Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Apr. 23, 2020 | Jun. 30, 2019 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Kandi Technologies Group, Inc. | ||
Entity Central Index Key | 0001316517 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 186,433,531 | ||
Entity Common Stock, Shares Outstanding | 52,849,441 | ||
Entity File Number | 001-33997 | ||
Entity Interactive Data Current | Yes | ||
Entity Incorporation State Country Code | DE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 5,490,557 | $ 15,662,201 |
Restricted cash | 11,022,078 | 6,690,870 |
Accounts receivable (net of allowance for doubtful accounts of $254,665 and $120,010 as of December 31, 2019 and December 31, 2018, respectively) | 61,181,849 | 34,274,728 |
Inventories | 27,736,566 | 21,997,868 |
Notes receivable | 42,487,225 | 72,712 |
Notes receivable from the Affiliate Company and related party | 3,861,032 | |
Prepayments and prepaid expense | 10,615,063 | 11,136,408 |
Amount due from the Affiliate Company, net | 31,330,763 | 67,683,462 |
Other current assets | 5,708,335 | 5,970,507 |
TOTAL CURRENT ASSETS | 195,572,436 | 167,349,788 |
LONG-TERM ASSETS | ||
Property, plant and equipment, net | 74,407,858 | 82,045,923 |
Intangible assets | 3,654,772 | 4,328,127 |
Land use rights, net | 11,272,815 | 11,749,728 |
Investment in the Affiliate Company | 47,228,614 | 128,929,893 |
Goodwill | 28,270,400 | 28,552,215 |
Other long term assets | 10,811,501 | 5,873,590 |
TOTAL Long-Term Assets | 175,645,960 | 261,479,476 |
TOTAL ASSETS | 371,218,396 | 428,829,264 |
CURRENT LIABILITIES | ||
Accounts payable | 72,093,940 | 112,309,683 |
Other payables and accrued expenses | 6,078,041 | 4,251,487 |
Short-term loans | 25,980,364 | 30,539,236 |
Notes payable | 10,765,344 | 12,787,619 |
Income tax payable | 1,796,601 | 3,471,366 |
Long term bank loans - current portion | 13,779,641 | |
Other current liabilities | 1,379,808 | 1,463,486 |
Total Current Liabilities | 131,873,739 | 164,822,877 |
LONG-TERM LIABILITIES | ||
Long term bank loans | 14,353,792 | 28,794,136 |
Deferred taxes liability | 1,362,786 | 1,711,343 |
Contingent consideration liability | 5,197,000 | 7,256,000 |
Other long-term liability | 574,152 | 622,034 |
Total Long-Term Liabilities | 21,487,730 | 38,383,513 |
TOTAL LIABILITIES | 153,361,469 | 203,206,390 |
STOCKHOLDER'S EQUITY | ||
Common stock, $0.001 par value; 100,000,000 shares authorized; 56,263,102 and 55,992,002 shares issued and 52,839,441 and 51,484,444 outstanding at December 31,2019 and December 31,2018, respectively | 52,839 | 51,484 |
Less: Treasury stock (487,155 shares with average price of $5.09 and 0 shares at December 31,2019 and December 31,2018, respectively ) | (2,477,965) | |
Additional paid-in capital | 259,691,370 | 254,989,657 |
Accumulated deficit (the restricted portion is $4,422,033 and $4,422,033 at December 31, 2019 and December 31,2018, respectively) | (16,685,736) | (9,497,009) |
Accumulated other comprehensive loss | (22,723,581) | (19,921,258) |
TOTAL STOCKHOLDERS' EQUITY | 217,856,927 | 225,622,874 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 371,218,396 | $ 428,829,264 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Net of allowance for doubtful accounts | $ 254,665 | $ 120,010 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, authorized | 100,000,000 | 100,000,000 |
Common stock, issued | 56,263,102 | 55,992,002 |
Common stock, outstanding | 52,839,441 | 51,484,444 |
Treasury stock, average price | $ 5.09 | $ 0 |
Treasury stock, shares | 487,155 | 487,155 |
Accumulated deficit restricted portion | $ 4,422,033 | $ 4,422,033 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
REVENUES FROM UNRELATED PARTY, NET | $ 119,879,895 | $ 63,707,518 |
REVENUES FROM THE AFFILIATE COMPANY AND RELATED PARTY, NET | 15,861,441 | 48,731,310 |
REVENUES, NET | 135,741,336 | 112,438,828 |
COST OF GOODS SOLD | (110,310,427) | (92,191,383) |
GROSS PROFIT | 25,430,909 | 20,247,445 |
OPERATING EXPENSES: | ||
Research and development | (6,207,747) | (10,084,378) |
Selling and marketing | (4,070,001) | (3,189,022) |
General and administrative | (14,243,625) | (8,612,393) |
Total Operating Expenses | (24,521,373) | (21,885,793) |
INCOME (LOSS) FROM OPERATIONS | 909,536 | (1,638,348) |
OTHER INCOME (EXPENSE): | ||
Interest income | 791,888 | 1,324,812 |
Interest expense | (4,822,734) | (1,871,851) |
Change in fair value of contingent consideration | (1,107,427) | 3,405,864 |
Government grants | 792,628 | 17,787,445 |
Gain from equity dilution in the Affiliate Company | 4,263,764 | |
Gain from equity sale in the Affiliate Company | 20,438,986 | |
Share of loss after tax of the Affiliate Company | (30,716,938) | (17,888,706) |
Other income, net | 1,569,311 | 956,839 |
Total other (expense) income, net | (8,790,522) | 3,714,403 |
(LOSS) INCOME BEFORE INCOME TAXES | (7,880,986) | 2,076,055 |
INCOME TAX BENEFIT (EXPENSE) | 692,259 | (7,770,754) |
NET LOSS | (7,188,727) | (5,694,699) |
OTHER COMPREHENSIVE LOSS | ||
Foreign currency translation | (2,802,323) | (13,610,495) |
COMPREHENSIVE LOSS | $ (9,991,050) | $ (19,305,194) |
WEIGHTED AVERAGE SHARES OUTSTANDING BASIC | 52,337,308 | 51,188,647 |
WEIGHTED AVERAGE SHARES OUTSTANDING DILUTED | 52,337,308 | 51,188,647 |
NET LOSS PER SHARE, BASIC | $ (0.14) | $ (0.11) |
NET LOSS PER SHARE, DILUTED | $ (0.14) | $ (0.11) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Earning (Deficit) | Accumulated Other Comprehensive Income | Total |
Balance at Dec. 31, 2017 | $ 48,037 | $ 233,055,348 | $ (3,802,310) | $ (6,310,763) | $ 222,990,312 | |
Balance, shares at Dec. 31, 2017 | 48,036,538 | |||||
Stock issuance and award | $ 3,447 | 21,934,309 | 21,937,756 | |||
Stock issuance and award, shares | 3,447,906 | |||||
Net loss | (5,694,699) | (5,694,699) | ||||
Foreign currency translation | (13,610,495) | (13,610,495) | ||||
Balance at Dec. 31, 2018 | $ 51,484 | 254,989,657 | (9,497,009) | (19,921,258) | 225,622,874 | |
Balance, shares at Dec. 31, 2018 | 51,484,444 | |||||
Stock issuance and award | $ 1,355 | 4,716,328 | 4,717,683 | |||
Stock issuance and award, shares | 1,354,997 | |||||
Stock buyback | (2,477,965) | (2,477,965) | ||||
Stock buyback, shares | ||||||
Commission in stock buyback | (14,615) | (14,615) | ||||
Net loss | (7,188,727) | (7,188,727) | ||||
Foreign currency translation | (2,802,323) | (2,802,323) | ||||
Balance at Dec. 31, 2019 | $ 52,839 | $ (2,477,965) | $ 259,691,370 | $ (16,685,736) | $ (22,723,581) | $ 217,856,927 |
Balance, shares at Dec. 31, 2019 | 52,839,441 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flow - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (7,188,727) | $ (5,694,699) |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 8,202,869 | 4,326,296 |
Impairments | 398,790 | 263,185 |
Allowance for doubtful accounts | 137,387 | (213,809) |
Deferred taxes | (1,066,536) | 4,815,774 |
Share of loss after tax of the Affiliate Company | 30,716,938 | 17,888,706 |
Gain from equity dilution in the Affiliate Company | (4,263,764) | |
Gain from equity sale in the Affiliate Company | (20,438,986) | |
Reserve for fixed assets | (52,744) | |
Change in fair value of contingent consideration | 1,107,427 | (3,405,864) |
Stock compensation cost | 1,360,258 | 285,609 |
(Increase) Decrease In: | ||
Accounts receivable | (40,123,966) | (57,503,289) |
Deferred taxes assets | 375 | |
Notes receivable | 246,120 | 483,778 |
Notes receivable from the Affiliate Company and related party | 434,329 | 6,231,669 |
Inventories | (6,458,104) | (5,243,388) |
Other receivables and other assets | (8,200,714) | (31,373,831) |
Due from employee | (8,217) | 1,045 |
Advances to supplier and prepayments and prepaid expenses | 4,379,925 | (5,386,448) |
Amount due from the Affiliate Company | 8,803,542 | (95,442,739) |
Amount due from Affiliate Company-Longterm | 15,907,183 | |
Due from related party | 159,405 | |
Increase (Decrease) In: | ||
Accounts payable | 10,440,338 | 137,390,139 |
Other payables and accrued liabilities | 6,069,133 | 60,736,669 |
Notes payable | (12,743,628) | (30,542,040) |
Customer deposits | (26,166) | (104,047) |
Income tax payable | (1,619,659) | 822,422 |
Deferred income | (44,861) | (761,736) |
Net cash (used in) provided by operating activities | (29,886,272) | 13,587,621 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment, net | (526,336) | (582,872) |
Purchases of land use rights and other intangible assets | (103,871) | |
Acquisition of Jinhua An Kao (net of cash received) | (3,555,766) | |
Acquisition of SC Autosports | 486,954 | |
Purchases of construction in progress | (71,862) | (418,755) |
Reimbursement of capitalize interests for construction in progress | 1,790,652 | |
Cash received from equity sale in the Affiliate Company | 31,850,822 | |
Long Term Investment | 1,436,217 | |
Net cash provided by (used in) investing activities | 31,252,624 | (947,441) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from short-term bank loans | 34,746,352 | 32,503,855 |
Repayments of short-term bank loans | (38,944,869) | (33,259,759) |
Repayments of long-term bank loans | (289,553) | (302,361) |
Proceeds from notes payable | 54,348,577 | |
Repayment of notes payable | (58,588,036) | |
Stock buyback with commission | (2,492,579) | |
Net cash used in financing activities | (6,980,649) | (5,297,724) |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (5,614,297) | 7,342,456 |
Effect of exchange rate changes on cash | (226,139) | (1,099,881) |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR | 22,353,071 | 16,110,496 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | 16,512,635 | 22,353,071 |
-CASH AND CASH EQUIVALENTS AT END OF PERIOD | 5,490,557 | 15,662,201 |
-RESTRICTED CASH AT END OF PERIOD | 11,022,078 | 6,690,870 |
SUPPLEMENTARY CASH FLOW INFORMATION | ||
Income taxes paid | 1,994,526 | 2,056,670 |
Interest paid | 1,738,656 | 1,708,766 |
SUPPLEMENTAL NON-CASH DISCLOSURES: | ||
Acquisition of Jinhua An Kao by stock | 20,718,859 | |
Acquisition of SC Autosports by stock | 756,664 | |
Amount due from the Affiliate Company converted to investment in the Affiliate Company | 82,393,493 | |
Notes receivable from unrelated parties for equity transfer payment | $ 42,853,834 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | NOTE 1 - ORGANIZATION AND PRINCIPAL ACTIVITIES Kandi Technologies Group, Inc. ("Kandi Technologies") was incorporated under the laws of the State of Delaware on March 31, 2004. As used herein, the terms "Company" or "Kandi" refer to Kandi Technologies and its operating subsidiaries, as described below. Headquartered in Jinhua City, Zhejiang Province, People's Republic of China ("China"), the Company is one of China's leading producers and manufacturers of electric vehicle ("EV") products (through the Affiliate Company, formerly defined as the JV Company), EV parts, and off-road vehicles for sale in the Chinese and the global markets. The Company conducts its primary business operations through its wholly-owned subsidiaries, Zhejiang Kandi Vehicles Co., Ltd. ("Kandi Vehicles"), Kandi Vehicles' wholly and partially-owned subsidiaries, and SC Autosports LLC ("SC Autosports"). The Company's organizational chart as of the date of this report is as follows: Operating Subsidiaries Pursuant to certain VIE (as defined below in this report) agreements that were executed in January 2011, Kandi Vehicles is entitled to 100% of the economic benefits, voting rights and residual interests (100% of profits and losses) of Jinhua Kandi New Energy Vehicles Co., Ltd. ("Kandi New Energy"). Kandi New Energy currently holds battery pack production licensing rights, and supplies battery packs to the Affiliate Company (as such term is defined below). In April 2012, pursuant to an agreement with the shareholders of YongkangScrou Electric Co, Ltd. ("YongkangScrou"), the Company acquired 100% of YongkangScrou, a manufacturer of automobile and EV parts. YongkangScrou currently manufactures and sells EV drive motors, EV controllers, air conditioners and other electric products to the Affiliate Company. In March 2013, pursuant to a joint venture agreement (the "JV Agreement") entered into by Kandi Vehicles and Shanghai Maple Guorun Automobile Co., Ltd. ("Shanghai Guorun"), a 99%-owned subsidiary of Geely Automobile Holdings Ltd., the parties established Fengsheng Automotive Technology GroupCo., Ltd. (the "Affiliate Company", formerly known as Zhejiang Kandi Electric Vehicles Co., Ltd. and defined as the "JV Company") to develop, manufacture and sell EV products and related auto parts. In March 2014, the Affiliate Company changed its name to Kandi Electric Vehicles Group Co., Ltd. On March 21, 2019, Kandi Vehicles signed an Equity Transfer Agreement (the "Transfer Agreement") with Geely Technologies Group Co., Ltd. ("Geely") to transfer certain equity interests in the Kandi Electric Vehicles Group Co., Ltd. (the "Affiliate Company", formerly defined as the "JV Company") to Geely. Pursuant to the Transfer Agreement, the Affiliate Company converted a loan of RMB 314 million (approximately $45.1 million) from Geely last year to equity in order to increase its cash flow. As a result, the registered capital of the Affiliate Company became RMB 2.40 billion (approximately $344.5 million), of which Kandi Vehicles then owned 43.47% and Geely owned 56.53%, respectively, upon the conversion of the loan into equity in the Affiliate Company. After that, Kandi Vehicles further agreed to sell 21.47% of its equity interests in the Affiliate Company to Geely for a total amount of RMB 516 million (approximately $74.1 million). As of September 29, 2019, Kandi Vehicles has received payments in cash totaling RMB 220 million (approximately $31.6 million) and certain commercial acceptance notes of RMB 296 million (approximately $42.5 million). As a result of the completion of the equity transfer on September 29, 2019, Kandi Vehicles now owns 22% and Geely and its affiliates own 78% of the equity interests of the Affiliate Company. As now the Company only owns 22% of the Affiliate Company, it was redefined as the Affiliate Company. In October 2019, the Affiliate Company was renamed Fengsheng Vehicles Technologies Group Co., Ltd. In April 2013, Kandi Vehicles and Kandi New Energy formed Kandi Electric Vehicles (Wanning) Co., Ltd., which was renamed Kandi Electric Vehicles (Hainan) Co., Ltd. ("Kandi Hainan"), when it was relocated from Wanning City to Haikou City in January 2016. Kandi Vehicles has a 90% ownership interest in Kandi Hainan, and Kandi New Energy has the remaining 10% ownership interest. Kandi Vehicles is, effectively, entitled to 100% of the economic benefits, voting rights and residual interests (100% of the profits and losses) of Kandi Hainan as Kandi Vehicles is entitled to 100% of the economic benefits, voting rights and residual interests of Kandi New Energy. In December 2017, Kandi Vehicles and the sole shareholder of Jinhua An Kao Power Technology Co., Ltd. ("Jinhua An Kao") entered into a Share Transfer Agreement and a Supplementary Agreement, pursuant to which Kandi Vehicles acquired Jinhua An Kao. The two agreements were signed on December 12, 2017 and the closing took place on January 3, 2018. Kandi Vehicles acquired 100% of the equity interests of Jinhua An Kao for a purchase price of approximately RMB 25.93 million (approximately $4 million) in cash. In addition, pursuant to the Supplementary Agreement, the Company issued a total of 2,959,837 shares of restrictive stock, or 6.2% of the Company's total outstanding shares of the common stock to the shareholder of Jinhua An Kao, and may be required to pay future consideration of an additional 2,959,837 shares of common stock, which are being held in escrow, to be released upon the achievement of certain net income-based milestones in the next three years. As of the date of this report, 739,959 shares have been released from the escrow for Jinhua An Kao's achieving of the year 2018 net profit target. 986,810 shares are expected to be released for its achieving of the year 2019 net profit target. The Supplementary Agreement sets forth the terms and conditions of the issuance of these shares, including a provision that gives the Company the voting rights of the make good shares until conditions for vesting such shares are satisfied. On May 31, 2018, the Company entered into a Membership Interests Transfer Agreement (the "Transfer Agreement") with the two members of SC Autosports LLC ("SC Autosports") (formerly known as: Sportsman Country, LLC) pursuant to which the Company acquired 100% of the ownership of SC Autosports. SC Autosports is a Dallas-based sales company primarily engaged in the wholesale of off-road vehicle products, with a small percentage of business in wholesale and retail of off-road vehicle parts. According to the terms of the Transfer Agreement, the Company transferred $10.0 million worth of restricted shares to acquire 100% of the membership interests of SC Autosports, of which the Company was required to issue $1.0 million of corresponding restricted shares within 30 days of the signing date of the Transfer Agreement, and the remaining $9.0 million of corresponding restricted shares to be released from escrow based on SC Autosports'pre-tax profit performance over the course of the following three years. The transaction closed in July 2018. As of the date of this report, 343,938 shares have been released from the escrow for SC Autosports' achieving of the year 2018 net profit target. 515,907 shares are expected to be released for its achieving of the year 2019 net profit target. On March 4, 2019, in order to build a logistics network composed of suppliers, manufacturers, warehouses, distribution centers and channel providers, meeting the needs of improving production and operation efficiency, the Company participated in the formation of Zhejiang Kandi Supply Chain Management Co., Ltd. ("Supply Chain Company"). Kandi Vehicles has a 10% ownership interest in Supply Chain Company, the remaining 90% is owned by unrelated other parties. As of the date of this report, Kandi Vehicle has not made any capital contribution to Supply Chain Company and is not involved in its operations. The Company's primary business operations consist of designing, developing, manufacturing and commercializing EV products (through Kandi Electric Vehicles (Hainan) Co., Ltd. and the Affiliate Company), EV parts and off-road vehicles. As part of its strategic objective of becoming a leading manufacturer of EV products (through the Affiliate Company) and related services, the Company has increased its focus on pure EV-related products, and is actively pursuing expansion in the Chinese and international markets, especially the U.S. market. |
Liquidity
Liquidity | 12 Months Ended |
Dec. 31, 2019 | |
Liquidity [Abstract] | |
LIQUIDITY | NOTE 2 - LIQUIDITY The Company had a working capital of $63,698,697 as of December 31, 2019, an increase of $ 61,171,786 from a working capital of $2,526,911 as of December 31, 2018. As of December 31, 2019 and December 31, 2018, the Company’s cash and cash equivalents were $5,490,557 and $ 15,662,201, respectively, the Company’s restricted cash was $11,022,078 and $6,690,870, respectively. After two years of negotiation, on March 9, 2020, a real estate repurchase agreement was entered into by and between between Kandi Vehicles and Jinhua Economic and Technological Development Zone that will enable Kandi Vehicles to optimize its production efficiency, lower operating costs, and generate a substantial cash inflow of RMB 525 million (USD 75.6 million) and will get no less than RMB 500 million (USD 71.9 million) subsidies based on Kandi Vehicle’s financial contribution to the local department of finance within the next eight years by monetizing one of its largest assets. The Company plans to apply the proceeds from the real estate repurchase agreement to its ongoing operations. Although the Company expects that most of its outstanding trade receivables from customers will be collected in the next twelve months, there are uncertainties with respect to the timing in collecting these receivables, especially the receivables due from the Affiliate Company, because most of them are indirectly impacted by the progress of the receipt of government subsidies. The Company’s primary need for liquidity stems from its need to fund working capital requirements of the Company’s businesses, its capital expenditures and its general operations, including debt repayment. The Company has historically financed its operations through short-term commercial bank loans from Chinese banks, as well as its ongoing operating activities by using funds from operations, external credit or financing arrangements. The Company routinely monitors current and expected operational requirements and financial market conditions to evaluate the use of available financing sources. Considering the existing working capital position and the ability to access debt funding sources, the management believes that the Company’s operations and borrowing resources are sufficient to provide for its current and foreseeable capital requirements to support its ongoing operations for the next twelve months. |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2019 | |
Basis of Presentation [Abstract] | |
BASIS OF PRESENTATION | NOTE 3 - BASIS OF PRESENTATION The Company’s financial statements and notes are the representations of the Company’s management. Accounting policies adopted by the Company conform to generally accepted accounting principles in the United States and have been consistently applied in the Company’s presentation of its financial statements. |
Principles of Consolidation
Principles of Consolidation | 12 Months Ended |
Dec. 31, 2019 | |
Principles of Consolidation [Abstract] | |
PRINCIPLES OF CONSOLIDATION | NOTE 4 - PRINCIPLES OF CONSOLIDATION The Company’s consolidated financial statements reflect the accounts of the Company and its ownership interests in the following subsidiaries: (1) Continental Development Limited (“Continental”), a wholly-owned subsidiary of the Company incorporated under the laws of Hong Kong; (2) Kandi Vehicles, a wholly-owned subsidiary of Continental; (3) Kandi New Energy, a 50%-owned subsidiary of Kandi Vehicles (Mr. Hu Xiaoming owns the other 50%). Pursuant to agreements executed in January 2011, Mr. Hu Xiaoming contracted with Kandi Vehicles for the operation and management of Kandi New Energy and put his shares of Kandi New Energy into escrow. As a result, Kandi Vehicles is entitled to 100% of the economic benefits, voting rights and residual interests of Kandi New Energy; (4) YongkangScrou, a wholly-owned subsidiary of Kandi Vehicles; (5) Kandi Hainan, a subsidiary, 10% owned by Kandi New Energy and 90% owned by Kandi Vehicles; and (6) Jinhua An Kao, a wholly-owned subsidiary of Kandi Vehicles. (7) SC Autosports, a wholly-owned subsidiary of the Company. Equity Method Investees The Company’s consolidated net income also includes the Company’s proportionate share of the net income or loss of its equity method investees as follows: The Affiliate Company, a 22% owned subsidiary of Kandi Vehicles and its subsidiaries All intra-entity profits and losses with regard to the Company’s equity method investees have been eliminated. |
Use of Estimates
Use of Estimates | 12 Months Ended |
Dec. 31, 2019 | |
Use of Estimates [Abstract] | |
USE OF ESTIMATES | NOTE 5 - USE OF ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires the Company's management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Management makes these estimates using the best information available at the time the estimates are made; however actual results when ultimately realized could differ from those estimates. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 6 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Economic and Political Risks The Company's operations are conducted in China. As a result, the Company's business, financial condition and results of operations may be influenced by the political, economic and legal environments in China, and by the general state of the Chinese economy. In addition, the Company's earnings are subject to movements in foreign currency exchange rates when transactions are denominated in Renminbi ("RMB"), which is the Company's functional currency. Accordingly, the Company's operating results are affected by changes in the exchange rate between the U.S. dollar and the RMB. The Company's operations in China are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange restrictions. The Company's performance may be adversely affected by changes in the political and social conditions in China, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. (b) Fair Value of Financial Instruments ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. These tiers include: Level 1—defined as observable inputs such as quoted prices in active markets; Level 2—defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3—defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions. The Company's financial instruments primarily consist of cash and cash equivalents, restricted cash, accounts receivable, notes receivable, other receivables, accounts payable, other payables and accrued liabilities, short-term bank loans, notes payable, and warrants. The carrying value of cash and cash equivalents, restricted cash, accounts receivable, notes receivable, other receivables, accounts payable, other payables and accrued liabilities, and notes payable approximate fair value because of the short-term nature of these items. The estimated fair values of short-term bank loans were not materially different from their carrying value as presented due to the brief maturities and because the interest rates on these borrowings approximate those that would have been available for loans of similar remaining maturities and risk profiles. As the carrying amounts are reasonable estimates of fair value, these financial instruments are classified within Level 1 of the fair value hierarchy. The Company identified notes payable as Level 2 instruments due to the fact that the inputs to valuation are primarily based upon readily observable pricing information. The balance of notes payable, which were measured and disclosed at fair value, was $10,765,344 and $12,787,619 at December 31, 2019 and December 31, 2018, respectively. Contingent consideration related to the acquisitions of Jinhua An Kao and SC Autosports, which is accounted for as liabilities, are measured at each reporting date for their fair value using Level 3 inputs. The fair value of contingent consideration was $5,197,000 and $7,256,000 at December 31, 2019 and December 31, 2018, respectively. Also see Note 21. (c) Cash and Cash Equivalents The Company considers highly-liquid investments purchased with original maturities of three months or less to be cash equivalents. As of December 31, 2019 and December 31, 2018, the Company's restricted cash was $11,022,078 and $6,690,870, respectively. (d) Inventories Inventories are stated at the lower of cost or net realizable value (market value). The cost of raw materials is determined on the basis of weighted average. The cost of finished goods is determined on the basis of weighted average and comprises direct materials, direct labor and an appropriate proportion of overhead. Net realizable value is based on estimated selling prices less selling expenses and any further costs expected to be incurred for completion. Adjustments to reduce the cost of inventory to net realizable value are made, if required, for estimated excess, obsolescence, or impaired balances. (e) Accounts Receivable and Due from the Affiliate Company and Related Parties Accounts receivable are recognized and carried at net realizable value. An allowance for doubtful accounts is recorded for periods in which the Company determines a loss is probable, based on its assessment of specific factors, such as troubled collections, historical experience, accounts aging, ongoing business relations and other factors. Accounts are written off after exhaustive collection efforts. If accounts receivable are to be provided for, or written off, they are recognized in the consolidated statement of operations within the operating expenses line item. If accounts receivable previously written off is recovered in a later period or when facts subsequently become available to indicate that the amount provided as an allowance for doubtful accounts was incorrect, an adjustment is made to restate allowance for doubtful accounts. Net amount due from the Affiliate Company represent net trade receivable from the Affiliate Company, loan lending to the Affiliate Company as well as interest related to such loan. As of December 31, 2019, the Company's net amount due from the Affiliate Company includes $29.3 million net trade receivable and $2 million loan interest. As of December 31, 2019 and December 31, 2018, credit terms with the Company's customers were typically 180 to 360 days after delivery. As of December 31, 2019 and 2018, the Company had a $254,665 and $120,010 allowance for doubtful accounts, as per the Company management's judgment based on their best knowledge. The Company conducts quarterly assessments of the state of the Company's outstanding receivables and reserves any allowance for doubtful accounts if it becomes necessary. (f) Notes Receivable Notes receivable represent short-term loans to third parties with maximum terms of six months. Interest income is recognized according to each agreement between a borrower and the Company on an accrual basis. For notes receivable with banks, the interest rates are determined by banks. For notes receivable with other parties, the interest rates are based on agreements between the parties. If notes receivable are paid back, that transaction will be recognized in the relevant year. If notes receivable are not paid back, or are written off, that transaction will be recognized in the relevant year if default is probable, reasonably assured, and the loss can be reasonably estimated. The Company will recognize income if the written-off loan is recovered at a future date. In case of any foreclosure proceedings or legal actions, the Company provides an accrual for the related foreclosure and litigation expenses. The Company also receives notes receivable from the Affiliate Company and other parties to settle accounts receivable. If the Company decides to discount notes receivable for the purpose of receiving immediate cash, the current discount rate is approximately in the range of 3.50% to 4.50% annually. As of December 31, 2019 and 2018, the Company had notes receivable from unrelated parties of $42,487,225 and $72,712, respectively, which notes receivable typically mature within six months. As of December 31, 2019, the Company's notes receivable from unrelated parties was commercial acceptance notes from Geely related to equity transfer of the Affiliate company. Approximately $15.8 million of this amount was subsequently collected in 2020 and affected by the coronavirus, collection of remaining amount was agreed to be extended, which will be consider as other receivable in 2020. As of December 31, 2019 and 2018, the Company had notes receivable from the Affiliate Company and other related parties of $0 and $3,861,032, respectively, which notes receivable typically mature within six months. (g) Property, Plants and Equipment Property, Plants and equipment are carried at cost less accumulated depreciation. Depreciation is calculated over the asset's estimated useful life, using the straight-line method. Leasehold improvements are amortized over the life of the asset or the term of the lease, whichever is shorter. Estimated useful lives are as follows: Buildings 30 years Machinery and equipment 10 years Office equipment 5 years Motor vehicles 5 years Molds 5 years The costs and related accumulated depreciation of assets sold or otherwise retired are eliminated from the Company's accounts and any gain or loss is included in the statements of income. The cost of maintenance and repairs is charged to expenses as incurred, whereas significant renewals and betterments are capitalized. (h) Land Use Rights Land in China is owned by the government and land ownership rights cannot be sold to an individual or to a private company. However, the Chinese government grants the user a "land use right" to use the land. The land use rights granted to the Company are amortized using the straight-line method over a term of fifty years. (i) Accounting for the Impairment of Long-Lived Assets The Company periodically evaluates the carrying value of long-lived assets to be held and used, including intangible assets subject to amortization, when events and circumstances warrant such a review, pursuant to the guidelines established in Statement of Financial Accounting Standards ("SFAS") No. 144 (now known as "ASC 360"). The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is separately identifiable and is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair market value of the long-lived asset. Fair market value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets to be disposed of are determined in a similar manner, except that fair market values are reduced for disposal costs. The Company recognized no impairment loss for years ended December 31, 2019 and 2018. (j) Revenue Recognition The Company adopted ASC Topic 606 Revenue from Contracts with Customers with a date of the initial application of January 1, 2018 using the modified retrospective method. As a result, the Company has changed its accounting policy for revenue recognition. The impact of the adoption of ASC Topic 606 on the Company's consolidated financial statements is not material. The Company recognizes revenue when goods or services are transferred to customers in an amount that reflects the consideration which it expects to receive in exchange for those goods or services. In determining when and how revenue is recognized from contracts with customers, the Company performs the following five-step analysis: (i) identification of contract with customer; (ii) determination of performance obligations; (iii) measurement of the transaction price; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company generates revenue through EV parts and off-road vehicles. The revenue is recognized at a point in time once the Company has determined that the customer has obtained control over the product. Control is typically deemed to have been transferred to the customer when the performance obligation is fulfilled, usually at the time of delivery, at the net sales price (transaction price). Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. Shipping and handling costs for product shipments occur prior to the customer obtaining control of the goods are accounted for as fulfillment costs rather than separate performance obligations and recorded as sales and marketing expenses. See Note 25 "Segment Reporting" for disaggregation of revenue by reporting segments. The Company believes this disaggregation best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. (k) Research and Development Expenditures relating to the development of new products and processes, including improvements to existing products, are expensed as incurred. Research and development expenses were $6,207,747 and $10,084,378 for the years ended December 31, 2019 and 2018, respectively. (l) Government Grants Grants and subsidies received from the Chinese government are recognized when the proceeds are received or collectible and related milestones have been reached and all contingencies have been resolved. For the years ended December 31, 2019 and 2018, $792,628 and $17,787,445, respectively, were received by the Company's subsidiaries from the Chinese government. (m) Income Taxes The Company accounts for income tax using an asset and liability approach, which allows for the recognition of deferred tax benefits in future years. Under the asset and liability approach, deferred income taxes are recognized for differences between the financial reporting and tax bases of assets and liabilities at enacted tax rates in effect for the years in which the differences are expected to reverse.. The accounting for deferred tax calculation represents the Company management's best estimate of the most likely future tax consequences of events that have been recognized in our financial statements or tax returns and related future anticipation. A valuation allowance is recorded to reduce the deferred tax assets to an amount that is more likely than not to be realized after considering all available evidence, both positive and negative. (n) Foreign Currency Translation The accompanying consolidated financial statements are presented in United States dollars. The functional currency of the Company is the Renminbi (RMB). Capital accounts of the consolidated financial statements are translated into United States dollars from RMB at their historical exchange rates when the capital transactions occurred. Assets and liabilities are translated at the exchange rates as of balance sheet date. Income and expenditures are translated at the average exchange rate of the reporting period, which rates are obtained from the website: http://www.oanda.com December 31, December 31, 2019 2018 Period end RMB: USD exchange rate 6.9668 6.8764 Average RMB: USD exchange rate 6.9072 6.6146 (o) Comprehensive Loss Comprehensive income (loss) is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income (loss) are required to be reported in a financial statement that is presented with the same prominence as other financial statements. Comprehensive income (loss) includes net income (loss) and the foreign currency translation changes. (p) Segments In accordance with ASC 280-10, Segment Reporting, the Company's chief operating decision maker ("CODM"), identified as the Company's Chief Executive Officer, relies upon the consolidated results of operations as a whole when making decisions about allocating resources and assessing the performance of the Company. As a result of the assessment made by CODM, the Company has only one reportable segment. The Company does not distinguish between markets or segments for the purpose of internal reporting. As the Company's long-lived assets are substantially located in the PRC, no geographical segments are presented. (q) Stock Option Expenses The Company's stock option expenses are recorded in accordance with ASC 718 and ASC 505. The fair value of stock options is estimated using the Black-Scholes-Merton model. The Company's expected volatility assumption is based on the historical volatility of the Company's common stock. The expected life assumption is primarily based on the expiration date of the option. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The recognition of stock option expenses is based on awards expected to vest. ASC standards require forfeitures to be estimated at the time of grant and revised in subsequent periods, if necessary, if actual forfeitures differ from those estimates. The stock-based option expenses for the years ended December 31, 2019 and 2018 were $0 and $1,586,926 net of a reversal for forfeited stock options of $2,644,877, respectively. There were no forfeitures estimated during the reporting period. (r) Goodwill The Company allocates goodwill from business combinations to reporting units based on the expectation that the reporting unit is to benefit from the business combination. The Company evaluates its reporting units on an annual basis and, if necessary, reassigns goodwill using a relative fair value allocation approach. Goodwill is tested for impairment at the reporting unit level on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. These events or circumstances could include a significant change in the business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. Application of the goodwill impairment test requires judgments, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and the determination of the fair value of each reporting unit. The Company first assesses qualitative factors to determine whether it is more likely than not that goodwill is impaired. If the more likely than not threshold is met, the Company performs a quantitative impairment test. As of December 31, 2019 and 2018, the Company performed goodwill impairment testing at the reporting unit level and determined that no impairment was necessary. (s) Intangible Assets Intangible assets consist of patent, trade names and customer relations associated with the purchase price from the allocation of Yongkang Scrou and Jinhua An Kao. Such assets are being amortized over their estimated useful lives. Intangible assets were amortized as of December 31, 2019. The amortization expenses for intangible assets were $ 625,070 and $649,089 for the years ended December 31, 2019 and 2018, respectively. (t) Accounting for Sale of Common Stock and Warrants Gross proceeds are first allocated according to the initial fair value of the freestanding derivative instruments (i.e. the warrants issued to the Company's investors in its previous offerings, or the "Investor Warrants"). The remaining proceeds are allocated to common stock. The related issuance expenses, including the placement agent cash fees, legal fees, the initial fair value of the warrants issued to the placement agent and others were allocated between the common stock and the Investor Warrants based on how the proceeds are allocated to these instruments. Expenses related to the issuance of common stock were charged to paid-in capital. Expenses related to the issuance of derivative instruments were expensed upon issuance. (u) Consolidation of variable interest entities In accordance with accounting standards regarding consolidation of variable interest entities, or VIEs, VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability. All VIEs with which the Company is involved must be evaluated to determine the primary beneficiary of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes. The Company has concluded, based on the contractual arrangements, that Kandi New Energy is a VIE and that the Company's wholly-owned subsidiary, Kandi Vehicles, absorbs a majority of the risk of loss from the activities of this company, thereby enabling the Company, through Kandi Vehicles, to receive a majority of its expected residual returns. Additionally, because Kandi New Energy is under common control with other entities, the consolidated financial statements have been prepared as if the transactions had occurred retroactively as to the beginning of the reporting period of these consolidated financial statements. Control and common control are defined under the accounting standards as "an individual, enterprise, or immediate family members who hold more than 50 percent of the voting ownership interest of each entity." Because the owners collectively own 100% of Kandi New Energy, and have agreed to vote their interests in concert since the establishment of each of these three companies as memorialized in the Voting Rights Proxy Agreement, the Company believes that the owners collectively have control and common control of Kandi New Energy. Accordingly, the Company believes that Kandi New Energy was constructively held under common control by Kandi Vehicles as of the time the contractual agreements were entered into, establishing Kandi Vehicles as their primary beneficiary. Kandi Vehicles, in turn, is owned by Continental, which is owned by the Company. |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2019 | |
New Accounting Pronouncements [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | NOTE 7 - NEW ACCOUNTING PRONOUNCEMENTS In February 2016, the FASB issued ASU 2016-02, together with subsequent Accounting Standards Updates collectively known as the "leases standard" or "ASC 842". ASC 842 requires a lessee recognize the assets and liabilities that arise from leases. All leases create an asset and a liability for the lessee in accordance with FASB Concepts Statement No. 6, Elements of Financial Statements. Effective January 1, 2019, the Company adopted the new standard using the effective date approach. The Company elected to adopt both the transition relief provided in ASU 2018-11 and the package of practical expedients which allowed us, among other things, to retain historical lease classifications and accounting for any leases that existed prior to adoption of the standard. Additionally, the management elected the practical expedients allowing the Company not to separate lease and non-lease components and not record leases with an initial term of twelve months or less ("short-term leases") on the balance sheet across all existing asset classes. Per ASU 2018-01 he management Adoption of the new standard resulted in the recording of operating lease assets (grouped in other long term assets of balance sheet) of $10,743 and operating lease liabilities (grouped in other current liability of balance sheet)of $11,509,, respectively, as of December 31, 2019 based on the present value of the lease payments for the remaining lease term of the Company's existing leases. The assets and liabilities recognized upon application of the transition provisions were primarily associated to the corporate office leases for SC Autosports. The standard did not materially impact the condensed consolidated statements of operations or cash flows. Adopting the new standard did not have a material impact on the accounting for leases under which the Company is the lessee. In January 2017, the FASB issued ASU No. 2017-04 (Topic 350) Intangibles—Goodwill and Other: Simplifying the Test for Goodwill Impairment, which removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. Under the amended guidance, a goodwill impairment charge will now be recognized for the amount by which the carrying value of a reporting unit exceeds its fair value, not to exceed the carrying amount of goodwill. This ASU will be applied on a prospective basis and is effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted for any impairment tests performed after January 1, 2017. The Company adopted this ASU in the fourth quarter of 2019 and the new standard did not have a material impact on the Consolidated Financial Statements. In February 2018, the FASB released ASU 2018-2, "Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." This standard update addresses a specific consequence of the Tax Cuts and Jobs Act ("U.S. tax reform") and allows a reclassification from accumulated other comprehensive income to retained earnings for the stranded tax effects resulting from U.S. tax reform. Consequently, the update eliminates the stranded tax effects that were created as a result of the historical U.S. federal corporate income tax rate to the newly enacted U.S. federal corporate income tax rate. The Company is required to adopt this standard in the first quarter of fiscal year 2020, with early adoption permitted. The amendments in this update should be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The Company has finished the evaluation and determined there is no impact of on its Condensed Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-13 Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement, which eliminates, adds, and modifies certain disclosure requirements for fair value measurements under ASC 820. This ASU is to be applied on a prospective basis for certain modified or new disclosure requirements, and all other amendments in the standard are to be applied on a retrospective basis. The new standard is effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the impact of adoption on the Consolidated Financial Statements. |
Concentrations
Concentrations | 12 Months Ended |
Dec. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS | NOTE 8 - CONCENTRATIONS (a) Customers For the years ended December 31, 2019 and 2018 the Company's major customers, who accounted for more than 10% of the Company's consolidated revenue, were as follows: Sales Trade Receivable Year Ended Year Ended December 31, December 31, December 31, December 31, Major Customers 2019 2018 2019 2018 Customer A 51 % 33 % 55 % 22 % Customer B 15 % 4 % 5 % 2 % Fengsheng Vehicles Technologies Group Co., Ltd. and its subsidiaries (related parties) 12 % 43 % 32 % 66 % (b) Suppliers For the years ended December 31, 2019 and 2018, the Company's material suppliers, each of whom accounted for more than 10% of the Company's total purchases, were as follows: Purchases Accounts Payable Year Ended Year Ended December 31, December 31, December 31, December 31, Major Suppliers 2019 2018 2019 2018 Zhejiang Kandi Supply Chain Management Co., Ltd. 73 % - 8 % - Supplier C 11 % 7 % - - |
Loss Per Share
Loss Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
LOSS PER SHARE | NOTE 9 - LOSS PER SHARE The Company calculates earnings per share in accordance with ASC 260, Earnings Per Share, which requires a dual presentation of basic and diluted earnings per share. Basic earnings per share are computed using the weighted average number of shares outstanding during the reporting period. Diluted earnings per share represents basic earnings per share adjusted to include the potentially dilutive effect of outstanding stock options and warrants (using treasury stock method). Due to the average market price of the common stock during the period below the exercise price of the options, approximately 3,900,000 options were excluded from the calculation of diluted net loss per share, for the year ended December 31, 2019. Due to the loss from operations, approximately 3,900,000 options were excluded from the calculation of diluted net loss per share, for the year ended December 31, 2019. The following is the calculation of earnings per share for the years ended December 31, 2019 and 2018: December 31, 2019 2018 Net loss $ (7,188,727 ) $ (5,694,699 ) Weighted average shares used in basic computation 52,337,308 51,188,647 Dilutive shares - - Weighted average shares used in diluted computation 52,337,308 51,188,647 loss per share: Basic $ (0.14 ) $ (0.11 ) Diluted $ (0.14 ) $ (0.11 ) |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE, NET | NOTE 10 - ACCOUNTS RECEIVABLE, NET Accounts receivable are summarized as follows: December 31, December 31, 2019 2018 Accounts receivable $ 61,436,514 $ 34,394,738 Less: allowance for doubtful accounts (254,665 ) (120,010 ) Accounts receivable, net $ 61,181,849 $ 34,274,728 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 11 - INVENTORIES Inventories are summarized as follows: December 31, December 31, 2019 2018 Raw material $ 12,127,957 $ 7,040,728 Work-in-progress 4,545,736 1,571,179 Finished goods 11,062,873 13,385,961 Inventories $ 27,736,566 $ 21,997,868 |
Notes Receivable, Notes Receiva
Notes Receivable, Notes Receivable From the Affiliate Company and Related Party | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
NOTES RECEIVABLE, NOTES RECEIVABLE FROM THE AFFILIATE COMPANY AND RELATED PARTY | NOTE 12 - NOTES RECEIVABLE, NOTES RECEIVABLE FROM THE AFFILIATE COMPANY AND RELATED PARTY As of December 31, 2019, there was $42,487,225 notes receivable from unrelated parties, which was commercial acceptance notes from payments for equity transfer of the Affiliate Company (refer to Note 23-summarized information of equity method investment in the Affiliate Company). As of December 31, 2018, there was $72,712 notes receivable from unrelated parties, among which $72,712 were bank acceptance notes from payments for sales. As of December 31, 2019, there was $0 notes receivable from the Affiliate Company and related parties. As of December 31, 2018. there was $3,861,032 notes receivable from the Affiliate Company and related parties, among which $3,861,032 were bank acceptance notes from payments for sales. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 13 - PROPERTY, PLANT AND EQUIPMENT Property, plants and equipment as of December 31, 2019 and 2018 consisted of the following: December 31, December 31, 2019 2018 At cost: Buildings $ 30,447,480 $ 30,638,417 Machinery and equipment 62,973,794 63,398,627 Office equipment 1,048,651 852,172 Motor vehicles and other transport equipment 413,046 418,476 Molds and others 25,836,241 26,849,806 120,719,212 122,157,498 Less: Accumulated depreciation Buildings $ (5,975,030 ) $ (5,019,075 ) Machinery and equipment (14,127,506 ) (8,442,940 ) Office equipment (537,829 ) (393,893 ) Motor vehicles and other transport equipment (360,098 ) (325,917 ) Molds and others (25,310,891 ) (25,486,100 ) (46,311,354 ) (39,667,925 ) Less: provision for impairment for fixed assets - (443,650 ) Property, plant and equipment, net $ 74,407,858 $ 82,045,923 As of December 31, 2019 and 2018, the net book value of property, plant and equipment pledged as collateral for the Company’s bank loans were $6,484,497 and $8,105,419, respectively. Also see Note 17. Depreciation expenses for the years ended December 31, 2019 and 2018 were $ 7,549,836 and $3,516,064, respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | NOTE 14 - INTANGIBLE ASSETS Intangible assets include acquired other intangibles of trade name, customer relations and patent recorded at estimated fair values in accordance with purchase accounting guidelines for acquisitions. The following table provides the gross carrying value and accumulated amortization for each major class of our intangible assets, other than goodwill: Remaining December 31, December 31, Gross carrying amount: Trade name 2 years $ 492,235 $ 492,235 Customer relations 2 years 304,086 304,086 Patent 5.5-7.17 years 4,564,506 4,624,513.00 5,360,827 5,420,834 Less: Accumulated amortization Trade name $ (389,053 ) $ (338,307 ) Customer relations (240,342 ) (208,993 ) Patent (1,076,660 ) (545,407 ) (1,706,055 ) (1,092,707 ) Intangible assets, net $ 3,654,772 $ 4,328,127 The aggregate amortization expenses for those intangible assets that continue to be amortized is reflected in amortization of intangible assets in the Consolidated Statements of Income and Comprehensive Income and were $ 625,070, $649,089 for the year ended December 31, 2019 and 2018, respectively. Amortization expenses for the next five years and thereafter are as follows: 2020 $ 625,070 2021 625,070 2022 545,711 2023 542,975 2024 542,975 Thereafter 772,971 Total $ 3,654,772 |
Land Use Rights
Land Use Rights | 12 Months Ended |
Dec. 31, 2019 | |
Land Use Rights [Abstract] | |
LAND USE RIGHTS | NOTE 15 - LAND USE RIGHTS The Company’s land use rights consist of the following: December 31, December 31, 2019 2018 Cost of land use rights $ 14,731,847 $ 14,925,518 Less: Accumulated amortization (3,459,032 ) (3,175,790 ) Land use rights, net $ 11,272,815 $ 11,749,728 As of December 31, 2019 and 2018, the net book value of the land use rights pledged as collateral for the Company’s bank loans were $4,937,138 and $7,756,253 respectively. Also see Note 17. The amortization expense for the years ended December 31, 2019 and 2018 were $327,250 and $348,533, respectively. Amortization expense for the next five years and thereafter is as follows: 2020 $ 327,250 2021 327,250 2022 327,250 2023 327,250 2024 327,250 Thereafter 9,636,565 Total $ 11,272,815 |
Other Long Term Assets
Other Long Term Assets | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER LONG TERM ASSETS | NOTE 16 - OTHER LONG TERM ASSETS Other long term assets as of December 31, 2019 and 2018 consisted of the following: December 31, December 31, 2019 2018 Long term deferred assets $ 4,819,152 $ 5,865,386 Prepayments for land use right 4,131,530 - Deferred taxes assets 726,182 8,204 Other receivables - Long term 768,442 - Others 366,195 - Total other long term asset $ 10,811,501 $ 5,873,590 As of December 31, 2019, the Company's other long term asset included net value of prepayments for land use right of Hainan facility of $4,131,530. As of December 31, 2019, the land us right of Hainan was not recognized since the land certificate is still in process. The amortization expense for the year ended December 31, 2019 were $ 92,288. |
Short-Term and Long-Term Bank L
Short-Term and Long-Term Bank Loans | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
SHORT-TERM AND LONG-TERM BANK LOANS | NOTE 17 - SHORT-TERM AND LONG-TERM BANK LOANS Short-term loans are summarized as follows: December 31, December 31, 2019 2018 Bank A Interest rate 5.655% per annum, paid off on April 18, 2019, secured by the assets of Kandi Vehicles, guaranteed by Mr. Hu Xiaoming and his wife, also guaranteed by the Company's subsidiaries. Also see Note 13 and Note 15. - 10,179,745 Bank B Interest rate 5.66% per annum, paid off on October 14, 2019, secured by the assets of Kandi Vehicles, also guaranteed by the Company's subsidiaries. Also see Note 13 and Note 15. - 7,096,737 Interest rate 5.66% per annum, due on October 15, 2020, secured by the assets of Kandi Vehicles, also guaranteed by the Company's subsidiaries. Also see Note 13 and Note 15. 7,004,650 Interest rate 5.66% per annum, paid off on December 31, 2019,secured by the assets of Kandi Vehicles, also guaranteed by the Company's subsidiaries. Also see Note 13 and Note 15. - 5,816,997 Interest rate 5.66% per annum, due on July 4, 2020,secured by the assets of Kandi Vehicles, also guaranteed by the Company's subsidiaries. Also see Note 13 and Note 15. 4,621,921 4,682,683 Interest rate 5.66% per annum, paid off on April 24, 2019, secured by the assets of Kandi Vehicles. Also see Note 13 and Note 15. - 2,763,074 Bank C Interest rate 5.22% per annum, due on April 18, 2020, secured by the assets of Kandi Vehicles. Also see Note 13 and Note 15. 4,306,138 - Interest rate 5.22% per annum, due on April 23, 2020, secured by the assets of Kandi Vehicles. Also see Note 13 and Note 15. 5,741,517 - Interest rate 5.22% per annum, due on April 22, 2020, secured by the assets of Kandi Vehicles. Also see Note 13 and Note 15. 4,306,138 - $ 25,980,364 $ 30,539,236 Long-term loan is summarized as follows: December 31, December 31, 2019 2018 Bank D Interest rate 7% per annum, due on December 12, 2021, guaranteed by the Company's subsidiaries. 28,133,433 28,794,136 Long term bank loans - current and noncurrent portion $ 28,133,433 28,794,136 The interest expense of the short-term and long-term bank loans for the years ended December 31, 2019 and 2018 were $4,311,640 and $1,708,766, respectively. As of December 31, 2019, the aggregate amount of short-term loans that was guaranteed by various third parties was $0. |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | NOTE 18 - NOTES PAYABLE Notes payable is presented to certain suppliers as a payment against the outstanding trade payable. Notes payable are mainly bank acceptance notes and commercial acceptance notes which are non-interest bearing and generally mature within one year. As of December 31, 2019, there was $10,765,344 notes payable, among which $10,765,344 was bank acceptance notes. As of December 31, 2018, there was $12,787,619 notes payable, among which $8,767,670 were bank acceptance notes, $2,763,074 were commercial acceptance notes and $1,256,875 were other notes payable. $10,772,078 and $6,440,870 were held as collateral for the notes payable as of December 31, 2019 and December 31, 2018, respectively. |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
TAXES | NOTE 19 - TAXES (a) Corporation Income Tax Pursuant to the tax laws and regulations of the PRC, the Company's applicable corporate income tax ("CIT") rate is 25%. However, Kandi Vehicles and Jinhua Ankao qualify as High and New Technology Enterprise ("HNTE") companies in the PRC, and are entitled to pay a reduced income tax rate of 15% for the years presented. A HNTE Certificate is valid for three years. An entity may re-apply for an HNTE certificate when the prior certificate expires. Historically, Kandi Vehicles has successfully re-applied for such certificates when the its prior certificates expired. Jinhua Ankao has been qualified as HNTE since 2018. Therefore no records for renewal are available. The applicable CIT rate of each of the Company's three other subsidiaries, Kandi New Energy, Yongkang Scrou and Kandi Hainan, the Affiliate Company and its subsidiaries is 25%. The Company's tax provision or benefit from income taxes for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter the Company updates its estimate of the annual effective tax rate, and if its estimated tax rate changes, the management makes a cumulative adjustment. For 2019, the management estimates that its effective tax rate will be favorably affected by non-taxable income such as the share of income of the Affiliate Company and the gain from the change of fair value of contingent liabilities and certain research and development super-deduction and adversely affected by non-deductible expenses such as part of entertainment expenses. The Company records valuation allowances against the deferred tax assets associated with losses for which we may not realize a related tax benefit. After combining research and development tax credits of 25% on certain qualified research and development expenses, the Company's effective tax rate for December 31, 2019 and 2018 was a tax benefit of 8.78% on a reported loss before taxes of approximately $7.9 million, a tax expense of 374.30% on a reported income before taxes of approximately $2.1 million, respectively. The effective tax rates for each of the periods mentioned above are disclosed in the summary table of income tax expenses for December 31, 2019 and 2018. Under ASC 740 guidance relating to uncertain tax positions, which addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. As of December 31, 2019, the Company did not have any liability for unrecognized tax benefits. The Company files income tax returns with the U.S. Internal Revenue Services ("IRS") and those states where the Company has operations. The Company is subject to U.S. federal or state income tax examinations by the IRS and relevant state tax authorities for years after 2006. During the periods open to examination, the Company has net operating loss carry forwards ("NOLs") for U.S. federal and state tax purposes that have attributes from closed periods. Since these NOLs may be utilized in future periods, they remain subject to examination. The Company also files certain tax returns in the PRC. As of December 31, 2019, the Company was not aware of any pending income tax examinations by U.S. or PRC tax authorities. The Company records interest and penalties on uncertain tax provisions as income tax expense. As of December 31, 2019, the Company has no accrued interest or penalties related to uncertain tax positions. For both calendar year of December 31, 2019 and December 31, 2018, we had unrecognized tax benefits of $0 million, for various federal, foreign, and state income tax matters. After considering valuation allowance, none of the unrecognized tax benefits, if recognized, would affect our effective tax as of December 31, 2019 and December 31, 2018. These unrecognized tax benefits are presented on the accompanying consolidated balance sheets net of the tax effects of net operating loss carry forwards, which are offset by valuation allowance. Income tax expenses for the year ended December 31, 2019 and 2018 are summarized as follows: For Year Ended December 31, 2019 2018 Current: Provision for CIT $ 374,277 $ 2,954,980 Deferred: Provision for CIT (1,066,536 ) 4,815,774 Income tax (benefit) expense $ (692,259 ) $ 7,770,754 The reconciliation of taxes at the PRC statutory rate (25% in 2019 and 2018) to our provision for income taxes for the years ended December 31, 2019 and 2018 was as follows: For Year Ended December 31, 2019 2018 Expected taxation at PRC statutory tax rate $ (1,970,247 ) $ 519,014 Effect of differing tax rates in different jurisdictions 363,199 292 Effect of PRC preferential tax rates 162,218 607,069 Non-taxable income (86,537 ) (1,300,212 ) Non-deductible expenses ① 1,703,235 2,683,306 Research and development super-deduction (350,449 ) (487,725 ) (Over) Under-accrued EIT for previous years (1,792,560 ) 171,623 Addition to valuation allowance 1,301,225 5,793,368 Other (22,343 ) (215,981 ) Income tax (benefit) expense $ (692,259 ) $ 7,770,754 ① It's mainly due to share of loss in the Affiliate Company and Kandi Hainan's interest expense. The tax effects of temporary differences that give rise to the Company's net deferred tax assets and liabilities as of December 31, 2019 and December 31, 2018 are summarized as follows: December 31, December 31, 2019 2018 Deferred tax assets: Accruals and reserves $ 672,983 8,204 Depreciation 53,199 113,767 Loss carried forward 2,401,125 7,029,548 Total deferred tax assets 3,127,307 7,151,519 Deferred tax liabilities: Expense (680,906 ) (1,022,141 ) Intangible (519,006 ) (1,019,776 ) Revenue (162,874 ) - Total deferred tax liability (1,362,786 ) (2,041,917 ) Net deferred tax assets $ 1,764,521 $ 5,109,602 less: valuation allowance (2,401,125 ) (6,812,741 ) Net deferred tax liabilities, net of valuation allowance $ (636,604 ) $ (1,703,139 ) The aggregate NOLs in 2019 was $9.6 million deriving from entities in the PRC and Hong Kong. The aggregate NOLs in 2018 was $28.1 million deriving from entities in the PRC and Hong Kong. The NOLs will start to expire from 2021 if they are not used. The cumulative net operating loss in the PRC can be carried forward for five years, to offset future net profits for income tax purposes. The company has $0 cumulative net operating loss in U.S. to carry forward as of December 31, 2019. The cumulative net operating loss in Hong Kong can be carried forward without an expiration date. Operating loss carry forward for tax purpose resulted in a deferred tax asset of $2.4 million with a full valuation allowance at December 31, 2019. Tax benefit of operating loss is evaluated on an ongoing basis including a review of historical and projected future operating results, the eligible carry forward period, and available tax planning strategies. Income (loss) before income taxes from PRC and non-PRC sources for the year ended December 31, 2019 and 2018 are summarized as follows: For Year Ended December 31, 2019 2018 Income(loss) before income taxes consists of: PRC $ (5,413,025 ) $ (1,909,305 ) Non-PRC (2,467,961 ) 3,985,360 Total $ (7,880,986 ) $ 2,076,055 Net change in the valuation allowance of deferred tax assets are summarized as follows: Net change of valuation allowance of Deferred tax assets Balance at December 31, 2017 $ 1,019,373 Additions-change to tax expense 5,793,368 Balance at December 31,2018 6,812,741 Additions-change to tax expense 1,301,225 Prior year true up of loss carried forward (5,712,841 ) Balance at December 31,2019 $ 2,401,125 (b) Tax Holiday Effect For the year ended December 31, 2019 and 2018, the PRC CIT rate was 25%. Certain subsidiaries of the Company are entitled to tax exemptions (tax holidays) for the year ended December 31, 2019 and 2018. The combined effects of income tax expense exemptions and reductions available to the Company for the year ended December 31, 2019 and 2018 are as follows: Year Ended December 31, 2019 2018 Tax benefit (holiday) credit $ 1,532,748 $ 1,090,348 Basic net income per share effect $ 0.000 $ 0.000 (c) The Tax Cuts and Job Act On December 22, 2017, the SEC staff issued Staff Accounting Bulletin (SAB) No. 118, which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company's accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in its financial statements. If a company cannot determine a provisional estimate to be included in its financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act. Pursuant to the disclosure provision of SAB 118, the Company has completed and recorded provisional amounts for the income tax effects of the TCJA for the year ended December 31st, 2019. Based on Financial Accounting Standards Board ("FASB") staff Q&A Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income (GILTI), the FASB staff noted that the Company must make an accounting policy election to either (1) recognize taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred (the "period cost method") or (2) factor such amount into the Company's measure of its deferred taxes (the "deferred method"). The Company elected to treat the GILTI as a current-period expense when incurred. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
LEASES | NOTE 20 – LEASES The Company has corporate office leases for SC Autosports, with a term of 37 months from January 31, 2017 to January 31, 2020. The monthly lease payment is $11,000. The Company adopted ASC 842 to record operating lease assets and operating lease liabilities as of January 1, 2019, with a remaining lease term of 13 months and discount rate of 4.75%.The lease will be renewed to April 30th 2021. As of December 31, 2019, the Company's right - of - use asset (grouped in other long term assets of balance sheet) was $10,743 and lease liability (grouped in other current liability of balance sheet) was $11,509. For the year ended December 31, 2019, the Company's operating lease cost was $132,000. Supplemental information related to operating leases was as follows: Year ended Cash payments for operating leases $ 132,000 New operating lease assets obtained in exchange for operating lease liabilities $ 0 Maturities of lease liabilities as of December 31, 2019 were as follow: Maturity of Lease Liabilities: 2020 Lease payable 11,000 Interest 509 Total $ 11,509 |
Contingent Consideration Liabil
Contingent Consideration Liability | 12 Months Ended |
Dec. 31, 2019 | |
Business Combination, Contingent Consideration, Liability [Abstract] | |
CONTINGENT CONSIDERATION LIABILITY | NOTE 21 - CONTINGENT CONSIDERATION LIABILITY On January 3, 2018, the Company completed the acquisition of 100% of the equity of Jinhua An Kao. The Company paid approximately RMB 25.93 million (approximately $4 million) at the closing of the transaction using cash on hand and issued a total of 2,959,837 shares of restrictive stock or 6.2% of the Company's total outstanding shares of the common stock valued at approximately $20.7 million to the former shareholder of Jinhua An Kao and his designees (the "An Kao Shareholders"), and may be required to pay future consideration up to an additional 2,959,837 shares of common stock, which are being held in escrow, to be released contingent upon the achievement of certain net income-based milestones in the next three years. Any escrowed shares that are not released from escrow to the An Kao Shareholders for failure to achieve the milestones will be forfeited and returned to the Company for cancellation. While the escrowed shares are held in escrow, the Company will retain all voting rights with respect to the shares. For the year ended December 31, 2018, Jinhua An Kao achieved its first year net profit target. According to the agreement, the former shareholders of An Kao received 739,959 shares of Kandi's restrictive common stock or 12.5% of the total equity consideration (i.e., 5,919,674 total shares) as part of the purchase price. For the year ended December 31, 2019, Jinhua An Kao achieved its second year net profit target. According to the agreement, the former shareholders of An Kao will receive 986,810 shares of Kandi's restrictive common stock or 16.67% of the total equity consideration (i.e., 5,919,674 total shares) as part of the purchase price. On July 1, 2018, the Company completed the acquisition of 100% of the equity of SC Autosports. The Company issued a total of 171,969 shares of restrictive stock or approximately 0.3% of the Company's total outstanding shares of the common stock valued at approximately $0.8 million at the closing of transaction to the former members of SC Autosports within 30 days from the signing date of the Transfer Agreement, and may be required to pay future consideration up to an additional 1,547,721 shares of common stock, which are being held in escrow, to be released contingent upon the achievement of certain pre-tax profit based milestones in the next three years. Any escrowed shares that are not released from escrow to the SC Autosports former members for failure to achieve the milestones will be forfeited and returned to the Company for cancellation. While the escrowed shares are held in escrow, the Company will retain all voting rights with respect to the shares. For the year ended December 31, 2018, SC Autosports achieved its first year pre-tax profit target. According to the agreement, the former members of SC Autosports received 343,938 shares of Kandi's restrictive common stock or 20% of total Kandi stock in the purchase price. For the year ended December 31, 2019, SC Autosports achieved its second year pre-tax profit target. According to the agreement, the former members of SC Autosports will receive 515,907 shares of Kandi's restrictive common stock or 30% of total Kandi stock in the purchase price. The Company recorded contingent consideration liability of the estimated fair value of the contingent consideration the Company currently expects to pay to Jinahua Ankao and SC Autosports' former members upon the achievement of certain milestones. The fair value of the contingent consideration liability associated with remaining shares of restrictive common stock was estimated by using the Monte Carlo simulation method, which took into account all possible scenarios. This fair value measurement is classified as Level 3 within the fair value hierarchy prescribed by ASC Topic 820, Fair Value Measurement and Disclosures. In accordance with ASC Topic 805, Business Combinations, the Company will re-measure this liability each reporting period and record changes in the fair value through a separate line item within the Company's consolidated statements of Income. As of December 31, 2019 and December 31, 2018, the Company's contingent consideration liability was $5,197,000 and $7,256,000, respectively. |
Stock Award
Stock Award | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
STOCK AWARD | NOTE 22 - STOCK AWARD In connection with the appointment of Mr. Henry Yu as a member of the Board of Directors (the "Board"), the Board authorized the Company to compensate Mr. Henry Yu with 5,000 shares of Company's restricted common stock every six months as compensation, beginning in July 2011. As compensation for Mr. Jerry Lewin's services as a member of the Board, the Board authorized the Company to compensate Mr. Jerry Lewin with 5,000 shares of Company's restricted common stock every six months, beginning in August 2011. As compensation for Ms. Kewa Luo's services as the Company's investor relation officer, the Board authorized the Company to compensate Ms. Kewa Luo with 5,000 shares of the Company's common stock every six months, beginning in September 2013. In November 2016, the Company entered into a three-year employment agreement with Mr. Mei Bing, to hire him as the Company's Chief Financial Officer. Under the agreement, Mr. Mei Bing was entitled to receive an aggregate 10,000 shares of common stock each year, vested in four equal quarterly installments of 2,500 shares. On January 29, 2019, Mr. Mei resigned from his position as the Company's CFO. On January 29, 2019, the Board appointed Ms. Zhu Xiaoying as interim Chief Financial Officer. Ms. Zhu was entitled to receive 10,000 shares of the common stock annually under the Company's 2008 Omnibus Long-Term Incentive Plan (the "2008 Plan") as a year-end equity bonus. The fair value of stock awards based on service is determined based on the closing price of the common stock on the date the shares are approved by the Board for grant. The compensation costs for awards of common stock are recognized over the requisite service period of three or six months. On December 30, 2013, the Board approved a proposal (as submitted by the Compensation Committee) of an award (the "Board's Pre-Approved Award Grant Sub-Plan under the 2008 Plan") for certain executives and other key employees. The fair value of each award granted under the 2008 Plan is determined based on the closing price of the Company's stock on the date of grant of such award. On September 26, 2016, the Board approved to terminate the previous Board's Pre-Approved Award Grant Sub-Plan under the 2008 Plan and adopted a new plan to grant the total number of shares of common stock of the stock award for selected executives and key employees 250,000 shares of common stock for each fiscal year. On April 18, 2018, the Board authorized the Company to grant 238,600 shares of common stock to certain management members and employees as compensation for their past services under the 2008 Plan. On April 30, 2019, the Board authorized the Company to grant 238,600 shares of common stock to certain management members and employees as compensation for their past services under the 2008 Plan. For the year ended December 31, 2019 and 2018, the Company recognized $1,360,258 and $1,343,560 of employee stock award expenses for stock compensation and annual incentive award under the 2008 Plan paid to Board members, management and consultants under General and Administrative Expenses, respectively. |
Summarized Information of Equit
Summarized Information of Equity Method Investment in the Affiliate Company | 12 Months Ended |
Dec. 31, 2019 | |
Summarized Information of Equity Method Investment in the JV Company [Abstract] | |
SUMMARIZED INFORMATION OF EQUITY METHOD INVESTMENT IN THE AFFILIATE COMPANY | NOTE 23 - SUMMARIZED INFORMATION OF EQUITY METHOD INVESTMENT IN THE AFFILIATE COMPANY The Company's condensed consolidated net income (loss) includes the Company's proportionate share of the net income or loss of the Company's equity method investees. When the Company records its proportionate share of net income (loss) in such investees, it increases equity income (loss) – net in the Company's consolidated statements of income and the Company's carrying value in that investment. Conversely, when the Company records its proportionate share of a net loss in such investees, it decreases equity income (loss) – net in the Company's consolidated statements of income (loss) and the Company's carrying value in that investment. All intra-entity profits and losses with the Company's equity method investees have been eliminated. On March 21, 2019, Kandi Vehicles signed an Equity Transfer Agreement with Geely Technologies Group Co., Ltd. to transfer certain equity interests in the Affiliate Company to Geely. Pursuant to the Transfer Agreement, the Affiliate Company converted a loan of RMB 314 million (approximately $45.1 million) from Geely Group last year to equity in order to increase its cash flow. As a result, the registered capital of the Affiliate Company became RMB 2.40 billion (approximately $344.5 million), of which Kandi Vehicles owned 43.47% and Geely owned 56.53%, respectively, upon the conversion of the loan into equity in the Affiliate Company (the "March Affiliate Loan to Equity Conversion"). Kandi Vehicles further agree to sell 21.47% of its equity interests in the Affiliate Company to Geely for a total amount of RMB 516 million (approximately $74.1 million) (the "Affiliate Equity Transfer"). Kandi Vehicles shall own 22% of the equity interests of the Affiliate Company as a result of the transfer. As of September 29, 2019, the Company has received payments in cash totaling RMB 220 million (approximately $31.6 million) and certain commercial acceptance notes of RMB 296 million (approximately $42.5 million) from Geely, of which RMB 140 million (approximately $20.1 million) shall mature on January 20, 2020 and the remaining RMB 156 million (approximately $22.4 million) shall mature on March 29, 2020. As of September 30, 2019, the equity transfer has been completed. Therefore, in the third quarter of 2019, the Company has recognized the gain from equity sale of $20,438,986. As of date of this report, RMB 110 million (approximately $15.8 million) of the commercial acceptance notes has been collected. Affected by the coronavirus, collection of the remaining amount was agreed to be extended. The Company accounted for its investments in the Affiliate Company under the equity method of accounting. Since the March Affiliate Loan to Equity Conversion was completed at the very end of the first quarter, the Company still recorded 50% of the Affiliate Company's loss for the first quarter of 2019. Starting from the second quarter of the 2019, since the equity interests in the Affiliate Company have been reduced to 43.47% and the Affiliate Equity Transfer was completed at the very end of the third quarter, the Company recorded 43.47% of the Affiliate Company's loss for the second and third quarter of 2019 and recorded 22% of the Affiliate Company's loss for the fourth quarter of 2019. The combined results of operations and financial position of the Affiliate Company are summarized below: Years ended December 31, 2019 2018 Condensed income statement information: Net sales $ 124,280,561 $ 122,480,854 Gross loss (2,609,764 ) (17,749,674 ) Gross margin -2.1 % -14.5 % Net loss (85,972,257 ) (36,340,082 ) December 31, December 31, 2019 2018 Condensed balance sheet information: Current assets $ 640,688,401 $ 751,143,254 Noncurrent assets 64,589,516 140,736,300 Total assets $ 705,277,917 $ 891,879,554 Current liabilities 490,625,640 633,711,465 Equity 214,652,277 258,168,089 Total liabilities and equity $ 705,277,917 $ 891,879,554 Note: The following table illustrates the captions used in the Company's Income Statements for its equity based investment in the Affiliate Company. The Company's equity method investments in the Affiliate Company for the years ended December 31, 2019 and 2018 are as follows: December 31, 2019 2018 Investment in the Affiliate Company, beginning of the period, $ 128,929,893 $ 70,681,013 Investment in Affiliate Company in 2018 - 79,256,588 Investment decreased in 2019 due to equity sale of Affiliate Equity Transfer (72,309,417 ) Gain from equity dilution of March Affiliate Loan to Equity Conversion 4,263,764 - Gain from equity sale of Affiliate Equity Transfer 20,438,986 - Company's share in net (loss) income of Affiliate based on 50% ownership for three months ended March 31, 2019, 43.47%① ownership for six months ended September 30, 2019, 22% ownership for three months ended December 31, 2019 and 50% ownership for year ended December 31, 2018 (30,864,754 ) (18,170,041 ) Intercompany transaction elimination (5,649 ) (160,254 ) Year 2018 unrealized profit realized 153,465 441,589 Subtotal (30,716,938 ) (17,888,706 ) Exchange difference (3,377,674 ) (3,119,002 ) Investment in Affiliate Company, end of the period $ 47,228,614 $ 128,929,893 (1) Represents the rounded result of dividing RMB1,045 million (the Company's ownership interest in the Affiliate Company) by RMB2,404 million (the Affiliate Company's total equity interest). We used the actual result and kept full decimals when calculating the Company's share in net (loss) income of the Affiliate Company. The gain from equity dilution for the year ended December 31, 2019 resulted from the Affiliate Company issuing shares to the Affiliate Company partner, Greely, in exchange for extinguishment of a loan from Greely, resulting in dilution of equity ownership of the Company from 50% to 43.47%. This dilutive transaction was treated as if the Company sold a proportional share of its investment in the Affiliate Company. Sales to the Company's customers, the Affiliate Company and its subsidiaries, for the year ended December 31, 2019, were $ 15,861,441 or 11.7% of the Company's total revenue, a decrease of 67.5% from $48,731,310 of the year ended December 31, 2018. Sales to the Affiliate Company and its subsidiaries were primarily of battery packs, body parts, EV drive motors, EV controllers, air conditioning units and other auto parts. On May 23, 2018, in order to obtain its manufacturing license, the Affiliate Company increased its registered capital by RMB 1.09 billion (approximately $159 million), of which Kandi Vehicle contributed its portion by converting loans to the Affiliate company in the amount of RMB 545 million (approximately $79 million) that were previously included in the current and noncurrent amount due from the Affiliate Company and its subsidiaries into the Affiliate Company's registered capital. The loans balance of RMB 545 million (approximately $79 million) consisted of a multiple round of loans to Affiliate Company, including additional RMB 150 million (approximately $22 million) with annual interest rate of 4.35% during 2018 and RMB 395 million (approximately $57 million) in the previous years, for facilitating its operating capital. Geely Group became a new shareholder of the Affiliate Company by investing RMB 545 million (approximately $79 million) in the Affiliate Company. As of December 31, 2019 and 2018, the amount due from the Affiliate Company and its subsidiaries, was $31,330,763 and $67,683,462, respectively. In the first quarter of 2019, the Company lent RMB 75,000,000 (approximately $10.9 million) to the Affiliate Company with effective annual interest rate of 4.03%, and the loan principal has been collected in the same quarter. As of December 31, 2019 and 2018, the net amount due from the Affiliate Company and its subsidiaries included $2,056,564 and $ 1,845,255 interest receivable related to the loan lent to the Affiliate Company. As of December 31, 2019 and 2018, the net amount due from the Affiliate Company and its subsidiaries didn't include any outstanding loan principal. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 24 - COMMITMENTS AND CONTINGENCIES Guarantees and pledged collateral for bank loans to other parties: (1) Guarantees for bank loans On March 15, 2013, the Company entered into a guarantee contract to serve as the guarantor of Nanlong Group Co., Ltd. ("NGCL") for NGCL's $ 2,870,758 (RMB 20 million) loan from Shanghai Pudong Development Bank Jinhua Branch, with a related loan period of March 15, 2013, to March 15, 2016. NGCL is not related to the Company. Under this guarantee contract, the Company agreed to assume joint liability as the loan guarantor. In April 2017, Shanghai Pudong Development Bank filed a lawsuit against NGCL, the Company and ten other parties in Zhejiang Province People's Court in Yongkang City, alleging NGCL defaulted on a bank loan borrowed from Shanghai Pudong Development Bank for a principal amount of approximately $2.9 million and demanded that the guarantor bear the liability for compensation. On May 27, 2017, a judicial mediation took place in Yongkang City and parties reached a settlement in mediation, in which the plaintiff agreed NGCL would repay the loan principal and interest in installments. If there were an event of default that NGCL could not repay the loan, the Company may be obligated to bear the liability of defaulted amount. The Company expects the likelihood of incurring losses in connection with this matter to be remote. On September 29, 2015, the Company entered into a guarantee contract to serve as the guarantor of Zhejiang Shuguang Industrial Co., Ltd. ("ZSICL") for a bank loan in the amount of $ 4,162,600 (RMB 29 million) from Ping An Bank, with a related loan period of September 29, 2015, to September 28, 2016. ZSICL is not related to the Company. Under this guarantee contract, the Company agreed to perform all the obligations of ZSICL under the loan contract if ZSICL failed to perform its obligations as set forth therein. In August 2016, Ping An Bank Yiwu Branch ("Ping An Bank") filed a lawsuit against ZSICL, the Company, and three other parties in Zhejiang Province People's Court in Yiwu City, alleging ZSICL defaulted on a bank loan it had borrowed from Pin An Bank for a principal amount of RMB 29 million or approximately $4.2 million (the "Principal"), for which the Company was a guarantor along with other three parties. On December 25, 2016, the court ruled that ZSICL should repay Ping An Bank the principal and associated interest remaining on the bank loan within 10 days once the adjudication was effective. Additionally, the court found that the Company and the three other parties, acting as guarantors, have joint liability for this bank loan. On July 31, 2017, the Company and Ping An Bank reached an agreement to settle. According to the agreement, the Company was to pay Ping An Bank RMB 20 million or approximately $3.0 million in four installments before October 31, 2017 to release the Company from its guarantor liability for this default. As of October 31, 2017, the Company has paid all four installments totaling RMB 20 million or approximately $3.0 million to Ping An Bank and thus the Company has been released from its guarantor liability for this default. According to the Company's agreement with ZSICL, ZSICL agreed to reimburse all the Company's losses due to ZSICL's default on the loan principal and interests, of which RMB 11.9 million has been reimbursed to the Company as of the date of this report and the remainder is expected to be reimbursed in installments within next two years. The Company expects the likelihood of incurring losses in connection with this matter to be low. On August 29, 2018, the Company entered into a guarantee contract to serve as the guarantor for the Affiliate Company for bank acceptance notes in the aggregate amount of $3,014,296 (RMB 21 million) from Bank of China, with a related period of August 29, 2018 to February 29, 2019, and which were paid off on February 29, 2019 by the Affiliate Company. On August 30, 2018, the Company entered into a guarantee contract to serve as the guarantor for Kandi Jiangsu for bank loans in the aggregate amount of $7,176,896 (RMB 50 million) from China Merchants Bank Nantong branch, with a related loan period of August 31, 2018 to February 28, 2019, and was paid off on February 1, 2019. On February 1, 2019, the loan was renewed with a term of February 1, 2019 to July 31, 2019 and was paid off on July 31, 2019 by Kandi Jiangsu. On September 3, 2018, the Company entered into a guarantee contract to serve as the guarantor for the Affiliate Company for bank acceptance notes in the aggregate amount of $4,162,600 (RMB 29 million) from Bank of China, with a related period of September 3, 2018 to March 3, 2019 and was paid off on March 3, 2019 by the Affiliate Company. (2) Pledged collateral for bank loans to other parties. As of December 31, 2019 and December 31, 2018, none of the Company's land use rights or plants and equipment were pledged as collateral securing bank loans to other parties. Litigation Beginning in March 2017, putative shareholder class actions were filed against Kandi Technologies Group, Inc. ("Kandi") and certain of its current and former directors and officers in the United States District Court for the Central District of California and the United States District Court for the Southern District of New York. The complaints generally alleged violations of the federal securities laws based Kandi's disclosure in March 2017 that its financial statements for the years 2014, 2015 and the first three quarters of 2016 would need to be restated, and seek damages on behalf of putative classes of shareholders who purchased or acquired Kandi's securities prior to March 13, 2017. Kandi moved to dismiss the remaining cases, all of which were pending in the New York federal court, and that motion was granted by an order entered on September 30, 2019, and the time to appeal has run. Beginning in May 2017, purported shareholder derivative actions based on the same underlying events described above were filed against certain current and former directors of Kandi in the United States District Court for the Southern District of New York. The New York federal court confirmed the voluntary dismissal of these actions in April 2019. In October 2017, a shareholder filed a books and records action against the Company in the Delaware Court of Chancery pursuant to 8 Del. C. Section 220 seeking the production of certain documents generally relating to the same underlying items described above as well as attorney's fees (the "Section 220 Litigation"). On September 28, 2018, the parties, through their respective counsel, agreed to dismiss the Section 220 Litigation with prejudice and with each party bearing its own attorney's fees, costs, and expenses, thereby concluding the action. In February 2019, this same shareholder commenced a derivative action against certain current and former directors of Kandi in the Delaware Court of Chancery. A motion to dismiss this derivative action was filed in May 2019 and that motion was denied on April 27, 2020. Separately, in connection with allegations of misconduct identified in pre-suit demands made by putative shareholders of Kandi, Kandi formed a Special Litigation Committee ("SLC") and retained Delaware law firm as independent counsel to the SLC to aid in the SLC's investigation of, and to ultimately report on, the allegations of misconduct set forth in the pre-suit demands. The investigation remains ongoing. While the Company believes that the claims in these litigations are without merit and will defend itself vigorously, the Company is unable to estimate the possible loss, if any, associated with these litigations. The ultimate outcome of any litigation is uncertain and the outcome of these matters, whether favorable or unfavorable, could have a negative impact on the Company's financial condition or results of operations due to defense costs, diversion of management resources and other factors. Defending litigation can be costly, and adverse results in the litigations could result in substantial monetary judgments. No assurance can be made that litigation will not have a material adverse effect on the Company's future financial position. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 25 - SEGMENT REPORTING The Company has one operating segment. The Company's revenue and long-lived assets are primarily derived from and located in China and US. The Company does not have manufacturing operations outside of China. The following table sets forth disaggregation of revenue: Year Ended December 31, 2019 2018 Sales Revenue Sales Revenue Primary geographical markets Overseas $ 24,623,424 $ 12,741,570 China 111,117,912 99,697,258 Total $ 135,741,336 $ 112,438,828 Major products EV parts $ 110,675,908 $ 99,099,312 EV products 108,640 - Off-road vehicles 22,743,142 13,339,516 Electric Scooters and Electric Self-Balancing Scooters 2,213,646 - Total $ 135,741,336 $ 112,438,828 Timing of revenue recognition Products transferred at a point in time $ 135,741,336 $ 112,438,828 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | NOTE 26 - SUBSEQUENT EVENT In December 2019, a novel strain of coronavirus (COVID-19) surfaced. The spread of COVID-19 around China and other parts of the world in the first quarter of 2020 has caused significant volatility in the markets of China, U.S., and the rest of the world. The pandemic has resulted in quarantines, travel restrictions, and the temporary closure of stores and facilities in China and elsewhere, although the Company's operations in China has fully resumed in early March. There is significant uncertainty around the breadth and duration of business disruptions related to COVID-19, as well as its impact on the economy of China, U.S. and international markets and, as such, the extent of the business disruption and the related financial impact cannot be reasonably estimated at this time. After two years of negotiation, on March 9, 2020, a real estate repurchase agreement was entered into by and between Kandi Vehicles and Jinhua Economic and Technological Development Zone that will enable Kandi Vehicles to optimize its production efficiency, lower operating costs, and generate a substantial cash inflow of RMB 525 million (USD 75.6 million) and will get no less than RMB 500 million (USD 71.9 million) subsidies based on Kandi Vehicle's financial contribution to the local department of finance within the next eight years by monetizing one of its largest assets. On March 27, 2020, the "Coronavirus Aid, Relief and Economic Security (CARES) Act" was signed into law. The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. The Company does not anticipate significant tax impact on its financial and continue to examine the impacts this CARES Act may have on its business. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Economic and Political Risks | (a) Economic and Political Risks The Company's operations are conducted in China. As a result, the Company's business, financial condition and results of operations may be influenced by the political, economic and legal environments in China, and by the general state of the Chinese economy. In addition, the Company's earnings are subject to movements in foreign currency exchange rates when transactions are denominated in Renminbi ("RMB"), which is the Company's functional currency. Accordingly, the Company's operating results are affected by changes in the exchange rate between the U.S. dollar and the RMB. The Company's operations in China are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange restrictions. The Company's performance may be adversely affected by changes in the political and social conditions in China, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things. |
Fair Value of Financial Instruments | (b) Fair Value of Financial Instruments ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. These tiers include: Level 1—defined as observable inputs such as quoted prices in active markets; Level 2—defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3—defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions. The Company's financial instruments primarily consist of cash and cash equivalents, restricted cash, accounts receivable, notes receivable, other receivables, accounts payable, other payables and accrued liabilities, short-term bank loans, notes payable, and warrants. The carrying value of cash and cash equivalents, restricted cash, accounts receivable, notes receivable, other receivables, accounts payable, other payables and accrued liabilities, and notes payable approximate fair value because of the short-term nature of these items. The estimated fair values of short-term bank loans were not materially different from their carrying value as presented due to the brief maturities and because the interest rates on these borrowings approximate those that would have been available for loans of similar remaining maturities and risk profiles. As the carrying amounts are reasonable estimates of fair value, these financial instruments are classified within Level 1 of the fair value hierarchy. The Company identified notes payable as Level 2 instruments due to the fact that the inputs to valuation are primarily based upon readily observable pricing information. The balance of notes payable, which were measured and disclosed at fair value, was $10,765,344 and $12,787,619 at December 31, 2019 and December 31, 2018, respectively. Contingent consideration related to the acquisitions of Jinhua An Kao and SC Autosports, which is accounted for as liabilities, are measured at each reporting date for their fair value using Level 3 inputs. The fair value of contingent consideration was $5,197,000 and $7,256,000 at December 31, 2019 and December 31, 2018, respectively. Also see Note 21. |
Cash and Cash Equivalents | (c) Cash and Cash Equivalents The Company considers highly-liquid investments purchased with original maturities of three months or less to be cash equivalents. As of December 31, 2019 and December 31, 2018, the Company's restricted cash was $11,022,078 and $6,690,870, respectively. |
Inventories | (d) Inventories Inventories are stated at the lower of cost or net realizable value (market value). The cost of raw materials is determined on the basis of weighted average. The cost of finished goods is determined on the basis of weighted average and comprises direct materials, direct labor and an appropriate proportion of overhead. Net realizable value is based on estimated selling prices less selling expenses and any further costs expected to be incurred for completion. Adjustments to reduce the cost of inventory to net realizable value are made, if required, for estimated excess, obsolescence, or impaired balances. |
Accounts Receivable and Due from the Affiliate Company and Related Parties | (e) Accounts Receivable and Due from the Affiliate Company and Related Parties Accounts receivable are recognized and carried at net realizable value. An allowance for doubtful accounts is recorded for periods in which the Company determines a loss is probable, based on its assessment of specific factors, such as troubled collections, historical experience, accounts aging, ongoing business relations and other factors. Accounts are written off after exhaustive collection efforts. If accounts receivable are to be provided for, or written off, they are recognized in the consolidated statement of operations within the operating expenses line item. If accounts receivable previously written off is recovered in a later period or when facts subsequently become available to indicate that the amount provided as an allowance for doubtful accounts was incorrect, an adjustment is made to restate allowance for doubtful accounts. Net amount due from the Affiliate Company represent net trade receivable from the Affiliate Company, loan lending to the Affiliate Company as well as interest related to such loan. As of December 31, 2019, the Company's net amount due from the Affiliate Company includes $29.3 million net trade receivable and $2 million loan interest. As of December 31, 2019 and December 31, 2018, credit terms with the Company's customers were typically 180 to 360 days after delivery. As of December 31, 2019 and 2018, the Company had a $254,665 and $120,010 allowance for doubtful accounts, as per the Company management's judgment based on their best knowledge. The Company conducts quarterly assessments of the state of the Company's outstanding receivables and reserves any allowance for doubtful accounts if it becomes necessary. |
Notes Receivable | (f) Notes Receivable Notes receivable represent short-term loans to third parties with maximum terms of six months. Interest income is recognized according to each agreement between a borrower and the Company on an accrual basis. For notes receivable with banks, the interest rates are determined by banks. For notes receivable with other parties, the interest rates are based on agreements between the parties. If notes receivable are paid back, that transaction will be recognized in the relevant year. If notes receivable are not paid back, or are written off, that transaction will be recognized in the relevant year if default is probable, reasonably assured, and the loss can be reasonably estimated. The Company will recognize income if the written-off loan is recovered at a future date. In case of any foreclosure proceedings or legal actions, the Company provides an accrual for the related foreclosure and litigation expenses. The Company also receives notes receivable from the Affiliate Company and other parties to settle accounts receivable. If the Company decides to discount notes receivable for the purpose of receiving immediate cash, the current discount rate is approximately in the range of 3.50% to 4.50% annually. As of December 31, 2019 and 2018, the Company had notes receivable from unrelated parties of $42,487,225 and $72,712, respectively, which notes receivable typically mature within six months. As of December 31, 2019, the Company's notes receivable from unrelated parties was commercial acceptance notes from Geely related to equity transfer of the Affiliate company. Approximately $15.8 million of this amount was subsequently collected in 2020 and affected by the coronavirus, collection of remaining amount was agreed to be extended, which will be consider as other receivable in 2020. As of December 31, 2019 and 2018, the Company had notes receivable from the Affiliate Company and other related parties of $0 and $3,861,032, respectively, which notes receivable typically mature within six months. |
Property, Plants and Equipment | (g) Property, Plants and Equipment Property, Plants and equipment are carried at cost less accumulated depreciation. Depreciation is calculated over the asset's estimated useful life, using the straight-line method. Leasehold improvements are amortized over the life of the asset or the term of the lease, whichever is shorter. Estimated useful lives are as follows: Buildings 30 years Machinery and equipment 10 years Office equipment 5 years Motor vehicles 5 years Molds 5 years The costs and related accumulated depreciation of assets sold or otherwise retired are eliminated from the Company's accounts and any gain or loss is included in the statements of income. The cost of maintenance and repairs is charged to expenses as incurred, whereas significant renewals and betterments are capitalized. |
Land Use Rights | (h) Land Use Rights Land in China is owned by the government and land ownership rights cannot be sold to an individual or to a private company. However, the Chinese government grants the user a "land use right" to use the land. The land use rights granted to the Company are amortized using the straight-line method over a term of fifty years. |
Accounting for the Impairment of Long-Lived Assets | (i) Accounting for the Impairment of Long-Lived Assets The Company periodically evaluates the carrying value of long-lived assets to be held and used, including intangible assets subject to amortization, when events and circumstances warrant such a review, pursuant to the guidelines established in Statement of Financial Accounting Standards ("SFAS") No. 144 (now known as "ASC 360"). The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is separately identifiable and is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair market value of the long-lived asset. Fair market value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets to be disposed of are determined in a similar manner, except that fair market values are reduced for disposal costs. The Company recognized no impairment loss for years ended December 31, 2019 and 2018. |
Revenue Recognition | (j) Revenue Recognition The Company adopted ASC Topic 606 Revenue from Contracts with Customers with a date of the initial application of January 1, 2018 using the modified retrospective method. As a result, the Company has changed its accounting policy for revenue recognition. The impact of the adoption of ASC Topic 606 on the Company's consolidated financial statements is not material. The Company recognizes revenue when goods or services are transferred to customers in an amount that reflects the consideration which it expects to receive in exchange for those goods or services. In determining when and how revenue is recognized from contracts with customers, the Company performs the following five-step analysis: (i) identification of contract with customer; (ii) determination of performance obligations; (iii) measurement of the transaction price; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company generates revenue through EV parts and off-road vehicles. The revenue is recognized at a point in time once the Company has determined that the customer has obtained control over the product. Control is typically deemed to have been transferred to the customer when the performance obligation is fulfilled, usually at the time of delivery, at the net sales price (transaction price). Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. Shipping and handling costs for product shipments occur prior to the customer obtaining control of the goods are accounted for as fulfillment costs rather than separate performance obligations and recorded as sales and marketing expenses. See Note 25 "Segment Reporting" for disaggregation of revenue by reporting segments. The Company believes this disaggregation best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. |
Research and Development | (k) Research and Development Expenditures relating to the development of new products and processes, including improvements to existing products, are expensed as incurred. Research and development expenses were $6,207,747 and $10,084,378 for the years ended December 31, 2019 and 2018, respectively. |
Government Grants | (l) Government Grants Grants and subsidies received from the Chinese government are recognized when the proceeds are received or collectible and related milestones have been reached and all contingencies have been resolved. For the years ended December 31, 2019 and 2018, $792,628 and $17,787,445, respectively, were received by the Company's subsidiaries from the Chinese government. |
Income Taxes | (m) Income Taxes The Company accounts for income tax using an asset and liability approach, which allows for the recognition of deferred tax benefits in future years. Under the asset and liability approach, deferred income taxes are recognized for differences between the financial reporting and tax bases of assets and liabilities at enacted tax rates in effect for the years in which the differences are expected to reverse.. The accounting for deferred tax calculation represents the Company management's best estimate of the most likely future tax consequences of events that have been recognized in our financial statements or tax returns and related future anticipation. A valuation allowance is recorded to reduce the deferred tax assets to an amount that is more likely than not to be realized after considering all available evidence, both positive and negative. |
Foreign Currency Translation | (n) Foreign Currency Translation The accompanying consolidated financial statements are presented in United States dollars. The functional currency of the Company is the Renminbi (RMB). Capital accounts of the consolidated financial statements are translated into United States dollars from RMB at their historical exchange rates when the capital transactions occurred. Assets and liabilities are translated at the exchange rates as of balance sheet date. Income and expenditures are translated at the average exchange rate of the reporting period, which rates are obtained from the website: http://www.oanda.com December 31, December 31, 2019 2018 Period end RMB: USD exchange rate 6.9668 6.8764 Average RMB: USD exchange rate 6.9072 6.6146 |
Comprehensive Loss | (o) Comprehensive Loss Comprehensive income (loss) is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income (loss) are required to be reported in a financial statement that is presented with the same prominence as other financial statements. Comprehensive income (loss) includes net income (loss) and the foreign currency translation changes. |
Segments | (p) Segments In accordance with ASC 280-10, Segment Reporting, the Company's chief operating decision maker ("CODM"), identified as the Company's Chief Executive Officer, relies upon the consolidated results of operations as a whole when making decisions about allocating resources and assessing the performance of the Company. As a result of the assessment made by CODM, the Company has only one reportable segment. The Company does not distinguish between markets or segments for the purpose of internal reporting. As the Company's long-lived assets are substantially located in the PRC, no geographical segments are presented. |
Stock Option Expenses | (q) Stock Option Expenses The Company's stock option expenses are recorded in accordance with ASC 718 and ASC 505. The fair value of stock options is estimated using the Black-Scholes-Merton model. The Company's expected volatility assumption is based on the historical volatility of the Company's common stock. The expected life assumption is primarily based on the expiration date of the option. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The recognition of stock option expenses is based on awards expected to vest. ASC standards require forfeitures to be estimated at the time of grant and revised in subsequent periods, if necessary, if actual forfeitures differ from those estimates. The stock-based option expenses for the years ended December 31, 2019 and 2018 were $0 and $1,586,926 net of a reversal for forfeited stock options of $2,644,877, respectively. There were no forfeitures estimated during the reporting period. |
Goodwill | (r) Goodwill The Company allocates goodwill from business combinations to reporting units based on the expectation that the reporting unit is to benefit from the business combination. The Company evaluates its reporting units on an annual basis and, if necessary, reassigns goodwill using a relative fair value allocation approach. Goodwill is tested for impairment at the reporting unit level on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. These events or circumstances could include a significant change in the business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. Application of the goodwill impairment test requires judgments, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and the determination of the fair value of each reporting unit. The Company first assesses qualitative factors to determine whether it is more likely than not that goodwill is impaired. If the more likely than not threshold is met, the Company performs a quantitative impairment test. As of December 31, 2019 and 2018, the Company performed goodwill impairment testing at the reporting unit level and determined that no impairment was necessary. |
Intangible Assets | (s) Intangible Assets Intangible assets consist of patent, trade names and customer relations associated with the purchase price from the allocation of Yongkang Scrou and Jinhua An Kao. Such assets are being amortized over their estimated useful lives. Intangible assets were amortized as of December 31, 2019. The amortization expenses for intangible assets were $ 625,070 and $649,089 for the years ended December 31, 2019 and 2018, respectively. |
Accounting for Sale of Common Stock and Warrants | (t) Accounting for Sale of Common Stock and Warrants Gross proceeds are first allocated according to the initial fair value of the freestanding derivative instruments (i.e. the warrants issued to the Company's investors in its previous offerings, or the "Investor Warrants"). The remaining proceeds are allocated to common stock. The related issuance expenses, including the placement agent cash fees, legal fees, the initial fair value of the warrants issued to the placement agent and others were allocated between the common stock and the Investor Warrants based on how the proceeds are allocated to these instruments. Expenses related to the issuance of common stock were charged to paid-in capital. Expenses related to the issuance of derivative instruments were expensed upon issuance. |
Consolidation of variable interest entities | (u) Consolidation of variable interest entities In accordance with accounting standards regarding consolidation of variable interest entities, or VIEs, VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability. All VIEs with which the Company is involved must be evaluated to determine the primary beneficiary of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes. The Company has concluded, based on the contractual arrangements, that Kandi New Energy is a VIE and that the Company's wholly-owned subsidiary, Kandi Vehicles, absorbs a majority of the risk of loss from the activities of this company, thereby enabling the Company, through Kandi Vehicles, to receive a majority of its expected residual returns. Additionally, because Kandi New Energy is under common control with other entities, the consolidated financial statements have been prepared as if the transactions had occurred retroactively as to the beginning of the reporting period of these consolidated financial statements. Control and common control are defined under the accounting standards as "an individual, enterprise, or immediate family members who hold more than 50 percent of the voting ownership interest of each entity." Because the owners collectively own 100% of Kandi New Energy, and have agreed to vote their interests in concert since the establishment of each of these three companies as memorialized in the Voting Rights Proxy Agreement, the Company believes that the owners collectively have control and common control of Kandi New Energy. Accordingly, the Company believes that Kandi New Energy was constructively held under common control by Kandi Vehicles as of the time the contractual agreements were entered into, establishing Kandi Vehicles as their primary beneficiary. Kandi Vehicles, in turn, is owned by Continental, which is owned by the Company. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of estimated useful lives | Buildings 30 years Machinery and equipment 10 years Office equipment 5 years Motor vehicles 5 years Molds 5 years |
Schedule of average foreign currency exchange rate | December 31, December 31, 2019 2018 Period end RMB: USD exchange rate 6.9668 6.8764 Average RMB: USD exchange rate 6.9072 6.6146 |
Concentrations (Tables)
Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Customers [Member] | |
Concentration Risk [Line Items] | |
Schedule of concentration percentage | Sales Trade Receivable Year Ended Year Ended December 31, December 31, December 31, December 31, Major Customers 2019 2018 2019 2018 Customer A 51 % 33 % 55 % 22 % Customer B 15 % 4 % 5 % 2 % Fengsheng Vehicles Technologies Group Co., Ltd. and its subsidiaries (related parties) 12 % 43 % 32 % 66 % |
Suppliers [Member] | |
Concentration Risk [Line Items] | |
Schedule of concentration percentage | Purchases Accounts Payable Year Ended Year Ended December 31, December 31, December 31, December 31, Major Suppliers 2019 2018 2019 2018 Zhejiang Kandi Supply Chain Management Co., Ltd. 73 % - 8 % - Supplier C 11 % 7 % - - |
Loss Per Share (Tables)
Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of loss per share | December 31, 2019 2018 Net loss $ (7,188,727 ) $ (5,694,699 ) Weighted average shares used in basic computation 52,337,308 51,188,647 Dilutive shares - - Weighted average shares used in diluted computation 52,337,308 51,188,647 loss per share: Basic $ (0.14 ) $ (0.11 ) Diluted $ (0.14 ) $ (0.11 ) |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of accounts receivable, net | December 31, December 31, 2019 2018 Accounts receivable $ 61,436,514 $ 34,394,738 Less: allowance for doubtful accounts (254,665 ) (120,010 ) Accounts receivable, net $ 61,181,849 $ 34,274,728 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | December 31, December 31, 2019 2018 Raw material $ 12,127,957 $ 7,040,728 Work-in-progress 4,545,736 1,571,179 Finished goods 11,062,873 13,385,961 Inventories $ 27,736,566 $ 21,997,868 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plants and equipment | December 31, December 31, 2019 2018 At cost: Buildings $ 30,447,480 $ 30,638,417 Machinery and equipment 62,973,794 63,398,627 Office equipment 1,048,651 852,172 Motor vehicles and other transport equipment 413,046 418,476 Molds and others 25,836,241 26,849,806 120,719,212 122,157,498 Less: Accumulated depreciation Buildings $ (5,975,030 ) $ (5,019,075 ) Machinery and equipment (14,127,506 ) (8,442,940 ) Office equipment (537,829 ) (393,893 ) Motor vehicles and other transport equipment (360,098 ) (325,917 ) Molds and others (25,310,891 ) (25,486,100 ) (46,311,354 ) (39,667,925 ) Less: provision for impairment for fixed assets - (443,650 ) Property, plant and equipment, net $ 74,407,858 $ 82,045,923 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of gross carrying value and accumulated amortization for each major class of intangible assets other than goodwill | Remaining December 31, December 31, Gross carrying amount: Trade name 2 years $ 492,235 $ 492,235 Customer relations 2 years 304,086 304,086 Patent 5.5-7.17 years 4,564,506 4,624,513.00 5,360,827 5,420,834 Less: Accumulated amortization Trade name $ (389,053 ) $ (338,307 ) Customer relations (240,342 ) (208,993 ) Patent (1,076,660 ) (545,407 ) (1,706,055 ) (1,092,707 ) Intangible assets, net $ 3,654,772 $ 4,328,127 |
Schedule of amortization expenses | 2020 $ 625,070 2021 625,070 2022 545,711 2023 542,975 2024 542,975 Thereafter 772,971 Total $ 3,654,772 |
Land Use Rights (Tables)
Land Use Rights (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Land Use Rights [Abstract] | |
Schedule of land use rights | December 31, December 31, 2019 2018 Cost of land use rights $ 14,731,847 $ 14,925,518 Less: Accumulated amortization (3,459,032 ) (3,175,790 ) Land use rights, net $ 11,272,815 $ 11,749,728 |
Schedule of amortization expense | 2020 $ 327,250 2021 327,250 2022 327,250 2023 327,250 2024 327,250 Thereafter 9,636,565 Total $ 11,272,815 |
Other Long Term Assets (Tables)
Other Long Term Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of other long term assets | December 31, December 31, 2019 2018 Long term deferred assets $ 4,819,152 $ 5,865,386 Prepayments for land use right 4,131,530 - Deferred taxes assets 726,182 8,204 Other receivables - Long term 768,442 - Others 366,195 - Total other long term asset $ 10,811,501 $ 5,873,590 |
Short-Term and Long-Term Bank_2
Short-Term and Long-Term Bank Loans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of short-term loan | December 31, December 31, 2019 2018 Bank A Interest rate 5.655% per annum, paid off on April 18, 2019, secured by the assets of Kandi Vehicles, guaranteed by Mr. Hu Xiaoming and his wife, also guaranteed by the Company's subsidiaries. Also see Note 13 and Note 15. - 10,179,745 Bank B Interest rate 5.66% per annum, paid off on October 14, 2019, secured by the assets of Kandi Vehicles, also guaranteed by the Company's subsidiaries. Also see Note 13 and Note 15. - 7,096,737 Interest rate 5.66% per annum, due on October 15, 2020, secured by the assets of Kandi Vehicles, also guaranteed by the Company's subsidiaries. Also see Note 13 and Note 15. 7,004,650 Interest rate 5.66% per annum, paid off on December 31, 2019,secured by the assets of Kandi Vehicles, also guaranteed by the Company's subsidiaries. Also see Note 13 and Note 15. - 5,816,997 Interest rate 5.66% per annum, due on July 4, 2020,secured by the assets of Kandi Vehicles, also guaranteed by the Company's subsidiaries. Also see Note 13 and Note 15. 4,621,921 4,682,683 Interest rate 5.66% per annum, paid off on April 24, 2019, secured by the assets of Kandi Vehicles. Also see Note 13 and Note 15. - 2,763,074 Bank C Interest rate 5.22% per annum, due on April 18, 2020, secured by the assets of Kandi Vehicles. Also see Note 13 and Note 15. 4,306,138 - Interest rate 5.22% per annum, due on April 23, 2020, secured by the assets of Kandi Vehicles. Also see Note 13 and Note 15. 5,741,517 - Interest rate 5.22% per annum, due on April 22, 2020, secured by the assets of Kandi Vehicles. Also see Note 13 and Note 15. 4,306,138 - $ 25,980,364 $ 30,539,236 |
Schedule of long-term loan | December 31, December 31, 2019 2018 Bank D Interest rate 7% per annum, due on December 12, 2021, guaranteed by the Company's subsidiaries. 28,133,433 28,794,136 Long term bank loans - current and noncurrent portion $ 28,133,433 28,794,136 |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Summary of income tax expenses | For Year Ended December 31, 2019 2018 Current: Provision for CIT $ 374,277 $ 2,954,980 Deferred: Provision for CIT (1,066,536 ) 4,815,774 Income tax (benefit) expense $ (692,259 ) $ 7,770,754 |
Schedule of provision for income taxes | For Year Ended December 31, 2019 2018 Expected taxation at PRC statutory tax rate $ (1,970,247 ) $ 519,014 Effect of differing tax rates in different jurisdictions 363,199 292 Effect of PRC preferential tax rates 162,218 607,069 Non-taxable income (86,537 ) (1,300,212 ) Non-deductible expenses ① 1,703,235 2,683,306 Research and development super-deduction (350,449 ) (487,725 ) (Over) Under-accrued EIT for previous years (1,792,560 ) 171,623 Addition to valuation allowance 1,301,225 5,793,368 Other (22,343 ) (215,981 ) Income tax (benefit) expense $ (692,259 ) $ 7,770,754 ① It's mainly due to share of loss in the Affiliate Company and Kandi Hainan's interest expense. |
Schedule of deferred tax assets and liabilities | December 31, December 31, 2019 2018 Deferred tax assets: Accruals and reserves $ 672,983 8,204 Depreciation 53,199 113,767 Loss carried forward 2,401,125 7,029,548 Total deferred tax assets 3,127,307 7,151,519 Deferred tax liabilities: Expense (680,906 ) (1,022,141 ) Intangible (519,006 ) (1,019,776 ) Revenue (162,874 ) - Total deferred tax liability (1,362,786 ) (2,041,917 ) Net deferred tax assets $ 1,764,521 $ 5,109,602 less: valuation allowance (2,401,125 ) (6,812,741 ) Net deferred tax liabilities, net of valuation allowance $ (636,604 ) $ (1,703,139 ) |
Schedule of income (loss) before income taxes | For Year Ended December 31, 2019 2018 Income(loss) before income taxes consists of: PRC $ (5,413,025 ) $ (1,909,305 ) Non-PRC (2,467,961 ) 3,985,360 Total $ (7,880,986 ) $ 2,076,055 |
Schedule of valuation allowance of deferred tax assets | Net change of valuation allowance of Deferred tax assets Balance at December 31, 2017 $ 1,019,373 Additions-change to tax expense 5,793,368 Balance at December 31,2018 6,812,741 Additions-change to tax expense 1,301,225 Prior year true up of loss carried forward (5,712,841 ) Balance at December 31,2019 $ 2,401,125 |
Schedule of income tax expense exemptions and reductions | Year Ended December 31, 2019 2018 Tax benefit (holiday) credit $ 1,532,748 $ 1,090,348 Basic net income per share effect $ 0.000 $ 0.000 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of information related to operating leases | Year ended Cash payments for operating leases $ 132,000 New operating lease assets obtained in exchange for operating lease liabilities $ 0 |
Schedule of maturities of lease liabilities | Maturity of Lease Liabilities: 2020 Lease payable 11,000 Interest 509 Total $ 11,509 |
Summarized Information of Equ_2
Summarized Information of Equity Method Investment in the Affiliate Company (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Summarized Information of Equity Method Investment in the JV Company [Abstract] | |
Schedule of condensed income statement information | Years ended December 31, 2019 2018 Condensed income statement information: Net sales $ 124,280,561 $ 122,480,854 Gross loss (2,609,764 ) (17,749,674 ) Gross margin -2.1 % -14.5 % Net loss (85,972,257 ) (36,340,082 ) |
Schedule of condensed balance sheet information | December 31, December 31, 2019 2018 Condensed balance sheet information: Current assets $ 640,688,401 $ 751,143,254 Noncurrent assets 64,589,516 140,736,300 Total assets $ 705,277,917 $ 891,879,554 Current liabilities 490,625,640 633,711,465 Equity 214,652,277 258,168,089 Total liabilities and equity $ 705,277,917 $ 891,879,554 |
Schedule of equity method investments | December 31, 2019 2018 Investment in the Affiliate Company, beginning of the period, $ 128,929,893 $ 70,681,013 Investment in Affiliate Company in 2018 - 79,256,588 Investment decreased in 2019 due to equity sale of Affiliate Equity Transfer (72,309,417 ) Gain from equity dilution of March Affiliate Loan to Equity Conversion 4,263,764 - Gain from equity sale of Affiliate Equity Transfer 20,438,986 - Company's share in net (loss) income of Affiliate based on 50% ownership for three months ended March 31, 2019, 43.47%① ownership for six months ended September 30, 2019, 22% ownership for three months ended December 31, 2019 and 50% ownership for year ended December 31, 2018 (30,864,754 ) (18,170,041 ) Intercompany transaction elimination (5,649 ) (160,254 ) Year 2018 unrealized profit realized 153,465 441,589 Subtotal (30,716,938 ) (17,888,706 ) Exchange difference (3,377,674 ) (3,119,002 ) Investment in Affiliate Company, end of the period $ 47,228,614 $ 128,929,893 (1) Represents the rounded result of dividing RMB1,045 million (the Company's ownership interest in the Affiliate Company) by RMB2,404 million (the Affiliate Company's total equity interest). We used the actual result and kept full decimals when calculating the Company's share in net (loss) income of the Affiliate Company. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of revenues by geographic area | Year Ended December 31, 2019 2018 Sales Revenue Sales Revenue Primary geographical markets Overseas $ 24,623,424 $ 12,741,570 China 111,117,912 99,697,258 Total $ 135,741,336 $ 112,438,828 Major products EV parts $ 110,675,908 $ 99,099,312 EV products 108,640 - Off-road vehicles 22,743,142 13,339,516 Electric Scooters and Electric Self-Balancing Scooters 2,213,646 - Total $ 135,741,336 $ 112,438,828 Timing of revenue recognition Products transferred at a point in time $ 135,741,336 $ 112,438,828 |
Organization and Principal Ac_2
Organization and Principal Activities (Details) | 1 Months Ended | 12 Months Ended | ||||||||||||||
Sep. 29, 2019USD ($) | Sep. 29, 2019CNY (¥) | Mar. 21, 2019USD ($) | Mar. 21, 2019CNY (¥) | Mar. 04, 2019 | May 31, 2018 | Jan. 31, 2016 | Jan. 31, 2011 | Dec. 31, 2017USD ($)shares | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2019shares | Sep. 29, 2019CNY (¥) | Mar. 21, 2019CNY (¥) | Dec. 31, 2018shares | Mar. 31, 2013 | Apr. 30, 2012 | |
Organization and Principal Activities (Textual) | ||||||||||||||||
Shares of common stock | shares | 56,263,102 | 55,992,002 | ||||||||||||||
Share Transfer Agreement And Supplementary Agreement [Member] | ||||||||||||||||
Organization and Principal Activities (Textual) | ||||||||||||||||
Description of transfer agreement | In December 2017, Kandi Vehicles and the sole shareholder of Jinhua An Kao Power Technology Co., Ltd. ("Jinhua An Kao") entered into a Share Transfer Agreement and a Supplementary Agreement, pursuant to which Kandi Vehicles acquired Jinhua An Kao. The two agreements were signed on December 12, 2017 and the closing took place on January 3, 2018. Kandi Vehicles acquired 100% of the equity interests of Jinhua An Kao for a purchase price of approximately RMB 25.93 million (approximately $4 million) in cash. In addition, pursuant to the Supplementary Agreement, the Company issued a total of 2,959,837 shares of restrictive stock, or 6.2% of the Company's total outstanding shares of the common stock to the shareholder of Jinhua An Kao, and may be required to pay future consideration of an additional 2,959,837 shares of common stock, which are being held in escrow, to be released upon the achievement of certain net income-based milestones in the next three years. | In December 2017, Kandi Vehicles and the sole shareholder of Jinhua An Kao Power Technology Co., Ltd. ("Jinhua An Kao") entered into a Share Transfer Agreement and a Supplementary Agreement, pursuant to which Kandi Vehicles acquired Jinhua An Kao. The two agreements were signed on December 12, 2017 and the closing took place on January 3, 2018. Kandi Vehicles acquired 100% of the equity interests of Jinhua An Kao for a purchase price of approximately RMB 25.93 million (approximately $4 million) in cash. In addition, pursuant to the Supplementary Agreement, the Company issued a total of 2,959,837 shares of restrictive stock, or 6.2% of the Company's total outstanding shares of the common stock to the shareholder of Jinhua An Kao, and may be required to pay future consideration of an additional 2,959,837 shares of common stock, which are being held in escrow, to be released upon the achievement of certain net income-based milestones in the next three years. | ||||||||||||||
YongkangScrou [Member] | ||||||||||||||||
Organization and Principal Activities (Textual) | ||||||||||||||||
Percentage of ownership acquisition | 100.00% | |||||||||||||||
Geely Automobile Holdings Ltd [Member] | ||||||||||||||||
Organization and Principal Activities (Textual) | ||||||||||||||||
Percentage of ownership acquisition | 99.00% | |||||||||||||||
Kandi Vehicles [Member] | ||||||||||||||||
Organization and Principal Activities (Textual) | ||||||||||||||||
Percentage of ownership acquisition | 22.00% | 43.47% | 22.00% | 43.47% | ||||||||||||
Percentage of economic benefits, voting rights and residual interests | 100.00% | 100.00% | ||||||||||||||
Cash proceeds from affiliates | $ | $ 31,600,000 | |||||||||||||||
Face value of commercial acceptance notes | $ | $ 42,500,000 | |||||||||||||||
Jinhua Kandi New Energy Vehicles Co., Ltd [Member] | ||||||||||||||||
Organization and Principal Activities (Textual) | ||||||||||||||||
Percentage of ownership acquisition | 10.00% | |||||||||||||||
Percentage of economic benefits, voting rights and residual interests | 100.00% | |||||||||||||||
Percentage of profits and losses | 100.00% | |||||||||||||||
Kandi Hainan [Member] | ||||||||||||||||
Organization and Principal Activities (Textual) | ||||||||||||||||
Percentage of ownership acquisition | 90.00% | |||||||||||||||
Percentage of profits and losses | 100.00% | |||||||||||||||
Jinhua An Kao [Member] | ||||||||||||||||
Organization and Principal Activities (Textual) | ||||||||||||||||
Percentage of ownership acquisition | 100.00% | 100.00% | 100.00% | |||||||||||||
Cash proceeds from affiliates | $ | $ 4,000,000 | |||||||||||||||
Restricted stock shares | shares | 2,959,837 | 2,959,837 | ||||||||||||||
Shares of common stock | shares | 2,959,837 | 2,959,837 | 986,810 | 739,959 | ||||||||||||
SC Autosports [Member] | ||||||||||||||||
Organization and Principal Activities (Textual) | ||||||||||||||||
Description of transfer agreement | The Company entered into a Membership Interests Transfer Agreement (the "Transfer Agreement") with the two members of SC Autosports LLC ("SC Autosports") (formerly known as: Sportsman Country, LLC) pursuant to which the Company acquired 100% of the ownership of SC Autosports. SC Autosports is a Dallas-based sales company primarily engaged in the wholesale of off-road vehicle products, with a small percentage of business in wholesale and retail of off-road vehicle parts. According to the terms of the Transfer Agreement, the Company transferred $10.0 million worth of restricted shares to acquire 100% of the membership interests of SC Autosports, of which the Company was required to issue $1.0 million of corresponding restricted shares within 30 days of the signing date of the Transfer Agreement, and the remaining $9.0 million of corresponding restricted shares to be released from escrow based on SC Autosports'pre-tax profit performance over the course of the following three years. | |||||||||||||||
Shares of common stock | shares | 515,907 | 343,938 | ||||||||||||||
Supply Chain Company [Member] | ||||||||||||||||
Organization and Principal Activities (Textual) | ||||||||||||||||
Description of transfer agreement | Kandi Vehicles has a 10% ownership interest in Supply Chain Company, the remaining 90% is owned by unrelated other parties. | |||||||||||||||
RMB [Member] | Kandi Vehicles [Member] | ||||||||||||||||
Organization and Principal Activities (Textual) | ||||||||||||||||
Cash proceeds from affiliates | ¥ | ¥ 220,000,000 | |||||||||||||||
Face value of commercial acceptance notes | ¥ | ¥ 296,000,000 | |||||||||||||||
RMB [Member] | Jinhua An Kao [Member] | ||||||||||||||||
Organization and Principal Activities (Textual) | ||||||||||||||||
Cash proceeds from affiliates | ¥ | ¥ 25,930,000 | |||||||||||||||
Geely [Member] | ||||||||||||||||
Organization and Principal Activities (Textual) | ||||||||||||||||
Percentage of ownership acquisition | 78.00% | 56.53% | 78.00% | 56.53% | ||||||||||||
Percentage of economic benefits, voting rights and residual interests | 21.47% | 21.47% | ||||||||||||||
Cash proceeds from affiliates | $ | $ 45,100,000 | |||||||||||||||
Equity method investments on affiliate | $ | 344,500,000 | |||||||||||||||
Face value of commercial acceptance notes | $ | $ 74,100,000 | |||||||||||||||
Geely [Member] | RMB [Member] | ||||||||||||||||
Organization and Principal Activities (Textual) | ||||||||||||||||
Cash proceeds from affiliates | ¥ | ¥ 314,000,000 | |||||||||||||||
Equity method investments on affiliate | ¥ | ¥ 2,400,000,000 | |||||||||||||||
Face value of commercial acceptance notes | ¥ | ¥ 516,000,000 |
Liquidity (Details)
Liquidity (Details) | Mar. 09, 2020USD ($) | Mar. 09, 2020CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Liquidity (Textual) | ||||
Working capital | $ 63,698,697 | $ 2,526,911 | ||
Working capital increase | 61,171,786 | |||
Cash and cash equivalents | 5,490,557 | 15,662,201 | ||
Restricted cash | $ 11,022,078 | $ 6,690,870 | ||
Maximum [Member] | Subsequent Event [Member] | ||||
Liquidity (Textual) | ||||
Equity method investments on affiliate | $ 75,600,000 | |||
Minimum [Member] | Subsequent Event [Member] | ||||
Liquidity (Textual) | ||||
Equity method investments on affiliate | $ 71,900,000 | |||
RMB [Member] | Maximum [Member] | Subsequent Event [Member] | ||||
Liquidity (Textual) | ||||
Equity method investments on affiliate | ¥ | ¥ 525,000,000 | |||
RMB [Member] | Minimum [Member] | Subsequent Event [Member] | ||||
Liquidity (Textual) | ||||
Equity method investments on affiliate | ¥ | ¥ 500,000,000 |
Principles of Consolidation (De
Principles of Consolidation (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Kandi Hainan [Member] | Kandi Vehicles [Member] | |
Principles of Consolidation (Textual) | |
Percentage owned in subsidiary | 90.00% |
Affiliate Company and its Subsidiaries [Member] | Kandi Vehicles [Member] | |
Principles of Consolidation (Textual) | |
Percentage of ownership interest | 22.00% |
Kandi New Energy [Member] | Kandi Vehicles [Member] | |
Principles of Consolidation (Textual) | |
Percentage owned in subsidiary | 50.00% |
Percentage of economic benefits, voting rights and residual interests | 100.00% |
Kandi New Energy [Member] | Mr. Hu Xiaoming [Member] | |
Principles of Consolidation (Textual) | |
Percentage owned in subsidiary | 50.00% |
Kandi New Energy [Member] | Kandi Hainan [Member] | |
Principles of Consolidation (Textual) | |
Percentage owned in subsidiary | 10.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plants and equipment, Estimated useful lives | 30 years |
Machinery and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plants and equipment, Estimated useful lives | 10 years |
Office equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plants and equipment, Estimated useful lives | 5 years |
Motor vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plants and equipment, Estimated useful lives | 5 years |
Molds [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plants and equipment, Estimated useful lives | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details 1) | Dec. 31, 2019 | Dec. 31, 2018 |
Period end RMB: USD exchange rate [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Exchange rate | 6.9668 | 6.9072 |
Average RMB: USD exchange rate [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Exchange rate | 6.8764 | 6.6146 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details Textual) | 12 Months Ended | ||
Dec. 31, 2019USD ($)Segment | Dec. 31, 2018USD ($) | Jan. 31, 2020USD ($) | |
Summary of Significant Accounting Policies (Textual) | |||
Fair value of contingent consideration | $ 5,197,000 | $ 7,256,000 | |
Restricted cash | 11,022,078 | 6,690,870 | |
Net amount due from the Affiliate Company | 29,300,000 | ||
Loan interest | 2,000,000 | ||
Allowance for doubtful accounts | 254,665 | 120,010 | |
Notes receivable from unrelated parties | $ 42,487,225 | 72,712 | |
Notes receivable maturity period | 6 months | ||
Notes receivable from affiliate company and other related parties | 3,861,032 | ||
Land use rights, description | The land use rights granted to the Company are amortized using the straight-line method over a term of fifty years. | ||
Research and development expenses | $ 6,207,747 | 10,084,378 | |
Subsidiaries from the chinese government | $ 792,628 | 17,787,445 | |
Number of reportable segment | Segment | 1 | ||
Stock-based option expenses | $ 0 | 1,586,926 | |
Net of a reversal for forfeited stock option | 2,644,877 | ||
Amortization expenses | $ 625,070 | 649,089 | |
Ownership interest | 100.00% | ||
Affiliate Company [Member] | |||
Summary of Significant Accounting Policies (Textual) | |||
Voting ownership interest | 50.00% | ||
Subsequent Event [Member] | |||
Summary of Significant Accounting Policies (Textual) | |||
Other receivable | $ 15,800,000 | ||
Maximum [Member] | |||
Summary of Significant Accounting Policies (Textual) | |||
Current discount rate | 4.50% | ||
Minimum [Member] | |||
Summary of Significant Accounting Policies (Textual) | |||
Current discount rate | 3.50% | ||
Level 2 [Member] | |||
Summary of Significant Accounting Policies (Textual) | |||
Notes payable, fair value | $ 10,765,344 | $ 12,787,619 |
New Accounting Pronouncements (
New Accounting Pronouncements (Details) | Dec. 31, 2019USD ($) |
New Accounting Pronouncements (Textual) | |
Operating lease assets | $ 10,743 |
Operating lease liabilities | $ 11,509 |
Concentrations (Details)
Concentrations (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Sales [Member] | Customer A [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 51.00% | 33.00% |
Sales [Member] | Customer B [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 15.00% | 4.00% |
Sales [Member] | Fengsheng Vehicles Technologies Group Co., Ltd. and its subsidiaries [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 12.00% | 43.00% |
Trade Receivable [Member] | Fengsheng Vehicles Technologies Group Co., Ltd. and its subsidiaries [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 32.00% | |
Trade Receivable [Member] | Customer A [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 55.00% | 22.00% |
Trade Receivable [Member] | Customer B [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 5.00% | 2.00% |
Trade Receivable [Member] | Fengsheng Vehicles Technologies Group Co., Ltd. and its subsidiaries [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 66.00% |
Concentrations (Details 1)
Concentrations (Details 1) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Purchases [Member] | Supplier C [Member] | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 73.00% | |
Purchases [Member] | Zhejiang Kandi Supply Chain Management Co., Ltd. [Member] | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 11.00% | 7.00% |
Accounts Payable [Member] | Supplier C [Member] | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 8.00% | |
Accounts Payable [Member] | Zhejiang Kandi Supply Chain Management Co., Ltd. [Member] | ||
Concentration Risk [Line Items] | ||
Concentration percentage |
Concentrations (Details Textual
Concentrations (Details Textual) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Customers [Member] | ||
Concentrations (Textual) | ||
Concentration risk, percentage | 10.00% | 10.00% |
Suppliers [Member] | ||
Concentrations (Textual) | ||
Concentration risk, percentage | 10.00% | 10.00% |
Loss Per Share (Details)
Loss Per Share (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (7,188,727) | $ (5,694,699) |
Weighted average shares used in basic computation | 52,337,308 | 51,188,647 |
Dilutive shares | ||
Weighted average shares used in diluted computation | 52,337,308 | 51,188,647 |
loss per share: | ||
Basic | $ (0.14) | $ (0.11) |
Diluted | $ (0.14) | $ (0.11) |
Loss Per Share (Details Textual
Loss Per Share (Details Textual) | 12 Months Ended |
Dec. 31, 2019shares | |
Loss Per Share (Textual) | |
Potentially dilutive shares | 3,900,000 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Accounts receivable | $ 61,436,514 | $ 34,394,738 |
Less: allowance for doubtful accounts | (254,665) | (120,010) |
Accounts receivable, net | $ 61,181,849 | $ 34,274,728 |
Inventories (Details)
Inventories (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw material | $ 12,127,957 | $ 7,040,728 |
Work-in-progress | 4,545,736 | 1,571,179 |
Finished goods | 11,062,873 | 13,385,961 |
Inventories | $ 27,736,566 | $ 21,997,868 |
Notes Receivable, Notes Recei_2
Notes Receivable, Notes Receivable From the Affiliate Company and Related Party (Details ) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Notes Receivable, Notes Receivable From the Affiliate Company And Related Party (Textual) | ||
Notes receivable | $ 42,487,225 | $ 72,712 |
Unrelated Parties [Member] | ||
Notes Receivable, Notes Receivable From the Affiliate Company And Related Party (Textual) | ||
Notes receivable | 42,487,225 | 72,712 |
Bank acceptance notes | 72,712 | |
Affiliate Company and Related Parties [Member] | ||
Notes Receivable, Notes Receivable From the Affiliate Company And Related Party (Textual) | ||
Notes receivable | $ 0 | 3,861,032 |
Bank acceptance notes | $ 3,861,032 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
At cost: | $ 120,719,212 | $ 122,157,498 |
Less: Accumulated depreciation | (46,311,354) | (39,667,925) |
Less: provision for impairment for fixed assets | (443,650) | |
Property, plant and equipment, net | 74,407,858 | 82,045,923 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
At cost: | 30,447,480 | 30,638,417 |
Less: Accumulated depreciation | (5,975,030) | (5,019,075) |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
At cost: | 62,973,794 | 63,398,627 |
Less: Accumulated depreciation | (14,127,506) | (8,442,940) |
Office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
At cost: | 1,048,651 | 852,172 |
Less: Accumulated depreciation | (537,829) | (393,893) |
Molds and others [Member] | ||
Property, Plant and Equipment [Line Items] | ||
At cost: | 25,836,241 | 26,849,806 |
Less: Accumulated depreciation | (25,310,891) | (25,486,100) |
Motor vehicles and other transport equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
At cost: | 413,046 | 418,476 |
Less: Accumulated depreciation | $ (360,098) | $ (325,917) |
Property, Plant and Equipment_3
Property, Plant and Equipment (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment (Textual) | ||
Net book value of property, plant and equipment pledged as collateral bank loans | $ 6,484,497 | $ 8,105,419 |
Depreciation expenses | $ 7,549,836 | $ 3,516,064 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Gross carrying amount: | ||
Gross carrying value of intangible assets | $ 5,360,827 | $ 5,420,834 |
Less: Accumulated amortization | (1,706,055) | (1,092,707) |
Intangible assets, net | 3,654,772 | 4,328,127 |
Trade Name [Member] | ||
Gross carrying amount: | ||
Gross carrying value of intangible assets | 492,235 | 492,235 |
Less: Accumulated amortization | $ (389,053) | (338,307) |
Remaining useful life | 2 years | |
Customer Relations [Member] | ||
Gross carrying amount: | ||
Gross carrying value of intangible assets | $ 304,086 | 304,086 |
Less: Accumulated amortization | $ (240,342) | (208,993) |
Remaining useful life | 2 years | |
Patent [Member] | ||
Gross carrying amount: | ||
Gross carrying value of intangible assets | $ 4,564,506 | 4,624,513 |
Less: Accumulated amortization | $ (1,076,660) | $ (545,407) |
Patent [Member] | Minimum [Member] | ||
Gross carrying amount: | ||
Remaining useful life | 5 years 6 months | |
Patent [Member] | Maximum [Member] | ||
Gross carrying amount: | ||
Remaining useful life | 7 years 2 months 1 day |
Intangible Assets (Details 1)
Intangible Assets (Details 1) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2020 | $ 625,070 | |
2021 | 625,070 | |
2022 | 545,711 | |
2023 | 542,975 | |
2024 | 542,975 | |
Thereafter | 772,971 | |
Total | $ 3,654,772 | $ 4,328,127 |
Intangible Assets (Details Text
Intangible Assets (Details Textul) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Intangible Assets (Textual) | ||
Amortization expenses for intangible assets | $ 625,070 | $ 649,089 |
Land Use Rights (Details)
Land Use Rights (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Land Use Rights [Abstract] | ||
Cost of land use rights | $ 14,731,847 | $ 14,925,518 |
Less: Accumulated amortization | (3,459,032) | (3,175,790) |
Land use rights, net | $ 11,272,815 | $ 11,749,728 |
Land Use Rights (Details 1)
Land Use Rights (Details 1) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Land Use Rights [Abstract] | ||
2020 | $ 327,250 | |
2021 | 327,250 | |
2022 | 327,250 | |
2023 | 327,250 | |
2024 | 327,250 | |
Thereafter | 9,636,565 | |
Total | $ 11,272,815 | $ 11,749,728 |
Land Use Rights (Details Textua
Land Use Rights (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Land Use Rights (Textual) | ||
Net book value of land use rights pledged as collateral | $ 4,937,138 | $ 7,756,253 |
Land use rights, amortization expenses | $ 327,250 | $ 348,533 |
Other Long Term Assets (Details
Other Long Term Assets (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Long term deferred assets | $ 4,819,152 | $ 5,865,386 |
Prepayments for land use right | 4,131,530 | |
Deferred taxes assets | 726,182 | 8,204 |
Other receivables - Long term | 768,442 | |
Others | 366,195 | |
Total other long term asset | $ 10,811,501 | $ 5,873,590 |
Other Long Term Assets (Detai_2
Other Long Term Assets (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Other Long Term Assets (Textual) | ||
Prepayments for land use right | $ 4,131,530 | |
Hainan [Member] | ||
Other Long Term Assets (Textual) | ||
Prepayments for land use right | 4,131,530 | |
Amortization expense | $ 92,288 |
Short-Term and Long-Term Bank_3
Short-Term and Long-Term Bank Loans (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Summary of short-term loans | ||
Short-term loans | $ 25,980,364 | $ 30,539,236 |
Bank A [Member] | ||
Summary of short-term loans | ||
Short-term loans | 10,179,745 | |
Bank B [Member] | Paid off on October 14, 2019 [Member] | ||
Summary of short-term loans | ||
Short-term loans | 7,096,737 | |
Bank B [Member] | Due on October 15, 2020 [Member] | ||
Summary of short-term loans | ||
Short-term loans | 7,004,650 | |
Bank B [Member] | Paid off on December 31, 2019 [Member] | ||
Summary of short-term loans | ||
Short-term loans | 5,816,997 | |
Bank B [Member] | Due on July 4, 2020 [Member] | ||
Summary of short-term loans | ||
Short-term loans | 4,621,921 | 4,682,683 |
Bank B [Member] | Paid off on April 24, 2019 [Member] | ||
Summary of short-term loans | ||
Short-term loans | 2,763,074 | |
Bank C [Member] | Paid off on April 24, 2019 [Member] | ||
Summary of short-term loans | ||
Short-term loans | ||
Bank C [Member] | Due on April 18, 2020 [Member] | ||
Summary of short-term loans | ||
Short-term loans | 4,306,138 | |
Bank C [Member] | Due on April 23, 2020 [Member] | ||
Summary of short-term loans | ||
Short-term loans | 5,741,517 | |
Bank C [Member] | Due on April 22, 2020 [Member] | ||
Summary of short-term loans | ||
Short-term loans | $ 4,306,138 |
Short-Term and Long-Term Bank_4
Short-Term and Long-Term Bank Loans (Details) (Parenthetical) | 12 Months Ended |
Dec. 31, 2019 | |
Paid off on April 18, 2019 [Member] | Bank A [Member] | |
Summary of short-term loans | |
Interest rate | 5.655% |
Paid off date | Apr. 18, 2019 |
Paid off on October 14, 2019 [Member] | Bank B [Member] | |
Summary of short-term loans | |
Interest rate | 5.66% |
Paid off date | Oct. 14, 2019 |
Due on October 15, 2020 [Member] | Bank B [Member] | |
Summary of short-term loans | |
Interest rate | 5.66% |
Due date | Oct. 15, 2019 |
Paid off on December 31, 2019, [Member] | Bank B [Member] | |
Summary of short-term loans | |
Interest rate | 5.66% |
Paid off date | Dec. 31, 2020 |
Due on July 4, 2020 [Member] | Bank B [Member] | |
Summary of short-term loans | |
Interest rate | 5.66% |
Paid off date | Jul. 4, 2020 |
Paid off on April 24, 2019 [Member] | Bank B [Member] | |
Summary of short-term loans | |
Interest rate | 5.66% |
Paid off date | Apr. 24, 2019 |
Due on April 18, 2020 [Member] | Bank C [Member] | |
Summary of short-term loans | |
Interest rate | 5.22% |
Due date | Apr. 18, 2020 |
Due on April 23, 2020 [Member] | Bank C [Member] | |
Summary of short-term loans | |
Interest rate | 5.22% |
Due date | Apr. 23, 2020 |
Due on April 22, 2020 [Member] | Bank C [Member] | |
Summary of short-term loans | |
Interest rate | 5.22% |
Due date | Apr. 22, 2020 |
Short-Term and Long-Term Bank_5
Short-Term and Long-Term Bank Loans (Details 1) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Summary of long-term loans | ||
Interest rate 7% per annum, due on December 12, 2021, guaranteed by the Company's subsidiaries. | $ 14,353,792 | $ 28,794,136 |
Bank D [Member] | ||
Summary of long-term loans | ||
Interest rate 7% per annum, due on December 12, 2021, guaranteed by the Company's subsidiaries. | 28,133,433 | 28,794,136 |
Long term bank loans - current and noncurrent portion | $ 28,133,433 | $ 28,794,136 |
Short-Term and Long-Term Bank_6
Short-Term and Long-Term Bank Loans (Details 1) (Parenthetical) - Bank D [Member] | 12 Months Ended |
Dec. 31, 2019 | |
Summary of long-term loans | |
Interest rate | 7.00% |
Due date | Dec. 12, 2021 |
Short-Term and Long-Term Bank_7
Short-Term and Long-Term Bank Loans (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Short-Term and Long-Term Bank Loans (Textual) | ||
Interest expense of short-term and long-term bank loans | $ 4,311,640 | $ 1,708,766 |
Aggregate amount of short-term and long-term loans guaranteed by various third parties | $ 0 |
Notes Payable (Details)
Notes Payable (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Notes Payable (Textual) | ||
Notes payable | $ 10,765,344 | $ 12,787,619 |
Other notes payable | 1,256,875 | |
Notes payable, collateral amount | $ 10,772,078 | 6,440,870 |
Commercial Acceptance Notes [Member] | ||
Notes Payable (Textual) | ||
Notes payable | 2,763,074 | |
Notes payable term | 1 year | |
Bank Acceptance Notes [Member] | ||
Notes Payable (Textual) | ||
Notes payable | $ 10,765,344 | $ 8,767,670 |
Notes payable term | 1 year |
Taxes (Details)
Taxes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | ||
Provision for CIT | $ 374,277 | $ 2,954,980 |
Deferred: | ||
Provision for CIT | (1,066,536) | 4,815,774 |
Income tax (benefit) expense | $ (692,259) | $ 7,770,754 |
Taxes (Details 1)
Taxes (Details 1) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Income Tax Disclosure [Abstract] | |||
Expected taxation at PRC statutory tax rate | $ (1,970,247) | $ 519,014 | |
Effect of differing tax rates in different jurisdictions | 363,199 | 292 | |
Effect of PRC preferential tax rates | 162,218 | 607,069 | |
Non-taxable income | (86,537) | (1,300,212) | |
Non-deductible expenses | [1] | 1,703,235 | 2,683,306 |
Research and development super-deduction | (350,449) | (487,725) | |
(Over) Under-accrued EIT for previous years | (1,792,560) | 171,623 | |
Addition to valuation allowance | 1,301,225 | 5,793,368 | |
Other | (22,343) | (215,981) | |
Income tax (benefit) expense | $ (692,259) | $ 7,770,754 | |
[1] | It's mainly due to share of loss in the Affiliate Company and Kandi Hainan's interest expense. |
Taxes (Details 2)
Taxes (Details 2) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Accruals and reserves | $ 672,983 | $ 8,204 |
Depreciation | 53,199 | 113,767 |
Loss carried forward | 2,401,125 | 7,029,548 |
Total deferred tax assets | 3,127,307 | 7,151,519 |
Deferred tax liabilities: | ||
Expense | (680,906) | (1,022,141) |
Intangible | (519,006) | (1,019,776) |
Revenue | (162,874) | |
Total deferred tax liability | (1,362,786) | (2,041,917) |
Net deferred tax assets | 1,764,521 | 5,109,602 |
less: valuation allowance | (2,401,125) | (6,812,741) |
Net deferred tax liabilities, net of valuation allowance | $ (636,604) | $ (1,703,139) |
Taxes (Details 3)
Taxes (Details 3) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Loss Carryforwards [Line Items] | ||
Total | $ (7,880,986) | $ 2,076,055 |
PRC [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Total | (5,413,025) | (1,909,305) |
Non-PRC | ||
Operating Loss Carryforwards [Line Items] | ||
Total | $ (2,467,961) | $ 3,985,360 |
Taxes (Details 4)
Taxes (Details 4) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Balance at beginning | $ 6,812,741 | $ 1,019,373 |
Additions-change to tax expense | 1,301,225 | 5,793,368 |
Prior year true up of loss carried forward | (5,712,841) | |
Balance at ending | $ 2,401,125 | $ 6,812,741 |
Taxes (Details 5)
Taxes (Details 5) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Tax benefit (holiday) credit | $ 1,532,748 | $ 1,090,348 |
Basic net income per share effect | $ 0 | $ 0 |
Taxes (Details Textual)
Taxes (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Taxes (Textual) | ||
Applicable corporate income tax rate | 25.00% | |
Reduced income tax rate | 15.00% | |
Statutory rate of tax | 25.00% | 25.00% |
Net loss carried forward term | Expire from 2021. | |
Deferred tax assets | $ 2,400,000 | |
Unrecognized tax benefits | $ 0 | $ 0 |
Corporation income tax, description | After combining research and development tax credits of 25% on certain qualified research and development expenses, the Company’s effective tax rate for December 31, 2019 and 2018 was a tax benefit of 8.78% on a reported loss before taxes of approximately $7.9 million, a tax expense of 374.30% on a reported income before taxes of approximately $2.1 million, respectively. | |
PRC [Member] | ||
Taxes (Textual) | ||
Tax exemptions holiday percent | 25.00% | 25.00% |
Net loss carried forward term | 5 years | |
Net operating loss carry forward | $ 9,600,000 | $ 28,100,000 |
Corporation income tax, description | The applicable CIT rate of each of the Company’s three other subsidiaries, Kandi New Energy, Yongkang Scrou and Kandi Hainan, the Affiliate Company and its subsidiaries is 25%. | |
Hong Kong [Member] | ||
Taxes (Textual) | ||
Net operating loss carry forward | $ 9,600,000 | $ 28,100,000 |
U.S. [Member] | ||
Taxes (Textual) | ||
Cumulative net operating loss | $ 0 |
Leases (Details)
Leases (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Cash payments for operating leases | $ 132,000 |
New operating lease assets obtained in exchange for operating lease liabilities | $ 0 |
Leases (Details 1)
Leases (Details 1) | Dec. 31, 2019USD ($) |
Maturity of Lease Liabilities: | |
Lease payable | $ 11,000 |
Interest | 509 |
Total | $ 11,509 |
Leases (Details Textual)
Leases (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Leases (Textual) | ||
Right of use asset | $ 10,743 | |
Lease liability | 11,509 | |
Operating lease cost | $ 132,000 | |
Corporate Office [Member] | SC Autosports [Member] | ||
Leases (Textual) | ||
Lease term | 37 months | 13 months |
Monthly lease payment | $ 11,000 | |
Discount rate | 4.75% |
Contingent Consideration Liab_2
Contingent Consideration Liability (Details) - USD ($) | Jan. 03, 2018 | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Contingent Consideration Liability (Textual) | ||||
Contingent Consideration Liability | $ 5,197,000 | $ 7,256,000 | ||
Jinhua An Kao [Member] | ||||
Contingent Consideration Liability (Textual) | ||||
Number of shares issued | 2,959,837 | |||
Number of shares, granted | 739,959 | 739,959 | ||
Contingent consideration liability, description | For the year ended December 31, 2018, Jinhua An Kao achieved its first year net profit target. According to the agreement, the former shareholders of An Kao received 739,959 shares of Kandi's restrictive common stock or 12.5% of the total equity consideration (i.e., 5,919,674 total shares) as part of the purchase price. For the year ended December 31, 2019, Jinhua An Kao achieved its second year net profit target. According to the agreement, the former shareholders of An Kao will receive 986,810 shares of Kandi's restrictive common stock or 16.67% of the total equity consideration (i.e., 5,919,674 total shares) as part of the purchase price. | |||
Restricted Stock [Member] | Jinhua An Kao [Member] | ||||
Contingent Consideration Liability (Textual) | ||||
Number of shares issued | 2,959,837 | |||
Number of shares issued, value | $ 20,700,000 | |||
Contingent consideration liability, description | The Company completed the acquisition of 100% of the equity of Jinhua An Kao. The Company paid approximately RMB 25.93 million (approximately $4 million) at the closing of the transaction using cash on hand and issued a total of 2,959,837 shares of restrictive stock or 6.2% of the Company's total outstanding shares of the common stock valued at approximately $20.7 million to the former shareholder of Jinhua An Kao and his designees (the "An Kao Shareholders"), and may be required to pay future consideration up to an additional 2,959,837 shares of common stock, which are being held in escrow, to be released contingent upon the achievement of certain net income-based milestones in the next three years. | |||
SC Autosports [Member] | ||||
Contingent Consideration Liability (Textual) | ||||
Number of shares, granted | 343,938 | |||
Contingent consideration liability, description | For the year ended December 31, 2018, SC Autosports achieved its first year pre-tax profit target. According to the agreement, the former members of SC Autosports received 343,938 shares of Kandi's restrictive common stock or 20% of total Kandi stock in the purchase price. For the year ended December 31, 2019, SC Autosports achieved its second year pre-tax profit target. According to the agreement, the former members of SC Autosports will receive 515,907 shares of Kandi's restrictive common stock or 30% of total Kandi stock in the purchase price. | |||
Transfer Agreement [Member] | SC Autosports [Member] | ||||
Contingent Consideration Liability (Textual) | ||||
Number of shares issued | 1,547,721 | |||
Transfer Agreement [Member] | SC Autosports [Member] | Restricted Stock [Member] | ||||
Contingent Consideration Liability (Textual) | ||||
Number of shares issued | 171,969 | |||
Number of shares issued, value | $ 800,000 | |||
Contingent consideration liability, description | The Company completed the acquisition of 100% of the equity of SC Autosports. The Company issued a total of 171,969 shares of restrictive stock or approximately 0.3% of the Company's total outstanding shares of the common stock valued at approximately $0.8 million at the closing of transaction to the former members of SC Autosports within 30 days from the signing date of the Transfer Agreement, and may be required to pay future consideration up to an additional 1,547,721 shares of common stock, which are being held in escrow, to be released contingent upon the achievement of certain pre-tax profit based milestones in the next three years. |
Stock Award (Details)
Stock Award (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Apr. 30, 2019 | Jan. 29, 2019 | Apr. 18, 2018 | Nov. 30, 2016 | Sep. 26, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | |
Stock Award (Textual) | |||||||
Employee stock award expenses | $ 14,243,625 | $ 8,612,393 | |||||
Employee Stock Award Expenses [Member] | |||||||
Stock Award (Textual) | |||||||
Employee stock award expenses | $ 1,360,258 | $ 1,343,560 | |||||
Mr Mei Bing [Member] | Three Year Employment Agreement [Member] | |||||||
Stock Award (Textual) | |||||||
Shares of common stock | 10,000 | ||||||
Vested shares of four equal quarterly installments | 2,500 | ||||||
Ms. Kewa Luos [Member] | |||||||
Stock Award (Textual) | |||||||
Restricted shares of common stock | 5,000 | ||||||
Mr. Jerry Lewin [Member] | |||||||
Stock Award (Textual) | |||||||
Restricted shares of common stock | 5,000 | ||||||
Mr. Henry Yu [Member] | |||||||
Stock Award (Textual) | |||||||
Restricted shares of common stock | 5,000 | ||||||
Management Members and Employees [Member] | |||||||
Stock Award (Textual) | |||||||
Number of shares, granted | 238,600 | ||||||
2008 Plan [Member] | |||||||
Stock Award (Textual) | |||||||
Number of shares, granted | 238,600 | ||||||
Reduce total number of shares of common stock | 250,000 | ||||||
2008 Omnibus Long-Term Incentive Plan [Member] | Ms. Zhu Xiaoying [Member] | |||||||
Stock Award (Textual) | |||||||
Shares of common stock | 10,000 |
Summarized Information of Equ_3
Summarized Information of Equity Method Investment in the Affiliate Company (Details) - Affiliated Company [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed income statement information: | ||
Net sales | $ 124,280,561 | $ 122,480,854 |
Gross loss | $ (2,609,764) | $ (17,749,674) |
Gross margin | (2.10%) | (14.50%) |
Net loss | $ (85,972,257) | $ (36,340,082) |
Summarized Information of Equ_4
Summarized Information of Equity Method Investment in the Affiliate Company (Details 1) - Affiliated Company [Member] - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Condensed balance sheet information: | ||
Current assets | $ 640,688,401 | $ 751,143,254 |
Noncurrent assets | 64,589,516 | 140,736,300 |
Total assets | 705,277,917 | 891,879,554 |
Current liabilities | 490,625,640 | 633,711,465 |
Equity | 214,652,277 | 258,168,089 |
Total liabilities and equity | $ 705,277,917 | $ 891,879,554 |
Summarized Information of Equ_5
Summarized Information of Equity Method Investment in the Affiliate Company (Details 2) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Investment in the Affiliate Company, beginning of the period, | $ 128,929,893 | ||
Gain from equity dilution of March Affiliate Loan to Equity Conversion | 4,263,764 | ||
Gain from equity sale of Affiliate Equity Transfer | 20,438,986 | ||
Subtotal | (30,716,938) | (17,888,706) | |
Investment in Affiliate Company, end of the period | 47,228,614 | 128,929,893 | |
Affiliated Company [Member] | |||
Investment in the Affiliate Company, beginning of the period, | 128,929,893 | 70,681,013 | |
Investment in Affiliate Company in 2018 | 79,256,588 | ||
Investment decreased in 2019 due to equity sale of Affiliate Equity Transfer | (72,309,417) | ||
Gain from equity dilution of March Affiliate Loan to Equity Conversion | 4,263,764 | ||
Gain from equity sale of Affiliate Equity Transfer | 20,438,986 | ||
Company’s share in net (loss) income of Affiliate based on 50% ownership for three months ended March 31, 2019, 43.47%① ownership for six months ended September 30, 2019, 22% ownership for three months ended December 31, 2019 and 50% ownership for year ended December 31, 2018 | [1] | (30,864,754) | (18,170,041) |
Intercompany transaction elimination | (5,649) | (160,254) | |
Year 2018 unrealized profit realized | 153,465 | 441,589 | |
Subtotal | (30,716,938) | (17,888,706) | |
Exchange difference | (3,377,674) | (3,119,002) | |
Investment in Affiliate Company, end of the period | $ 47,228,614 | $ 128,929,893 | |
[1] | Represents the rounded result of dividing RMB1,045 million (the Company's ownership interest in the Affiliate Company) by RMB2,404 million (the Affiliate Company's total equity interest). We used the actual result and kept full decimals when calculating the Company's share in net (loss) income of the Affiliate Company. |
Summarized Information of Equ_6
Summarized Information of Equity Method Investment in the Affiliate Company (Details Textual) | Sep. 29, 2019USD ($) | Sep. 29, 2019CNY (¥) | Mar. 21, 2019 | May 23, 2018 | Dec. 31, 2019USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2019 | [1] | Jun. 30, 2019 | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2019CNY (¥) | Sep. 29, 2019CNY (¥) | Mar. 31, 2019CNY (¥) |
Summarized Information of Equity Method Investment in the Affiliate Company (Textual) | ||||||||||||||||
Consolidated interests of financial statements, description | The gain from equity dilution for the year ended December 31, 2019 resulted from the Affiliate Company issuing shares to the Affiliate Company partner, Greely, in exchange for extinguishment of a loan from Greely, resulting in dilution of equity ownership of the Company from 50% to 43.47%. This dilutive transaction was treated as if the Company sold a proportional share of its investment in the Affiliate Company. | The gain from equity dilution for the year ended December 31, 2019 resulted from the Affiliate Company issuing shares to the Affiliate Company partner, Greely, in exchange for extinguishment of a loan from Greely, resulting in dilution of equity ownership of the Company from 50% to 43.47%. This dilutive transaction was treated as if the Company sold a proportional share of its investment in the Affiliate Company. | ||||||||||||||
Amount non current due to affiliate company | $ | $ 2,056,564 | $ 2,056,564 | $ 1,845,255 | |||||||||||||
Amount due from the affiliate company | $ | $ 31,330,763 | $ 31,330,763 | $ 67,683,462 | |||||||||||||
Affiliated Company [Member] | ||||||||||||||||
Summarized Information of Equity Method Investment in the Affiliate Company (Textual) | ||||||||||||||||
Sales to affiliate Company and subsidiaries, description | Kandi Vehicles signed an Equity Transfer Agreement with Geely Technologies Group Co., Ltd. to transfer certain equity interests in the Affiliate Company to Geely. Pursuant to the Transfer Agreement, the Affiliate Company converted a loan of RMB 314 million (approximately $45.1 million) from Geely Group last year to equity in order to increase its cash flow. As a result, the registered capital of the Affiliate Company became RMB 2.40 billion (approximately $344.5 million), of which Kandi Vehicles owned 43.47% and Geely owned 56.53%, respectively, upon the conversion of the loan into equity in the Affiliate Company (the “March Affiliate Loan to Equity Conversion”). Kandi Vehicles further agree to sell 21.47% of its equity interests in the Affiliate Company to Geely for a total amount of RMB 516 million (approximately $74.1 million) (the “Affiliate Equity Transfer”). Kandi Vehicles shall own 22% of the equity interests of the Affiliate Company as a result of the transfer. | The Affiliate Company increased its registered capital by RMB 1.09 billion (approximately $159 million), of which Kandi Vehicle contributed its portion by converting loans to the Affiliate company in the amount of RMB 545 million (approximately $79 million) that were previously included in the current and noncurrent amount due from the Affiliate Company and its subsidiaries into the Affiliate Company's registered capital. The loans balance of RMB 545 million (approximately $79 million) consisted of a multiple round of loans to Affiliate Company, including additional RMB 150 million (approximately $22 million) with annual interest rate of 4.35% during 2018 and RMB 395 million (approximately $57 million) in the previous years, for facilitating its operating capital. Geely Group became a new shareholder of the Affiliate Company by investing RMB 545 million (approximately $79 million) in the Affiliate Company. | Sales to the Company’s customers, the Affiliate Company and its subsidiaries, for the year ended December 31, 2019, were $ 15,861,441 or 11.7% of the Company’s total revenue, a decrease of 67.5% from $48,731,310 of the year ended December 31, 2018. | Sales to the Company’s customers, the Affiliate Company and its subsidiaries, for the year ended December 31, 2019, were $ 15,861,441 or 11.7% of the Company’s total revenue, a decrease of 67.5% from $48,731,310 of the year ended December 31, 2018. | ||||||||||||
Ownership percentage of net income loss | 22.00% | 50.00% | 43.47% | 43.47% | 43.47% | 22.00% | 22.00% | 50.00% | ||||||||
Equity method investments on affiliate | $ | $ 10,900,000 | |||||||||||||||
Realized gain from sale of equity | $ | $ 20,438,986 | $ 15,800,000 | ||||||||||||||
Annual interest rate | 4.03% | 4.03% | ||||||||||||||
Affiliated Company [Member] | RMB [Member] | ||||||||||||||||
Summarized Information of Equity Method Investment in the Affiliate Company (Textual) | ||||||||||||||||
Total equity interest | ¥ | ¥ 2,404,000,000 | |||||||||||||||
Ownership interest | ¥ | ¥ 1,045,000,000 | |||||||||||||||
Equity method investments on affiliate | ¥ | ¥ 75,000,000 | |||||||||||||||
Realized gain from sale of equity | ¥ | ¥ 110,000,000 | |||||||||||||||
Geely Automobile Holdings Ltd [Member] | ||||||||||||||||
Summarized Information of Equity Method Investment in the Affiliate Company (Textual) | ||||||||||||||||
Equity method investments on affiliate | $ | $ 42,500,000 | |||||||||||||||
Cash proceeds from affiliates | $ | 31,600,000 | |||||||||||||||
Geely Automobile Holdings Ltd [Member] | January 20, 2020 [Member] | ||||||||||||||||
Summarized Information of Equity Method Investment in the Affiliate Company (Textual) | ||||||||||||||||
Equity method investments on affiliate | $ | 20,100,000 | |||||||||||||||
Geely Automobile Holdings Ltd [Member] | March 29, 2020 [Member] | ||||||||||||||||
Summarized Information of Equity Method Investment in the Affiliate Company (Textual) | ||||||||||||||||
Equity method investments on affiliate | $ | $ 22,400,000 | |||||||||||||||
Geely Automobile Holdings Ltd [Member] | RMB [Member] | ||||||||||||||||
Summarized Information of Equity Method Investment in the Affiliate Company (Textual) | ||||||||||||||||
Equity method investments on affiliate | ¥ | ¥ 296,000,000 | |||||||||||||||
Cash proceeds from affiliates | ¥ | ¥ 220,000,000 | |||||||||||||||
Geely Automobile Holdings Ltd [Member] | RMB [Member] | January 20, 2020 [Member] | ||||||||||||||||
Summarized Information of Equity Method Investment in the Affiliate Company (Textual) | ||||||||||||||||
Equity method investments on affiliate | ¥ | 140,000,000 | |||||||||||||||
Geely Automobile Holdings Ltd [Member] | RMB [Member] | March 29, 2020 [Member] | ||||||||||||||||
Summarized Information of Equity Method Investment in the Affiliate Company (Textual) | ||||||||||||||||
Equity method investments on affiliate | ¥ | ¥ 156,000,000 | |||||||||||||||
[1] | Represents the rounded result of dividing RMB1,045 million (the Company's ownership interest in the Affiliate Company) by RMB2,404 million (the Affiliate Company's total equity interest). We used the actual result and kept full decimals when calculating the Company's share in net (loss) income of the Affiliate Company. |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Mar. 15, 2013USD ($) | Sep. 03, 2018USD ($) | Aug. 30, 2018USD ($) | Aug. 29, 2018USD ($) | Jul. 31, 2017 | Apr. 30, 2017 | Sep. 29, 2015USD ($) | Sep. 03, 2018CNY (¥) | Aug. 30, 2018CNY (¥) | Aug. 29, 2018CNY (¥) | Aug. 31, 2016USD ($) | Aug. 31, 2016CNY (¥) | Sep. 29, 2015CNY (¥) | Mar. 15, 2013CNY (¥) |
Affiliated Company [Member] | ||||||||||||||
Commitments and Contingencies (Textual) | ||||||||||||||
Guarantee for bank loans amount | $ | $ 4,162,600 | $ 3,014,296 | ||||||||||||
Description of loans period | Period of September 3, 2018 to March 3, 2019. | Period of August 29, 2018 to February 29, 2019. | ||||||||||||
Affiliated Company [Member] | RMB [Member] | ||||||||||||||
Commitments and Contingencies (Textual) | ||||||||||||||
Guarantee for bank loans amount | ¥ | ¥ 29,000,000 | ¥ 21,000,000 | ||||||||||||
Nanlong Group Co., Ltd. [Member] | ||||||||||||||
Commitments and Contingencies (Textual) | ||||||||||||||
Guarantee for bank loans amount | $ | $ 2,870,758 | |||||||||||||
Description of loans period | Loan period of March 15, 2013, to March 15, 2016. | |||||||||||||
Nanlong Group Co., Ltd. [Member] | RMB [Member] | ||||||||||||||
Commitments and Contingencies (Textual) | ||||||||||||||
Guarantee for bank loans amount | ¥ | ¥ 20,000,000 | |||||||||||||
Zhejiang Shuguang Industrial Co., Ltd. [Member] | ||||||||||||||
Commitments and Contingencies (Textual) | ||||||||||||||
Guarantee for bank loans amount | $ | $ 4,162,600 | |||||||||||||
Description of loans period | Loan period of September 29, 2015, to September 28, 2016. | |||||||||||||
Zhejiang Shuguang Industrial Co., Ltd. [Member] | RMB [Member] | ||||||||||||||
Commitments and Contingencies (Textual) | ||||||||||||||
Guarantee for bank loans amount | ¥ | ¥ 29,000,000 | |||||||||||||
Kandi Jiangsu [Member] | ||||||||||||||
Commitments and Contingencies (Textual) | ||||||||||||||
Guarantee for bank loans amount | $ | $ 7,176,896 | |||||||||||||
Description of loans period | Period of August 31, 2018 to February 28, 2019, and was paid off on February 1, 2019. | |||||||||||||
Kandi Jiangsu [Member] | RMB [Member] | ||||||||||||||
Commitments and Contingencies (Textual) | ||||||||||||||
Guarantee for bank loans amount | ¥ | ¥ 50,000,000 | |||||||||||||
Shanghai Pudong Development Bank [Member] | ||||||||||||||
Commitments and Contingencies (Textual) | ||||||||||||||
Loan borrowed, description | Bank loan borrowed from Shanghai Pudong Development Bank for a principal amount of approximately $2.9 million and demanded that the guarantor bear the liability for compensation. | |||||||||||||
Ping Bank Yiwu Branch [Member] | ||||||||||||||
Commitments and Contingencies (Textual) | ||||||||||||||
Guarantee for bank loans amount | $ | $ 4,200,000 | |||||||||||||
Loan borrowed, description | The Company and Ping An Bank reached an agreement to settle. According to the agreement, the Company was to pay Ping An Bank RMB 20 million or approximately $3.0 million in four installments before October 31, 2017 to release the Company from its guarantor liability for this default. As of October 31, 2017, the Company has paid all four installments totaling RMB 20 million or approximately $3.0 million to Ping An Bank and thus the Company has been released from its guarantor liability for this default. According to the Company’s agreement with ZSICL, ZSICL agreed to reimburse all the Company’s losses due to ZSICL’s default on the loan principal and interests, of which RMB 11.9 million has been reimbursed to the Company as of the date of this report and the remainder is expected to be reimbursed in installments within next two years. | |||||||||||||
Ping Bank Yiwu Branch [Member] | RMB [Member] | ||||||||||||||
Commitments and Contingencies (Textual) | ||||||||||||||
Guarantee for bank loans amount | ¥ | ¥ 29,000,000 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 135,741,336 | $ 112,438,828 |
Products transferred at a point in time [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 135,741,336 | 112,438,828 |
Primary Geographical Markets [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 135,741,336 | 112,438,828 |
Major products [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 135,741,336 | 112,438,828 |
Major products [Member] | EV parts [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 110,675,908 | 99,099,312 |
Major products [Member] | EV products [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 108,640 | |
Major products [Member] | Off-road vehicles [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 22,743,142 | 13,339,516 |
Major products [Member] | Electric Scooters and Electric Self-Balancing Scooters [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 2,213,646 | |
Overseas [Member] | Primary Geographical Markets [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 24,623,424 | 12,741,570 |
China [Member] | Primary Geographical Markets [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 111,117,912 | $ 99,697,258 |
Segment Reporting (Details Text
Segment Reporting (Details Textual) | 12 Months Ended |
Dec. 31, 2019Segment | |
Segment Reporting (Textual) | |
Number of operating segment | 1 |
Subsequent Event (Details)
Subsequent Event (Details) | Mar. 09, 2020 |
Subsequent Event [Member] | |
Subsequent Event (Textual) | |
Real estate repurchase agreement, description | A real estate repurchase agreement was entered into by and between Kandi Vehicles and Jinhua Economic and Technological Development Zone that will enable Kandi Vehicles to optimize its production efficiency, lower operating costs, and generate a substantial cash inflow of RMB 525 million (USD 75.6 million) and will get no less than RMB 500 million (USD 71.9 million) subsidies based on Kandi Vehicle’s financial contribution to the local department of finance within the next eight years by monetizing one of its largest assets. |