ASC 842 on January 1, 2019: Leases, mainly leases of factory buildings, offices and employee dormitories, 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 Company had no finance leases for any of the periods stated herein. Upon and hereafter the adoption of ASC 842 on January 1, 2019: 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 used an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company has elected to adopt the following lease policies in conjunction with the adoption of ASU 2016-02: (i) 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 (ii) 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. |
Government grants | Government grants Government grants represent cash subsidies received from PRC government. Cash subsidies which have no defined rules and regulations to govern the criteria necessary for companies to enjoy the benefits are recognized when received. Such subsidies are generally provided as incentives from the local government to encourage the expansion of local business. Total government grants received amounted to $4,006,567, $6,298,893 and $798,680 for the years ended December 31, 2020, 2019 and 2018, respectively. |
Value-added taxes | Value-added taxes Revenue is recognized net of value-added taxes (“VAT”). VAT is based on gross sales price and the VAT rate applicable to the Company is 17% for the period from the beginning of 2018 till the end of April 2018, then changed to 16% from May 2018 to the end of March 2019, and changed to 13% since April 2019. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded as VAT payable if output VAT is larger than input VAT and is recorded as VAT recoverable if input VAT is larger than output VAT. All of the VAT returns filed by the Company’s subsidiaries in China, have been and remain subject to examination by the tax authorities. Pursuant to Caishui (2011) No. 100 issued by the State Tax Bureau of the PRC, Zhejiang Ebang and Ebang IT are qualified as enterprises selling self-developed software products and enjoying a tax refund for the excess of 3% of their actual tax burden after the VAT is levied at the 17% or 16% or 13% tax rate since January 2011. Tax refund is recognized when received. During the years ended December 31, 2020, 2019 and 2018, total VAT refund received was nil, $9,138 and $27,368,030 from the sales of bitcoin mining machine, respectively. |
Income taxes | Income taxes The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. The charge for taxation is based on the results for the fiscal year as adjusted for items, which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred taxes are accounted for using the asset and liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the consolidated financial statements and the corresponding tax basis used in the computation of assessable tax profit. In principle, deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which deductible temporary differences can be utilized. Deferred tax is calculated using tax rates that are expected to apply to the period when the asset is realized or the liability is settled. Deferred tax is charged or credited in the income statement, except when it is related to items credited or charged directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities. An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. No penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. |
Comprehensive loss | Comprehensive loss Comprehensive loss consists of two components, net loss and other comprehensive loss. Other comprehensive loss refers to revenues, expenses, gains and losses that under GAAP are recorded as an element of shareholders’ equity but are excluded from net loss. Other comprehensive loss consists of a foreign currency translation adjustment resulting from the Company not using the United States dollar as its functional currencies. |
Earnings per share | Earnings per share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share”. ASC 260 requires companies to present basic and diluted EPS. Basic EPS is measured as net income (loss) attributable to Ebang International Holdings Inc. divided by the weighted average ordinary share outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of the potential ordinary shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential ordinary shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. As the Company recognized a net loss for the year ended December 31, 2020, the outstanding warrants were not recognized in the diluted EPS calculations as they would be antidilutive. There were no dilutive shares or other instruments outstanding as of December 31, 2019 and 2018. |
Statutory reserves | Statutory reserves Pursuant to the laws applicable to the PRC, PRC entities must make appropriations from after-tax profit to the non-distributable “statutory surplus reserve fund”. Subject to certain cumulative limits, the “statutory surplus reserve fund” requires annual appropriations of 10% of after-tax profit until the aggregated appropriations reach 50% of the registered capital (as determined under accounting principles generally accepted in the PRC (“PRC GAAP”) at each year-end). For foreign invested enterprises and joint ventures in the PRC, annual appropriations should be made to the “reserve fund”. For foreign invested enterprises, the annual appropriation for the “reserve fund” cannot be less than 10% of after-tax profits until the aggregated appropriations reach 50% of the registered capital (as determined under PRC GAAP at each year-end). If the Company has accumulated loss from prior periods, the Company is able to use the current period net income after tax to offset against the accumulate loss. |
Concentration of credit risk | Concentration of credit risk Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company places the cash and cash equivalents with financial institutions with high credit ratings and quality. The Company conducts credit evaluations of customers, and generally do not require collateral or other security from its customers. The Company establishes an allowance for doubtful accounts primarily based upon various factors surrounding the credit risk of specific customers and general economic conditions, refer to the current expected credit loss policy. |
Recently issued accounting pronouncements | Recently issued accounting pronouncements In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”. ASU 2019-12 simplifies the accounting for income taxes by removing exceptions within the general principles of Topic 740 regarding the calculation of deferred tax liabilities, the incremental approach for intraperiod tax allocation, and calculating income taxes in an interim period. In addition, the ASU adds clarifications to the accounting for franchise tax (or similar tax), which is partially based on income, evaluating tax basis of goodwill recognized from a business combination, and reflecting the effect of any enacted changes in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The ASU is effective for fiscal years beginning after December 15, 2020, and will be applied either retrospectively or prospectively based upon the applicable amendments. Early adoption is permitted. The adoption of this guidance will not have a material impact on the Company’s consolidated financial statements. Except as mentioned above, the Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company’s consolidated financial statements. |
Nature of Business and Organi_2
Nature of Business and Organization (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Nature of Business and Organization [Abstract] | |
Schedule of accompanying consolidated financial statements | Name Background Ownership Orient Plus International Limited (“Orient Plus”) ● A British Virgin Islands (“BVI”) company 100% owned by Ebang International ● Incorporated on June 6, 2018 ● A holding company Ebang Communications (HK) Technology Limited (“HK Ebang Communications”), formerly known as Hong Kong Bite Co., Ltd. or HK Bite ● A Hong Kong company 100% owned by Orient Plus ● Incorporated on February 12, 2016 ● A Trading company Power Ebang Limited (“Power Ebang”) ● A British Virgin Islands company 100% owned by Ebang International ● Incorporated on February 26, 2018 ● A holding company Hong Kong Ebang Technology Co., Ltd. (“HK Ebang Technology”) ● A Hong Kong company 100% owned by Power Ebang ● Incorporated on February 12, 2018 ● A holding company Leader Forever Holdings Limited (“Leader Forever”) ● A British Virgin Islands company 100% owned by Ebang International ● Incorporated on January 7, 2019 ● A holding company Hong Kong Ebang Information Co., Ltd. (“HK Ebang Information”) ● A Hong Kong company 100% owned by Leader Forever ● Incorporated on April 1, 2019 ● A Trading company Hangzhou Ebang Hongfa Technology Co., Ltd. (“Ebang Hongfa”) ● A PRC limited liability company and deemed a wholly foreign owned enterprise (“WFOE”) 100% owned by HK Ebang Technology ● Incorporated on February 11, 2018 ● A holding company Hangzhou Ebang Hongling Technology Co., Ltd. (“Ebang Hongling”) ● A PRC limited liability company 100% owned by Ebang Hongfa ● Incorporated on July 3, 2019 Wuhai Ebang Information Technology Co., Ltd. (“Wuhai Ebang”) ● A PRC limited liability company 100% owned by Ebang Hongling ● Incorporated on September 18, 2017 Zhejiang Ebang Communication Technology Co., Ltd. (“Zhejiang Ebang”) ● A PRC limited liability company 99.99% owned by Ebang Hongfa ● Incorporated on January 21, 2010 Zhejiang Ebang Information Technology Co., Ltd. (“Ebang IT”) ● A PRC limited liability company 100% owned by Zhejiang Ebang ● Incorporated on August 11, 2010 Yunnan Ebang Information Technology Co., Ltd. (“Yunnan Ebang”) ● A PRC limited liability company 100% owned by Zhejiang Ebang ● Incorporated on June 28, 2016 Hangzhou Yiquansheng Communication Technology Co., Ltd. (formerly known as Suzhou Yiquansheng Communication Technology Co., Ltd.) (“Hangzhou Yiquansheng”)* ● A PRC limited liability company 100% owned by Zhejiang Ebang before disposed by the Company in Dec. 2020* ● Incorporated on April 2, 2018 Hangzhou Ebang Jusheng Technology Co., Ltd. (“Ebang Jusheng”) ● A PRC limited liability company 100% owned by Ebang Hongfa ● Incorporated on January 3, 2018 Hangzhou Dewang Information Technology Co., Ltd. (“Hangzhou Dewang”) ● A PRC limited liability company 51.05% owned by Ebang Hongfa ● Incorporated on December 31, 2015 * In December 2020, the Company sold 100% of the equity ownership of Hangzhou Yiquansheng to an affiliate controlled by Mr. Dong Hu, CEO of the Company. Hangzhou Yiquansheng did not conduct significant operation for the Company and the disposal does not cause a shift in the Company’s operating strategy. As a result, the disposal is accounted for as a sale of asset to an entity under common control. The gain on disposal of Hangzhou Yiquansheng is included in the statements of changes in equity. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of expected useful lives of property plant and equipment | Buildings 20 years Computer software 10 years Leasehold improvements Over the shorter of the lease term or expected useful lives Office equipment 3-5 years Motor vehicles 5 years Mechanical equipment 3-10 years |
Schedule of estimated useful lives of Intangible assets | Land use right 50 years Software 65 months License 10 year Non-patent technology 1 year |
Schedule of financial asset carried at fair value on a recurring basis | Quoted Significant Significant Total Debt investments As of December 31, 2020 $ - 40,835,000 - 40,835,000 As of December 31, 2019 $ - - - - |
Debt investments (Tables)
Debt investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of debt investments | As of As of 2020 2019 Available-for-sale debt investments $ 40,835,000 $ - |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Schedule of accounts receivable, net | As of As of 2020 2019 Accounts receivable $ 11,993,968 $ 9,900,458 Less: Allowance for doubtful accounts (4,788,855 ) (1,772,280 ) Accounts receivable, net $ 7,205,113 $ 8,128,178 |
Schedule of allowance for doubtful accounts | For the year For the year For the year 2020 2019 2018 Allowance for doubtful accounts, beginning balance $ 1,772,280 $ 1,769,468 $ 1,849,985 Add: Provision for doubtful accounts 2,740,639 26,297 19,778 Effects of foreign exchange rate 275,936 (23,485 ) (100,295 ) Allowance for doubtful accounts, ending balance $ 4,788,855 $ 1,772,280 $ 1,769,468 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | As of As of 2020 2019 Finished goods $ 2,230,580 $ 2,959,783 Work in process 31,303,333 48,177,240 Raw materials 28,370,424 18,131,911 61,904,337 69,268,934 Less: inventory write-down (58,059,246 ) (56,180,392 ) Inventories, net $ 3,845,091 $ 13,088,542 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment, net | As of As of 2020 2019 Buildings $ 3,927,085 $ 4,135,656 Mechanical equipment 19,562,087 18,432,857 Motor vehicles 348,941 321,719 Office equipment 6,772,941 1,678,977 Computer software 174,740 147,665 Leasehold improvement 218,004 219,370 Construction in progress 21,059,285 4,457,380 Total 52,063,083 29,393,624 Accumulated depreciation (22,939,840 ) (16,168,863 ) Property, plant and equipment, net $ 29,123,243 $ 13,224,761 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets with definite useful lives | As of As of 2020 2019 Land use right $ 2,927,874 $ 2,742,866 Non-patent technology 470,117 440,410 Software 3,345,742 3,134,328 License 19,879,743 - Total 26,623,476 6,317,604 Accumulated amortization (3,546,041 ) (2,533,451 ) Intangible assets, net $ 23,077,435 $ 3,784,153 |
Schedule of estimated future amortization expense related to intangible assets | Year 2021 $ 2,664,207 2022 2,608,606 2023 2,046,532 2024 2,046,532 2025 2,046,532 Thereafter 11,665,026 Total $ 23,077,435 |
Accrued Expenses and Other Pa_2
Accrued Expenses and Other Payables (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of components of accrued expenses and other payables | As of As of 2020 2019 Salary payable $ 794,022 $ 1,014,296 Interest payable - 772,218 Payable to consultants 1,527,340 1,576,278 License payable 7,951,898 - Refundable deposit to customers 1,230,142 6,255,741 Payable to property, plant and equipment suppliers 9,375,507 3,008,802 Other accrued liabilities 1,042,705 1,111,706 Total accrued liabilities and other payables $ 21,921,614 $ 13,739,041 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of outstanding balances of loans | As of December 31, 2020 Balance Maturity Effective Collateral/ Hangzhou United Bank $ 765,967 September 7, 2021 5.50 % N/A As of December 31, 2019 Balance Maturity Effective Collateral/ Haitong International Credit Company Limited $ 4,871,795 January 10, 2020 8.6641 % See below Total short-term loan 4,871,795 Less: unamortized debt issuance costs 7,098 Loan due within one year, less unamortized debt issuance costs $ 4,864,697 |
Schedule of future loan obligations | 2021 $ 765,967 2022 and thereafter - Total $ 765,967 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of effective income tax rate and PRC statutory income tax | For the year For the year For the year 2020 2019 2018 Loss before income taxes 25.00 % 25.00 % 25.00 % Effect of expenses not deductible for tax purposes 0.00 % (0.03 )% (0.39 )% Effect of additional deduction of research and development expense 6.70 % 6.33 % 76.11 % Effect of income tax exemptions and reliefs (0.70 )% 0.01 % 23.18 % Effect of valuation allowance on deferred income tax assets (67.10 )% (29.70 )% (116.08 )% Income tax difference under different tax jurisdictions (2.20 )% - - Others (2.10 )% (2.59 )% (16.06 )% Total (40.40 )% (0.98 )% (8.24 )% |
Schedule of provision for income taxes | For the year For the year For the year Current income tax expense $ 623,938 $ 533,078 $ 10,571,880 Deferred tax expense (benefit) 8,627,604 (132,767 ) (9,672,294 ) Income taxes provision $ 9,251,542 $ 400,311 $ 899,586 |
Schedule of deferred tax assets and liabilities | As of As of 2020 2019 Provision for doubtful accounts $ 8,701,439 $ 8,530,250 Net operating loss carryforward 5,036,643 7,120,737 Accrued expenses and others 3,510,029 287,467 17,248,111 15,938,454 Less: valuation allowance (17,095,950 ) (7,120,737 ) Deferred tax assets $ 152,161 $ 8,817,717 Intangible assets $ 153,033 $ 263,278 Revenue and expense - 11,724 Deferred tax liabilities $ 153,033 $ 275,002 Total deferred tax assets (liabilities) $ (872 ) $ 8,542,715 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule of warrants activities | Number of Weight- issuable exercise price Description Balance at January 1, 2018 - $ - Outstanding and exercisable at January 1, 2018 - - Balance at December 31, 2018 - - Outstanding and exercisable at December 31, 2018 - - Balance at December 31, 2019 - - Outstanding and exercisable at December 31, 2019 - - Granted 2,300,000 5.50 Balance at December 31, 2020 2,300,000 5.50 Outstanding and exercisable at December 31, 2020 2,300,000 $ 5.50 |
Operating leases (Tables)
Operating leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Text Block [Abstract] | |
Schedule of balance sheet information related to operating leases | For the year For the year 2020 2019 Operating lease cost $ 704,264 $ 662,505 Short-term lease cost 29,007 116,728 Total lease cost $ 733,271 $ 779,233 |
Schedule of cash flow information related to operating leases | For the year For the year December 31, December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 690,626 $ 854,431 Supplemental lease cash flow disclosure Operating lease right-of-use assets obtained in exchange for operating lease liabilities $ 192,395 $ 1,142,321 |
Schedule of balance sheet information related to operating leases | As of As of December 31, December 31, 2020 2019 Operating lease right-of-use assets $ 898,335 $ 1,280,076 Operating lease right-of-use assets – related party 17,701 37,266 Total operating lease right-of-use assets 916,036 1,317,342 Operating lease liabilities, current $ 659,807 $ 793,521 Operating lease liabilities – related party, current 17,701 37,266 Operating lease liabilities, non-current 118,827 361,747 Total operating lease liabilities 796,335 1,192,534 Weighted average remaining lease term of operating leases 1.51 Years 2.36 years Weighted average discount rate of operating leases 6.5250 % 6.5250 % |
Schedule of maturity analysis of operating lease liabilities | Operating Leases 2021 $ 794,717 2022 26,995 2023 - 2024 - 2025 - Thereafter - Total lease payment 821,712 Less: imputed interest (25,377 ) Present value of operating lease liabilities 796,335 Less: current obligation (677,508 ) Long-term obligation at December 31, 2020 $ 118,827 |
Statutory reserves and restri_2
Statutory reserves and restricted net assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Statutory Reserves And Restricted Net Assets [Abstract] | |
Schedule of PRC subsidiaries | As of As of PRC entities Additional paid-in capital $ 23,919,850 $ 23,707,488 Statutory reserves 11,049,847 11,049,847 Total restricted net assets $ 34,969,697 $ 34,757,335 |
Segment and revenue analysis (T
Segment and revenue analysis (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of revenue | For the year For the year For the year Revenue Product sale - Bitcoin mining machines and related accessories $ 7,951,296 $ 89,919,400 $ 307,126,878 Product sale - Telecommunication 1,725,982 3,336,413 3,729,529 Service - Management and maintenance 9,327,023 15,804,253 8,185,386 $ 19,004,301 $ 109,060,066 $ 319,041,793 |
Schedule of geographic region | For the year ended For the year ended For the year ended Geographic region Revenue Mainland China $ 18,962,130 $ 95,373,150 $ 291,523,362 United States of America 9,338 1,407,546 6,713,837 Hong Kong - 1,673,300 18,800,733 Other foreign countries 32,833 10,606,070 2,003,861 $ 19,004,301 $ 109,060,066 $ 319,041,793 |
Credit Risk and Major Custome_2
Credit Risk and Major Customers (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Schedule of accounts receivable concentration of credit risk | As of As of 2020 2019 Customer A 19 % 15 % Customer B * % 12 % Customer C * % 15 % Customer D 24 % * % Customer E 10 % * % For the year For the year For the year 2020 2019 2018 Supplier F * % * % 61 % Supplier G * % 45 % * % Supplier H 44 % 18 % * % Supplier I 28 % * % * % For the year For the year For the year 2020 2019 2018 Customer J * * 13 % Customer K * 16 % * Customer E 20 % * * Customer L 18 % * * Customer D 12 % * * Customer M 10 % * * Customer N 10 % * * Customer O 10 % * * * Less than 10% |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of related parties | Name of related parties Relationship with the Company Dong Hu Chief executive officer (CEO) of the Company Hong Kong Dewang Limited Wholly owned by Zhengqian Jiang, father-in-law of Dong Hu Zhejiang Wansi Computer Manufacturing Company Limited 68% owned by Aiqun Jiang, spouse of Dong Hu Hangzhou Yibang Zhiyang Technology Co., Ltd. Controlled by Dong Hu Top Max Limited Controlled by Dong Hu Shubo Qian Brother-in-law of Dong Hu Jun Hu Sister of Dong Hu |
Schedule of long-term loans from related party | As of As of Hong Kong Dewang Limited $ - $ 17,632,000 |
Schedule of due to related party | As of As of December 31, December 31, 2020 2019 Zhejiang Wansi Computer Manufacturing Company Limited $ 5,652,833 $ 6,242,824 |
Condensed financial informati_2
Condensed financial information of the parent company (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of condensed balance sheets | December 31, December 31, 2020 2019 Assets Current assets: Cash and cash equivalents $ 8,318,219 $ 21,770 Debt investments 40,835,000 - Other current assets, net 868,949 - Due from subsidiaries 46,448,162 - Total current assets 96,470,330 21,770 Non-current assets: Intangible assets, net 19,714,079 - Investment in subsidiaries (5,030,523 ) 18,022,460 Total non-current assets 14,683,556 18,022,460 Total assets $ 111,153,886 $ 18,044,230 Liabilities and Shareholders’ Equity Current liabilities: Accrued liabilities and other payables $ 8,027,480 - Due to subsidiaries - $ 64,871 Total current liabilities 8,027,480 64,871 Total liabilities $ 8,027,480 $ 64,871 Shareholders’ equity: Ordinary share, HKD0.001 par value, 380,000,000 shares authorized, nil and 111,771,000 shares issued and outstanding at December 31, 2020 and 2019, respectively - 14,330 Class A ordinary share, HKD0.001 par value, 333,374,217 shares authorized, 89,009,554 and nil shares issued and outstanding as of December 31, 2020 and 2019, respectively 11,411 - Class B ordinary share, HKD0.001 par value, 46,625,783 shares authorized, 46,625,783 and nil shares issued and outstanding as of December 31, 2020 and 2019, respectively 5,978 - Additional paid-in capital 138,288,921 23,888,023 Accumulated deficit (38,581,419 ) (7,905,999 ) Statutory reserves 11,049,847 11,049,847 Accumulated other comprehensive loss (7,648,332 ) (9,066,842 ) Total shareholders’ equity 103,126,406 17,979,359 Total liabilities and shareholders’ equity $ 111,153,886 $ 18,044,230 |
Schedule of condensed statements of operations and comprehensive loss | For the year ended For the year ended For the year ended Operating expenses: General and administrative expenses $ 6,401,580 $ 385,865 $ 249,107 Total operating expenses 6,401,580 385,865 249,107 Loss from operations (6,401,580 ) (385,865 ) (249,107 ) Interest income 798,328 4 12 Other expenses (4,162 ) (1,390 ) (724 ) Exchange gain 340,643 529 - Share of loss from subsidiaries (25,408,649 ) (42,016,647 ) (12,058,675 ) Net loss (30,675,420 ) (42,403,369 ) (12,308,494 ) Comprehensive loss Net loss $ (30,675,420 ) $ (42,403,369 ) $ (12,308,494 ) Other comprehensive income (loss): Foreign currency translation adjustment 1,418,510 (1,188,488 ) (11,363,682 ) Comprehensive loss $ (29,256,910 ) $ (43,591,857 ) $ (23,672,176 ) |
Schedule of condensed statements of cash flows | For the year ended For the year ended For the year ended Cash Flows from Operating Activities: Net loss $ (30,675,420 ) $ (42,403,369 ) $ (12,308,494 ) Adjustments to reconcile net loss to net cash used in operating activities: Share of loss from subsidiaries 25,408,649 42,016,647 12,058,675 Amortization Expense 165,664 - - Changes in assets and liabilities: Due from subsidiaries (46,448,162 ) 193,591 (193,590 ) Other current assets, net (868,949 ) - - Accrued liabilities and other payables 75,583 - - Due to subsidiaries (64,871 ) 64,871 - Net Cash Used in Operating Activities (52,407,506 ) (128,260 ) (443,409 ) Cash Flows from Investing Activities Cash paid for debt investments (79,915,000 ) - - Proceeds from redemption of debt investments 39,080,000 - - Purchases of intangible assets (11,927,846 ) - - Net Cash Used in Investing Activities (52,762,846 ) - - Cash Flows from Financing Activities Sale of subsidiary 76,566 - - Capital contribution from shareholder - - 7,700 Issuance of ordinary shares for cash 114,191,595 - 585,739 Net Cash Provided by Financing Activities 114,268,161 - 593,439 Effect of Foreign Exchange on Cash (801,360 ) - - Net Increase (Decrease) in Cash and Cash Equivalents 8,296,449 (128,260 ) 150,030 Cash and Cash Equivalents at Beginning of Year 21,770 150,030 - Cash and Cash Equivalents at End of Year 8,318,219 $ 21,770 $ 150,030 |
Nature of Business and Organi_3
Nature of Business and Organization (Details) | Dec. 31, 2020 | Aug. 31, 2016 |
Nature of Business and Organization (Details) [Line Items] | ||
Percentage of equity interest | 51.05% | |
Hangzhou Yiquansheng [Member] | ||
Nature of Business and Organization (Details) [Line Items] | ||
Percentage of equity ownership | 100.00% |
Nature of Business and Organi_4
Nature of Business and Organization (Details) - Schedule of accompanying consolidated financial statements | 12 Months Ended | |
Dec. 31, 2020 | ||
Orient Plus International Limited [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Background | A British Virgin Islands ("BVI") company | |
Ownership | 100% owned by Ebang International | |
Orient Plus International Limited One [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Background | Incorporated on June 6, 2018 | |
Orient Plus International Limited Two [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Background | A holding company | |
Ebang Communications (HK) Technology Limited (“HK Ebang Communications”), formerly known as Hong Kong Bite Co., Ltd. or HK Bite [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Background | A Hong Kong company | |
Ownership | 100% owned by Orient Plus | |
Ebang Communications (HK) Technology Limited (“HK Ebang Communications”), formerly known as Hong Kong Bite Co., Ltd. or HK Bite [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Background | Incorporated on February 12, 2016 | |
Ebang Communications (HK) Technology Limited (“HK Ebang Communications”), formerly known as Hong Kong Bite Co., Ltd. or HK Bite [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Background | A Trading company | |
Power Ebang Limited [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Background | A British Virgin Islands company | |
Ownership | 100% owned by Ebang International | |
Power Ebang Limited [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Background | Incorporated on February 26, 2018 | |
Power Ebang Limited [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Background | A holding company | |
Hong Kong Ebang Technology Co., Ltd. [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Background | A Hong Kong company | |
Ownership | 100% owned by Power Ebang | |
Hong Kong Ebang Technology Co., Ltd. [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Background | Incorporated on February 12, 2018 | |
Hong Kong Ebang Technology Co., Ltd. [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Background | A holding company | |
Leader Forever Holdings Limited [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Background | A British Virgin Islands company | |
Ownership | 100% owned by Ebang International | |
Leader Forever Holdings Limited [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Background | Incorporated on January 7, 2019 | |
Leader Forever Holdings Limited [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Background | A holding company | |
Hong Kong Ebang Information Co., Ltd. [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Background | A Hong Kong company | |
Ownership | 100% owned by Leader Forever | |
Hong Kong Ebang Information Co., Ltd. [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Background | Incorporated on April 1, 2019 | |
Hong Kong Ebang Information Co., Ltd. [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Background | A Trading company | |
Hangzhou Ebang Hongfa Technology Co., Ltd. [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Background | A PRC limited liability company and deemed a wholly foreign owned enterprise ("WFOE") | |
Ownership | 100% owned by HK Ebang Technology | |
Hangzhou Ebang Hongfa Technology Co., Ltd. [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Background | Incorporated on February 11, 2018 | |
Hangzhou Ebang Hongfa Technology Co., Ltd. [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Background | A holding company | |
Hangzhou Ebang Hongling Technology Co., Ltd. [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Background | A PRC limited liability company | |
Ownership | 100% owned by Ebang Hongfa | |
Hangzhou Ebang Hongling Technology Co., Ltd. [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Background | Incorporated on July 3, 2019 | |
Wuhai Ebang Information Technology Co., Ltd. [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Background | A PRC limited liability company | |
Ownership | 100% owned by Ebang Hongling | |
Wuhai Ebang Information Technology Co., Ltd. [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Background | Incorporated on September 18, 2017 | |
Zhejiang Ebang Communication Technology Co., Ltd. [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Background | A PRC limited liability company | |
Ownership | 99.99% owned by Ebang Hongfa | |
Zhejiang Ebang Communication Technology Co., Ltd. [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Background | Incorporated on January 21, 2010 | |
Zhejiang Ebang Information Technology Co., Ltd. [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Background | A PRC limited liability company | |
Ownership | 100% owned by Zhejiang Ebang | |
Zhejiang Ebang Information Technology Co., Ltd. [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Background | Incorporated on August 11, 2010 | |
Yunnan Ebang Information Technology Co., Ltd. [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Background | A PRC limited liability company | |
Ownership | 100% owned by Zhejiang Ebang | |
Yunnan Ebang Information Technology Co., Ltd. [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Background | Incorporated on June 28, 2016 | |
Hangzhou Yiquansheng Communication Technology Co., Ltd. (formerly known as Suzhou Yiquansheng Communication Technology Co., Ltd.) (“Hangzhou Yiquansheng”) [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Background | A PRC limited liability company | |
Ownership | 100% owned by Zhejiang Ebang before disposed by the Company in Dec. 2020* | [1] |
Hangzhou Yiquansheng Communication Technology Co., Ltd. (formerly known as Suzhou Yiquansheng Communication Technology Co., Ltd.) (“Hangzhou Yiquansheng”) [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Background | Incorporated on April 2, 2018 | |
Hangzhou Ebang Jusheng Technology Co., Ltd. [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Background | A PRC limited liability company | |
Ownership | 100% owned by Ebang Hongfa | |
Hangzhou Ebang Jusheng Technology Co., Ltd. [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Background | Incorporated on January 3, 2018 | |
Hangzhou Dewang Information Technology Co., Ltd. [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Background | A PRC limited liability company | |
Ownership | 51.05% owned by Ebang Hongfa | |
Hangzhou Dewang Information Technology Co., Ltd. [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Background | Incorporated on December 31, 2015 | |
[1] | In December 2020, the Company sold 100% of the equity ownership of Hangzhou Yiquansheng to an affiliate controlled by Mr. Dong Hu, CEO of the Company. Hangzhou Yiquansheng did not conduct significant operation for the Company and the disposal does not cause a shift in the Company’s operating strategy. As a result, the disposal is accounted for as a sale of asset to an entity under common control. The gain on disposal of Hangzhou Yiquansheng is included in the statements of changes in equity. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Foreign currency translation and transaction, description | For Ebang International, HK Ebang Technology and all BVI entities, except for the equity, the balance sheet accounts at December 31, 2020 and 2019 and results of operations and cash flows for the years ended December 31, 2020, 2019 and 2018 were translated at HKD7.8 to $1.00. For all PRC subsidiaries, the balance sheet accounts, with the exception of equity, at December 31, 2020 and 2019 were translated at RMB6.5277 and RMB6.9680 to $1.00, respectively. The equity accounts were translated at their historical rate. The average translation rates applied to statements of operations for the years ended December 31, 2020, 2019 and 2018 were RMB6.9001, RMB6.9088 and RMB6.6146 to $1.00, respectively. | ||
Restricted cash | $ 454,312 | $ 2,313,905 | |
Notes receivables | 765,967 | ||
Advance from customers | 832,842 | 1,015,675 | |
Contract liabilities as revenue | $ 279,423 | 1,832,391 | $ 121,604,493 |
Number of operating segments | 1 | ||
Selling and handling costs | $ 96,997 | 97,719 | 1,233,527 |
Research and development expenses | 8,459,765 | 13,367,396 | 43,488,851 |
Government grants | $ 4,006,567 | 6,298,893 | 798,680 |
VAT, description | Revenue is recognized net of value-added taxes (“VAT”). VAT is based on gross sales price and the VAT rate applicable to the Company is 17% for the period from the beginning of 2018 till the end of April 2018, then changed to 16% from May 2018 to the end of March 2019, and changed to 13% since April 2019. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded as VAT payable if output VAT is larger than input VAT and is recorded as VAT recoverable if input VAT is larger than output VAT. All of the VAT returns filed by the Company’s subsidiaries in China, have been and remain subject to examination by the tax authorities. Pursuant to Caishui (2011) No. 100 issued by the State Tax Bureau of the PRC, Zhejiang Ebang and Ebang IT are qualified as enterprises selling self-developed software products and enjoying a tax refund for the excess of 3% of their actual tax burden after the VAT is levied at the 17% or 16% or 13% tax rate since January 2011. | ||
VAT refund | $ 9,138 | $ 27,368,030 | |
Statutory reserve, description | Pursuant to the laws applicable to the PRC, PRC entities must make appropriations from after-tax profit to the non-distributable “statutory surplus reserve fund”. Subject to certain cumulative limits, the “statutory surplus reserve fund” requires annual appropriations of 10% of after-tax profit until the aggregated appropriations reach 50% of the registered capital (as determined under accounting principles generally accepted in the PRC (“PRC GAAP”) at each year-end). For foreign invested enterprises and joint ventures in the PRC, annual appropriations should be made to the “reserve fund”. For foreign invested enterprises, the annual appropriation for the “reserve fund” cannot be less than 10% of after-tax profits until the aggregated appropriations reach 50% of the registered capital (as determined under PRC GAAP at each year-end). | ||
Hangzhou Dewang [Member] | |||
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Non controlling interest, percentage | 51.05% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of expected useful lives of property plant and equipment | 12 Months Ended |
Dec. 31, 2020 | |
Buildings [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of expected useful lives of property plant and equipment [Line Items] | |
Estimated useful lives | 20 years |
Computer software [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of expected useful lives of property plant and equipment [Line Items] | |
Estimated useful lives | 10 years |
Leasehold improvements [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of expected useful lives of property plant and equipment [Line Items] | |
Estimated useful lives, description | Over the shorter of the lease term or expected useful lives |
Office equipment [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of expected useful lives of property plant and equipment [Line Items] | |
Estimated useful lives | 3 years |
Office equipment [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of expected useful lives of property plant and equipment [Line Items] | |
Estimated useful lives | 5 years |
Motor vehicles [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of expected useful lives of property plant and equipment [Line Items] | |
Estimated useful lives | 5 years |
Mechanical equipment [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of expected useful lives of property plant and equipment [Line Items] | |
Estimated useful lives | 3 years |
Mechanical equipment [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of expected useful lives of property plant and equipment [Line Items] | |
Estimated useful lives | 10 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of Intangible assets | 12 Months Ended |
Dec. 31, 2020 | |
Land use right [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 50 years |
Software [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 65 months |
License [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 10 year |
Non-patent technology [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 1 year |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of financial asset carried at fair value on a recurring basis - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Summary of Significant Accounting Policies (Details) - Schedule of financial asset carried at fair value on a recurring basis [Line Items] | ||
Marketable debt security | $ 40,835,000 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of financial asset carried at fair value on a recurring basis [Line Items] | ||
Marketable debt security | ||
Significant Other Observable Inputs (Level 2) [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of financial asset carried at fair value on a recurring basis [Line Items] | ||
Marketable debt security | 40,835,000 | |
Significant Unobservable Inputs (Level 3) [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of financial asset carried at fair value on a recurring basis [Line Items] | ||
Marketable debt security |
Debt investments (Details)
Debt investments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt investments (Details) [Line Items] | |||
Marketable bonds | $ 104 | ||
Unmarketable bonds | 63 | ||
Interest income | 0.8 | ||
Redeemed Bonds [Member] | |||
Debt investments (Details) [Line Items] | |||
Redeemed amount | $ 41 |
Debt investments (Details) - Sc
Debt investments (Details) - Schedule of debt investments - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of debt investments [Abstract] | ||
Available-for-sale debt investments | $ 40,835,000 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - Schedule of accounts receivable, net - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of accounts receivable, net [Abstract] | ||||
Accounts receivable | $ 11,993,968 | $ 9,900,458 | ||
Less: Allowance for doubtful accounts | (4,788,855) | (1,772,280) | $ (1,769,468) | $ (1,849,985) |
Accounts receivable, net | $ 7,205,113 | $ 8,128,178 |
Accounts Receivable, Net (Det_2
Accounts Receivable, Net (Details) - Schedule of allowance for doubtful accounts - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of allowance for doubtful accounts [Abstract] | |||
Allowance for doubtful accounts, beginning balance | $ 1,772,280 | $ 1,769,468 | $ 1,849,985 |
Add: Provision for doubtful accounts | 2,740,639 | 26,297 | 19,778 |
Effects of foreign exchange rate | 275,936 | (23,485) | (100,295) |
Allowance for doubtful accounts, ending balance | $ 4,788,855 | $ 1,772,280 | $ 1,769,468 |
Inventories, Net (Details)
Inventories, Net (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |||
Market adjustment in cost of revenue | $ 3,644,243 | $ 6,341,957 | $ 61,771,039 |
Inventories, Net (Details) - Sc
Inventories, Net (Details) - Schedule of inventories - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of inventories [Abstract] | ||
Finished goods | $ 2,230,580 | $ 2,959,783 |
Work in process | 31,303,333 | 48,177,240 |
Raw materials | 28,370,424 | 18,131,911 |
Inventories, gross | 61,904,337 | 69,268,934 |
Less: inventory write-down | (58,059,246) | (56,180,392) |
Inventories, net | $ 3,845,091 | $ 13,088,542 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment, Net (Details) [Line Items] | |||
Depreciation expense | $ 6,347,738 | $ 7,994,727 | $ 3,902,271 |
Cash [Member] | |||
Property, Plant and Equipment, Net (Details) [Line Items] | |||
Construction project-in-progress | 11,000,000 | ||
Credit [Member] | |||
Property, Plant and Equipment, Net (Details) [Line Items] | |||
Construction project-in-progress | $ 6,000,000 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net (Details) - Schedule of property, plant and equipment, net - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 52,063,083 | $ 29,393,624 |
Accumulated depreciation | (22,939,840) | (16,168,863) |
Property, plant and equipment, net | 29,123,243 | 13,224,761 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 3,927,085 | 4,135,656 |
Mechanical equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 19,562,087 | 18,432,857 |
Motor vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 348,941 | 321,719 |
Office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 6,772,941 | 1,678,977 |
Computer software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 174,740 | 147,665 |
Leasehold improvement [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 218,004 | 219,370 |
Construction in progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 21,059,285 | $ 4,457,380 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Intangible Assets, Net (Details) [Line Items] | ||||
Land use right | $ 2,600,000 | ¥ 18,117,700 | ||
Amortization expense | 805,220 | $ 861,023 | $ 897,079 | |
Cash [Member] | ||||
Intangible Assets, Net (Details) [Line Items] | ||||
Exclusive license of a proprietary patent | 12,000,000 | |||
Credit [Member] | ||||
Intangible Assets, Net (Details) [Line Items] | ||||
Exclusive license of a proprietary patent | $ 8,000,000 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details) - Schedule of intangible assets with definite useful lives - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Intangible Assets, Net (Details) - Schedule of intangible assets with definite useful lives [Line Items] | ||
Total | $ 26,623,476 | $ 6,317,604 |
Accumulated amortization | (3,546,041) | (2,533,451) |
Intangible assets, net | 23,077,435 | 3,784,153 |
License [Member] | ||
Intangible Assets, Net (Details) - Schedule of intangible assets with definite useful lives [Line Items] | ||
Total | 3,345,742 | 3,134,328 |
Land use right [Member] | ||
Intangible Assets, Net (Details) - Schedule of intangible assets with definite useful lives [Line Items] | ||
Total | 2,927,874 | 2,742,866 |
Non-patent technology [Member] | ||
Intangible Assets, Net (Details) - Schedule of intangible assets with definite useful lives [Line Items] | ||
Total | 470,117 | 440,410 |
Software [Member] | ||
Intangible Assets, Net (Details) - Schedule of intangible assets with definite useful lives [Line Items] | ||
Total | $ 19,879,743 |
Intangible Assets, Net (Detai_3
Intangible Assets, Net (Details) - Schedule of estimated future amortization expense related to intangible assets | Dec. 31, 2020USD ($) |
Schedule of estimated future amortization expense related to intangible assets [Abstract] | |
2021 | $ 2,664,207 |
2022 | 2,608,606 |
2023 | 2,046,532 |
2024 | 2,046,532 |
2025 | 2,046,532 |
Thereafter | 11,665,026 |
Total | $ 23,077,435 |
Accrued Expenses and Other Pa_3
Accrued Expenses and Other Payables (Details) - Schedule of components of accrued expenses and other payables - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of components of accrued expenses and other payables [Abstract] | ||
Salary payable | $ 794,022 | $ 1,014,296 |
Interest payable | 772,218 | |
Payable to consultants | 1,527,340 | 1,576,278 |
License payable | 7,951,898 | |
Refundable deposit to customers | 1,230,142 | 6,255,741 |
Payable to property, plant and equipment suppliers | 9,375,507 | 3,008,802 |
Other accrued liabilities | 1,042,705 | 1,111,706 |
Total accrued liabilities and other payables | $ 21,921,614 | $ 13,739,041 |
Loans (Details)
Loans (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |||
Shares mortgaged (in Shares) | 48,061,530 | ||
Interest expenses | $ 728,346 | $ 2,041,420 | $ 921,047 |
Loans (Details) - Schedule of o
Loans (Details) - Schedule of outstanding balances of loans - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Short-term Debt [Line Items] | ||
Total short-term loan | $ 4,871,795 | |
Less: unamortized debt issuance costs | 7,098 | |
Loan due within one year, less unamortized debt issuance costs | 4,864,697 | |
Hangzhou United Bank [Member] | ||
Short-term Debt [Line Items] | ||
Total short-term loan | $ 765,967 | |
Maturity Date | Sep. 7, 2021 | |
Effective Interest Rate | 5.50% | |
Collateral/ Guarantee | ||
Haitong International Credit Company Limited [Member] | ||
Short-term Debt [Line Items] | ||
Total short-term loan | $ 4,871,795 | |
Maturity Date | Jan. 10, 2020 | |
Effective Interest Rate | 8.6641% | |
Collateral/ Guarantee | See below |
Loans (Details) - Schedule of f
Loans (Details) - Schedule of future loan obligations | Dec. 31, 2020USD ($) |
Schedule of future loan obligations [Abstract] | |
2021 | $ 765,967 |
2022 and thereafter | |
Total | $ 765,967 |
Income Taxes (Details)
Income Taxes (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income taxes, description | The applicable tax rate is 8.25% on assessable profits arising in or derived from Hong Kong up to HKD2,000,000 and 16.5% on any part of assessable profits over HKD2,000,000. HK Ebang Communications, HK Ebang Technology and HK Ebang Information did not make any provisions for Hong Kong profit tax as there were no assessable profits derived from or earned in Hong Kong since inception. |
Income tax effects, description | Ebang Hongfa, Ebang Hongling, Wuhai Ebang, Zhejiang Ebang, Ebang IT, Yunnan Ebang, Hangzhou Yiquansheng, Hangzhou Dewang and Ebang Jusheng are governed by the income tax laws of the PRC and the income tax provision in respect to operations in the PRC is calculated at the applicable tax rates on the taxable income for the periods based on existing legislation, interpretations and practices in respect thereof. Under the Enterprise Income Tax Laws of the PRC (the “EIT Laws”), domestic enterprises and Foreign Investment Enterprises (the “FIE”) are usually subject to a unified 25% enterprise income tax rate while preferential tax rates, tax holidays and even tax exemption may be granted on case-by-case basis. EIT grants preferential tax treatment to certain High and New Technology Enterprises (“HNTEs”). Under this preferential tax treatment, HNTEs are entitled to an income tax rate of 15%, subject to a requirement that they re-apply for HNTE status every three years. Zhejiang Ebang obtained the “high-tech enterprise” tax status in November 2017, which reduced its statutory income tax rate to 15% from November 2017 to November 2020. Zhejiang Ebang further re-applied and obtained the HNTE status in December 2020. Hangzhou Dewang obtained the “high-tech enterprise” tax status in November 2018, which reduced its statutory income tax rate to 15% from November 2018 to November 2021. In addition, Ebang IT, was qualified as a software enterprise in 2018, and thus was entitled to a five-year tax holiday (full exemption for the first two years and a 50% reduction in the statutory income tax rate for the following three years) in 2018 until its software enterprise qualification expired in 2019. |
Statutory income tax rate | 25.00% |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of effective income tax rate and PRC statutory income tax | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of effective income tax rate and PRC statutory income tax [Abstract] | |||
Loss before income taxes | 25.00% | 25.00% | 25.00% |
Effect of expenses not deductible for tax purposes | 0.00% | (0.03%) | (0.39%) |
Effect of additional deduction of research and development expense | 6.70% | 6.33% | 76.11% |
Effect of income tax exemptions and reliefs | (0.70%) | 0.01% | 23.18% |
Effect of valuation allowance on deferred income tax assets | (67.10%) | (29.70%) | (116.08%) |
Income tax difference under different tax jurisdictions | (2.20%) | ||
Others | (2.10%) | (2.59%) | (16.06%) |
Total | (40.40%) | (0.98%) | (8.24%) |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of provision for income taxes - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of provision for income taxes [Abstract] | |||
Current income tax expense | $ 623,938 | $ 533,078 | $ 10,571,880 |
Deferred tax expense (benefit) | 8,627,604 | (132,767) | (9,672,294) |
Income taxes provision | $ 9,251,542 | $ 400,311 | $ 899,586 |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of deferred tax assets and liabilities - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of deferred tax assets and liabilities [Abstract] | ||
Provision for doubtful accounts | $ 8,701,439 | $ 8,530,250 |
Net operating loss carryforward | 5,036,643 | 7,120,737 |
Accrued expenses and others | 3,510,029 | 287,467 |
Deferred tax assets, gross | 17,248,111 | 15,938,454 |
Less: valuation allowance | (17,095,950) | (7,120,737) |
Deferred tax assets | 152,161 | 8,817,717 |
Intangible assets | 153,033 | 263,278 |
Revenue and expense | 11,724 | |
Deferred tax liabilities | 153,033 | 275,002 |
Total deferred tax assets (liabilities) | $ (872) | $ 8,542,715 |
Equity (Details)
Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Equity (Details) [Line Items] | ||
Shareholders’ equity, description | The authorized number of ordinary shares is 380,000,000 shares with a par value of HKD0.001 per ordinary share. | |
November 2020 Offering [Member] | ||
Equity (Details) [Line Items] | ||
Common stock, shares | 4,600,000 | |
Issuance of shares | 8,000,000 | |
Per share price (in Dollars per share) | $ 5.25 | |
Underwriting discounts and commissions (in Dollars) | $ 42 | |
Sale of shares | 4,600,000 | |
Net proceeds (in Dollars) | $ 23 | |
IPO [Member] | ||
Equity (Details) [Line Items] | ||
Underwriting discounts and commissions (in Dollars) | 92 | |
Warrants [Member] | ||
Equity (Details) [Line Items] | ||
Intrinsic value of warrants (in Dollars) | $ 1.3 | |
Warrants [Member] | November 2020 Offering [Member] | ||
Equity (Details) [Line Items] | ||
Sale of shares | 4,600,000 | |
Ordinary Shares [Member] | ||
Equity (Details) [Line Items] | ||
Shareholders’ equity, description | consisting of Class A ordinary shares and Class B ordinary shares, with par value of HKD0.001 per share. | |
Beneficially of ordinary shares | 46,625,783 | |
Class B ordinary shares [Member] | ||
Equity (Details) [Line Items] | ||
Common stock, shares | 65,145,217 | |
Class A ordinary shares [Member] | ||
Equity (Details) [Line Items] | ||
Issuance of shares | 19,264,337 | |
Per share price (in Dollars per share) | $ 5.23 | |
Class A ordinary shares [Member] | Warrants [Member] | ||
Equity (Details) [Line Items] | ||
Common stock, shares | 2,300,000 | |
Warrants issued | 4,600,000 |
Equity (Details) - Schedule of
Equity (Details) - Schedule of warrants activities - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of warrants activities [Abstract] | |||
Number of shares issuable, Begininng Balance | |||
Weight-average exercise price, Begininng Balance | |||
Number of shares issuable, Outstanding and exercisable | 2,300,000 | ||
Weight-average exercise price, Outstanding and exercisable | $ 5.50 | ||
Number of shares issuable, Granted | 2,300,000 | ||
Weight-average exercise price, Granted | $ 5.50 | ||
Number of shares issuable, Ending Balance | 2,300,000 | ||
Weight-average exercise price, Ending Balance | $ 5.50 |
Operating leases (Details)
Operating leases (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2018 | Dec. 31, 2019 | |
Disclosure Text Block [Abstract] | |||
Description of lease expiration | The Company entered into operating lease agreements for factory buildings, office spaces and employee dormitories including lease agreements with its related party, with various initial term expiration dates through 2022 and various renewal and termination options. | ||
Operating lease liabilities | $ 796,335 | $ 1,192,534 | |
Operating lease right-of-use assets | $ 916,036 | $ 1,317,342 | |
Rent expense | $ 627,565 |
Operating leases (Details) - Sc
Operating leases (Details) - Schedule of component of lease cost - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of component of lease cost [Abstract] | ||
Operating lease cost | $ 704,264 | $ 662,505 |
Short-term lease cost | 29,007 | 116,728 |
Total lease cost | $ 733,271 | $ 779,233 |
Operating leases (Details) - _2
Operating leases (Details) - Schedule of cash flow information related to operating leases - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows for operating leases | $ 690,626 | $ 854,431 |
Supplemental lease cash flow disclosure | ||
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ 192,395 | $ 1,142,321 |
Operating leases (Details) - _3
Operating leases (Details) - Schedule of balance sheet information related to operating leases - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of balance sheet information related to operating leases [Abstract] | ||
Operating lease right-of-use assets | $ 898,335 | $ 1,280,076 |
Operating lease right-of-use assets – related party | 17,701 | 37,266 |
Total operating lease right-of-use assets | 916,036 | 1,317,342 |
Operating lease liabilities, current | 659,807 | 793,521 |
Operating lease liabilities – related party, current | 17,701 | 37,266 |
Operating lease liabilities, non-current | 118,827 | 361,747 |
Total operating lease liabilities | $ 796,335 | $ 1,192,534 |
Weighted average remaining lease term of operating leases | 1 year 186 days | 2 years 131 days |
Weighted average discount rate of operating leases | 6.525% | 6.525% |
Operating leases (Details) - _4
Operating leases (Details) - Schedule of maturity analysis of operating lease liabilities | Dec. 31, 2020USD ($) |
Schedule of maturity analysis of operating lease liabilities [Abstract] | |
2021 | $ 794,717 |
2022 | 26,995 |
2023 | |
2024 | |
2025 | |
Thereafter | |
Total lease payment | 821,712 |
Less: imputed interest | (25,377) |
Present value of operating lease liabilities | 796,335 |
Less: current obligation | (677,508) |
Long-term obligation at December 31, 2020 | $ 118,827 |
Statutory reserves and restri_3
Statutory reserves and restricted net assets (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Statutory Reserves And Restricted Net Assets [Abstract] | ||
Restricted net assets | $ 34,969,697 | $ 34,757,335 |
Statutory reserves and restri_4
Statutory reserves and restricted net assets (Details) - Schedule of PRC subsidiaries - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Statutory Accounting Practices [Line Items] | ||
Total restricted net assets | $ 34,969,697 | $ 34,757,335 |
Additional paid-in capital [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Total restricted net assets | 23,919,850 | 23,707,488 |
Statutory reserves [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Total restricted net assets | $ 11,049,847 | $ 11,049,847 |
Segment and revenue analysis (D
Segment and revenue analysis (Details) - Schedule of revenue - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue | |||
Total revenue | $ 19,004,301 | $ 109,060,066 | $ 319,041,793 |
Product sale - Bitcoin mining machines and related accessories [Member] | |||
Revenue | |||
Total revenue | 7,951,296 | 89,919,400 | 307,126,878 |
Product sale - Telecommunication [Member] | |||
Revenue | |||
Total revenue | 1,725,982 | 3,336,413 | 3,729,529 |
Service - Management and maintenance [Member] | |||
Revenue | |||
Total revenue | $ 9,327,023 | $ 15,804,253 | $ 8,185,386 |
Segment and revenue analysis _2
Segment and revenue analysis (Details) - Schedule of geographic region - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue | |||
Total revenue | $ 19,004,301 | $ 109,060,066 | $ 319,041,793 |
Mainland China [Member] | |||
Revenue | |||
Total revenue | 18,962,130 | 95,373,150 | 291,523,362 |
United States of America [Member] | |||
Revenue | |||
Total revenue | 9,338 | 1,407,546 | 6,713,837 |
Hong Kong [Member] | |||
Revenue | |||
Total revenue | 1,673,300 | 18,800,733 | |
Other foreign countries [Member] | |||
Revenue | |||
Total revenue | $ 32,833 | $ 10,606,070 | $ 2,003,861 |
Credit Risk and Major Custome_3
Credit Risk and Major Customers (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Accounts Receivable [Member] | |
Credit Risk and Major Customers (Details) [Line Items] | |
Concentration of credit risk, percentage | 10.00% |
Credit Risk and Major Custome_4
Credit Risk and Major Customers (Details) - Schedule of accounts receivable concentration of credit risk | 12 Months Ended | ||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||||
Accounts receivable [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Concentration of credit risk, percentage | 10.00% | ||||||
Supplier F [Member] | Accounts receivable [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Concentration of credit risk, percentage | [1] | [1] | 61.00% | ||||
Supplier G [Member] | Accounts receivable [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Concentration of credit risk, percentage | [1] | 45.00% | |||||
Supplier H [Member] | Accounts receivable [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Concentration of credit risk, percentage | 44.00% | [1] | 18.00% | [1] | |||
Supplier I [Member] | Accounts receivable [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Concentration of credit risk, percentage | 28.00% | [1] | [1] | ||||
Customer J [Member] | Revenue [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Concentration of credit risk, percentage | [1] | [1] | 13.00% | ||||
Customer A [Member] | Accounts receivable [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Concentration of credit risk, percentage | 19.00% | [1] | 15.00% | ||||
Customer B [Member] | Accounts receivable [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Concentration of credit risk, percentage | [1] | 12.00% | |||||
Customer C [Member] | Accounts receivable [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Concentration of credit risk, percentage | [1] | 15.00% | |||||
Customer D [Member] | Accounts receivable [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Concentration of credit risk, percentage | 24.00% | [1] | |||||
Customer D [Member] | Revenue [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Concentration of credit risk, percentage | 12.00% | [1] | [1] | ||||
Customer E [Member] | Accounts receivable [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Concentration of credit risk, percentage | 10.00% | [1] | |||||
Customer E [Member] | Revenue [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Concentration of credit risk, percentage | 20.00% | [1] | [1] | ||||
Customer K [Member] | Revenue [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Concentration of credit risk, percentage | [1] | 16.00% | |||||
Customer L [Member] | Revenue [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Concentration of credit risk, percentage | [1] | 18.00% | |||||
Customer M [Member] | Revenue [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Concentration of credit risk, percentage | 10.00% | [1] | [1] | ||||
Customer N [Member] | Revenue [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Concentration of credit risk, percentage | 10.00% | [1] | [1] | ||||
Customer O [Member] | Revenue [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Concentration of credit risk, percentage | 10.00% | [1] | [1] | ||||
[1] | Less than 10% |
Related Party Transactions (Det
Related Party Transactions (Details) | 12 Months Ended | ||||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2020CNY (¥) | |
Related Party Transactions (Details) [Line Items] | |||||
Interest associated with loan | $ 678,000 | ||||
Lease expense | 29,582 | $ 29,545 | $ 37,198 | ||
Borrowing amount | 1,800,000 | 6,500,000 | |||
Loan repaid amount | 2,800,000 | 217,000 | |||
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | 749,949 | ||||
Hong Kong Dewang Limited [Member] | |||||
Related Party Transactions (Details) [Line Items] | |||||
Loan obtained amount | 6,481,700 | $ 17,632,000 | |||
Interest rate, percentage | 4.75% | 4.75% | 4.75% | ||
Zhejiang Wansi Computer Manufacturing Company Limited [Member] | Minimum [Member] | |||||
Related Party Transactions (Details) [Line Items] | |||||
Lease terms | 2 years | 2 years | |||
Zhejiang Wansi Computer Manufacturing Company Limited [Member] | Maximum [Member] | |||||
Related Party Transactions (Details) [Line Items] | |||||
Lease terms | 3 years | 3 years | |||
Shubo Qian [Member] | |||||
Related Party Transactions (Details) [Line Items] | |||||
Borrowing amount | $ 1,050,000 | ||||
Jun Hu [Member] | |||||
Related Party Transactions (Details) [Line Items] | |||||
Borrowing amount | $ 2,081,000 | ¥ 14,500,000 | |||
Mr. Dong Hu [Member] | |||||
Related Party Transactions (Details) [Line Items] | |||||
Borrowing amount | $ 562,000 | ||||
Gain on disposal (in Yuan Renminbi) | ¥ | ¥ 500,000 |
Related Party Transactions (D_2
Related Party Transactions (Details) - Schedule of related parties | 12 Months Ended |
Dec. 31, 2020 | |
Dong Hu [Member] | |
Related Party Transaction [Line Items] | |
Name of related parties | Dong Hu |
Relationship with the Company | Chief executive officer (CEO) of the Company |
Hong Kong Dewang Limited [Member] | |
Related Party Transaction [Line Items] | |
Name of related parties | Hong Kong Dewang Limited |
Relationship with the Company | Wholly owned by Zhengqian Jiang, father-in-law of Dong Hu |
Zhejiang Wansi Computer Manufacturing Company Limited [Member] | |
Related Party Transaction [Line Items] | |
Name of related parties | Zhejiang Wansi Computer Manufacturing Company Limited |
Relationship with the Company | 68% owned by Aiqun Jiang, spouse of Dong Hu |
Hangzhou Yibang Zhiyang Technology Co., Ltd. [Member] | |
Related Party Transaction [Line Items] | |
Name of related parties | Hangzhou Yibang Zhiyang Technology Co., Ltd. |
Relationship with the Company | Controlled by Dong Hu |
Top Max Limited [Member] | |
Related Party Transaction [Line Items] | |
Name of related parties | Top Max Limited |
Relationship with the Company | Controlled by Dong Hu |
Shubo Qian [Member] | |
Related Party Transaction [Line Items] | |
Name of related parties | Shubo Qian |
Relationship with the Company | Brother-in-law of Dong Hu |
Jun Hu [Member] | |
Related Party Transaction [Line Items] | |
Name of related parties | Jun Hu |
Relationship with the Company | Sister of Dong Hu |
Related Party Transactions (D_3
Related Party Transactions (Details) - Schedule of long-term loans from related party - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of long-term loans from related party [Abstract] | ||
Hong Kong Dewang Limited | $ 17,632,000 |
Related Party Transactions (D_4
Related Party Transactions (Details) - Schedule of due to related party - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of due to related party [Abstract] | ||
Zhejiang Wansi Computer Manufacturing Company Limited | $ 5,652,833 | $ 6,242,824 |
Contingencies (Details)
Contingencies (Details) ¥ in Millions | Aug. 06, 2020USD ($) | Aug. 06, 2020CNY (¥) | Nov. 19, 2019 | Sep. 03, 2018 | Jan. 01, 2016USD ($) | Jan. 01, 2016CNY (¥) | Dec. 29, 2020USD ($) | Dec. 29, 2020CNY (¥) | Nov. 22, 2019USD ($)shares | Nov. 22, 2019CNY (¥)shares | Jun. 24, 2019 | Mar. 18, 2019 | Jan. 29, 2019 |
Contingencies (Details) [Line Items] | |||||||||||||
Compensate plaintiff amount | $ 71,000 | ¥ 0.5 | |||||||||||
Outstanding balance | $ 4,400,000 | ¥ 30.4 | |||||||||||
Mining machine units | 80,000 | 80,000 | |||||||||||
Remaining payment plus interest | $ 40,499,000 | ¥ 282.2 | |||||||||||
Wangjing Technology Co., Ltd [Member] | |||||||||||||
Contingencies (Details) [Line Items] | |||||||||||||
Economic losses and reasonable rights | $ 431,000 | ¥ 3 | |||||||||||
Hangzhou Intermediate People’s Court [Member] | |||||||||||||
Contingencies (Details) [Line Items] | |||||||||||||
Civil action filed, description | The plaintiff claimed damages totaling approximately RMB53.9 million (approximately $7,735,000) and demanded rescission of the original purchase contract. The Court has forced to restrict cash amounted to RMB14,934,103 (approximately $2,143,000) from the Company’s bank accounts for the period from September 18, 2018 to September 17, 2019. On November 5, 2019, the Hangzhou Intermediate People’s Court ruled that Zhejiang Ebang shall pay the plaintiff, within 10 days after the verdict becoming effective, liquidity damages and logistics expenses totaling RMB178,611 (approximately $26,000) and rejected the plaintiff’s other requests. The plaintiff has filed an appeal, and in April 2020, the Hangzhou Higher People’s Court dismissed the appeal and affirmed the original judgement. An aggregate amount of RMB13,319,900 (approximately $1,912,000) was judicially frozen by the court has been released on April 15, 2020. The land use right with original cost of RMB18,117,700 (approximately $2,600,000) judicially frozen by the court from October 11, 2018 has been released on January 9, 2020 | one of our customers filed a civil action in the Hangzhou Intermediate People’s Court against the Company in relation to the sales of 80,000 units of mining machines amounting to RMB403.2 million (approximately $57,865,000) pursuant to an executed sales contract. The plaintiff claimed that only 24,000 units out of the 80,000 units were received, and the remaining 56,000 units were still pending to be delivered. For the delivered 24,000 units of mining machines, the quality did not meet the plaintiff’s specifications. The plaintiff sought to rescind the sales contract and supplementary contract, return the 24,000 units of mining machines, which cannot meet the agreed performance, and asked for the return of partial payment totaling RMB120.96 million (approximately $17,359,000) under the sales contract and undertake the legal expenses. | The defendant had purchased from the Company, and the Company had delivered 90,000 units of mining machines for a total amount of RMB453.6 million (approximately $65,098,000) pursuant to an executed sales contract. The defendant has paid RMB380 million (approximately $54,535,000), and the Company is seeking payment of the remaining balance of RMB73.6 million (approximately $10,563,000) plus interest and legal expenses. On August 15, 2019, the defendant filed a counterclaim against the Company, primarily alleging incompletion of delivery of products, only 65,000 units out of 90,000 units of mining machines were delivered and accepted, and the defendant sought for the refund of the payment of the alleged undelivered products of 25,000 mining machines amounted to RMB52.4 million (approximately $7,520,000) plus interest and legal expenses. | ||||||||||
Baoshan Intermediate People’s Court [Member] | |||||||||||||
Contingencies (Details) [Line Items] | |||||||||||||
Civil action filed, description | The defendant had purchased from the Company, and the Company had delivered 10,000 units of mining machines for a total amount of RMB50.4 million (approximately $7,233,000). The defendant has paid RMB20 million (approximately $2,870,000), and the Company is seeking the payment of the outstanding balance of RMB30.4 million (approximately $4,363,000). On September 23, 2019, the defendant filed a counterclaim against the Company, primarily alleging failure to deliver products of 10,000 units of mining machines, and sought for the refund of the payment of the alleged undelivered products amounted to RMB10 million (approximately $1,435,000) plus interest and legal expenses. | ||||||||||||
High Court of the Hong Kong Special Administrative Region [Member] | |||||||||||||
Contingencies (Details) [Line Items] | |||||||||||||
Civil action filed, description | the Company filed a civil action in the High Court of the Hong Kong Special Administrative Region, Court of First Instance against one of the Company’s suppliers, alleging breach of contract for delivering defective products and seeking damages in the total of $25.1 million plus interest and costs. Further, at this stage, the management of the Company, together with the trail counsel of this case, do not believe the possibility and magnitude of the outcomes of the aforementioned lawsuit can be reasonably estimated. |
Subsequent events (Details)
Subsequent events (Details) - USD ($) | Feb. 28, 2021 | Mar. 31, 2021 | Feb. 28, 2021 | Jan. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Subsequent events (Details) [Line Items] | |||||||
Exercised shares | 2,300,000 | ||||||
Subsequent Event [Member] | |||||||
Subsequent events (Details) [Line Items] | |||||||
Sale of units in shares | 19,200,000 | 3,400,000 | |||||
Sale of units (in Dollars) | $ 5 | $ 17,000,000 | |||||
Price per share (in Dollars per share) | $ 5.25 | $ 5.25 | |||||
March 2021 Offering [Member] | Subsequent Event [Member] | |||||||
Subsequent events (Details) [Line Items] | |||||||
Sale of units in shares | 14,000,000 | ||||||
Price per share (in Dollars per share) | $ 6.1 | ||||||
Net proceeds (in Dollars) | $ 80,000,000 | ||||||
Description of purchased stock | Each unit offered in the March 2021 Offering consist of one Class A ordinary share and one warrant to purchase one-half of one Class A ordinary share. The warrants are immediately exercisable and expire on the fifth anniversary of the original issuance date. The exercise price of each two warrant is $6.59. | ||||||
Warrant price (in Dollars per share) | $ 6.59 | ||||||
Warrant [Member] | Subsequent Event [Member] | |||||||
Subsequent events (Details) [Line Items] | |||||||
Sale of units in shares | 3,400,000 | ||||||
Warrant Inducement Offering [Member] | Subsequent Event [Member] | |||||||
Subsequent events (Details) [Line Items] | |||||||
Sale of units in shares | 13,600,000 | ||||||
Number of shares sold | 13,600,000 | ||||||
Net proceeds (in Dollars) | $ 68,000,000 | ||||||
Class A ordinary shares [Member] | Subsequent Event [Member] | |||||||
Subsequent events (Details) [Line Items] | |||||||
Sale of units in shares | 3,400,000 | ||||||
Exercised shares | 1,700,000 | ||||||
Class A ordinary shares [Member] | |||||||
Subsequent events (Details) [Line Items] | |||||||
Sale of units in shares | 13,600,000 | ||||||
Class A ordinary shares [Member] | Subsequent Event [Member] | |||||||
Subsequent events (Details) [Line Items] | |||||||
Price per share (in Dollars per share) | $ 11.06 | $ 11.06 |
Condensed financial informati_3
Condensed financial information of the parent company (Details) - Schedule of condensed balance sheets - Parent [Member] - Parent Company [Member] - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 8,318,219 | $ 21,770 |
Debt investments | 40,835,000 | |
Other current assets, net | 868,949 | |
Due from subsidiaries | 46,448,162 | |
Total current assets | 96,470,330 | 21,770 |
Non-current assets: | ||
Intangible assets, net | 19,714,079 | |
Investment in subsidiaries | (5,030,523) | 18,022,460 |
Total non-current assets | 14,683,556 | 18,022,460 |
Total assets | 111,153,886 | 18,044,230 |
Current liabilities: | ||
Accrued liabilities and other payables | 8,027,480 | |
Due to subsidiaries | 64,871 | |
Total current liabilities | 8,027,480 | 64,871 |
Total liabilities | 8,027,480 | 64,871 |
Shareholders’ equity: | ||
Ordinary share, HKD0.001 par value, 380,000,000 shares authorized, nil and 111,771,000 shares issued and outstanding at December 31, 2020 and 2019, respectively | 14,330 | |
Additional paid-in capital | 138,288,921 | 23,888,023 |
Retained earnings (deficit) | (38,581,419) | (7,905,999) |
Statutory reserves | 11,049,847 | 11,049,847 |
Accumulated other comprehensive loss | (7,648,332) | (9,066,842) |
Total shareholders’ equity | 103,126,406 | 17,979,359 |
Total liabilities and shareholders’ equity | 111,153,886 | $ 18,044,230 |
Class A ordinary share | ||
Shareholders’ equity: | ||
Ordinary share value | 11,411 | |
Class B ordinary share | ||
Shareholders’ equity: | ||
Ordinary share value | $ 5,978 |
Condensed financial informati_4
Condensed financial information of the parent company (Details) - Schedule of condensed balance sheets (Parentheticals) - Parent [Member] - Parent Company [Member] - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Ordinary share, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Ordinary share, shares authorized | 380,000,000 | 380,000,000 |
Ordinary share, shares issued | 111,771,000 | 111,771,000 |
Ordinary share, shares outstanding | 111,771,000 | 111,771,000 |
Class A ordinary share | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Ordinary share, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Ordinary share, shares authorized | 333,374,217 | 333,374,217 |
Ordinary share, shares issued | 89,009,554 | 89,009,554 |
Ordinary share, shares outstanding | 89,009,554 | 89,009,554 |
Class B ordinary share | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Ordinary share, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Ordinary share, shares authorized | 46,625,783 | 46,625,783 |
Ordinary share, shares issued | 46,625,783 | 46,625,783 |
Ordinary share, shares outstanding | 46,625,783 | 46,625,783 |
Condensed financial informati_5
Condensed financial information of the parent company (Details) - Schedule of condensed statements of operations and comprehensive loss - Parent Company [Member] - Parent [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Statement of Income Captions [Line Items] | |||
General and administrative expenses | $ 6,401,580 | $ 385,865 | $ 249,107 |
Total operating expenses | 6,401,580 | 385,865 | 249,107 |
Loss from operations | (6,401,580) | (385,865) | (249,107) |
Interest income | 798,328 | 4 | 12 |
Other expenses | (4,162) | (1,390) | (724) |
Exchange gain | 340,643 | 529 | |
Share of loss from subsidiaries | (25,408,649) | (42,016,647) | (12,058,675) |
Net loss | (30,675,420) | (42,403,369) | (12,308,494) |
Comprehensive loss | |||
Net loss | (30,675,420) | (42,403,369) | (12,308,494) |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | 1,418,510 | (1,188,488) | (11,363,682) |
Comprehensive loss | $ (29,256,910) | $ (43,591,857) | $ (23,672,176) |
Condensed financial informati_6
Condensed financial information of the parent company (Details) - Schedule of condensed statements of cash flows - Parent Company [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net loss | $ (30,675,420) | $ (42,403,369) | $ (12,308,494) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Share of loss from subsidiaries | 25,408,649 | 42,016,647 | 12,058,675 |
Amortization Expense | 165,664 | ||
Changes in assets and liabilities: | |||
Due from subsidiaries | (46,448,162) | 193,591 | (193,590) |
Other current assets, net | (868,949) | ||
Accrued liabilities and other payables | 75,583 | ||
Due to subsidiaries | (64,871) | 64,871 | |
Net Cash Used in Operating Activities | (52,407,506) | (128,260) | (443,409) |
Cash Flows from Investing Activities | |||
Cash paid for debt investments | (79,915,000) | ||
Proceeds from redemption of debt investments | 39,080,000 | ||
Purchases of intangible assets | (11,927,846) | ||
Net Cash Used in Investing Activities | (52,762,846) | ||
Cash Flows from Financing Activities | |||
Sale of subsidiary | 76,566 | ||
Capital contribution from shareholder | 7,700 | ||
Issuance of ordinary shares for cash | 114,191,595 | 585,739 | |
Net Cash Provided by Financing Activities | 114,268,161 | 593,439 | |
Effect of Foreign Exchange on Cash | (801,360) | ||
Net Increase (Decrease) in Cash and Cash Equivalents | 8,296,449 | (128,260) | 150,030 |
Cash and Cash Equivalents at Beginning of Year | 21,770 | 150,030 | |
Cash and Cash Equivalents at End of Year | $ 8,318,219 | $ 21,770 | $ 150,030 |