Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | May 22, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 000-56215 | |
Entity Registrant Name | WETOUCH TECHNOLOGY INC. | |
Entity Central Index Key | 0001826660 | |
Entity Tax Identification Number | 20-4080330 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | No.29, Third Main Avenue | |
Entity Address, Address Line Two | Shigao Town, Renshou County | |
Entity Address, Address Line Three | Meishan | |
Entity Address, City or Town | Sichuan | |
Entity Address, Country | CN | |
Entity Address, Postal Zip Code | 620500 | |
City Area Code | (86) | |
Local Phone Number | 028-37390666 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 193,604,965 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
CURRENT ASSETS | ||
Cash | $ 93,258,248 | $ 51,250,505 |
Accounts receivable, net | 13,086,991 | 9,057,741 |
Inventories | 171,623 | 423,276 |
Due from a related party | $ 1,080 | |
Other Receivable, after Allowance for Credit Loss, Current, Related and Nonrelated Party Status [Extensible Enumeration] | Related Party [Member] | Related Party [Member] |
Prepaid expenses and other current assets | $ 1,146,593 | $ 1,450,620 |
TOTAL CURRENT ASSETS | 107,664,535 | 62,182,142 |
Property, plant and equipment, net | 10,968,268 | 10,923,610 |
TOTAL ASSETS | 118,632,803 | 73,105,752 |
CURRENT LIABILITIES | ||
Accounts payable | 2,088,520 | 1,383,094 |
Loan from a third party | 472,526 | 385,791 |
Due to a related party | $ 1,665 | |
Other Liability, Current, Related and Nonrelated Party Status [Extensible Enumeration] | Related Party [Member] | Related Party [Member] |
Income tax payable | $ 1,400,221 | $ 22,152 |
Accrued expenses and other current liabilities | 2,124,757 | 944,624 |
Convertible promissory notes payable | 1,245,760 | 1,277,282 |
TOTAL CURRENT LIABILITIES | 7,331,784 | 4,014,608 |
Common stock purchase warrants liability | 354,559 | 256,957 |
TOTAL LIABILITIES | 7,686,343 | 4,271,565 |
COMMITMENTS AND CONTINGENCIES (Note 13) | ||
STOCKHOLDERS’ EQUITY | ||
Common stock, $0.001 par value, 300,000,000 shares authorized, 193,604,965 and 33,604,965 issued and outstanding as of March 31, 2023 and December 31, 2022, respectively | 193,605 | 33,605 |
Additional paid in capital | 43,210,253 | 3,370,253 |
Statutory reserve | 6,040,961 | 6,040,961 |
Retained earnings | 65,160,141 | 62,366,892 |
Accumulated other comprehensive income | (3,658,500) | (2,977,524) |
TOTAL STOCKHOLDERS’ EQUITY | 110,946,460 | 68,834,187 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 118,632,803 | $ 73,105,752 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 193,604,965 | 33,604,965 |
Common stock, shares outstanding | 193,604,965 | 33,604,965 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
REVENUES | $ 13,433,461 | $ 11,994,547 |
Cost of revenues | (7,394,661) | (7,683,792) |
GROSS PROFIT | 6,038,800 | 4,310,755 |
OPERATING EXPENSES | ||
Selling expenses | (50,705) | (485,147) |
General and administrative expenses | (1,666,756) | (372,338) |
Research and development expenses | (20,885) | (22,857) |
Total operating expenses | (1,738,346) | (880,342) |
INCOME FROM OPERATIONS | 4,300,454 | 3,430,413 |
OTHER INCOME (EXPENSES) | ||
Interest income | 29,195 | 29,134 |
Interest expense | (33,399) | (56,172) |
Government grant | ||
Gain (loss) on changes in fair value of common stock purchase warrants liability | (97,602) | 160,443 |
TOTAL OTHER INCOME (EXPENSES) | (101,806) | 133,405 |
INCOME BEFORE INCOME TAX EXPENSE | 4,198,648 | 3,563,818 |
INCOME TAX EXPENSE | (1,405,399) | (1,001,305) |
NET INCOME | 2,793,249 | 2,562,513 |
OTHER COMPREHENSIVE INCOME (LOSS) | ||
Foreign currency translation adjustment | (680,976) | 380,194 |
COMPREHENSIVE INCOME | $ 2,112,273 | $ 2,942,707 |
EARNINGS PER COMMON SHARE | ||
Basic | $ 0.02 | $ 0.08 |
Diluted | $ 0.02 | $ 0.08 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | ||
Basic | 159,827,187 | 31,811,523 |
Diluted | 162,059,750 | 32,653,163 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Statutory reserve [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Beginning balance, value at Dec. 31, 2021 | $ 31,812 | $ 2,333,621 | $ 5,067,243 | $ 54,610,164 | $ 2,265,168 | $ 64,308,008 |
Beginning balance, shares at Dec. 31, 2021 | 31,811,523 | |||||
Net income | 2,562,513 | 2,562,513 | ||||
Foreign currency translation adjustment | 380,184 | 380,184 | ||||
Ending balance, value at Mar. 31, 2022 | $ 31,812 | 2,333,621 | 5,067,243 | 57,172,677 | 2,645,352 | 67,250,715 |
Ending balance, shares at Mar. 31, 2022 | 31,811,523 | |||||
Beginning balance, value at Dec. 31, 2022 | $ 33,605 | 3,370,253 | 6,040,961 | 62,366,892 | (2,977,524) | 68,834,187 |
Beginning balance, shares at Dec. 31, 2022 | 33,604,965 | |||||
Net income | 2,793,249 | 2,793,249 | ||||
Foreign currency translation adjustment | (680,976) | (680,976) | ||||
Shares issued to private placement | $ 160,000 | 39,840,000 | 40,000,000 | |||
Shares issued to private placement,shares | 160,000,000 | |||||
Ending balance, value at Mar. 31, 2023 | $ 193,605 | $ 43,210,253 | $ 6,040,961 | $ 65,160,141 | $ 3,658,500 | $ 110,946,460 |
Ending balance, shares at Mar. 31, 2023 | 193,604,965 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities | ||
Net income | $ 2,793,249 | $ 2,562,513 |
Adjustments to reconcile net income to cash provided by operating activities | ||
Depreciation and amortization | 2,433 | 2,622 |
Amortization of discounts and issuance cost of the notes | 6,941 | 12,655 |
Gain (loss) on changes in fair value of common stock purchase warrants liability | 97,602 | (160,443) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (4,004,967) | (6,350,920) |
Amounts due from related parties | (1,076) | |
Inventories | 254,727 | (11,620) |
Prepaid expenses and other current assets | 307,380 | 741,854 |
Accounts payable | 702,052 | 429,214 |
Amounts due to related parties | (1,344) | (53,472) |
Income tax payable | 1,383,069 | 933,794 |
Accrued expenses and other current liabilities | 1,176,473 | 456,056 |
Net cash provided by (used in) operating activities | 2,716,539 | (1,437,747) |
Cash flows from investing activities | ||
Net cash provided by investing activities | ||
Cash flows from financing activities | ||
Proceeds from stock issuance of private placement | 40,000,000 | |
Proceeds from interest-free advances from a third party | 86,735 | |
Repayments of convertible promissory notes payable | (35,000) | |
Net cash used in financing activities | 40,051,735 | |
Effect of changes of foreign exchange rates on cash | (760,531) | 94,476 |
Net increase in cash | 42,007,743 | (1,343,271) |
Cash, beginning of period | 51,250,505 | 46,163,704 |
Cash, end of period | 93,258,248 | 44,820,433 |
Supplemental disclosures of cash flow information | ||
Income tax paid | $ 22,330 | $ 1,001,305 |
BUSINESS DESCRIPTION
BUSINESS DESCRIPTION | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
BUSINESS DESCRIPTION | NOTE 1 — BUSINESS DESCRIPTION Wetouch Technology Inc. (“Wetouch”, or the “Company”), formerly known as Gulf West Investment Properties, Inc., was originally incorporated in August 1992, under the laws of the state of Nevada. On October 9, 2020, the Company entered into a share exchange agreement (the “Share Exchange Agreement”) with Wetouch Holding Group Limited (“BVI Wetouch”) and all the shareholders of BVI Wetouch (each, a “BVI Shareholder” and collectively the “BVI Shareholders”), to acquire all the issued and outstanding capital stock of BVI Wetouch in exchange for the issuance to the BVI Shareholders an aggregate of 28,000,000 2,800 31,396,394 Wetouch Holding Group Limited (“BVI Wetouch”), is a holding company whose only asset, held through a subsidiary, is 100 The Reverse Merger was accounted for as a recapitalization effected by a share exchange, wherein BVI Wetouch is considered the acquirer for accounting and financial reporting purposes. The assets and liabilities of BVI Wetouch have been brought forward at their book value and no goodwill has been recognized. The number of shares, par value amount, and additional paid-in capital in the prior years are retrospectively adjusted according. Corporate History of BVI Wetouch Wetouch Holding Group Limited (“BVI Wetouch”) was incorporated under the laws of British Virgin Islands on August 14, 2020. It became the holding company of Hong Kong Wetouch Electronics Technology Limited (“Hong Kong Wetouch”) on September 11, 2020. Hong Kong Wetouch Technology Limited (“HK Wetouch”), was incorporated as a holding company under the laws of Hong Kong Special Administrative Region (“SAR”) on December 3, 2020. On March 2, 2021, HK Wetouch acquired all shares of Hong Kong Wetouch. Due to the fact that Hong Kong Wetouch and HK Wetouch are both under the same sole stockholder, the acquisition is accounted for under common control. In June, 2021, Hong Kong Wetouch completed its dissolution process pursuant to the minutes of its special shareholder meeting. Sichuan Wetouch Technology Co. Ltd. (“Sichuan Wetouch”) was formed on May 6, 2011 in the People’s Republic of China (“PRC”) and became Wholly Foreign-Owned Enterprise in PRC on February 23, 2017. On July 19, 2016, Sichuan Wetouch was 100 % held by HK Wetouch. On December 30, 2020, Sichuan Vtouch Technology Co., Ltd. (“Sichuan Vtouch”) was incorporated in Chengdu, Sichuan, under the laws of the People’s Republic of China. In March 2021, pursuant to local PRC government guidelines on local environmental issues and the national overall plan, Sichuan Wetouch was under the government directed relocation order. Sichuan Vtouch took over the operating business of Sichuan Wetouch. On March 30, 2023 an independent third party acquired all shares of Sichuan Wetouch. As a result of the above restructuring, HK Wetouch became the sole shareholder of Sichuan Vtouch. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | Note 2 — BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted as permitted by rules and regulations of the United States Securities and Exchange Commission (“SEC”). The condensed consolidated balance sheet as of December 31, 2022 was derived from the audited consolidated financial statements of Wetouch. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated balance sheet of the Company as of December 31, 2022, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended. In the opinion of the management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the financial position as of March 31, 2023, the results of operations and cash flows for the three-month periods ended March 31, 2023 and 2022 have been made. However, the results of operations included in such financial statements may not necessarily be indicative of annual results. Use of Estimates The preparation of condensed financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, as well as the related disclosure of contingent assets and liabilities. Actual results could differ from those estimates. On an ongoing basis, management evaluates the Company’s estimates, including those related to the bad debt allowance, fair values of financial instruments, intangible assets and property and equipment, income taxes, and contingent liabilities, among others. The Company bases its estimates on assumptions, both historical and forward looking, that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Significant Accounting Policies For a detailed discussion about Wetouch’s significant accounting policies, refer to Note 2 — “Summary of Significant Accounting Policies,” in Wetouch’s consolidated financial statements included in Company’s 2022 audited consolidated financial statements. During the three-month periods ended March 31, 2023, there were no significant changes made to Wetouch significant accounting policies. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE-3- ACCOUNTS RECEIVABLE Accounts receivable consists of the following: SCHEDULE OF ACCOUNTS RECEIVABLE March 31, 2023 December 31 2022 Accounts receivable $ 13,086,991 $ 9,057,741 Allowance for doubtful accounts - - Accounts receivable, net $ 13,086,991 $ 9,057,741 The Company’s accounts receivable primarily includes balance due from customers when the Company’s products are sold and delivered to customers. |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 3 Months Ended |
Mar. 31, 2023 | |
Prepaid Expenses And Other Current Assets | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | NOTE-4 — PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consist of the following: SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS March 31, 2023 December 31, 2022 Advance to suppliers $ 345,204 $ 333,920 VAT input credits 38,549 355,482 Issue cost related to convertible promissory notes 78,150 81,614 Prepayment for land use right ( i 571,558 569,105 Security deposit ( ii 57,225 56,979 Others receivable ( iii 55,907 53,520 Prepaid expenses and other current assets $ 1,146,593 $ 1,450,620 (i) On July 23, 2021, Sichuan Vtouch entered into a contract with Chengdu Wenjiang District Planning and Natural Resources Bureau for purchasing a land use right of 131,010 3,925,233 571,558 (ii) On July 28, 2021, Sichuan Vtouch made a security deposit of RMB 393,000 57,225 (iii) Other receivables are mainly employee advances, and prepaid expenses. |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | NOTE 5— PROPERTY, PLANT AND EQUIPMENT, NET SCHEDULE OF PROPERTY , PLANT AND EQUIPMENT March 31, 2023 December 31, 2022 Buildings $ 12,540 $ 12,487 Vehicles 42,637 42,453 Construction in progress 10,929,958 10,883,051 Subtotal 10,985,135 10,937,991 Less: accumulated depreciation (16,867 ) (14,381 ) Property, plant and equipment, net $ 10,968,268 $ 10,923,610 Depreciation expense was $ 2,433 2,622 Pursuant to local PRC government guidelines on local environment issues and the national overall plan, Sichuan Wetouch is under the government directed relocation order to relocate no later than December 31, 2021 and received compensation accordingly. On March 18, 2021, pursuant to the agreement with the local government and an appraisal report issued by a mutual agreed appraiser, Sichuan Wetouch received a compensation of RMB 115.2 18.2 On March 16, 2021, in order to minimize interruption of our business, Sichuan Vtouch entered into a leasing agreement with Sichuan Renshou Shigao Tianfu Investment Co., Ltd. (later renamed as Meishan Huantian Industrial Co., Ltd.), a limited company owned by the local government, to lease the property, and all buildings, facilities and equipment thereon (“Demised Properties) of Sichuan Wetouch, commencing from April 1, 2021 until December 31, 2021 at a monthly rent of RMB 300,000 43,683 renewed on December 31, 2021 at a monthly rent of RMB 400,000 ($58,244) from January 1, 2022 till October 31, 2023 for the use of the Demised Properties |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 6 – RELATED PARTY TRANSACTIONS Amounts due from a related party are as follows : SCHEDULE OF RELATED PARTY TRANSACTIONS Relationship March 31, 2023 December 31, 2022 Note Mr. Zongyi Lian President and CEO of the Company $ 1,080 $ - Receivable from employee Total $ 1,080 $ - Amounts due to a related party are as follows : Relationship March 31, 2023 December 31, 2022 Note Mr. Zongyi Lian President and CEO of the Company - 1,665 Payable to employee Total $ - $ 1,665 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 7 — INCOME TAXES Wetouch Wetouch Technology Inc. files a U.S. federal income tax return. BVI Wetouch Under the current laws of the British Virgin Islands, BVI Wetouch, subsidiaries of Wetouch, is not subject to tax on its income or capital gains. In addition, no British Virgin Islands withholding tax will be imposed upon the payment of dividends by the Company to its shareholders. Hong Kong HK Wetouch is incorporated in Hong Kong and is subject to profit taxes in Hong Kong at a rate of 16.5 PRC Sichuan Wetouch and Sichuan Vtouch files income tax returns in the PRC. Effective from January 1, 2008, the PRC statutory income tax rate is 25 Under PRC CIT Law, domestic enterprises and Foreign Investment Enterprises (“FIEs”) are usually subject to a unified 25 15 15 On October 21, 2020, Sichuan Wetouch was granted on a case-by-case basis by Sichuan Provincial government as preferential tax treatment High and New Technology Enterprises (“HNTEs”), entitled to a reduced income tax rate of 15% beginning October 21, 2020 until October 20, 2023 . On March 30, 2023 an independent third party acquired all shares of Sichuan Wetouch. Sichuan Vtouch is entitled to 25 The effective income tax rates for the three-month periods ended March 31, 2023 and 2022 were 33.5 28.1 The estimated effective income tax rate for the year ended December 31, 2023 would be similar to actual effective tax rate of the three-month periods ended March 31, 2023. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 3 Months Ended |
Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | NOTE 8— ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consist of the following: SCHEDULE OF ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES March 31, 2023 December 31, 2022 Advance from customers $ 525,782 $ 397,886 Accrued payroll and employee benefits 89,054 89,359 Accrued interest expenses 148,592 122,135 Accrued underwriter fees (i) 1,200,000 - Other tax payables (ii) - 261 Other payable to a former shareholder (iii) - 191,180 Others (iv) 161,329 153,803 Accrued expenses and other current liabilities $ 2,124,757 $ 944,624 (i) On March 18, 2023, the Company entered into a private placement consent agreement with representatives related to the private placement consummated on January 19, 2023 (see Note 10) on the underwriting fees of US$ 1.2 (ii) Other tax payables are mainly value added tax payable. (iii) Other payable to a former shareholder was paid in March 2023. (iv) Others mainly represent accrued employee reimbursement payable and other accrued miscellaneous operating expenses. |
CONVERTIBLE PROMISSORY NOTES PA
CONVERTIBLE PROMISSORY NOTES PAYABLE | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE PROMISSORY NOTES PAYABLE | NOTE 9 – CONVERTIBLE PROMISSORY NOTES PAYABLE a) Convertible promissory notes In October, November, and December 2021, the Company, issued seven (7) convertible promissory notes 2,250,000 90.0 8.0 October 27, November 5, November 16, November 29 and December 2 of 2022 1,793,000 162,000 The details of convertible notes are as follows: Unless the Notes are converted, the principal amounts of the Notes, and accrued interest at the rate of 8 16 The Lenders have the right to convert any or all of the principal and accrued interest on the Notes into shares of common stock of the Company on the earlier of (i) 180 calendar days after the issuance date of the Notes or (ii) the closing of a listing for trading of the common stock of the Company on a national securities exchange offering resulting in gross proceeds to the Company of $ 15,000,000 Uplist Offering th 70 0.75 Subject to customary exceptions, if the Company issues shares or any securities convertible into shares of common stock at an effective price per share lower than the conversion price of the Notes, the conversion rate of the Notes shall be reduced to such lower price. Until the Notes are either paid or converted in their entirety, the Company agreed with the Lenders not to sell any securities convertible into shares of common stock of the Company (i) at a conversion price that is based on the trading price of the stock or (ii) with a conversion price that is subject to being reset at a future date or upon an event directly or indirectly related to the business of the Company or the market for the common stock. The Company also agreed to not issue securities at a future determined price. The Lenders have the right to require the Company to repay the Notes if the Company receives cash proceeds, including proceeds from customers and the issuance of equity (including in the Uplist Offering). If the Company prepays the Notes prior to the Maturity Date, the Company shall pay a 10 The following table summarizes the outstanding promissory notes as of March 31, 2023 and December 31, 2022 (dollars in thousands): SUMMARY OF OUTSTANDING PROMISSORY NOTES March 31, 2023 December 31, 2022 Interest rate Principal Amount Carrying Amount Principal Amount Carrying Amount Convertible Note - Talos Victory (Note 9 (b)) 8 % $ - $ - $ - - Convertible Note - Mast Hill (Note 9 (b)) 8 % 725,000 639,400 740,000 635,535 Convertible Note - First Fire (Note 9 (b)) 8 % 176,250 156,466 181,250 156,594 Convertible Note - LGH Note 9 (b)) 8 % 202,500 188,949 207,500 188,987 Convertible Note - Fourth Man (Note 9 (b)) 8 % 152,000 129,322 157,000 128,703 Convertible Note - Jeffery Street Note 9 (b)) 8 % 165,000 136,809 170,000 142,554 Convertible Note - Blue Lake Note 9 (b))Total 8 % - - - - Total $ 1,420,750 $ 1,250,946 $ 1,455,750 $ 1,252,373 Amortization of discounts for the three months ended March 31, 2023 (5,186 ) Convertible promissory notes payable as of March 31, 2023 $ 1,245,760 From December 28, 2022 to January 18, 2023, the remaining five (5) lenders and the Company entered into an amendment to the Note (“Amendment to Promissory Note”) extending maturity date for an additional 6 months. For the three-month period ended March 31 , 2023 and 2022, the Company recognized interest expenses of the Notes in the amount of US$ 33,399 56,172 *The Company prepaid $ 10,000 b) Warrants Accounting for Warrants In connection with the issuance of a convertible promissory notes (see Note 11 (a) seven (7) three-year warrant (the “Warrant”) to purchase an aggregate of 1,800,000 The Warrants issued to the Lenders granted each of the Lenders the right to purchase up to 200,000 1.25 th 125 1.25 The Lenders have the right to exercise the Warrants on a cashless basis if the highest traded price of a share of common stock of the Company during the 150 trading days prior to exercise of the Warrants exceeds the exercise price, unless there is an effective registration statement of the Company which covers the resale of the Lenders. If the Company issues shares or any securities convertible into shares at an effective price per share lower than the exercise price of the Warrants, the exercise price of the Warrants shall be reduced to such lower price, subject to customary exceptions. The Lenders may not convert the Notes or exercise the Warrants if such conversion or exercise will result in each of the Lenders, together with any affiliates, beneficially owning in excess of 4.9 On January 17, 2022, we closed a private offering of ordinary shares and warrants to purchase ordinary shares. A total of 2,750,000 0.80 2,200,000 0.88 On April 14, April 27, and September 1, 2022, three lenders exercised cashless for 115,540 111,972 57,142 The fair values of these warrants as of March 31, 2023 were calculated using the Black-Scholes option-pricing model with the following assumptions: SCHEDULE OF FAIR VALUE OF WARRANTS March 31, 2023 Volatility (%) Expected dividends yield (%) Weighted average expected life (year) Risk-free interest rate (%) (per annum) Common stock purchase warrants liability as of December 31, 2022(US$) Changes of fair value of common stock purchase warrants liability Common stock purchase warrants liability as of March 31, 2023 (US$) Convertible Note - Talos Victory (Note 9 (a)) 337.7 % $ 0.0 % $ 1.6 4.35 % 14,803 5,663 20,466 Convertible Note - Mast Hill (Note 9 (a)) 337.7 % 0.0 % 1.6 4.35 % 101,293 38,623 139,916 Convertible Note - First Fire (Note 9 (a)) 337.7 % 0.0 % 1.6 4.35 % 33,919 12,883 46,802 Convertible Note - LGH Note 9 (a)) 337.7 % 0.0 % 1.7 4.35 % 34,028 12,888 46,916 Convertible Note - Fourth Man (Note 9 (ab)) 337.7 % 0.0 % 1.7 4.35 % 14,398 5,444 19,842 Convertible Note - Jeffery Street Note 9 (a))3,054 337.7 % 0.0 % 1.7 4.35 % 34,134 12,892 47,026 Convertible Note - Blue Lake Note 9 (a)) 337.7 % 0.0 % 1.7 4.35 % 24,382 9,209 33,591 Total Total 256,957 97,602 354,559 (c) Registration Rights Agreements Pursuant to the terms of the Registration Rights Agreement dated as of contract date of each convertible promissory note, 2021, executed between the Company and Lender, the Registration Rights Agreement dated as of each contract date, executed between the Company and Lenders, the Company agreed to file a registration statement with the Securities and Exchange Commission to register the shares of common stock underlying the Notes and the shares issuable upon exercise of the Warrants within sixty days from the date of each Registration Rights Agreement. The Company also granted the Lenders piggyback registration rights on such shares pursuant to the Purchase Agreements. |
SHAREHOLDERS_ EQUITY
SHAREHOLDERS’ EQUITY | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
SHAREHOLDERS’ EQUITY | NOTE 10— SHAREHOLDERS’ EQUITY 1) Ordinary Shares The Company’s authorized number of ordinary shares was 300,000,000 0.001 On December 22,2020, the Company issued 103,610 On January 1, 2021, the Company issued an aggregate of 310,830 On April 14, April 27, 2022 and September 1, 2022, the Company issued cashless warrant shares of 115,540 111,972 57,142 During the year ended December 31, 2022, the Company issued 124,223 During the year ended December 31, 2022, the Company issued 1,384,564 On January 19, 2023, the Company sold an aggregate of 160,000,000 40,000,000 0.25 On January 20, 2023, the Company received net proceeds of $ 40 As of March 31, 2023, the Company had 193,604,965 2) Reverse Stock Split On February 17, 2023, the Board authorized a reverse stock split with a ratio of not less than one to five (1:5) and not more than one to eighty (1:80) |
SHARE BASED COMPENSATION
SHARE BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE BASED COMPENSATION | NOTE 11- SHARE BASED COMPENSATION The Company applied ASC 718 and related interpretations in accounting for measuring the cost of share-based compensation over the period during which the consultants are required to provide services in exchange for the issued shares. The fair value of above award was estimated at the grant date using Black-Scholes model for pricing the share compensation expenses. On December 22, 2020, the Board of Directors of the Company authorized the issuance of an aggregate of 103,610 210,360 The shares of 103,610 no 2.5 0% 43.5% 0.11% On January 1, 2021, the Board of Directors of the Company authorized the issuance of an aggregate of 310,830 631,080 The 310,830 631,080 124,223 The fair value of above award was estimated at the grant date using Black-Scholes model for pricing the share compensation expenses. The fair value of the Black-Scholes model includes the following assumptions: expected life of 1.5 0% 215.4% 2.96% As of March 31, 2023, the Company had 717,217 0.01 0.8 0.2 For the three-month periods ended March 31, 2023 and 2022, the Company recognized relevant share-based compensation expense of nil nil nil nil |
RISKS AND UNCERTAINTIES
RISKS AND UNCERTAINTIES | 3 Months Ended |
Mar. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
RISKS AND UNCERTAINTIES | NOTE 12- RISKS AND UNCERTAINTIES Credit Risk The Company has its cash in bank deposits primarily at state owned banks located in the PRC. Historically, deposits in PRC banks have been secured due to the state policy of protecting depositors’ interests. The PRC promulgated a Bankruptcy Law in August 2006, effective June 1, 2007, which contains provisions for the implementation of measures for the bankruptcy of PRC banks. The bank deposits with financial institutions in the PRC are insured by the government authority for up to RMB 500,000 Interest Rate Risk Currency Risk - Concentrations - For the three-month periods ended March 31, 2023 and 2022, five customers accounted for 22.3% 15.7% 15.0% 14.2% 12.2% 10.8% 18.1% 16.2% 15.7% 14.7% 12.4% 12.3% And the Company’s top ten customers aggregately accounted for 99.6% 99.4% As of March 31, 2023, five customers accounted for 25.8 17.4% 13.8% 12.1% 10.9% The Company purchases its raw materials through various suppliers. Raw material purchases from these suppliers which individually exceeded 10% of the Company’s total raw material purchases, accounted for approximately 75.0% 47.4% |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 13 — COMMITMENTS AND CONTINGENCIES Legal Proceedings From time to time, the Company and its affiliates are parties to various legal actions arising in the ordinary course of business. Although Sichuan Wetouch and Hong Kong Wetouch, the previous subsidiaries of the Company, and our former Chairman and director Mr. Guangde Cai were named as defendants in several litigation matters, as of the date of this report, i) An equity dispute case with Yunqing Su with a disputed amount of RMB 1,318,604 191,180 On June 22, 2017, Yunqing Su, a former shareholder, entered an Equity Investment Agreement with Sichuan Wetouch and Guangde Cai, agreed that Yunqing Su would invest RMB 1 149,853 370,370.37 220,000 32,968 128,000 19,181 On May 9, 2022, pursuant to a civil mediation statement issued by the Renshou County People’s Court of Sichuan Province, Wetouch Sichuan and Guangde Cai agreed to repay Yunqing Su the principal and interest in the total amount of RMB 1,318,604 191,180 ii) Legal case with Chengdu SME Credit Guarantee Co., Ltd. on a court acceptance fee of RMB 338,418 49,066 On July 5, 2013, Sichuan Wetouch obtained a one-year loan of RMB 60.0 9.8 8.61% Chengdu SME Credit Guarantee Co., Ltd (“Chengdu SME”), a third party, provided a 70% guarantee and Bank of Chengdu retained 30% of the risk, while Chengdu Wetouch Technology Co. Ltd. (“Chengdu Wetouch”) and Mr. Guangde Cai provided joint and several liability guarantee for 100% of the loan. On July 31, 2014, Sichuan Wetouch repaid RMB 5.0 0.8 55.0 8.9 55 8.9 55 8.0 5.8 0.8 6.0 0.9 1.7 Chengdu SME applied to the Chengdu High-tech Court for enforcement for the above-mentioned loan default penalties of RMB 5.8 0.8 6.0 0.9 5.8 0.8 6.0 0.9 On September 16, 2020, Sichuan Wetouch made a full repayment of RMB 11.8 1.7 On March 16, 2023, pursuant to an Enforcement Settlement Agreement entered among Chengdu SME, Sichuan Wetouch and Chengdu Wetouch, Chengdu Wetouch agreed to pay the court acceptance fee of RMB 338,418 49,066 iii) Legal case with Zhuhai Hongguang Technology Co., Ltd on the total amount of RMB 131,859 19,118 In September 2016, Sichuan Wetouch started purchasing components from Hongguang Technology Co., Ltd (“Hongguang Technology”) by sending a Purchase Order to Hongguang Technology and agreed to bear 20% of the breach of contract as liquidated damages. On November 30, 2021, Hongguang Technology filed a complaint with Renshou County People’s Court of Sichuan Province, requesting Sichuan Wetouch to pay RMB 109,883.2 16,466 21,976.64 3,293 131,859 19,118 iv) Legal case with Lifan Financial Leasing (Shanghai) Co., Ltd. and Sichuan Wetouch, Chengdu Wetouch, Meishan Wetouch and Xinjiang Wetouch Electronic Technology Co., Ltd. on a court acceptance fee of RMB RMB 250,470 36,315 On November 20, 2014, Lifan Financial Lease (Shanghai) Co., Ltd. (“Lifan Financial”) and Chengdu Wetouch entered into a Financial Lease Contract (Sale and Leaseback), which stipulated that Lifan Financial shall lease the equipment to Chengdu Wetouch after the purchase of the production equipment owned by Chengdu Wetouch at a purchase price, the purchase price/lease principal shall be RMB 20 8% On August 9, 2021, Lifan Financial filed a lawsuit against Chengdu Wetouch, Guangde Cai, Sichuan Wetouch, Meishan Wetouch and Xinjiang Wetouch to the Chengdu Intermediate People’s Court. The court ruled that: 1) the Financial Lease Contract (Sale and Leaseback) was terminated; 2) the leased property was owned by Lifan Financial; 3) Chengdu Wetouch shall pay Lifan Financial all outstanding rent and interest thereon in the total amount of RMB 22,905,807.12 The parties executed a settlement agreement on March 7, 2023, in which the parties confirmed that the outstanding payment of RMB 22,905,807.12 250,470 36,315 v) Legal case with Sichuan Renshou Shigao Tianfu Investment Co., Ltd and Renshou Tengyi Landscaping Co., Ltd. on a court acceptance fee of RMB 103,232 14,967 On March 19, 2014, Chengdu Wetouch, a related party, obtained a two and half-year loan of RMB 15.0 2.2 Upon the loan due in January 2017, Chengdu Wetouch defaulted the loan, thus, CDHT Investment filed a lawsuit against Chengdu Wetouch, Sichuan Wetouch, and Hong Kong Wetouch demanding a full repayment of such debts. To support the local economic development as well as Chengdu Wetouch, two government-backed companies, Sichuan Renshou Shigao Tianfu Investment Co., Ltd. (“Sichuan Renshou”) and Renshou Tengyi Landscaping Co., Ltd. (“Renshou Tengyi”) provided their bank deposits of RMB 12.0 1.7 Upon the expiration of the guarantee, Chengdu Wetouch still defaulted on repayment of the above pledge. As a result, CDHT Investment levied this collateral of RMB 12.0 12.0 1.7 On December 2, 2019, pursuant to the reconciling agreement issued by Chengdu Intermediate People’s Court, the parties agreed to cancel the demand to seize property of Sichuan Wetouch rather than the property of Chengdu Wetouch, and to waive freezing Guangde Cai’s 60% shareholding equity in Xinjiang Wetouch Electronic Technology Co., Ltd. On October 9, 2020, pursuant to a settlement and release agreement, Sichuan Wetouch, Hong Kong Wetouch and Guangde Cai are fully discharged and released from any and all obligations under the outstanding debts, and from all liabilities under guarantee with Chengdu Wetouch being responsible for the outstanding debts by December 31, 2020. On October 27, 2020, Chengdu Wetouch made a full payment of the above debts. The settlement and release agreement did not specify which party shall pay the court acceptane fee. On March 10, 2023, pursuant to an enforcement settlement agreement entered among Sichuan Renshou, Renshou Tengyi, Sichuan Wetouch, Chengdu Wetouch, and other relevant parties, Sichuan Wetouch agreed to pay the court acceptance fee of RMB 103,232 14,967 vi) Legal case with Chengdu High Investment Financing Guarantee Co. on a court acceptance fee of RMB 250,000 36,246 On March 22, 2019, Chengdu High Investment Financing Guarantee Co., Ltd, (“Chengdu High Investment”) filed a lawsuit against Hong Kong Wetouch to the Chengdu Intermediate People’s Court, claiming that Hong Kong Wetouch should assume the guarantee liability for the debt payable by Chengdu Wetouch. On May 21, 2020, the court rendered a judgment ordering Hong Kong Wetouch to pay compensation of RMB 17,467,042 2,617,491 On March 16, 2023, Chengdu Wetouch, Sichuan Wetouch and Chengdu High Investment entered into a settlement enforcement agreement, confirming that Chengdu High Investment had received RMB 17,547,197.5 2,629,503 250,000 36,246 vii) Legal case with Hubei Lai’en Optoelectronics Technology Co., Ltd. on a product payment of RMB 157,714 22,866 Sichuan Wetouch purchased products from Hubei Lai’en Optoelectronics Technology Co., Ltd. (“Hubei Lai’en) multiple times from March to June 2019, but failed to pay the corresponding amount of RMB 137,142.7 137,143 20,571 viii) Legal case with Shenzhen Helitong Technology Co., Ltd. on a product payment of RMB 229,513 34,393 Sichuan Wetouch purchased products from Shenzhen Helitong Technology Co., Ltd. (“Shenzhen Helitong”) multiple times from January to June 2020, but failed to pay some of the purchase fee for the products. On October 21, 2021, Shenzhen Helitong filed a lawsuit against Sichuan Wetouch to the Renshou County People’s Court of Sichuan Province, requesting payment of overdue payment for the products and interests. On October 10, 2021, pursuant to a civil mediation letter issued by the Renshou County People’s Court, both parties agree that Sichuan Wetouch shall pay a total of RMB 229,513 34,393 229,513 33,276 ix) Legal case with Xinjiang Weiyida Real Estate Development Co., Ltd on a loan payment of RMB 17,318,625 2,510,964 Xinjiang Weiyida Real Estate Development Co., Ltd (“Weiyida Real Estate”) filed a lawsuit against Meishan Wetouch, Guangde Cai, Sichuan Wetouch, Xinjiang Wetouch, Sichuan Yitong Financing Guarantee Co., Ltd to the Renshou County People’s Court of Sichuan Province and applied for property preservation on February 14, 2022 with respect to the dispute over recovery right in connection with the loan agreement. The parties entered into a settlement agreement and agreed that Meishan Wetouch shall repay the principal of RMB$ 17,318,625 2,595,250 17,318,625 2,510,964 Capital expenditure commitment On December 20, 2021, the Company entered into a contract with Shenzhen Municipal Haoyutuo Decoration & Cleaning Engineering Company Limited to purchase a facility decoration contract of RMB 20.0 3.1 15.0 2.2 5.0 0.7 |
REVENUES
REVENUES | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | NOTE 14 — REVENUES The Company’s geographical revenue information is set forth below: SCHEDULE OF GEOGRAPHICAL REVENUE INFORMATION 2023 2022 For the Three-Month Periods Ended, March 31, 2023 2022 Sales in PRC $ 9,287,566 $ 8,169,567 Sales in Overseas —Republic of China (ROC, or Taiwan) 2,119,140 1,998,679 -South Korea 1,911,297 1,763,200 -Others 115,458 63,101 Sub-total 4,145,895 3,824,980 Total revenues $ 13,433,461 $ 11,994,547 |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates | Use of Estimates The preparation of condensed financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, as well as the related disclosure of contingent assets and liabilities. Actual results could differ from those estimates. On an ongoing basis, management evaluates the Company’s estimates, including those related to the bad debt allowance, fair values of financial instruments, intangible assets and property and equipment, income taxes, and contingent liabilities, among others. The Company bases its estimates on assumptions, both historical and forward looking, that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
SCHEDULE OF ACCOUNTS RECEIVABLE | Accounts receivable consists of the following: SCHEDULE OF ACCOUNTS RECEIVABLE March 31, 2023 December 31 2022 Accounts receivable $ 13,086,991 $ 9,057,741 Allowance for doubtful accounts - - Accounts receivable, net $ 13,086,991 $ 9,057,741 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Prepaid Expenses And Other Current Assets | |
SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS | Prepaid expenses and other current assets consist of the following: SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS March 31, 2023 December 31, 2022 Advance to suppliers $ 345,204 $ 333,920 VAT input credits 38,549 355,482 Issue cost related to convertible promissory notes 78,150 81,614 Prepayment for land use right ( i 571,558 569,105 Security deposit ( ii 57,225 56,979 Others receivable ( iii 55,907 53,520 Prepaid expenses and other current assets $ 1,146,593 $ 1,450,620 (i) On July 23, 2021, Sichuan Vtouch entered into a contract with Chengdu Wenjiang District Planning and Natural Resources Bureau for purchasing a land use right of 131,010 3,925,233 571,558 (ii) On July 28, 2021, Sichuan Vtouch made a security deposit of RMB 393,000 57,225 (iii) Other receivables are mainly employee advances, and prepaid expenses. |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY , PLANT AND EQUIPMENT | SCHEDULE OF PROPERTY , PLANT AND EQUIPMENT March 31, 2023 December 31, 2022 Buildings $ 12,540 $ 12,487 Vehicles 42,637 42,453 Construction in progress 10,929,958 10,883,051 Subtotal 10,985,135 10,937,991 Less: accumulated depreciation (16,867 ) (14,381 ) Property, plant and equipment, net $ 10,968,268 $ 10,923,610 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
SCHEDULE OF RELATED PARTY TRANSACTIONS | Amounts due from a related party are as follows : SCHEDULE OF RELATED PARTY TRANSACTIONS Relationship March 31, 2023 December 31, 2022 Note Mr. Zongyi Lian President and CEO of the Company $ 1,080 $ - Receivable from employee Total $ 1,080 $ - Amounts due to a related party are as follows : Relationship March 31, 2023 December 31, 2022 Note Mr. Zongyi Lian President and CEO of the Company - 1,665 Payable to employee Total $ - $ 1,665 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
SCHEDULE OF ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | Accrued expenses and other current liabilities consist of the following: SCHEDULE OF ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES March 31, 2023 December 31, 2022 Advance from customers $ 525,782 $ 397,886 Accrued payroll and employee benefits 89,054 89,359 Accrued interest expenses 148,592 122,135 Accrued underwriter fees (i) 1,200,000 - Other tax payables (ii) - 261 Other payable to a former shareholder (iii) - 191,180 Others (iv) 161,329 153,803 Accrued expenses and other current liabilities $ 2,124,757 $ 944,624 (i) On March 18, 2023, the Company entered into a private placement consent agreement with representatives related to the private placement consummated on January 19, 2023 (see Note 10) on the underwriting fees of US$ 1.2 (ii) Other tax payables are mainly value added tax payable. (iii) Other payable to a former shareholder was paid in March 2023. (iv) Others mainly represent accrued employee reimbursement payable and other accrued miscellaneous operating expenses. |
CONVERTIBLE PROMISSORY NOTES _2
CONVERTIBLE PROMISSORY NOTES PAYABLE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
SUMMARY OF OUTSTANDING PROMISSORY NOTES | The following table summarizes the outstanding promissory notes as of March 31, 2023 and December 31, 2022 (dollars in thousands): SUMMARY OF OUTSTANDING PROMISSORY NOTES March 31, 2023 December 31, 2022 Interest rate Principal Amount Carrying Amount Principal Amount Carrying Amount Convertible Note - Talos Victory (Note 9 (b)) 8 % $ - $ - $ - - Convertible Note - Mast Hill (Note 9 (b)) 8 % 725,000 639,400 740,000 635,535 Convertible Note - First Fire (Note 9 (b)) 8 % 176,250 156,466 181,250 156,594 Convertible Note - LGH Note 9 (b)) 8 % 202,500 188,949 207,500 188,987 Convertible Note - Fourth Man (Note 9 (b)) 8 % 152,000 129,322 157,000 128,703 Convertible Note - Jeffery Street Note 9 (b)) 8 % 165,000 136,809 170,000 142,554 Convertible Note - Blue Lake Note 9 (b))Total 8 % - - - - Total $ 1,420,750 $ 1,250,946 $ 1,455,750 $ 1,252,373 Amortization of discounts for the three months ended March 31, 2023 (5,186 ) Convertible promissory notes payable as of March 31, 2023 $ 1,245,760 |
SCHEDULE OF FAIR VALUE OF WARRANTS | The fair values of these warrants as of March 31, 2023 were calculated using the Black-Scholes option-pricing model with the following assumptions: SCHEDULE OF FAIR VALUE OF WARRANTS March 31, 2023 Volatility (%) Expected dividends yield (%) Weighted average expected life (year) Risk-free interest rate (%) (per annum) Common stock purchase warrants liability as of December 31, 2022(US$) Changes of fair value of common stock purchase warrants liability Common stock purchase warrants liability as of March 31, 2023 (US$) Convertible Note - Talos Victory (Note 9 (a)) 337.7 % $ 0.0 % $ 1.6 4.35 % 14,803 5,663 20,466 Convertible Note - Mast Hill (Note 9 (a)) 337.7 % 0.0 % 1.6 4.35 % 101,293 38,623 139,916 Convertible Note - First Fire (Note 9 (a)) 337.7 % 0.0 % 1.6 4.35 % 33,919 12,883 46,802 Convertible Note - LGH Note 9 (a)) 337.7 % 0.0 % 1.7 4.35 % 34,028 12,888 46,916 Convertible Note - Fourth Man (Note 9 (ab)) 337.7 % 0.0 % 1.7 4.35 % 14,398 5,444 19,842 Convertible Note - Jeffery Street Note 9 (a))3,054 337.7 % 0.0 % 1.7 4.35 % 34,134 12,892 47,026 Convertible Note - Blue Lake Note 9 (a)) 337.7 % 0.0 % 1.7 4.35 % 24,382 9,209 33,591 Total Total 256,957 97,602 354,559 |
REVENUES (Tables)
REVENUES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
SCHEDULE OF GEOGRAPHICAL REVENUE INFORMATION | The Company’s geographical revenue information is set forth below: SCHEDULE OF GEOGRAPHICAL REVENUE INFORMATION 2023 2022 For the Three-Month Periods Ended, March 31, 2023 2022 Sales in PRC $ 9,287,566 $ 8,169,567 Sales in Overseas —Republic of China (ROC, or Taiwan) 2,119,140 1,998,679 -South Korea 1,911,297 1,763,200 -Others 115,458 63,101 Sub-total 4,145,895 3,824,980 Total revenues $ 13,433,461 $ 11,994,547 |
BUSINESS DESCRIPTION (Details N
BUSINESS DESCRIPTION (Details Narrative) - shares | Oct. 09, 2020 | Mar. 31, 2023 | Dec. 31, 2022 | Jul. 19, 2016 |
Common stock, shares outstanding | 193,604,965 | 33,604,965 | ||
Common stock, shares outstanding | 193,604,965 | 33,604,965 | ||
Sichuan Wetouch Technology Co. Ltd. [Member] | ||||
Subsidiary, Ownership Percentage, Parent | 100% | |||
Sichuan Wetouch Technology Co. Ltd. [Member] | ||||
Ownership percentage | 100% | |||
Share Exchange Agreement [Member] | BVI Shareholders [Member] | ||||
Stock issued during period, shares, acquisitions | 28,000,000 | |||
Number of reverse merger stock | 2,800 | |||
Common stock, shares outstanding | 31,396,394 | |||
Common stock, shares outstanding | 31,396,394 |
SCHEDULE OF ACCOUNTS RECEIVABLE
SCHEDULE OF ACCOUNTS RECEIVABLE (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Accounts receivable | $ 13,086,991 | $ 9,057,741 |
Allowance for doubtful accounts | ||
Accounts receivable, net | $ 13,086,991 | $ 9,057,741 |
SCHEDULE OF PREPAID EXPENSES AN
SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 | |
Prepaid Expenses And Other Current Assets | |||
Advance to suppliers | $ 345,204 | $ 333,920 | |
VAT input credits | 38,549 | 355,482 | |
Issue cost related to convertible promissory notes | 78,150 | 81,614 | |
Prepayment for land use right () | [1] | 571,558 | 569,105 |
Security deposit () | [2] | 57,225 | 56,979 |
Others receivable () | [3] | 55,907 | 53,520 |
Prepaid expenses and other current assets | $ 1,146,593 | $ 1,450,620 | |
[1]On July 23, 2021, Sichuan Vtouch entered into a contract with Chengdu Wenjiang District Planning and Natural Resources Bureau for purchasing a land use right of 131,010 3,925,233 571,558 393,000 57,225 |
SCHEDULE OF PREPAID EXPENSES _2
SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) (Parenthetical) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jul. 28, 2021 USD ($) | Jul. 28, 2021 CNY (¥) | Jul. 23, 2021 USD ($) ft² | Jul. 23, 2021 CNY (¥) ft² | |
Prepayment for land use right | [1] | $ 571,558 | $ 569,105 | ||||
Security deposit | [2] | $ 57,225 | $ 56,979 | ||||
Sichuan V touch Technology Co Ltd [Member] | |||||||
Area of land | ft² | 131,010 | 131,010 | |||||
Prepayment for land use right | $ 571,558 | ¥ 3,925,233 | |||||
Security deposit | $ 57,225 | ¥ 393,000 | |||||
[1]On July 23, 2021, Sichuan Vtouch entered into a contract with Chengdu Wenjiang District Planning and Natural Resources Bureau for purchasing a land use right of 131,010 3,925,233 571,558 393,000 57,225 |
SCHEDULE OF PROPERTY , PLANT AN
SCHEDULE OF PROPERTY , PLANT AND EQUIPMENT (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 10,985,135 | $ 10,937,991 |
Less: accumulated depreciation | (16,867) | (14,381) |
Property, plant and equipment, net | 10,968,268 | 10,923,610 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 12,540 | 12,487 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 42,637 | 42,453 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 10,929,958 | $ 10,883,051 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET (Details Narrative) | 3 Months Ended | 9 Months Ended | ||||
Mar. 18, 2021 USD ($) | Mar. 18, 2021 CNY (¥) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CNY (¥) | |
Depreciation expense | $ 2,433 | $ 2,622 | ||||
Compensation expenses | $ 18,200,000 | ¥ 115,200,000 | ||||
Sichuan V touch Technology Co Ltd [Member] | ||||||
Rent expenses | $ 43,683 | ¥ 300,000 | ||||
Lease renewal description | renewed on December 31, 2021 at a monthly rent of RMB 400,000 ($58,244) from January 1, 2022 till October 31, 2023 for the use of the Demised Properties | renewed on December 31, 2021 at a monthly rent of RMB 400,000 ($58,244) from January 1, 2022 till October 31, 2023 for the use of the Demised Properties |
SCHEDULE OF RELATED PARTY TRANS
SCHEDULE OF RELATED PARTY TRANSACTIONS (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | ||
Amounts due to related parties | $ 1,665 | |
Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due from related party | 1,080 | |
Amounts due to related parties | $ 1,665 | |
Mr Zongyi Lian [Member] | ||
Related Party Transaction [Line Items] | ||
Related party transaction relationship | President and CEO of the Company | President and CEO of the Company |
Mr. Guangde Cai [Member] | ||
Related Party Transaction [Line Items] | ||
Related party transaction relationship | President and CEO of the Company | President and CEO of the Company |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | 3 Months Ended | 36 Months Ended | |||
Mar. 30, 2023 | Oct. 21, 2020 | Mar. 31, 2023 | Mar. 31, 2022 | Oct. 11, 2020 | |
Sichuan Wetouch Technology Co. Ltd. [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Income Tax Examination, Description | On October 21, 2020, Sichuan Wetouch was granted on a case-by-case basis by Sichuan Provincial government as preferential tax treatment High and New Technology Enterprises (“HNTEs”), entitled to a reduced income tax rate of 15% beginning October 21, 2020 until October 20, 2023 | ||||
Sichuan V touch Technology Co Ltd [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Income tax rate | 33.50% | 28.10% | |||
PRC [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Income tax rate | 15% | ||||
Statutory income tax rate | 25% | ||||
Inland Revenue, Hong Kong [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Income tax rate | 16.50% | ||||
State Administration of Taxation, China [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Income tax rate | 25% | 15% |
SCHEDULE OF ACCRUED EXPENSES AN
SCHEDULE OF ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |||
Advance from customers | $ 525,782 | $ 397,886 | |
Accrued payroll and employee benefits | 89,054 | 89,359 | |
Accrued interest expenses | 148,592 | 122,135 | |
Accrued underwriter fees | [1] | 1,200,000 | |
Other tax payables | [2] | 261 | |
Other payable to a former shareholder | [3] | 191,180 | |
Others | [4] | 161,329 | 153,803 |
Accrued expenses and other current liabilities | $ 2,124,757 | $ 944,624 | |
[1]On March 18, 2023, the Company entered into a private placement consent agreement with representatives related to the private placement consummated on January 19, 2023 (see Note 10) on the underwriting fees of US$ 1.2 |
SCHEDULE OF ACCRUED EXPENSES _2
SCHEDULE OF ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) (Parenthetical) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |||
Accrued underwriter fees | [1] | $ 1,200,000 | |
[1]On March 18, 2023, the Company entered into a private placement consent agreement with representatives related to the private placement consummated on January 19, 2023 (see Note 10) on the underwriting fees of US$ 1.2 |
SUMMARY OF OUTSTANDING PROMISSO
SUMMARY OF OUTSTANDING PROMISSORY NOTES (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Short-Term Debt [Line Items] | ||
Principal amount | $ 1,420,750 | $ 1,455,750 |
Carrying amount | 1,250,946 | 1,252,373 |
Amortization of discounts | (5,186) | |
Convertible promissory notes payable | $ 1,245,760 | 1,277,282 |
Convertible Note - Talos Victory [Member] | ||
Short-Term Debt [Line Items] | ||
Interest rate | 8% | |
Principal amount | ||
Carrying amount | ||
Convertible Note-Mast Hill [Member] | ||
Short-Term Debt [Line Items] | ||
Interest rate | 8% | |
Principal amount | $ 725,000 | 740,000 |
Carrying amount | $ 639,400 | 635,535 |
Convertible Note-First Fire [Member] | ||
Short-Term Debt [Line Items] | ||
Interest rate | 8% | |
Principal amount | $ 176,250 | 181,250 |
Carrying amount | $ 156,466 | 156,594 |
Convertible Note-LGH [Member] | ||
Short-Term Debt [Line Items] | ||
Interest rate | 8% | |
Principal amount | $ 202,500 | 207,500 |
Carrying amount | $ 188,949 | 188,987 |
Convertible Note -Fourth Man [Member] | ||
Short-Term Debt [Line Items] | ||
Interest rate | 8% | |
Principal amount | $ 152,000 | 157,000 |
Carrying amount | $ 129,322 | 128,703 |
Convertible Note-Jeffery Street [Member] | ||
Short-Term Debt [Line Items] | ||
Interest rate | 8% | |
Principal amount | $ 165,000 | 170,000 |
Carrying amount | $ 136,809 | 142,554 |
Convertible Note -Blue Lake [Member] | ||
Short-Term Debt [Line Items] | ||
Interest rate | 8% | |
Principal amount | ||
Carrying amount |
SUMMARY OF OUTSTANDING PROMIS_2
SUMMARY OF OUTSTANDING PROMISSORY NOTES (Details) (Parenthetical) | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Debt Disclosure [Abstract] | |
Repayment of notes | $ 10,000 |
SCHEDULE OF FAIR VALUE OF WARRA
SCHEDULE OF FAIR VALUE OF WARRANTS (Details) | 3 Months Ended | ||
Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Short-Term Debt [Line Items] | |||
Common stock purchase sarrants liability | $ 354,559 | $ 256,957 | |
Changes of fair value of common stock purchase warrants liability | 97,602 | $ (160,443) | |
Convertible Note - Talos Victory [Member] | |||
Short-Term Debt [Line Items] | |||
Common stock purchase sarrants liability | 20,466 | 14,803 | |
Changes of fair value of common stock purchase warrants liability | 5,663 | ||
Convertible Note-Mast Hill [Member] | |||
Short-Term Debt [Line Items] | |||
Common stock purchase sarrants liability | 139,916 | 101,293 | |
Changes of fair value of common stock purchase warrants liability | 38,623 | ||
Convertible Note-First Fire [Member] | |||
Short-Term Debt [Line Items] | |||
Common stock purchase sarrants liability | 46,802 | 33,919 | |
Changes of fair value of common stock purchase warrants liability | 12,883 | ||
Convertible Note-LGH [Member] | |||
Short-Term Debt [Line Items] | |||
Common stock purchase sarrants liability | 46,916 | 34,028 | |
Changes of fair value of common stock purchase warrants liability | 12,888 | ||
Convertible Note -Fourth Man [Member] | |||
Short-Term Debt [Line Items] | |||
Common stock purchase sarrants liability | 19,842 | 14,398 | |
Changes of fair value of common stock purchase warrants liability | 5,444 | ||
Convertible Note-Jeffery Street [Member] | |||
Short-Term Debt [Line Items] | |||
Common stock purchase sarrants liability | 47,026 | 34,134 | |
Changes of fair value of common stock purchase warrants liability | 12,892 | ||
Convertible Note -Blue Lake [Member] | |||
Short-Term Debt [Line Items] | |||
Common stock purchase sarrants liability | 33,591 | $ 24,382 | |
Changes of fair value of common stock purchase warrants liability | $ 9,209 | ||
Measurement Input, Price Volatility [Member] | Convertible Note - Talos Victory [Member] | |||
Short-Term Debt [Line Items] | |||
Warrants measurement input | 337.7 | ||
Measurement Input, Price Volatility [Member] | Convertible Note-Mast Hill [Member] | |||
Short-Term Debt [Line Items] | |||
Warrants measurement input | 337.7 | ||
Measurement Input, Price Volatility [Member] | Convertible Note-First Fire [Member] | |||
Short-Term Debt [Line Items] | |||
Warrants measurement input | 337.7 | ||
Measurement Input, Price Volatility [Member] | Convertible Note-LGH [Member] | |||
Short-Term Debt [Line Items] | |||
Warrants measurement input | 337.7 | ||
Measurement Input, Price Volatility [Member] | Convertible Note -Fourth Man [Member] | |||
Short-Term Debt [Line Items] | |||
Warrants measurement input | 337.7 | ||
Measurement Input, Price Volatility [Member] | Convertible Note-Jeffery Street [Member] | |||
Short-Term Debt [Line Items] | |||
Warrants measurement input | 337.7 | ||
Measurement Input, Price Volatility [Member] | Convertible Note -Blue Lake [Member] | |||
Short-Term Debt [Line Items] | |||
Warrants measurement input | 337.7 | ||
Measurement Input, Expected Dividend Rate [Member] | Convertible Note - Talos Victory [Member] | |||
Short-Term Debt [Line Items] | |||
Warrants measurement input | 0 | ||
Measurement Input, Expected Dividend Rate [Member] | Convertible Note-Mast Hill [Member] | |||
Short-Term Debt [Line Items] | |||
Warrants measurement input | 0 | ||
Measurement Input, Expected Dividend Rate [Member] | Convertible Note-First Fire [Member] | |||
Short-Term Debt [Line Items] | |||
Warrants measurement input | 0 | ||
Measurement Input, Expected Dividend Rate [Member] | Convertible Note-LGH [Member] | |||
Short-Term Debt [Line Items] | |||
Warrants measurement input | 0 | ||
Measurement Input, Expected Dividend Rate [Member] | Convertible Note -Fourth Man [Member] | |||
Short-Term Debt [Line Items] | |||
Warrants measurement input | 0 | ||
Measurement Input, Expected Dividend Rate [Member] | Convertible Note-Jeffery Street [Member] | |||
Short-Term Debt [Line Items] | |||
Warrants measurement input | 0 | ||
Measurement Input, Expected Dividend Rate [Member] | Convertible Note -Blue Lake [Member] | |||
Short-Term Debt [Line Items] | |||
Warrants measurement input | 0 | ||
Measurement Input, Expected Term [Member] | Convertible Note - Talos Victory [Member] | |||
Short-Term Debt [Line Items] | |||
Weighted average expected life | 1 year 7 months 6 days | ||
Measurement Input, Expected Term [Member] | Convertible Note-Mast Hill [Member] | |||
Short-Term Debt [Line Items] | |||
Weighted average expected life | 1 year 7 months 6 days | ||
Measurement Input, Expected Term [Member] | Convertible Note-First Fire [Member] | |||
Short-Term Debt [Line Items] | |||
Weighted average expected life | 1 year 7 months 6 days | ||
Measurement Input, Expected Term [Member] | Convertible Note-LGH [Member] | |||
Short-Term Debt [Line Items] | |||
Weighted average expected life | 1 year 8 months 12 days | ||
Measurement Input, Expected Term [Member] | Convertible Note -Fourth Man [Member] | |||
Short-Term Debt [Line Items] | |||
Weighted average expected life | 1 year 8 months 12 days | ||
Measurement Input, Expected Term [Member] | Convertible Note-Jeffery Street [Member] | |||
Short-Term Debt [Line Items] | |||
Weighted average expected life | 1 year 8 months 12 days | ||
Measurement Input, Expected Term [Member] | Convertible Note -Blue Lake [Member] | |||
Short-Term Debt [Line Items] | |||
Weighted average expected life | 1 year 8 months 12 days | ||
Measurement Input, Risk Free Interest Rate [Member] | Convertible Note - Talos Victory [Member] | |||
Short-Term Debt [Line Items] | |||
Warrants measurement input | 4.35 | ||
Measurement Input, Risk Free Interest Rate [Member] | Convertible Note-Mast Hill [Member] | |||
Short-Term Debt [Line Items] | |||
Warrants measurement input | 4.35 | ||
Measurement Input, Risk Free Interest Rate [Member] | Convertible Note-First Fire [Member] | |||
Short-Term Debt [Line Items] | |||
Warrants measurement input | 4.35 | ||
Measurement Input, Risk Free Interest Rate [Member] | Convertible Note-LGH [Member] | |||
Short-Term Debt [Line Items] | |||
Warrants measurement input | 4.35 | ||
Measurement Input, Risk Free Interest Rate [Member] | Convertible Note -Fourth Man [Member] | |||
Short-Term Debt [Line Items] | |||
Warrants measurement input | 4.35 | ||
Measurement Input, Risk Free Interest Rate [Member] | Convertible Note-Jeffery Street [Member] | |||
Short-Term Debt [Line Items] | |||
Warrants measurement input | 4.35 | ||
Measurement Input, Risk Free Interest Rate [Member] | Convertible Note -Blue Lake [Member] | |||
Short-Term Debt [Line Items] | |||
Warrants measurement input | 4.35 |
CONVERTIBLE PROMISSORY NOTES _3
CONVERTIBLE PROMISSORY NOTES PAYABLE (Details Narrative) - USD ($) | 3 Months Ended | |||||||||
Jan. 17, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Sep. 01, 2022 | Apr. 27, 2022 | Apr. 14, 2022 | Nov. 30, 2021 | Oct. 31, 2021 | |
Short-Term Debt [Line Items] | ||||||||||
Principal amount | $ 1,420,750 | $ 1,455,750 | ||||||||
Interest expense | $ 33,399 | $ 56,172 | ||||||||
Warrants to purchase | 124,223 | 57,142 | 111,972 | 115,540 | ||||||
Warrant [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Warrants to purchase | 1,800,000 | |||||||||
Warrant [Member] | Lenders [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Ownership percentage | 4.90% | |||||||||
Common Stock [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Number of shares issued | 160,000,000 | |||||||||
Lenders [Member] | Warrant [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Warrants to purchase | 200,000 | |||||||||
Excise price | $ 1.25 | |||||||||
Excise price, percentage | 125% | |||||||||
Investor [Member] | Common Stock [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Number of shares issued | 2,750,000 | |||||||||
Subscribtion price | $ 0.80 | |||||||||
Gross proceeds | $ 2,200,000 | |||||||||
Exercise price | $ 0.88 | |||||||||
FourthMan[Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Cashless warrant shares exercised | 115,540 | |||||||||
Talos [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Cashless warrant shares exercised | 111,972 | |||||||||
BlueLake [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Cashless warrant shares exercised | 57,142 | |||||||||
Seven Convertible Promissory Note [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Principal amount | $ 2,250,000 | $ 2,250,000 | $ 2,250,000 | |||||||
Issuance price discounted percentage | 90% | 90% | 90% | |||||||
Interest rate | 8% | 8% | 8% | 8% | ||||||
Debt maturity date, description | October 27, November 5, November 16, November 29 and December 2 of 2022 | |||||||||
Proceeds from debt issuance costs | $ 1,793,000 | |||||||||
Proceeds from debt issuance costs | $ 162,000 | |||||||||
Proceeds from offering costs | $ 15,000,000 | |||||||||
Conversion rate | 70% | |||||||||
Conversion price | $ 0.75 | |||||||||
Convertible Notes Payable [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Default interest rate | 16% | |||||||||
Promissory Note [Member] | Lender [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Percentage of prepayment penalty | 10% |
SHAREHOLDERS_ EQUITY (Details N
SHAREHOLDERS’ EQUITY (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 17, 2023 | Jan. 20, 2023 | Jan. 19, 2023 | Jan. 02, 2021 | Dec. 22, 2020 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Sep. 01, 2022 | Apr. 27, 2022 | Apr. 14, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Common stock, shares authorized | 300,000,000 | 300,000,000 | |||||||||
Common stock, par value | $ 0.001 | $ 0.001 | |||||||||
Cashless warrant shares exercised | 124,223 | 57,142 | 111,972 | 115,540 | |||||||
Net proceeds | $ 40,000,000 | ||||||||||
Common stcok shares issued | 193,604,965 | 33,604,965 | |||||||||
Common stock shares outstanding | 193,604,965 | 33,604,965 | |||||||||
Reverse stock split | one to five (1:5) and not more than one to eighty (1:80) | ||||||||||
Private Placement [Member] | Securities Purchase Agreement [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Value of stock sold | $ 40,000,000 | ||||||||||
Share price | $ 0.25 | ||||||||||
Net proceeds | $ 40,000,000 | ||||||||||
Common Stock [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Conversion of convertible debt | 1,384,564 | ||||||||||
Number of shares issued in transaction | 160,000,000 | ||||||||||
Third Party Service Provider [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Number of shares issued for services | 310,830 | ||||||||||
The Crone Law Group, P.C. [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Number of shares issued for services | 103,610 |
SHARE BASED COMPENSATION (Detai
SHARE BASED COMPENSATION (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Jan. 02, 2021 | Dec. 22, 2020 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Share-based compensation expense | |||||
Warrant [Member] | |||||
Warrants outstanding | 717,217 | ||||
Weighted average exercise price | $ 0.01 | ||||
Weighted average remaining contractual term | 9 months 18 days | ||||
Aggregate intrinsic value | $ 200,000 | ||||
Share-based compensation expense | |||||
Board of Directors [Member] | |||||
Number of shares authorized | 310,830 | ||||
Number of shares vested | 310,830 | ||||
Number of warrants exercised | 124,223 | ||||
Share based compensation, expected term of fair value | 1 year 6 months | ||||
Share-based compensation, expected dividend rate | 0% | ||||
Share-based compensation, volatility | 215.40% | ||||
Share-based compensation, average interest rate | 2.96% | ||||
Board of Directors [Member] | Warrant [Member] | |||||
Number of shares authorized | 631,080 | ||||
Number of shares vested | 631,080 | ||||
Board of Directors [Member] | The Crone Law Group, P.C. [Member] | |||||
Number of shares authorized | 103,610 | ||||
Number of shares vested | 103,610 | ||||
Number of warrants exercised | 0 | ||||
Share based compensation, expected term of fair value | 2 years 6 months | ||||
Share-based compensation, expected dividend rate | 0% | ||||
Share-based compensation, volatility | 43.50% | ||||
Share-based compensation, average interest rate | 0.11% | ||||
Board of Directors [Member] | The Crone Law Group, P.C. [Member] | Warrant [Member] | |||||
Number of shares authorized | 210,360 |
RISKS AND UNCERTAINTIES (Detail
RISKS AND UNCERTAINTIES (Details Narrative) - CNY (¥) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer One [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 22.30% | 18.10% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer Two [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 15.70% | 16.20% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer Three [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 15% | 15.70% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer Four [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 14.20% | 14.70% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer Five [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 12.20% | 12.40% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer Six[ Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 10.80% | 12.30% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Top 10 Customers [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 99.60% | 99.40% |
Revenue Benchmark [Member] | Product Concentration Risk [Member] | Five Suppliers [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 75% | |
Revenue Benchmark [Member] | Product Concentration Risk [Member] | Four Suppliers [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 47.40% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer One [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 25.80% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Two [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 17.40% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Three [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 13.80% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Four [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 12.10% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Five [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 10.90% | |
Maximum [Member] | ||
Concentration Risk [Line Items] | ||
Bank deposits | ¥ 500,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) | 1 Months Ended | 3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mar. 31, 2023 USD ($) | Mar. 31, 2023 CNY (¥) | Mar. 16, 2023 USD ($) | Mar. 16, 2023 CNY (¥) | Mar. 10, 2023 USD ($) | Mar. 10, 2023 CNY (¥) | May 31, 2022 CNY (¥) | May 09, 2022 USD ($) | May 09, 2022 CNY (¥) | Mar. 14, 2022 USD ($) | Mar. 14, 2022 CNY (¥) | Feb. 16, 2022 USD ($) | Feb. 16, 2022 CNY (¥) | Feb. 14, 2022 USD ($) | Feb. 14, 2022 CNY (¥) | Dec. 23, 2021 CNY (¥) | Dec. 20, 2021 USD ($) | Dec. 20, 2021 CNY (¥) | Nov. 30, 2021 USD ($) | Nov. 30, 2021 CNY (¥) | Oct. 10, 2021 USD ($) | Oct. 10, 2021 CNY (¥) | Aug. 09, 2021 CNY (¥) | Oct. 27, 2020 USD ($) | Oct. 27, 2020 CNY (¥) | Sep. 16, 2020 USD ($) | Sep. 16, 2020 CNY (¥) | May 21, 2020 USD ($) | May 21, 2020 CNY (¥) | Nov. 21, 2019 CNY (¥) | Aug. 23, 2018 USD ($) | Aug. 23, 2018 CNY (¥) | Aug. 22, 2018 USD ($) | Aug. 22, 2018 CNY (¥) | Jun. 22, 2017 USD ($) shares | Jul. 31, 2014 USD ($) | Jul. 31, 2014 CNY (¥) | Mar. 19, 2014 USD ($) | Mar. 19, 2014 CNY (¥) | Jul. 05, 2013 USD ($) | Nov. 30, 2018 USD ($) | Nov. 30, 2018 CNY (¥) | Nov. 20, 2014 CNY (¥) | Mar. 31, 2023 USD ($) | Mar. 31, 2023 CNY (¥) | Mar. 31, 2023 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 20, 2022 USD ($) | Dec. 20, 2022 CNY (¥) | Nov. 30, 2021 CNY (¥) | Mar. 12, 2020 USD ($) | Mar. 12, 2020 CNY (¥) | Dec. 30, 2018 USD ($) | Dec. 30, 2018 CNY (¥) | Dec. 31, 2017 USD ($) | Jun. 22, 2017 CNY (¥) | Jul. 31, 2014 CNY (¥) | Mar. 19, 2014 CNY (¥) | Jul. 05, 2013 CNY (¥) | |
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan obtained during period | $ | $ 1,420,750 | $ 1,420,750 | $ 1,455,750 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase commitment | $ 3,100,000 | ¥ 20,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Remaining balance | $ 700,000 | ¥ 5,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction in Progress [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase commitment | 2,200,000 | ¥ 15,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Dispute Case With Yunqing Su [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount paid | $ 191,180 | ¥ 1,318,604 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment | $ 149,853 | ¥ 1,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original listed shares | shares | 370,370.37 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest paid | $ 32,968 | ¥ 220,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment levied this collateral | $ 19,181 | ¥ 128,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Legal Case with Chengdu SME Credit Guarantee Co., Ltd. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment levied this collateral | $ 800,000 | ¥ 5,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan obtained during period | 8,900,000 | ¥ 55,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Legal Case with Chengdu SME Credit Guarantee Co., Ltd. [Member] | Related to 30% of Remaining Loan Repaid By Chengdu SME [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan, default penalty | 800,000 | $ 800,000 | ¥ 5,800,000 | $ 800,000 | ¥ 5,800,000 | 5,800,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Legal Case with Chengdu SME Credit Guarantee Co., Ltd. [Member] | Related to 70% of Remaining Loan Repaid By Chengdu SME [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan, default penalty | $ 900,000 | $ 900,000 | ¥ 6,000,000 | $ 900,000 | ¥ 6,000,000 | ¥ 6,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Legal Case with Chengdu SME Credit Guarantee Co., Ltd. [Member] | Chengdu SME Credit Guarantee Co., Ltd. [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment levied this collateral | $ 1,700,000 | ¥ 11,800,000 | $ 8,000,000 | ¥ 55,000,000 | $ 8,900,000 | ¥ 55,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Acceptance fee | $ 49,066 | ¥ 338,418 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan, default penalty | $ | $ 1,700,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Legal Case with Chengdu SME Credit Guarantee Co., Ltd. [Member] | Chengdu SME Credit Guarantee Co., Ltd. [Member] | Bank of Chengdu [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan obtained during period | $ 9,800,000 | ¥ 60,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, interest rate | 8.61% | 8.61% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, description | Chengdu SME Credit Guarantee Co., Ltd (“Chengdu SME”), a third party, provided a 70% guarantee and Bank of Chengdu retained 30% of the risk, while Chengdu Wetouch Technology Co. Ltd. (“Chengdu Wetouch”) and Mr. Guangde Cai provided joint and several liability guarantee for 100% of the loan. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Legal Case With Zhuhai Hongguang Technology Co Ltd [Member] | Zhuhai HongguangTechnology Co Ltd [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount paid | $ 19,118 | ¥ 131,859 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss contingency damages awarded value | 16,466 | ¥ 109,883.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liquidated damages | $ 3,293 | ¥ 21,976.64 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Legal Case [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount paid | ¥ 22,905,807.12 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acceptance fee | $ 36,315 | ¥ 250,470 | $ 36,315 | ¥ 250,470 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease price | ¥ 20,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease rate | 8% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss contingency damages awarded value | ¥ 22,905,807.12 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Legal case with Sichuan Renshou Shigao Tianfu Investment Co., Ltd and Renshou Tengyi Landscaping Co., Ltd. [Member] | Chengdu Bank Co, Ltd [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment levied this collateral | ¥ 12,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acceptance fee | $ 14,967 | ¥ 103,232 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan obtained during period | $ 2,200,000 | ¥ 15,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, description | To support the local economic development as well as Chengdu Wetouch, two government-backed companies, Sichuan Renshou Shigao Tianfu Investment Co., Ltd. (“Sichuan Renshou”) and Renshou Tengyi Landscaping Co., Ltd. (“Renshou Tengyi”) provided their bank deposits of RMB 12.0 million (equivalent to $1.7 million) as pledge, while Mr. Guangde Cai and Sichuan Wetouch also provided counter-guarantee. | To support the local economic development as well as Chengdu Wetouch, two government-backed companies, Sichuan Renshou Shigao Tianfu Investment Co., Ltd. (“Sichuan Renshou”) and Renshou Tengyi Landscaping Co., Ltd. (“Renshou Tengyi”) provided their bank deposits of RMB 12.0 million (equivalent to $1.7 million) as pledge, while Mr. Guangde Cai and Sichuan Wetouch also provided counter-guarantee. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss contingency damages awarded value | ¥ 12,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pledged bank deposits for debt, value | $ 1,700,000 | ¥ 12,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Legal Case With Chengdu High Investment Financing Guarantee Co Ltd [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acceptance fee | $ 36,246 | ¥ 250,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss contingency damages awarded value | $ 2,617,491 | ¥ 17,467,042 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment received | $ 2,629,503 | ¥ 17,547,197.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Legal Case With Hubei Laien Optoelectronics Technology Co Ltd [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount paid | 22,866 | 157,714 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liquidated damages | ¥ 20,571 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss contingency damages awarded value | ¥ 137,143 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corresponding amount | ¥ 137,142.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Legal Case With Shenzhen Helitong Technology Co Ltd [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount paid | $ 33,276 | ¥ 229,513 | $ 34,393 | ¥ 229,513 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss contingency damages awarded value | $ 34,393 | ¥ 229,513 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Legal Case With Xinjiang Weiyida Real Estate Development Co Ltd [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount paid | $ 2,510,964 | ¥ 17,318,625 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss contingency damages awarded value | $ 2,595,250 | ¥ 17,318,625 |
SCHEDULE OF GEOGRAPHICAL REVENU
SCHEDULE OF GEOGRAPHICAL REVENUE INFORMATION (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Sales in PRC | $ 9,287,566 | $ 8,169,567 |
Sub-total | 4,145,895 | 3,824,980 |
Total revenues | 13,433,461 | 11,994,547 |
Republic Of China [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sub-total | 2,119,140 | 1,998,679 |
KOREA, REPUBLIC OF | ||
Disaggregation of Revenue [Line Items] | ||
Sub-total | 1,911,297 | 1,763,200 |
Others [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sub-total | $ 115,458 | $ 63,101 |