Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 15, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2023 | |
Document Fiscal Period Focus | Q2 | |
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 | |
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 | 194,304,965 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
CURRENT ASSETS | ||
Cash | $ 92,214,861 | $ 51,250,505 |
Accounts receivable, net | 13,963,453 | 9,057,741 |
Inventories | 170,356 | 423,276 |
Prepaid expenses and other current assets | 1,054,421 | 1,450,620 |
TOTAL CURRENT ASSETS | 107,404,114 | 62,182,142 |
Property, plant and equipment, net | 10,385,590 | 10,923,610 |
TOTAL ASSETS | 117,789,704 | 73,105,752 |
CURRENT LIABILITIES | ||
Accounts payable | 2,369,245 | 1,383,094 |
Loan from a third party | 467,936 | 385,791 |
Income tax payable | 1,503,458 | 22,152 |
Accrued expenses and other current liabilities | 2,572,533 | 944,624 |
Convertible promissory notes payable | 1,249,866 | 1,277,282 |
TOTAL CURRENT LIABILITIES | 8,163,038 | 4,014,608 |
Common stock purchase warrants liability | 212,174 | 256,957 |
TOTAL LIABILITIES | 8,375,212 | 4,271,565 |
COMMITMENTS AND CONTINGENCIES (Note 13) | ||
STOCKHOLDERS’ EQUITY | ||
Common stock, $0.001 par value, 300,000,000 shares authorized, 193,904,965 and 33,604,965 issued and outstanding as of June 30, 2023 and December 31, 2022, respectively | 193,905 | 33,605 |
Additional paid in capital | 43,209,953 | 3,370,253 |
Statutory reserve | 6,040,961 | 6,040,961 |
Retained earnings | 69,833,124 | 62,366,892 |
Accumulated other comprehensive income | (9,863,451) | (2,977,524) |
TOTAL STOCKHOLDERS’ EQUITY | 109,414,492 | 68,834,187 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 117,789,704 | 73,105,752 |
Related Party [Member] | ||
CURRENT ASSETS | ||
Due from a related party | 1,023 | |
CURRENT LIABILITIES | ||
Due to a related party | $ 1,665 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 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 | 193,904,965 | 33,604,965 |
Common stock, shares outstanding | 193,904,965 | 33,604,965 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
REVENUES | $ 12,774,432 | $ 11,752,934 | $ 26,207,893 | $ 23,747,481 |
COST OF REVENUES | (6,521,015) | (6,701,935) | (13,915,676) | (14,385,727) |
GROSS PROFIT | 6,253,417 | 5,050,999 | 12,292,217 | 9,361,754 |
OPERATING EXPENSES | ||||
Selling expenses | (81,360) | (532,101) | (132,065) | (1,017,248) |
General and administrative expenses | (56,907) | (443,146) | (1,723,663) | (815,484) |
Research and development expenses | (20,384) | (21,713) | (41,269) | (44,570) |
OPERATING EXPENSES | (158,651) | (996,960) | (1,896,997) | (1,877,302) |
INCOME FROM OPERATIONS | 6,094,766 | 4,054,039 | 10,395,220 | 7,484,452 |
Interest income | 30,034 | 30,502 | 59,229 | 59,636 |
Interest expense | (38,108) | (57,391) | (71,507) | (113,563) |
Gain on changes in fair value of common stock purchase warrants liability | 142,386 | 62,208 | 44,784 | 222,651 |
TOTAL OTHER INCOME | 134,312 | 35,319 | 32,506 | 168,724 |
INCOME BEFORE INCOME TAX EXPENSE | 6,229,078 | 4,089,358 | 10,427,726 | 7,653,176 |
INCOME TAX EXPENSE | (1,556,095) | (1,158,653) | (2,961,494) | (2,159,958) |
NET INCOME | 4,672,983 | 2,930,705 | 7,466,232 | 5,493,218 |
OTHER COMPREHENSIVE INCOME (LOSS) | ||||
Foreign currency translation adjustment | (6,204,951) | (3,782,778) | (6,885,927) | (3,402,584) |
COMPREHENSIVE INCOME (LOSS) | $ (1,531,968) | $ (852,073) | $ 580,305 | $ 2,090,634 |
EARNINGS PER COMMON SHARE | ||||
Basic | $ 0.02 | $ 0.09 | $ 0.04 | $ 0.17 |
Diluted | $ 0.02 | $ 0.09 | $ 0.04 | $ 0.17 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | ||||
Basic | 193,654,416 | 31,991,065 | 176,834,247 | 32,078,536 |
Diluted | 195,586,979 | 32,605,193 | 180,699,373 | 32,692,664 |
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 |
Balance, shares at Dec. 31, 2021 | 31,811,523 | |||||
Shares issued cashless for warrants | $ 228 | (228) | ||||
Shares issued cashless for warrants, shares | 227,512 | |||||
Net income | 5,493,218 | 5,493,218 | ||||
Foreign currency translation adjustment | (3,402,584) | (3,402,584) | ||||
Ending balance, value at Jun. 30, 2022 | $ 32,040 | 2,333,393 | 5,067,243 | 60,103,382 | (1,137,416) | 66,398,642 |
Balance, shares at Jun. 30, 2022 | 32,039,035 | |||||
Beginning balance, value at Mar. 31, 2022 | $ 31,812 | 2,333,621 | 5,067,243 | 57,172,677 | 2,645,362 | 67,250,715 |
Balance, shares at Mar. 31, 2022 | 31,811,523 | |||||
Shares issued cashless for warrants | $ 228 | (228) | ||||
Shares issued cashless for warrants, shares | 227,512 | |||||
Net income | 2,930,705 | 2,930,705 | ||||
Foreign currency translation adjustment | (3,782,778) | (3,782,778) | ||||
Ending balance, value at Jun. 30, 2022 | $ 32,040 | 2,333,393 | 5,067,243 | 60,103,382 | (1,137,416) | 66,398,642 |
Balance, shares at Jun. 30, 2022 | 32,039,035 | |||||
Beginning balance, value at Dec. 31, 2022 | $ 33,605 | 3,370,253 | 6,040,961 | 62,366,892 | (2,977,524) | 68,834,187 |
Balance, shares at Dec. 31, 2022 | 33,604,965 | |||||
Net income | 7,466,232 | 7,466,232 | ||||
Foreign currency translation adjustment | (6,885,927) | (6,885,927) | ||||
Exercise of warrants issued to third parties in conjunction with debt issuance in 2021 | $ 300 | (300) | ||||
Exercise of warrants issued to third parties in conjunction with debt issuance shares | 300,000 | |||||
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 Jun. 30, 2023 | $ 193,905 | 43,209,953 | 6,040,961 | 69,833,124 | (9,863,451) | 109,414,492 |
Balance, shares at Jun. 30, 2023 | 193,904,965 | |||||
Beginning balance, value at Mar. 31, 2023 | $ 193,605 | 43,210,253 | 6,040,961 | 65,160,141 | (3,658,500) | 110,946,460 |
Balance, shares at Mar. 31, 2023 | 193,604,965 | |||||
Net income | 4,672,983 | 4,672,983 | ||||
Foreign currency translation adjustment | (6,204,951) | (6,204,951) | ||||
Exercise of warrants issued to third parties in conjunction with debt issuance in 2021 | $ 300 | (300) | ||||
Exercise of warrants issued to third parties in conjunction with debt issuance shares | 300,000 | |||||
Ending balance, value at Jun. 30, 2023 | $ 193,905 | $ 43,209,953 | $ 6,040,961 | $ 69,833,124 | $ (9,863,451) | $ 109,414,492 |
Balance, shares at Jun. 30, 2023 | 193,904,965 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities | ||
Net income | $ 7,466,232 | $ 5,493,218 |
Adjustments to reconcile net income to cash provided by operating activities | ||
Depreciation | 4,805 | 10,169 |
Amortization of discounts and issuance cost of the notes | 15,151 | 25,896 |
Gain on changes in fair value of common stock purchase warrants liability | (44,784) | (222,651) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (5,597,334) | (7,727,876) |
Amounts due from related parties | (1,158) | |
Inventories | 239,546 | (276,717) |
Prepaid expenses and other current assets | 339,335 | 1,183,520 |
Accounts payable | 1,102,812 | 1,365,543 |
Amounts due to related parties | 2,164 | (22,417) |
Income tax payable | 1,551,492 | 1,112,391 |
Accrued expenses and other current liabilities | 1,680,447 | 557,669 |
Net cash provided by operating activities | 6,758,708 | 1,498,745 |
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 | 82,145 | |
Repayments of convertible promissory notes payable | (35,000) | |
Net cash provided by financing activities | 40,047,145 | |
Effect of changes of foreign exchange rates on cash | (5,841,498) | (2,516,649) |
Net increase in cash | 40,964,356 | (1,017,904) |
Cash, beginning of period | 51,250,505 | 46,163,704 |
Cash, end of period | 92,214,861 | 45,145,800 |
Supplemental disclosures of cash flow information | ||
Income tax paid | $ 2,961,494 | $ 1,045,215 |
BUSINESS DESCRIPTION
BUSINESS DESCRIPTION | 6 Months Ended |
Jun. 30, 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 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 in a nominal amount. As a result of the above restructuring, HK Wetouch became the sole shareholder of Sichuan Vtouch. The following diagram illustrates our current corporate structure: |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 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 June 30, 2023, the results of operations and cash flows for the six-month periods ended June 30, 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 six-month periods ended June 30, 2023, there were no significant changes made to Wetouch significant accounting policies. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE-3- ACCOUNTS RECEIVABLE Accounts receivable consists of the following: SCHEDULE OF ACCOUNTS RECEIVABLE June 30, 2023 December 31 2022 Accounts receivable $ 13,963,453 $ 9,057,741 Allowance for doubtful accounts - - Accounts receivable, net $ 13,963,453 $ 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 | 6 Months Ended |
Jun. 30, 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 June 30, 2023 December 31, 2022 Advance to suppliers $ 327,861 $ 333,920 VAT input credits - 355,482 Issue cost related to convertible promissory notes 74,047 81,614 Prepayment for land use right (i) 541,314 569,105 Security deposit (ii) 54,197 56,979 Others receivable (iii) 57,002 53,520 Prepaid expenses and other current assets $ 1,054,421 $ 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 3,925,233 541,314 (ii) On July 28, 2021, Sichuan Vtouch made a security deposit of RMB 393,000 54,197 (iii) Other receivables are mainly employee advances, and prepaid expenses. |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | NOTE 5— PROPERTY, PLANT AND EQUIPMENT, NET SCHEDULE OF PROPERTY , PLANT AND EQUIPMENT June 30, 2023 December 31, 2022 Buildings $ 11,877 $ 12,487 Vehicles 40,380 42,453 Construction in progress 10,351,603 10,883,051 Subtotal 10,403,860 10,937,991 Less: accumulated depreciation (18,270 ) (14,381 ) Property, plant and equipment, net $ 10,385,590 $ 10,923,610 Depreciation expense was $ 2,372 7,216 4,805 9,838 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 15.9 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 41,372 renewed on December 31, 2021 at a monthly rent of RMB 400,000 55,162 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 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 June 30, 2023 December 31, 2022 Note Mr. Zongyi Lian President and CEO of the Company $ 1,023 $ - Receivable from employee Total $ 1,023 $ - Amounts due to a related party are as follows: Relationship June 30, 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 | 6 Months Ended |
Jun. 30, 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 six-month periods ended June 30, 2023 and 2022 were 28.4 28.2 The estimated effective income tax rate for the year ended December 31, 2023 would be similar to actual effective tax rate of the six-month periods ended June 30, 2023. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 6 Months Ended |
Jun. 30, 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 June 30, 2023 December 31, 2022 Advance from customers $ 530,739 $ 397,886 Accrued payroll and employee benefits 83,034 89,359 Accrued interest expenses 178,490 122,135 Accrued underwriter fees (i) 1,200,000 - Other tax payables (ii) 321,377 261 Other payable to a former shareholder (iii) - 191,180 Accrued professional fees 99,412 - Others (iv) 159,481 153,803 Accrued expenses and other current liabilities $ 2,572,533 $ 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 | 6 Months Ended |
Jun. 30, 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 of US$ 2,250,000 90.0 8.0 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 June 30, 2023 and December 31, 2022 (dollars in thousands): SUMMARY OF OUTSTANDING PROMISSORY NOTES June 30, 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 % 725,000 658,988 740,000 635,535 Convertible Note - First Fire (Note 9 (b)) 8 % 176,250 125,922 181,250 156,594 Convertible Note - LGH Note 9 (b)) 8 % 202,500 194,094 207,500 188,987 Convertible Note - Fourth Man (Note 9 (b)) 8 % 152,000 133,510 157,000 128,703 Convertible Note - Jefferson Street Note 9 (b)) 8 % 165,000 141,240 170,000 142,554 Convertible Note - Blue Lake Note 9 (b)) 8 % - - - - Total $ 1,420,750 $ 1,253,754 $ 1,455,750 $ 1,252,373 Amortization of discounts for the six months ended June 30, 2023 (3,888 ) Convertible promissory notes payable as of June 30, 2023 $ 1,249,866 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 six-month period ended June 30, 2023 and 2022, the Company recognized interest expenses of the Notes in the amount of US$ 71,507 113,563 *The Company prepaid $ 10,000 b) Warrants Accounting for Warrants In connection with the issuance of a convertible promissory notes (see Note 11 (a) in October, November and December, 2021, the Company also issued 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 On June 16, 2023, one lender exercised cashless for 300,000 The fair values of these warrants as of June 30, 2023 were calculated using the Black-Scholes option-pricing model with the following assumptions: SCHEDULE OF FAIR VALUE OF WARRANTS June 30, 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$) Changes of fair value of common stock purchase warrants liability Common stock purchase warrants liability as of June 30, 2023 (US$) Convertible Note - Talos Victory (Note 9 (a)) 355.5 % $ 0.0 % $ 1.3 5.14 % 14,803 5,369 20,172 Convertible Note - Mast Hill (Note 9 (a)) 355.5 % 0.0 % 1.4 5.14 % 101,293 (101,293 ) - Convertible Note - First Fire (Note 9 (a)) 355.5 % 0.0 % 1.4 5.14 % 33,919 12,315 46,234 Convertible Note - LGH Note 9 (a)) 355.5 % 0.0 % 1.4 5.14 % 34,028 12,355 46,383 Convertible Note - Fourth Man (Note 9 (ab)) 355.5 % 0.0 % 1.4 5.14 % 14,398 5,228 19,626 Convertible Note - Jefferson Street Note 9 (a))3,054 355.5 % 0.0 % 1.4 5.14 % 34,134 12,392 46,526 Convertible Note - Blue Lake Note 9 (a)) 355.5 % 0.0 % 1.4 5.14 % 24,382 8,851 33,233 Total Total 256,957 (44,784 ) 212,174 (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 | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
SHAREHOLDERS’ EQUITY | NOTE 10— SHAREHOLDERS’ EQUITY 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 40 During the six-month ended June 30, 2023, the Company issued 300,000 As of June 30, 2023, the Company had 193,904,965 |
SHARE BASED COMPENSATION
SHARE BASED COMPENSATION | 6 Months Ended |
Jun. 30, 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 June 30, 2023, the Company had 717,217 0.01 0.5 0.3 |
RISKS AND UNCERTAINTIES
RISKS AND UNCERTAINTIES | 6 Months Ended |
Jun. 30, 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 June 30, 2023 and 2022, six customers accounted for 23.2 17.6 14.8 13.6 10.2 10.2 21.4 15.6 15.6 15.3 11.7 For the six-month periods ended June 30, 2023 and 2022, six customers accounted for 22.7 16.3 15.2 13.9 11.2 10.3 26.8 21.5 13.4 13.0 And the Company’s top ten customers aggregately accounted for 99.9 99.9 99.6 99.4 As of June 30, 2023, three customers accounted for 35.7 17.6 11.1 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 28.4 46.7 25.3 47.0 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 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, all such matters have been settled and Sichuan Wetouch, Hong Kong Wetouch and Mr. Guangde Cai were unconditionally and fully discharged and released therefrom (See Item 13- Legal Proceedings). Accordingly, there are no pending material legal proceedings against the Company. Please also refer to NOTE 13 - commitments and contingencies of the Annual Report filed on April 17, 2023. 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 2.1 5.0 0.7 |
REVENUES
REVENUES | 6 Months Ended |
Jun. 30, 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 Three-Month Period June 30, Six-Month Period June 30, 2023 2022 2023 2022 US$ US$ US$ US$ Sales in PRC $ 9,108,145 $ 8,104,365 $ 18,395,711 $ 16,262,309 Sales in Overseas —Republic of China (ROC, or Taiwan) 1,900,147 1,851,955 4,019,287 3,856,534 -South Korea 1,733,135 1,797,900 3,644,432 3,566,827 -Others 33,005 (1,286 ) 148,463 61,811 Sub-total 3,666,287 3,648,569 7,812,182 7,485,172 Total Revenue $ 12,774,432 $ 11,752,934 $ 26,207,893 $ 23,747,481 |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | NOTE 15 — SUBSEQUENT EVENT On February 17, 2023, the Board of Directors of the Company 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) |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 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. |
Significant Accounting Policies | 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 six-month periods ended June 30, 2023, there were no significant changes made to Wetouch significant accounting policies. |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
SCHEDULE OF ACCOUNTS RECEIVABLE | Accounts receivable consists of the following: SCHEDULE OF ACCOUNTS RECEIVABLE June 30, 2023 December 31 2022 Accounts receivable $ 13,963,453 $ 9,057,741 Allowance for doubtful accounts - - Accounts receivable, net $ 13,963,453 $ 9,057,741 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2023 December 31, 2022 Advance to suppliers $ 327,861 $ 333,920 VAT input credits - 355,482 Issue cost related to convertible promissory notes 74,047 81,614 Prepayment for land use right (i) 541,314 569,105 Security deposit (ii) 54,197 56,979 Others receivable (iii) 57,002 53,520 Prepaid expenses and other current assets $ 1,054,421 $ 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 3,925,233 541,314 (ii) On July 28, 2021, Sichuan Vtouch made a security deposit of RMB 393,000 54,197 (iii) Other receivables are mainly employee advances, and prepaid expenses. |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY , PLANT AND EQUIPMENT | SCHEDULE OF PROPERTY , PLANT AND EQUIPMENT June 30, 2023 December 31, 2022 Buildings $ 11,877 $ 12,487 Vehicles 40,380 42,453 Construction in progress 10,351,603 10,883,051 Subtotal 10,403,860 10,937,991 Less: accumulated depreciation (18,270 ) (14,381 ) Property, plant and equipment, net $ 10,385,590 $ 10,923,610 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2023 December 31, 2022 Note Mr. Zongyi Lian President and CEO of the Company $ 1,023 $ - Receivable from employee Total $ 1,023 $ - Amounts due to a related party are as follows: Relationship June 30, 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) | 6 Months Ended |
Jun. 30, 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 June 30, 2023 December 31, 2022 Advance from customers $ 530,739 $ 397,886 Accrued payroll and employee benefits 83,034 89,359 Accrued interest expenses 178,490 122,135 Accrued underwriter fees (i) 1,200,000 - Other tax payables (ii) 321,377 261 Other payable to a former shareholder (iii) - 191,180 Accrued professional fees 99,412 - Others (iv) 159,481 153,803 Accrued expenses and other current liabilities $ 2,572,533 $ 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) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
SUMMARY OF OUTSTANDING PROMISSORY NOTES | The following table summarizes the outstanding promissory notes as of June 30, 2023 and December 31, 2022 (dollars in thousands): SUMMARY OF OUTSTANDING PROMISSORY NOTES June 30, 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 % 725,000 658,988 740,000 635,535 Convertible Note - First Fire (Note 9 (b)) 8 % 176,250 125,922 181,250 156,594 Convertible Note - LGH Note 9 (b)) 8 % 202,500 194,094 207,500 188,987 Convertible Note - Fourth Man (Note 9 (b)) 8 % 152,000 133,510 157,000 128,703 Convertible Note - Jefferson Street Note 9 (b)) 8 % 165,000 141,240 170,000 142,554 Convertible Note - Blue Lake Note 9 (b)) 8 % - - - - Total $ 1,420,750 $ 1,253,754 $ 1,455,750 $ 1,252,373 Amortization of discounts for the six months ended June 30, 2023 (3,888 ) Convertible promissory notes payable as of June 30, 2023 $ 1,249,866 |
SCHEDULE OF FAIR VALUE OF WARRANTS | The fair values of these warrants as of June 30, 2023 were calculated using the Black-Scholes option-pricing model with the following assumptions: SCHEDULE OF FAIR VALUE OF WARRANTS June 30, 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$) Changes of fair value of common stock purchase warrants liability Common stock purchase warrants liability as of June 30, 2023 (US$) Convertible Note - Talos Victory (Note 9 (a)) 355.5 % $ 0.0 % $ 1.3 5.14 % 14,803 5,369 20,172 Convertible Note - Mast Hill (Note 9 (a)) 355.5 % 0.0 % 1.4 5.14 % 101,293 (101,293 ) - Convertible Note - First Fire (Note 9 (a)) 355.5 % 0.0 % 1.4 5.14 % 33,919 12,315 46,234 Convertible Note - LGH Note 9 (a)) 355.5 % 0.0 % 1.4 5.14 % 34,028 12,355 46,383 Convertible Note - Fourth Man (Note 9 (ab)) 355.5 % 0.0 % 1.4 5.14 % 14,398 5,228 19,626 Convertible Note - Jefferson Street Note 9 (a))3,054 355.5 % 0.0 % 1.4 5.14 % 34,134 12,392 46,526 Convertible Note - Blue Lake Note 9 (a)) 355.5 % 0.0 % 1.4 5.14 % 24,382 8,851 33,233 Total Total 256,957 (44,784 ) 212,174 |
REVENUES (Tables)
REVENUES (Tables) | 6 Months Ended |
Jun. 30, 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 Three-Month Period June 30, Six-Month Period June 30, 2023 2022 2023 2022 US$ US$ US$ US$ Sales in PRC $ 9,108,145 $ 8,104,365 $ 18,395,711 $ 16,262,309 Sales in Overseas —Republic of China (ROC, or Taiwan) 1,900,147 1,851,955 4,019,287 3,856,534 -South Korea 1,733,135 1,797,900 3,644,432 3,566,827 -Others 33,005 (1,286 ) 148,463 61,811 Sub-total 3,666,287 3,648,569 7,812,182 7,485,172 Total Revenue $ 12,774,432 $ 11,752,934 $ 26,207,893 $ 23,747,481 |
BUSINESS DESCRIPTION (Details N
BUSINESS DESCRIPTION (Details Narrative) - shares | Oct. 09, 2020 | Jun. 30, 2023 | Dec. 31, 2022 | Jul. 19, 2016 |
Common stock, shares issued | 193,904,965 | 33,604,965 | ||
Common stock, shares outstanding | 193,904,965 | 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 issued | 31,396,394 | |||
Common stock, shares outstanding | 31,396,394 |
SCHEDULE OF ACCOUNTS RECEIVABLE
SCHEDULE OF ACCOUNTS RECEIVABLE (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Accounts receivable | $ 13,963,453 | $ 9,057,741 |
Allowance for doubtful accounts | ||
Accounts receivable, net | $ 13,963,453 | $ 9,057,741 |
SCHEDULE OF PREPAID EXPENSES AN
SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 | |
Prepaid Expenses And Other Current Assets | |||
Advance to suppliers | $ 327,861 | $ 333,920 | |
VAT input credits | 355,482 | ||
Issue cost related to convertible promissory notes | 74,047 | 81,614 | |
Prepayment for land use right | [1] | 541,314 | 569,105 |
Security deposit | [2] | 54,197 | 56,979 |
Others receivable | [3] | 57,002 | 53,520 |
Prepaid expenses and other current assets | $ 1,054,421 | $ 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 3,925,233 541,314 393,000 54,197 |
SCHEDULE OF PREPAID EXPENSES _2
SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) (Parenthetical) | Jun. 30, 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] | $ 541,314 | $ 569,105 | ||||
Security deposit | [2] | $ 54,197 | $ 56,979 | ||||
Sichuan V touch Technology Co Ltd [Member] | |||||||
Area of land | ft² | 131,010 | 131,010 | |||||
Prepayment for land use right | $ 541,314 | ¥ 3,925,233 | |||||
Security deposit | $ 54,197 | ¥ 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 3,925,233 541,314 393,000 54,197 |
SCHEDULE OF PROPERTY , PLANT AN
SCHEDULE OF PROPERTY , PLANT AND EQUIPMENT (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 10,403,860 | $ 10,937,991 |
Less: accumulated depreciation | (18,270) | (14,381) |
Property, plant and equipment, net | 10,385,590 | 10,923,610 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 11,877 | 12,487 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 40,380 | 42,453 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 10,351,603 | $ 10,883,051 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET (Details Narrative) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 22 Months Ended | ||||||
Mar. 18, 2021 USD ($) | Mar. 18, 2021 CNY (¥) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CNY (¥) | Oct. 31, 2023 USD ($) | Oct. 31, 2023 CNY (¥) | |
Depreciation expense | $ 2,372 | $ 7,216 | $ 4,805 | $ 9,838 | ||||||
Compensation expenses | $ 15,900,000 | ¥ 115,200,000 | ||||||||
Sichuan V touch Technology Co Ltd [Member] | ||||||||||
Rent expenses | $ 41,372 | ¥ 300,000 | $ 55,162 | ¥ 400,000 | ||||||
Lease renewal description | renewed on December 31, 2021 at a monthly rent of RMB 400,000 ($55,162) 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 ($55,162) from January 1, 2022 till October 31, 2023 for the use of the Demised Properties |
SCHEDULE OF RELATED PARTY TRANS
SCHEDULE OF RELATED PARTY TRANSACTIONS (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Amounts due from related party | $ 1,023 | |
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 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | 6 Months Ended | 36 Months Ended | |||
Mar. 30, 2023 | Oct. 21, 2020 | Jun. 30, 2023 | Jun. 30, 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 | 28.40% | 28.20% | |||
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 ($) | Jun. 30, 2023 | Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |||
Advance from customers | $ 530,739 | $ 397,886 | |
Accrued payroll and employee benefits | 83,034 | 89,359 | |
Accrued interest expenses | 178,490 | 122,135 | |
Accrued underwriter fees | [1] | 1,200,000 | |
Other tax payables | [2] | 321,377 | 261 |
Other payable to a former shareholder | [3] | 191,180 | |
Accrued professional fees | 99,412 | ||
Others | [4] | 159,481 | 153,803 |
Accrued expenses and other current liabilities | $ 2,572,533 | $ 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 ($) | Jun. 30, 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 ($) | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Short-Term Debt [Line Items] | ||
Principal amount | $ 1,420,750 | $ 1,455,750 |
Carrying amount | 1,253,754 | 1,252,373 |
Amortization of discounts | (3,888) | |
Convertible promissory notes payable | $ 1,249,866 | 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 | $ 658,988 | 635,535 |
Convertible Note-First Fire [Member] | ||
Short-Term Debt [Line Items] | ||
Interest rate | 8% | |
Principal amount | $ 176,250 | 181,250 |
Carrying amount | $ 125,922 | 156,594 |
Convertible Note-LGH [Member] | ||
Short-Term Debt [Line Items] | ||
Interest rate | 8% | |
Principal amount | $ 202,500 | 207,500 |
Carrying amount | $ 194,094 | 188,987 |
Convertible Note -Fourth Man [Member] | ||
Short-Term Debt [Line Items] | ||
Interest rate | 8% | |
Principal amount | $ 152,000 | 157,000 |
Carrying amount | $ 133,510 | 128,703 |
Convertible Note Jefferson Street [Member] | ||
Short-Term Debt [Line Items] | ||
Interest rate | 8% | |
Principal amount | $ 165,000 | 170,000 |
Carrying amount | $ 141,240 | 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) | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Debt Disclosure [Abstract] | |
Repayment of notes | $ 10,000 |
SCHEDULE OF FAIR VALUE OF WARRA
SCHEDULE OF FAIR VALUE OF WARRANTS (Details) | 6 Months Ended | ||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Short-Term Debt [Line Items] | |||
Common stock purchase sarrants liability | $ 212,174 | $ 256,957 | |
Changes of fair value of common stock purchase warrants liability | (44,784) | $ (222,651) | |
Convertible Note - Talos Victory [Member] | |||
Short-Term Debt [Line Items] | |||
Common stock purchase sarrants liability | 20,172 | 14,803 | |
Changes of fair value of common stock purchase warrants liability | 5,369 | ||
Convertible Note-Mast Hill [Member] | |||
Short-Term Debt [Line Items] | |||
Common stock purchase sarrants liability | 101,293 | ||
Changes of fair value of common stock purchase warrants liability | (101,293) | ||
Convertible Note-First Fire [Member] | |||
Short-Term Debt [Line Items] | |||
Common stock purchase sarrants liability | 46,234 | 33,919 | |
Changes of fair value of common stock purchase warrants liability | 12,315 | ||
Convertible Note-LGH [Member] | |||
Short-Term Debt [Line Items] | |||
Common stock purchase sarrants liability | 46,383 | 34,028 | |
Changes of fair value of common stock purchase warrants liability | 12,355 | ||
Convertible Note -Fourth Man [Member] | |||
Short-Term Debt [Line Items] | |||
Common stock purchase sarrants liability | 19,626 | 14,398 | |
Changes of fair value of common stock purchase warrants liability | 5,228 | ||
Convertible Note Jefferson Street [Member] | |||
Short-Term Debt [Line Items] | |||
Common stock purchase sarrants liability | 46,526 | 34,134 | |
Changes of fair value of common stock purchase warrants liability | 12,392 | ||
Convertible Note -Blue Lake [Member] | |||
Short-Term Debt [Line Items] | |||
Common stock purchase sarrants liability | 33,233 | $ 24,382 | |
Changes of fair value of common stock purchase warrants liability | $ 8,851 | ||
Measurement Input, Price Volatility [Member] | Convertible Note - Talos Victory [Member] | |||
Short-Term Debt [Line Items] | |||
Warrants measurement input | 355.5 | ||
Measurement Input, Price Volatility [Member] | Convertible Note-Mast Hill [Member] | |||
Short-Term Debt [Line Items] | |||
Warrants measurement input | 355.5 | ||
Measurement Input, Price Volatility [Member] | Convertible Note-First Fire [Member] | |||
Short-Term Debt [Line Items] | |||
Warrants measurement input | 355.5 | ||
Measurement Input, Price Volatility [Member] | Convertible Note-LGH [Member] | |||
Short-Term Debt [Line Items] | |||
Warrants measurement input | 355.5 | ||
Measurement Input, Price Volatility [Member] | Convertible Note -Fourth Man [Member] | |||
Short-Term Debt [Line Items] | |||
Warrants measurement input | 355.5 | ||
Measurement Input, Price Volatility [Member] | Convertible Note Jefferson Street [Member] | |||
Short-Term Debt [Line Items] | |||
Warrants measurement input | 355.5 | ||
Measurement Input, Price Volatility [Member] | Convertible Note -Blue Lake [Member] | |||
Short-Term Debt [Line Items] | |||
Warrants measurement input | 355.5 | ||
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 Jefferson 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 3 months 18 days | ||
Measurement Input, Expected Term [Member] | Convertible Note-Mast Hill [Member] | |||
Short-Term Debt [Line Items] | |||
Weighted average expected life | 1 year 4 months 24 days | ||
Measurement Input, Expected Term [Member] | Convertible Note-First Fire [Member] | |||
Short-Term Debt [Line Items] | |||
Weighted average expected life | 1 year 4 months 24 days | ||
Measurement Input, Expected Term [Member] | Convertible Note-LGH [Member] | |||
Short-Term Debt [Line Items] | |||
Weighted average expected life | 1 year 4 months 24 days | ||
Measurement Input, Expected Term [Member] | Convertible Note -Fourth Man [Member] | |||
Short-Term Debt [Line Items] | |||
Weighted average expected life | 1 year 4 months 24 days | ||
Measurement Input, Expected Term [Member] | Convertible Note Jefferson Street [Member] | |||
Short-Term Debt [Line Items] | |||
Weighted average expected life | 1 year 4 months 24 days | ||
Measurement Input, Expected Term [Member] | Convertible Note -Blue Lake [Member] | |||
Short-Term Debt [Line Items] | |||
Weighted average expected life | 1 year 4 months 24 days | ||
Measurement Input, Risk Free Interest Rate [Member] | Convertible Note - Talos Victory [Member] | |||
Short-Term Debt [Line Items] | |||
Warrants measurement input | 5.14 | ||
Measurement Input, Risk Free Interest Rate [Member] | Convertible Note-Mast Hill [Member] | |||
Short-Term Debt [Line Items] | |||
Warrants measurement input | 5.14 | ||
Measurement Input, Risk Free Interest Rate [Member] | Convertible Note-First Fire [Member] | |||
Short-Term Debt [Line Items] | |||
Warrants measurement input | 5.14 | ||
Measurement Input, Risk Free Interest Rate [Member] | Convertible Note-LGH [Member] | |||
Short-Term Debt [Line Items] | |||
Warrants measurement input | 5.14 | ||
Measurement Input, Risk Free Interest Rate [Member] | Convertible Note -Fourth Man [Member] | |||
Short-Term Debt [Line Items] | |||
Warrants measurement input | 5.14 | ||
Measurement Input, Risk Free Interest Rate [Member] | Convertible Note Jefferson Street [Member] | |||
Short-Term Debt [Line Items] | |||
Warrants measurement input | 5.14 | ||
Measurement Input, Risk Free Interest Rate [Member] | Convertible Note -Blue Lake [Member] | |||
Short-Term Debt [Line Items] | |||
Warrants measurement input | 5.14 |
CONVERTIBLE PROMISSORY NOTES _3
CONVERTIBLE PROMISSORY NOTES PAYABLE (Details Narrative) - USD ($) | 6 Months Ended | ||||||||||
Jan. 17, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 16, 2023 | Dec. 31, 2022 | Sep. 01, 2022 | Apr. 27, 2022 | Apr. 14, 2022 | Dec. 31, 2021 | Nov. 30, 2021 | Oct. 31, 2021 | |
Short-Term Debt [Line Items] | |||||||||||
Principal amount | $ 1,420,750 | $ 1,455,750 | |||||||||
Interest expense | $ 71,507 | $ 113,563 | |||||||||
Warrants to purchase | 300,000 | 124,223 | 57,142 | 111,972 | 115,540 | ||||||
Warrant [Member] | |||||||||||
Short-Term Debt [Line Items] | |||||||||||
Warrants to purchase | 1,800,000 | 1,800,000 | 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 | ||||||||||
Fourth Man[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 | 111,972 | ||||||||||
Mast Hill [Member] | |||||||||||
Short-Term Debt [Line Items] | |||||||||||
Cashless warrant shares exercised | 300,000 | ||||||||||
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% | |||||||||
Default interest rate | 8% | 8% | 8% | 8% | |||||||
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 ($) | 6 Months Ended | 12 Months Ended | |||||||
Jan. 19, 2023 | Jan. 02, 2021 | Dec. 22, 2020 | Jun. 30, 2023 | Jun. 30, 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 | 300,000 | 124,223 | 57,142 | 111,972 | 115,540 | ||||
Net proceeds | $ 40,000,000 | ||||||||
Common stcok shares issued | 193,904,965 | 33,604,965 | |||||||
Common stock shares outstanding | 193,904,965 | 33,604,965 | |||||||
Private Placement [Member] | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Number of shares issued in transaction | 160,000,000 | ||||||||
Value of stock sold | $ 40,000,000 | ||||||||
Share price | $ 0.25 | ||||||||
Net proceeds | $ 40 | ||||||||
Common Stock [Member] | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Conversion of convertible debt | 1,384,564 | ||||||||
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 ($) | 6 Months Ended | 12 Months Ended | ||
Jan. 01, 2021 | Dec. 22, 2020 | Jun. 30, 2023 | Dec. 31, 2022 | |
Warrant [Member] | ||||
Warrants outstanding | 717,217 | |||
Weighted average exercise price | $ 0.01 | |||
Weighted average remaining contractual term | 6 months | |||
Aggregate intrinsic value | $ 300,000 | |||
Board of Directors [Member] | ||||
Number of shares authorized | 310,830 | |||
Number of shares vested | 310,830 | |||
Number of warrants exercised | 124,223 | |||
Expected term | 1 year 6 months | |||
Expected dividend rate | 0% | |||
Average interest rate | 2.96% | |||
Expected volatility | 215.40% | |||
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 | |||
Expected term | 2 years 6 months | |||
Expected dividend rate | 0% | |||
Expected volatility | 43.50% | |||
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 | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer One [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 23.20% | 21.40% | 22.70% | 26.80% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer Two [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 17.60% | 15.60% | 16.30% | 21.50% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer Three [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 14.80% | 15.60% | 15.20% | 13.40% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer Four [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 13.60% | 15.30% | 13.90% | 13% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer Five [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 10.20% | 11.70% | 11.20% | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer Six[ Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 10.20% | 10.30% | ||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Top 10 Customers [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 99.90% | 99.90% | 99.60% | 99.40% |
Revenue Benchmark [Member] | Product Concentration Risk [Member] | Two Suppliers [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 28.40% | 25.30% | ||
Revenue Benchmark [Member] | Product Concentration Risk [Member] | Four Suppliers [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 46.70% | 47% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer One [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 35.70% | |||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Two [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 17.60% | |||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Three [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 11.10% | |||
Maximum [Member] | ||||
Concentration Risk [Line Items] | ||||
Bank deposits | ¥ 500,000 | ¥ 500,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) | 6 Months Ended | |||||
Dec. 20, 2021 USD ($) | Dec. 20, 2021 CNY (¥) | Jun. 30, 2023 USD ($) | Jun. 30, 2023 CNY (¥) | Dec. 20, 2022 USD ($) | Dec. 20, 2022 CNY (¥) | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||
Purchase commitment | $ 3,100,000 | ¥ 20,000,000 | ||||
Remaining balance | $ 700,000 | ¥ 5,000,000 | ||||
Construction in Progress [Member] | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||
Purchase commitment | $ 2,100,000 | ¥ 15,000,000 |
SCHEDULE OF GEOGRAPHICAL REVENU
SCHEDULE OF GEOGRAPHICAL REVENUE INFORMATION (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Sales in PRC | $ 9,108,145 | $ 8,104,365 | $ 18,395,711 | $ 16,262,309 |
Sub-total | 3,666,287 | 3,648,569 | 7,812,182 | 7,485,172 |
Total Revenue | 12,774,432 | 11,752,934 | 26,207,893 | 23,747,481 |
Republic Of China [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sub-total | 1,900,147 | 1,851,955 | 4,019,287 | 3,856,534 |
KOREA, REPUBLIC OF | ||||
Disaggregation of Revenue [Line Items] | ||||
Sub-total | 1,733,135 | 1,797,900 | 3,644,432 | 3,566,827 |
Others [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Sub-total | $ 33,005 | $ (1,286) | $ 148,463 | $ 61,811 |
SUBSEQUENT EVENT (Details Narra
SUBSEQUENT EVENT (Details Narrative) | Feb. 17, 2023 |
Subsequent Events [Abstract] | |
Reverse stock split | one to five (1:5) and not more than one to eighty (1:80) |