Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 25, 2021 | Jun. 30, 2020 | |
Document Information Line Items | |||
Entity Registrant Name | KANDI TECHNOLOGIES GROUP, INC. | ||
Trading Symbol | KNDI | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 75,387,555 | ||
Entity Public Float | $ 167,640,232 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001316517 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 001-33997 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 90-0363723 | ||
Entity Address, Address Line One | Jinhua City Industrial Zone | ||
Entity Address, City or Town | Jinhua | ||
Entity Address, Country | CN | ||
Entity Address, Postal Zip Code | 321016 | ||
City Area Code | (86-579) | ||
Local Phone Number | 82239856 | ||
Title of 12(b) Security | Common Stock | ||
Security Exchange Name | NASDAQ | ||
Entity Interactive Data Current | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 142,078,190 | $ 5,490,557 |
Restricted cash | 442,445 | 11,022,078 |
Accounts receivable (net of allowance for doubtful accounts of $110,269 and $254,665 as of December 31, 2020 and December 31, 2019, respectively) | 38,547,137 | 61,181,849 |
Inventories | 19,697,383 | 27,736,566 |
Notes receivable | 31,404,630 | 42,487,225 |
Other receivables | 1,875,245 | 5,023,327 |
Prepayments and prepaid expense | 13,708,149 | 10,615,063 |
Advances to suppliers | 36,733,182 | 685,008 |
Amount due from the Affiliate Company | 21,742,226 | 31,330,763 |
Amount due from related party | 886,989 | |
TOTAL CURRENT ASSETS | 307,115,576 | 195,572,436 |
NON-CURRENT ASSETS | ||
Property, plant and equipment, net | 65,402,680 | 74,407,858 |
Intangible assets, net | 3,232,753 | 3,654,772 |
Land use rights, net | 3,257,760 | 11,272,815 |
Construction in progress | 16,317,662 | 71,247 |
Deferred taxes assets | 8,964,946 | 726,182 |
Long term investment | 45,958 | |
Investment in the Affiliate Company | 28,892,638 | 47,228,614 |
Goodwill | 29,712,383 | 28,270,400 |
Other long term assets | 32,307,484 | 10,014,072 |
TOTAL NON-CURRENT ASSETS | 188,134,264 | 175,645,960 |
TOTAL ASSETS | 495,249,840 | 371,218,396 |
CURRENT LIABILITIES | ||
Accounts payable | 34,257,935 | 72,093,940 |
Other payables and accrued expenses | 7,218,395 | 6,078,041 |
Short-term loans | 25,980,364 | |
Notes payable | 92,445 | 10,765,344 |
Income tax payable | 1,313,754 | 1,796,601 |
Advance receipts | 38,229,242 | |
Long term loans - current portion | 13,779,641 | |
Amount due to related party | 500,000 | |
Other current liabilities | 2,185,654 | 1,379,808 |
TOTAL CURRENT LIABILITIES | 83,797,425 | 131,873,739 |
NON-CURRENT LIABILITIES | ||
Long term loans | 14,353,792 | |
Deferred taxes liability | 3,483,171 | 1,362,786 |
Contingent consideration liability | 3,743,000 | 5,197,000 |
Other long-term liabilities | 459,580 | 574,152 |
TOTAL NON-CURRENT LIABILITIES | 7,685,751 | 21,487,730 |
TOTAL LIABILITIES | 91,483,176 | 153,361,469 |
STOCKHOLDER’S EQUITY | ||
Common stock, $0.001 par value; 100,000,000 shares authorized; 77,298,499 and 56,263,102 shares issued and 75,377,555 and 52,839,441 outstanding at December 31,2020 and December 31,2019, respectively | 75,377 | 52,839 |
Less: Treasury stock (nil and 487,155 shares with average price of $5.09 at December 31,2020 and December 31,2019, respectively) | (2,477,965) | |
Additional paid-in capital | 439,549,338 | 259,691,370 |
Accumulated deficit (the restricted portion is $4,422,033 and $4,422,033 at December 31,2020 and December 31,2019, respectively) | (27,079,900) | (16,685,736) |
Accumulated other comprehensive loss | (8,778,151) | (22,723,581) |
TOTAL STOCKHOLDERS’ EQUITY | 403,766,664 | 217,856,927 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 495,249,840 | $ 371,218,396 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Net of allowance for doubtful accounts (in Dollars) | $ 110,269 | $ 254,665 |
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 77,298,499 | 56,263,102 |
Common stock, shares outstanding | 75,377,555 | 52,839,441 |
Treasury stock, shares | 487,155 | |
Treasury stock, average price (in Dollars per share) | $ 5.09 | $ 5.09 |
Restricted portion of accumulated deficit (in Dollars) | $ 4,422,033 | $ 4,422,033 |
Comprehensive Income (loss)
Comprehensive Income (loss) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||
REVENUES FROM UNRELATED PARTIES, NET | $ 76,176,609 | $ 119,879,895 |
REVENUES FROM THE AFFILIATE COMPANY AND RELATED PARTIES, NET | 743,904 | 15,861,441 |
REVENUES, NET | 76,920,513 | 135,741,336 |
COST OF GOODS SOLD | (63,432,580) | (110,310,427) |
GROSS PROFIT | 13,487,933 | 25,430,909 |
OPERATING EXPENSES: | ||
Research and development | (7,246,312) | (6,207,747) |
Selling and marketing | (6,619,355) | (4,070,001) |
General and administrative | (13,042,103) | (14,243,625) |
Gain on disposal of long-lived assets | 14,174,233 | |
TOTAL OPERATING EXPENSES | (12,733,537) | (24,521,373) |
INCOME FROM OPERATIONS | 754,396 | 909,536 |
OTHER INCOME (EXPENSE): | ||
Interest income | 2,190,678 | 791,888 |
Interest expense | (3,750,233) | (4,822,734) |
Change in fair value of contingent consideration | (565,000) | (1,107,427) |
Government grants | 1,130,262 | 792,628 |
Gain from equity dilution in the Affiliate Company | 4,263,764 | |
Gain from sale of equity in the Affiliate Company | 20,438,986 | |
Share of loss after tax of the Affiliate Company | (17,252,662) | (30,716,938) |
Other income, net | 2,051,226 | 1,569,311 |
TOTAL OTHER EXPENSE, NET | (16,195,729) | (8,790,522) |
LOSS BEFORE INCOME TAXES | (15,441,333) | (7,880,986) |
INCOME TAX BENEFIT | 5,047,169 | 692,259 |
NET LOSS | (10,394,164) | (7,188,727) |
OTHER COMPREHENSIVE INCOME (LOSS) | ||
Foreign currency translation adjustment | 13,945,430 | (2,802,323) |
COMPREHENSIVE INCOME (LOSS) | $ 3,551,266 | $ (9,991,050) |
WEIGHTED AVERAGE SHARES OUTSTANDING BASIC AND DILUTED (in Shares) | 55,960,010 | 52,337,308 |
NET LOSS PER SHARE, BASIC AND DILUTED (in Dollars per share) | $ (0.19) | $ (0.14) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders’ Equity - USD ($) | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total |
Balance at Dec. 31, 2018 | $ 51,484 | $ 254,989,657 | $ (9,497,009) | $ (19,921,258) | $ 225,622,874 | |
Balance (in Shares) at Dec. 31, 2018 | 51,484,444 | |||||
Balance at Dec. 31, 2019 | $ 52,839 | (2,477,965) | 259,691,370 | (16,685,736) | (22,723,581) | 217,856,927 |
Balance (in Shares) at Dec. 31, 2019 | 52,839,441 | |||||
Stock issuance and award | $ 1,355 | 4,716,328 | 4,717,683 | |||
Stock issuance and award (in Shares) | 1,354,997 | |||||
Stock buyback | (2,477,965) | (2,477,965) | ||||
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, 2020 | $ 75,377 | 439,549,338 | (27,079,900) | (8,778,151) | 403,766,664 | |
Balance (in Shares) at Dec. 31, 2020 | 75,377,555 | |||||
Stock issuance and award | $ 1,771 | 4,058,052 | 4,059,823 | |||
Stock issuance and award (in Shares) | 1,771,317 | |||||
Cancellation of the Treasury Stock | $ (487) | 2,477,965 | (2,477,478) | |||
Cancellation of the Treasury Stock (in Shares) | (487,155) | |||||
Registered Direct Offering | $ 18,254 | 151,904,993 | 151,923,247 | |||
Registered Direct Offering (in Shares) | 18,253,952 | |||||
Stock option exercise | $ 3,000 | 29,157,000 | 29,160,000 | |||
Stock option exercise (in Shares) | 3,000,000 | |||||
Net loss | (10,394,164) | (10,394,164) | ||||
Foreign currency translation | 13,945,430 | 13,945,430 | ||||
Reduction in the Affiliate Company’s equity (net off tax effect of $491,400) | $ (2,784,599) | $ (2,784,599) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders’ Equity (Parentheticals) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Net off tax effect | $ 491,400 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (10,394,164) | $ (7,188,727) |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 8,222,984 | 8,202,869 |
Impairments | 398,790 | |
(Reversal) provision of allowance for doubtful accounts | (152,809) | 137,387 |
Deferred taxes | (5,349,722) | (1,066,536) |
Share of loss after tax of the Affiliate Company | 17,252,662 | 30,716,938 |
Gain from equity dilution in the Affiliate Company | (4,263,764) | |
Gain from equity sale in the Affiliate Company | (20,438,986) | |
Gain on disposal of long-live assets | (14,174,233) | |
Change in fair value of contingent consideration | 565,000 | 1,107,427 |
Stock based compensation expense | 902,666 | 1,360,258 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 19,247,519 | (40,123,966) |
Notes receivable | 246,120 | |
Notes receivable from the Affiliate Company and related party | 434,329 | |
Inventories | 9,246,455 | (6,458,104) |
Other receivables and other assets | 2,008,612 | (8,208,931) |
Advances to supplier and prepayments and prepaid expenses | (36,330,634) | 4,379,925 |
Amount due from the Affiliate Company | 4,237,103 | 8,803,542 |
Due from related party | (339,118) | |
Increase (Decrease) In: | ||
Accounts payable | (30,993,717) | 10,440,338 |
Other payables and accrued liabilities | (173,806) | 5,998,106 |
Notes payable | (13,912,842) | (12,743,628) |
Income tax payable | (745,208) | (1,619,659) |
Net cash used in operating activities | (50,883,252) | (29,886,272) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment, net | (7,483,743) | (526,336) |
Purchases of land use rights and other intangible assets | (3,281,115) | |
Payment for construction in progress | (7,419,644) | (71,862) |
Proceeds from disposal of long-lived assets | 52,579,492 | |
Loan to third party | (26,097,991) | |
Cash received from sales of equity in the Affiliate Company | 42,897,929 | 31,850,822 |
Long Term Investment | (43,478) | |
Net cash provided by investing activities | 51,151,450 | 31,252,624 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from short-term loans | 24,642,399 | 34,746,352 |
Repayments of short-term loans | (50,873,903) | (38,944,869) |
Repayments of long-term loans | (28,799,501) | (289,553) |
Proceeds from long-term loans | 394,116 | |
Fund raising through issuing common stock and warrants | 151,923,247 | |
Stock buyback with commission | (2,492,579) | |
Option exercise,stock awards & other financing | 29,160,000 | |
Net cash provided by (used in) financing activities | 126,446,358 | (6,980,649) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | 126,714,556 | (5,614,297) |
Effect of exchange rate changes | (706,556) | (226,139) |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR | 16,512,635 | 22,353,071 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | 142,520,635 | 16,512,635 |
-CASH AND CASH EQUIVALENTS AT END OF PERIOD | 142,078,190 | 5,490,557 |
-RESTRICTED CASH AT END OF PERIOD | 442,445 | 11,022,078 |
SUPPLEMENTARY CASH FLOW INFORMATION | ||
Income taxes paid | 1,046,127 | 1,994,526 |
Interest paid | 653,507 | 1,738,656 |
SUPPLEMENTAL NON-CASH DISCLOSURES: | ||
Decrease in investment in the Affiliate Company due to change in its equity | 3,099,193 | |
Notes receivable from unrelated parties for equity transfer payment | 42,853,834 | |
Purchase of construction in progress in accounts payable and other payable | 7,945,414 | |
Common stock issued from settlement of payables to KSBS Shareholders and former members of SC Autosports | $ 3,166,427 | $ 3,357,425 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [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” or “PRC”), 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”, d/b/a Kandi America). In March 2021, Zhejiang Kandi Vehicles Co., Ltd. changed its name to Zhejiang Kandi Technologies Group Co., Ltd. (“Zhejiang Kandi Technologies”). 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, Zhejiang Kandi Technologies 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 September 2020, Zhejiang Kandi Technologies transferred all of its equity interest in Yongkang Scrou Electric Co, Ltd. (“Yongkang Scrou”) to its wholly owned subsidiary, Kandi Smart Battery Swap. In March 2013, pursuant to a joint venture agreement (the “JV Agreement”) entered into by Zhejiang Kandi Technologies and Shanghai Maple Guorun Automobile Co., Ltd. (“Shanghai Guorun”), a 99%-owned subsidiary of Geely Automobile Holdings Ltd., the parties established Fengsheng Automotive Technology Group Co., 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, Zhejiang Kandi Technologies 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 Zhejiang Kandi Technologies then owned 43.47% and Geely owned 56.53%, respectively, upon the conversion of the loan into equity in the Affiliate Company. After that, Zhejiang Kandi Technologies 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, Zhejiang Kandi Technologies 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, Zhejiang Kandi Technologies 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. On February 18, 2021, Zhejiang Kandi Technologies signed an Equity Transfer Agreement with Geely to transfer the remaining 22% equity interests of the Affiliate Company to Geely for a total consideration of RMB 308,000,000 (approximately $47.2 million). The first half of the equity transfer payment will be paid within 5 business days from the date of completing the industrial and commercial modification procedures, and the rest will be paid within 6 months from the date of completing such procedures. On March 16, 2021, the Company received the first half of the equity transfer payment of RMB 154,000,000 (approximately $23.6 million). If the transfer of the remaining 22% equity interests of the Affiliate Company took place on January 1, 2019, the net income for year ended December 31, 2020 and 2019 would have been approximately $6.9 million and $41.7 million, respectively, whereas the total assets would have been approximately $513.4 million and $371,2 million as of December 31, 2020 and 2019, respectively In April 2013, Zhejiang Kandi Technologies 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. Zhejiang Kandi Technologies has a 90% ownership interest in Kandi Hainan, and Kandi New Energy has the remaining 10% ownership interest. Zhejiang Kandi Technologies is, effectively, entitled to 100% of the economic benefits, voting rights and residual interests (100% of the profits and losses) of Kandi Hainan as Zhejiang Kandi Technologies is entitled to 100% of the economic benefits, voting rights and residual interests of Kandi New Energy. In December 2017, Zhejiang Kandi Technologies 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 Zhejiang Kandi Technologies acquired Jinhua An Kao. The two agreements were signed on December 12, 2017 and the closing took place on January 3, 2018. Zhejiang Kandi Technologies 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 have been 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. In June 2020, Jinhua An Kao Power Technology Co., Ltd. changed its name to Zhejiang Kandi Smart Battery Swap Technology Co., Ltd (“Kandi Smart Battery Swap”). As the outbreak of COVID-19 in 2020 affected Kandi Smart Battery Swap’s operation and business, on July 7, 2020, the Company and the KSBS Shareholders made the following supplements to Condition III of the original Supplementary Agreement: The KSBC Shareholders have the right to receive an aggregate of 20.83% of the total equity consideration (i.e., 5,919,674 total shares), provided that Kandi Smart Battery Swap realizes a net profit of RMB50,000,000 or more for the period from January 1, 2020 to June 30, 2021 (as opposed to be the originally stated “December 31, 2020”), and such profit is audited or reviewed and Kandi Smart Battery Swap gets annual or quarterly financial report issued under US GAAP. 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 have been released for its achieving of the year 2019 net profit target. For the year ended December 31, 2020, SC Autosports partially meet its third year pre-tax profit target. As the gap between third year’s pretax profit and pre-tax profit target is less than 20%, the former members of SC Autosports will receive 515,907 shares of Kandi’s restrictive common stock or 30% of the total equity consideration in the purchase price. 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”). Zhejiang Kandi Technologies 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 since the contribution is not yet due as the relevant per PRC regulations, and is not involved in its operations. In September 2020, to better monetize its dozens of patents in the field of battery swap systems and attract strategic investors to participate across the whole sector value chain, including battery swapping services and used battery recycling, the Company formed China Battery Exchange Technology Co., Ltd. (“China Battery Exchange”). Zhejiang Kandi Technologies has 100% ownership interest in China Battery Exchange. In September 2020, intending to operate a ridesharing service across China, Zhejiang Ruiheng Technology Co., Ltd (“Ruiheng”) was established by Zhejiang Ruibo New Energy Vehicle Service Company Ltd. (“Ruibo”), Jiangsu Jinpeng Group Ltd. (“Jinpeng”) and Zhejiang Kandi Technologies. Ruibo, Jinpeng and Zhejiang Kandi Technologies each owns 80%, 10%, and 10% of Ruiheng, respectively. During January 2021, SC Autosports established a wholly owned subsidiary, Kandi America Investment, LLC (“Kandi America Investment”) in Dallas. The Company’s original 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. The COVID-19 outbreak has seriously impacted the EV market in 2020. As a result, the Company plans to manufacture and sell a number of ancillary products aimed at the dynamic power train system of intelligent transportation. For example, the dynamic power train system of Electric Scooters and Electric Self-Balancing Vehicles. The Company is pursuing these opportunities by expanding production of intelligent transportation products that exploit its advantages in the Yongkang Scrou’s power electric motor and Kandi Smart Battery Swap’s power battery pack. |
Liquidity
Liquidity | 12 Months Ended |
Dec. 31, 2020 | |
Liquidity [Abstract] | |
LIQUIDITY | NOTE 2 - LIQUIDITY The Company had working capital of $ 223,318,151 as of December 31, 2020, an increase of $ 159,619,454 from the working capital of $63,698,697 as of December 31, 2019. As of December 31, 2020 and 2019, the Company’s cash and cash equivalents were $ 142,078,190 and $5,490,557, respectively. The Company’s restricted cash was $ 442,445 and $11,022,078, respectively. After two years of negotiations, on March 10, 2020, a real estate repurchase agreement (the “Repurchase Agreement”) was entered into by and between Zhejiang Kandi Technologies and Jinhua Economic and Technological Development Zone pursuant to which the local government shall purchase the land use right over the land of 66 acres (400 mu, 265,029 square meters) that is owned by Zhejiang Kandi Technologies for RMB 525 million ($80 million). Payments to Zhejiang Kandi Technologies shall be made in three installments as the Company disclosed in a Current Report on Form 8-K filed with the SEC on March 9, 2020. In addition, if Zhejiang Kandi Technologies achieves certain milestones that contribute to local economic development, the Company will be eligible for tax rebates that could total up to RMB 500 million ($77 million) over the next eight years. On May 22, 2020, the Company received the first payment of RMB 244 million (approximately $37 million) under the Repurchase Agreement. On July 9, 2020, the Company received the second payment of RMB 119 million (approximately $18 million) under the Repurchase Agreement. The final payment of RMB 162 million ($25 million) will be received when the Company vacates the land, factory buildings, and other real estate and moves to the new facility. Zhejiang Kandi Technologies intends to use a portion of the proceeds from the land repurchase (approximately RMB 130 million, or $20 million) to fund the land use acquisition and factory construction in the New Energy Automotive Zone, and use the rest portion to fund growth initiatives and for general corporate purposes. On February 18, 2021, Zhejiang Kandi Technologies signed an Equity Transfer Agreement with Geely to transfer all of its remaining 22% equity interests in the Affiliate Company to Geely for a total consideration of RMB 308 million (approximately $47.2 million).The first half of the equity transfer payment will be payed within 5 business days from the date of completing the industrial and commercial modification procedures, and the rest will be paid within 6 months from the date of completing such procedures. On March 16, 2021, the Company received the first half of the equity transfer payment of RMB 154,000,000 (approximately $23.6 million). 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. Although the Company has paid off all the short-term bank loans as of September 30, 2020, it still retains the credit line, which can be used at any time when the Company has special needs. |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [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, 2020 | |
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) Zhejiang Kandi Technologies, a wholly-owned subsidiary of Continental, incorporated under the laws of the PRC; (3) Kandi New Energy Vehicle Co. Ltd. (“Kandi New Energy”), a 50%-owned subsidiary of Zhejiang Kandi Technologies (Mr. Hu Xiaoming owns the other 50%), incorporated under the laws of the PRC. Pursuant to agreements executed in January 2011, Mr. Hu Xiaoming contracted with Zhejiang Kandi Technologies for the operation and management of Kandi New Energy and put his shares of Kandi New Energy into escrow. As a result, Zhejiang Kandi Technologies is entitled to 100% of the economic benefits, voting rights and residual interests of Kandi New Energy; (4) Kandi Electric Vehicles (Hainan) Co., Ltd. (“Kandi Hainan”), a subsidiary, 10% owned by Kandi New Energy and 90% owned by Zhejiang Kandi Technologies, incorporated under the laws of the PRC; (5) Zhejiang Kandi Smart Battery Swap Technology Co., Ltd (“Kandi Smart Battery Swap”), a wholly-owned subsidiary of Zhejiang Kandi Technologies, incorporated under the laws of the PRC; (6) Yongkang Scrou Electric Co, Ltd. (“Yongkang Scrou”), a wholly-owned subsidiary of Kandi Smart Battery Swap, incorporated under the laws of the PRC; and (7) SC Autosports (d/b/a Kandi America), a wholly-owned subsidiary of the Company formed under the laws of the State of Texas. (8) China Battery Exchange Technology Co., Ltd. (“China Battery Exchange”) and its subsidiaries, a wholly-owned subsidiary of Zhejiang Kandi Technologies, incorporated under the laws of the PRC. Equity Method Investees The Company’s consolidated net loss 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 Zhejiang Kandi Technologies 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, 2020 | |
Disclosure Use Of Estimates [Abstract] | |
USE OF ESTIMATES | NOTE 5 - USE OF ESTIMATES The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and related disclosures of contingent assets and liabilities at the balance sheet date, and the reported revenues and expenses during the reported period in the consolidated financial statements and accompanying notes. Significant accounting estimates reflected in the Company’s consolidated financial statements primarily include, but are not limited to, allowances for doubtful accounts, lower of cost and net realizable value of inventory, assessment for impairment of long-lived assets and intangible assets, valuation of deferred tax assets, change in fair value of contingent consideration, determination of share-based compensation expenses as well as fair value of stock warrants. Management bases the estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from these estimates. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
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 $92,445 and $10,765,344 at December 31, 2020 and December 31, 2019, respectively. Contingent consideration related to the acquisitions of Kandi Smart Battery Swap 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 $3,703,000 and $5,197,000 at December 31, 2020 and December 31, 2019, 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. (d) Restricted cash Restricted cash primarily represents bank deposits for letter of credit and bank acceptance bill. As of December 31, 2020 and December 31, 2019, the Company’s restricted cash was $ 442,445 and $11,022,078, respectively. (e) 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. (f) 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, 2020 and 2019, the Company’s net amount due from the Affiliate Company includes $19.8 million net trade receivable and $2.2 million loan interest, $29.3 million net trade receivable and $2.1 million loan interest, respectively. As of December 31, 2020 and December 31, 2019, amount due from related party was $886,989 and $0, respectively. As of December 31, 2020 and December 31, 2019, amount due to related party was $500,000 and $0, respectively. As of December 31, 2020 and December 31, 2019, credit terms with the Company’s customers were typically 180 to 360 days after delivery. As of December 31, 2020 and 2019, the Company had a $110,269 and $254,665 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. (g) 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, 2020 and 2019, the Company had notes receivable from unrelated parties of $31,404,630 and $42,487,225, respectively, which notes receivable typically mature within six months. (h) Property, Plants and Equipment, net 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. (i) Land Use Rights, net 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. The Company elected the practical expedient that permits the Company to carry forward the accounting treatment for land use rights in existing agreements as of the effective date of ASC 842. Upon the adoption of ASC 842 on January 1, 2019, the new land use rights agreements signed beyond the effective date are identified as operating lease right-of-use assets, whereas the existing agreements as of the effective date are separately disclosed as “Land use rights” in the Company’s consolidated balance sheets. (j) 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, 2020 and 2019. (k) 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 27 “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. (l) Research and Development Expenditures relating to the development of new products and processes, including improvements to existing products as well as research and development and consulting work performed by third parties, are expensed as incurred. Research and development expenses were $7,246,312 and $6,207,747 for the years ended December 31, 2020 and 2019, respectively. (m) Government Grants Government grants are recognized when there is reasonable assurance that: (1) the recipient will comply with the relevant conditions and (2) the grant will be received. After initial recognition, government grants are recognized in profit or loss on a systematic basis that mirrors the manner in which the Company recognizes the underlying costs for which the grant is intended to compensate. If some, or all, of a government grant becomes repayable (e.g. due to non-fulfillment of the grant conditions), then the repayment is accounted for prospectively as a change in accounting estimate. The effect of the change in estimate is recognized in the period in which management concludes that it is no longer reasonably assured that all of the grant conditions will be met. A corresponding financial liability is recognized for the amount of the repayment. For the years ended December 31, 2020 and 2019, $1,130,262 and $792,628, respectively, were received by the Company’s subsidiaries from the Chinese government. (n) 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. (o) 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, 2020 2019 Period end RMB : USD exchange rate 6.5277 6.9668 Average RMB : USD exchange rate 6.9001 6.9072 (p) Comprehensive Income (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. (q) 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. (r) 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, 2020 and 2019 were $0 and $0, respectively. There were no forfeitures estimated during the reporting period. (s) 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, 2020 and 2019, the Company performed goodwill impairment testing at the reporting unit level and determined that no impairment was necessary. (t) Intangible Assets Intangible assets consist of patent, trade names and customer relations associated with the purchase price from the allocation of Yongkang Scrou and Kandi Smart Battery Swap. Such assets are being amortized over their estimated useful lives. Intangible assets were amortized as of December 31, 2020. The amortization expenses for intangible assets were $ 625,629 and $ 625,070 for the years ended December 31, 2020 and 2019, respectively. (u) Accounting for Sale of Common Stock and Warrants In connection of the issuance of common stocks, the Company may issue options or warrants to purchase common stock. Warrants classified as equity are initially recorded at fair value and subsequent changes in fair value are not recognized as long as the warrants continue to be classified as equity. (v) 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, Zhejiang Kandi Technologies, absorbs a majority of the risk of loss from the activities of this company, thereby enabling the Company, through Zhejiang Kandi Technologies, 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 Zhejiang Kandi Technologies as of the time the contractual agreements were entered into, establishing Zhejiang Kandi Technologies as their primary beneficiary. Zhejiang Kandi Technologies, in turn, is owned by Continental, which is owned by the Company. (w) Reclassification The Company has reclassified certain comparative amounts in the consolidated balance sheets as of December 31, 2019 to conform to the current year’s presentation. The principal reclassifications are related to the construction in progress and deferred taxes assets being reclassified from the other long term assets which is categorized separately on the balance sheets. The reclassification did not have an impact on the reported total assets, liabilities, stockholders’ equity and net income. Certain reclassifications have been made to the consolidated statements of cash flows for year ended December 31, 2019 to conform to the presentation of condensed consolidated financial statement for year ended December 31, 2020. The Company reclassified the following 1) grouping due from employees into other receivables and other assets; 2) grouping customer deposits and deferred income into other payables and accrued liabilities. |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | NOTE 7 - NEW ACCOUNTING PRONOUNCEMENTS Recently Adopted Accounting Pronouncements 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 (the “Tax Act”) and allows a reclassification from accumulated other comprehensive income to retained earnings for the stranded tax effects resulting from the Tax Act. 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 adopted this ASU in the first quarter of 2020 and the new standard did not have a material impact on the 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 adopted this ASU in the first quarter of 2020 and the new standard did not have a material impact on the consolidated financial statements. Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued Accounting Standards Update No. 2016-13,”Financial Instruments - Credit Losses (Topic 326)” (“ASU 2016-13”). ASU 2016-13 revises the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. Originally, ASU 2016-13 was effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. In November 2019, FASB issued ASU 2019-10, “Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842).” This ASU defers the effective date of ASU 2016-13 for public companies that are considered smaller reporting companies as defined by the SEC to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is planning to adopt this standard in the first quarter of fiscal 2023.The Company is currently evaluating the potential effects of adopting the provisions of ASU No. 2016-13 on its consolidated financial statements, particularly its recognition of allowances for accounts receivable. In December 18, 2019, the FASB issued ASU 2019-12, income Taxes — Simplifying the Accounting for Income Taxes serves to simplify the accounting for income taxes by removing certain following Codification exceptions, including exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment. This guidance will be effective after December 15, 2020, with early adoption permitted. The Company will adopt the new standard effective January 1, 2021 and does not expect the adoption of this guidance to have a material impact on the consolidated financial statements. In January 2020, the FASB issued ASU 2020-01, Investments—Equity Securities, Investments—Equity Method and Joint Ventures, and Derivatives and Hedging, which clarifies the interaction of the accounting for equity securities under Topic 321, the accounting for equity method investments in Topic 323, and the accounting for certain forward contracts and purchased options in Topic 815. This guidance will be effective in the first quarter of 2021 on a prospective basis, with early adoption permitted. The Company will adopt the new standard effective January 1, 2021 and does not expect the adoption of this guidance to have a material impact on the consolidated financial statements. |
Concentrations
Concentrations | 12 Months Ended |
Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS | NOTE 8 - CONCENTRATIONS (a) Customers For the years ended December 31, 2020 and 2019, 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 2020 2019 2020 2019 Customer A 24 % 51 % 15 % 55 % Customer B 14 % 15 % 7 % 5 % Fengsheng Vehicles Technologies Group Co., Ltd. and its subsidiaries - 12 % 33 % 32 % (b) Suppliers For the years ended December 31, 2020 and 2019, 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 2020 2019 2020 2019 Zhejiang Kandi Supply Chain Management Co., Ltd. 49 % 73 % 9 % 8 % Supplier D 22 % 11 % 5 % - |
Loss Per Share
Loss Per Share | 12 Months Ended |
Dec. 31, 2020 | |
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 900,000 options and 8,131,332 warrants were excluded from the calculation of diluted net loss per share, for the year ended December 31, 2020. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE, NET | NOTE 10 - ACCOUNTS RECEIVABLE, NET Accounts receivable are summarized as follows: December 31, December 31, 2020 2019 Accounts receivable $ 38,657,406 $ 61,436,514 Less: allowance for doubtful accounts (110,269 ) (254,665 ) Accounts receivable, net $ 38,547,137 $ 61,181,849 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 11 - INVENTORIES Inventories are summarized as follows: December 31, December 31, 2020 2019 Raw material $ 7,512,259 $ 12,127,957 Work-in-progress 5,488,532 4,545,736 Finished goods 6,696,592 11,062,873 Inventories $ 19,697,383 $ 27,736,566 |
Notes Receivable
Notes Receivable | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
NOTES RECEIVABLE | NOTE 12 - NOTES RECEIVABLE As of December 31, 2020, there was $31,404,630 notes receivable from unrelated parties with a 6% annual interest rate, among which $6.1 million was due on January 15, 2021, $6.9 million was due on January 27, 2021, $9.2 million was due on April 20, 2021 and $9.2 million was due on June 25, 2021. As the date of this report, $13,021,431 notes receivable has been collected. 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 25-summarized information of equity method investment in the Affiliate Company). |
Advances to Suppliers
Advances to Suppliers | 12 Months Ended |
Dec. 31, 2020 | |
Advances To Suppliers Are Summarized [Abstract] | |
ADVANCES TO SUPPLIERS | NOTE 13 - ADVANCES TO SUPPLIERS Advances to suppliers are summarized as follows: December 31, December 31, 2020 2019 Advance payment for inventory purchase① $ 13,107,630 $ 52,714 Advance payment for R & D② 19,365,947 - Others 4,259,605 632,294 Total $ 36,733,182 $ 685,008 ① This amount represents the advance payment in order to lock up the purchase price of the inventory. ② This amount presents the advance payment to a third party for designing a new EV model, as well as related research and development and consulting works. The Company entered into a research and development contract with a third party on December 1, 2020 with total contract amount of $38.3 million, and advance payment of $23.0 million as per the contract. $3.4 million of expense was incurred during the year ended December 31, 2020. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 14 - PROPERTY, PLANT AND EQUIPMENT Property, plants and equipment as of December 31, 2020 and 2019 consisted of the following: December 31, December 31, 2020 2019 At cost: Buildings $ 18,924,734 $ 30,447,480 Machinery and equipment 67,893,378 62,973,794 Office equipment 1,138,870 1,048,651 Motor vehicles and other transport equipment 587,785 413,046 Molds and others 12,752,789 25,836,241 101,297,556 120,719,212 Less : Accumulated depreciation (35,894,876 ) (46,311,354 ) Property, plant and equipment, net $ 65,402,680 $ 74,407,858 The Company’s Jinhua facility is currently in the process of moving out of the old location and we expect to complete the relocation process around March 31, 2021. As of December 31, 2020, the property ownership certificate of Jinhua facility’s old location has been cancelled and the corresponding properties have been reclassed to other long term assets. As of December 31, 2020 and 2019, the net book value of property, plant and equipment pledged as collateral for the Company’s bank loans were $0 and $6,484,497, respectively. Also see Note 18. Depreciation expenses for the years ended December 31, 2020 and 2019 were $6,976,651 and $ 7,549,836, respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | NOTE 15 - 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, useful life 2020 2019 Gross carrying amount: Trade name 1 years $ 492,235 $ 492,235 Customer relations 1 years 304,086 304,086 Patent 4.5-6.17 years 4,871,547 4,564,506 5,667,868 5,360,827 Less : Accumulated amortization Trade name $ (439,798 ) $ (389,053 ) Customer relations (271,691 ) (240,342 ) Patent (1,723,626 ) (1,076,660 ) (2,435,115 ) (1,706,055 ) Intangible assets, net $ 3,232,753 $ 3,654,772 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 $ 625,629 and $625,070 for the year ended December 31, 2020 and 2019, respectively. Amortization expenses for the next five years and thereafter are as follows: Years ending December 31, 2021 $ 625,629 2022 546,271 2023 543,534 2024 543,534 2025 481,255 Thereafter 492,530 Total $ 3,232,753 |
Land Use Rights
Land Use Rights | 12 Months Ended |
Dec. 31, 2020 | |
Land Use Rights [Abstract] | |
LAND USE RIGHTS | NOTE 16 - LAND USE RIGHTS The Company’s land use rights consist of the following: December 31, December 31, 2020 2019 Cost of land use rights $ 4,024,889 $ 14,731,847 Less: Accumulated amortization (767,129 ) (3,459,032 ) Land use rights, net $ 3,257,760 $ 11,272,815 During June 2020, land use right in the net carrying value of $2.3 million was returned to the government as the Company began to perform its obligations under the Repurchase Agreement. Gain on disposal of long-lived assets of $ 14,174,23 The land use right of gross value of $3.5 million, which was acquired in October 2020 from the government as the new site of Jinhua Facility’s relocation as per the Repurchase Agreement, was identified as operating lease right-of-use assets. As of December 31, 2020 and 2019, the net book value of the land use rights pledged as collateral for the Company’s bank loans were $0 and $4,937,138 respectively. Also see Note 18. The amortization expense for the years ended December 31, 2020 and 2019 were $201,061 and $327,250, respectively. Amortization expense for the next five years and thereafter is as follows: Years ending December 31, 2021 86,584 2022 86,584 2023 86,584 2024 86,584 2025 86,584 Thereafter 2,824,840 Total $ 3,257,760 |
Other Long Term Assets
Other Long Term Assets | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Text Block Supplement [Abstract] | |
OTHER LONG TERM ASSETS | NOTE 17 - OTHER LONG TERM ASSETS Other long term assets as of December 31, 2020 and 2019 consisted of the following: December 31, December 31, 2020 2019 Long term deferred assets $ 3,706,560 $ 4,819,152 Prepayments for land use right (i) 4,319,305 4,131,530 Land and properties with certificates cancelled (ii) 13,728,557 - Other receivables- Long term 153,193 768,442 Prepayments for new product molds 6,663,909 - Operating lease right-of-use assets (iii) 3,496,993 10,743 Others 238,967 284,205 Total other long term asset $ 32,307,484 $ 10,014,072 (i) As of December 31, 2020 and 2019, the Company’s other long term asset included net value of prepayments for land use right of Hainan facility of $4,319,305 and 4,131,530, respectively. As of December 31, 2020, 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, 2020 and 2019 were $85,277 and $ 92,288, respectively. (ii) A s of December 31, 2020, the Company’s other long term asset included net value of land of Jinhua facility’s old location with certificates cancelled of $6,095,310. The amortization expense for the year ended December 31, 2020 were $93,184. As of December 31, 2020, the Company’s other long term asset included net value of properties of Jinhua facility’s old location with certificates cancelled of $7,633,247. The depreciation expense for the year ended December 31, 2020 were $224,778. (iii) As of December 31, 2020, the Company’s operating lease right-of-use assets in other long term asset included net value of newly acquired land use right of Jinhua facility of $3,450,958. The amortization expense for the year ended December 31, 2020 were $16,406. |
Short-Term and Long-Term Bank L
Short-Term and Long-Term Bank Loans | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
SHORT-TERM AND LONG-TERM BANK LOANS | NOTE 18 - SHORT-TERM AND LONG-TERM BANK LOANS Short-term loans are summarized as follows: 2020 2019 Bank A Interest rate 5.66% per annum, paid off on May 22, 2020, secured by the assets of Kandi Vehicle, also guaranteed by company’s subsidiaries. Also see Note 14 and Note 16. - 7,004,650 Interest rate 5.66% per annum, paid off on May 22, 2020,secured by the assets of Kandi Vehicle, also guaranteed by company’s subsidiaries. Also see Note 14 and Note 16. - 4,621,921 Bank B Interest rate 5.22% per annum, paid off on April 22, 2020, secured by the assets of Kandi Vehicle. Also see Note 14 and Note 16. - 5,741,517 Interest rate 5.22% per annum, paid off on April 24, 2020, secured by the assets of Kandi Vehicle. Also see Note 14 and Note 16. - 4,306,138 Interest rate 5.22% per annum, paid off on April 26, 2020, secured by the assets of Kandi Vehicle. Also see Note 14 and Note 16. - 4,306,138 $ - $ 25,980,364 Long-term loan is summarized as follows: December 31, December 31, 2020 2019 Long term bank loans: Bank C Interest rate 7% per annum, paid off on December 11, 2020, guaranteed by the Company’s subsidiaries. $ - 28,133,433 Long term loans - current portion - 13,779,641 Long term loans - noncurrent portion - 14,353,792 Total long term loans - current and noncurrent portion $ - 28,133,433 The interest expense of the short-term and long-term bank loans for the years ended December 31, 2020 and 2019 were $ 2,763,524 and $4,311,640, respectively. As of December 31, 2020, the aggregate amount of short-term loans that was guaranteed by various third parties was $0. |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2020 | |
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, Zhejiang Kandi Technologies, Jinhua Ankao and Kandi Hainan 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, Zhejiang Kandi Technologies has successfully re-applied for such certificates when the its prior certificates expired. Jinhua Ankao has been qualified as HNTE since 2018. Kandi Hainan has been qualified as HNTE since 2020. Therefore no records for renewal are available. The applicable CIT rate of each of the Company’s other subsidiaries, Kandi New Energy and Yongkang Scrou 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 2020, the Company’s effective tax rate is favorably affected by a super-deduction for qualified research and development costs and adversely affected by non-deductible expenses such as stock rewards for non-US employees, and part of entertainment expenses. The Company records valuation allowances against the deferred tax assets associated with losses and other timing differences 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, 2020 and 2019 was a tax benefit of 32.69% on a reported loss before taxes of approximately $15.4 million, a tax benefit of 8.78% on a reported loss before taxes of approximately $7.9 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, 2020 and 2019. 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, 2020, 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, 2020, 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, 2020, the Company has no accrued interest or penalties related to uncertain tax positions. Income tax expenses for the year ended December 31, 2020 and 2019 are summarized as follows: For Year Ended December 31, 2020 2019 Current: Provision for CIT $ 302,553 $ 374,277 Deferred: Provision for CIT (5,349,722 ) (1,066,536 ) Income tax expense (benefit) $ (5,047,169 ) $ (692,259 ) The reconciliation of taxes at the PRC statutory rate (25% in 2020 and 2019) to our provision for income taxes for the years ended December 31, 2020 and 2019 was as follows: For Year Ended December 31, 2020 2019 Expected taxation at PRC statutory tax rate $ (3,860,333 ) $ (1,970,247 ) Recognition of outside basis difference in equity investment of the Affiliate Company (4,347,061 ) - Effect of differing tax rates in different jurisdictions 93,806 363,199 Effect of PRC preferential tax rates 1,145,631 162,218 Non-taxable income (7,889 ) (86,537 ) Non-deductible expenses 615,659 1,703,235 Research and development super-deduction (458,723 ) (350,449 ) (Over) Under-accrued EIT for previous years (24,583 ) (1,792,560 ) Addition to valuation allowance 1,629,952 1,301,225 Other 166,372 (22,343 ) Income tax (benefit) expense $ (5,047,169 ) $ (692,259 ) The tax effects of temporary differences that give rise to the Company’s net deferred tax assets and liabilities as of December 31, 2020 and December 31, 2019 are summarized as follows: December 31, December 31, 2020 2019 Deferred tax assets: Accruals and reserves $ 1,160,830 $ 672,983 Depreciation - 53,199 Outside basis difference of investment in the Affiliate Company 7,821,994 - Loss carried forward 3,415,400 2,401,125 Total deferred tax assets 12,398,224 3,127,307 Deferred tax liabilities: Expense (588,889 ) (680,906 ) Intangible (473,024 ) (519,006 ) Revenue (2,421,259 ) (162,874 ) Total deferred tax liability (3,483,172 ) (1,362,786 ) Net deferred tax assets (liabilities) $ 8,915,052 $ 1,764,521 less: valuation allowance (3,433,277 ) (2,401,125 ) Net deferred tax assets(liabilities),net of valuation allowance $ 5,481,775 $ (636,604 ) The aggregate NOLs in 2020 was $21.5 million deriving from entities in the PRC, Hong Kong and U.S. The aggregate NOLs in 2019 was $9.6 million deriving from entities in the PRC and Hong Kong. The NOLs will start to expire from 2026 if they are not used. The cumulative net operating loss in the PRC can be carried forward for five years in general, and ten years for entities qualify HNTE treatment, to offset future net profits for income tax purposes. The company has $0.8 million cumulative net operating loss in U.S. to carry forward as of December 31, 2020 with indefinite carryforward period. The cumulative net operating loss in Hong Kong of $0.1 million can be carried forward without an expiration date as well. Operating loss carry forward for tax purpose resulted in a deferred tax asset of $3.4 million with a valuation allowance of $2.8 million at December 31, 2020. 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. We recognized a deferred tax asset for the Affiliate Company’s outside basis difference due to the accumulated losses as of December 31, 2020 between book and tax purpose. This is due to the sale of the Affiliate Company in March 2021 indicates that it becomes apparent the temporary difference will reverse in the foreseeable future. Income (loss) before income taxes from PRC and non-PRC sources for the year ended December 31,2020 and 2019 are summarized as follows: For Year Ended December 31, 2020 2019 Income(loss) before income taxes consists of: PRC $ (12,734,584 ) $ (5,413,025 ) Non-PRC (2,706,749 ) (2,467,961 ) Total $ (15,441,333 ) $ (7,880,986 ) Net change in the valuation allowance of deferred tax assets are summarized as follows: Balance at December 31,2019 $ 2,401,126 Additions-change to tax expense 1,629,952 Prior year true up 180,321 Exchange rate difference 253,404 Increase/Decrease due to change of tax rate of Kandi Hainan (1,031,526 ) Balance at December 31,2020 $ 3,433,277 (b) Tax Holiday Effect For the year ended December 31, 2020 and 2019, the PRC CIT rate was 25%. Certain subsidiaries of the Company are entitled to tax exemptions (tax holidays) for the year ended December 31, 2020 and 2019. The combined effects of income tax expense exemptions and reductions available to the Company for the year ended December 31, 2020 and 2019 are as follows: Year Ended December 31, 2020 2019 Tax benefit (holiday) credit $ 690,905 $ 1,532,748 Basic net income per share effect $ 0.000 $ 0.000 (c) CARES Act On March 27, 2020, the “Coronavirus Aid, Relief and Economic Security (CARES) Act” was signed into law. The CARES Act authorized the Small Business Administration (“SBA”) to temporarily guarantee loans under a loan program called the PPP. On May 4th, 2020, SC Autosports obtained the PPP loan in the amount of $244,166 with an interest rate of 1.0% and a two-year term to maturity. The entire principal amount of the borrower’s PPP loan, including any accrued interest, is eligible to be reduced by the loan forgiveness amount under the PPP so long as employee and compensation levels of the business are maintained and 60% of the loan proceeds are used for payroll expenses, with the remaining 40% of the loan proceeds used for other qualifying expenses. As of December 31, 2020, the Company received $244,116 under the SBA PPP loan program and the entire amount has qualified for forgiveness. 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 income tax impact on its financial and continue to examine the impacts this CARES Act may have on its business. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
LEASES | NOTE 20 - LEASES The Company has renewed its corporate office leases for SC Autosports, with a term of 15 months from January 31, 2020 to April 30, 2021. The monthly lease payment is $11,000 from February 2020 to April 2020 and $12,000 from May 2020 to April 2021. The Company recorded operating lease assets and operating lease liabilities at January 31, 2020, with a remaining lease term of 15 months and discount rate of 4.25%. During October 2020, land use right of gross value of $3.5 million was acquired from the government as the new site of Jinhua Facility’s relocation as per the Repurchase Agreement. This lease was wholly prepaid as of December 31, 2020. See NOTE 17 for more details. As of December 31, 2020, the Company’s operating lease right-of-use assets (grouped in other long term assets on the balance sheet) was $3,496,993 and lease liability (grouped in other current liability on the balance sheet) was $47,578. For the year ended December 31, 2020, the Company’s operating lease expense was $156,406. Supplemental information related to operating leases was as follows: Year ended Cash payments for operating leases $ 156,406 Maturities of lease liabilities as of December 31, 2020 were as follow: Maturity of Lease Liabilities: Lease payable Year ended December 31, 2021 47,578 Total $ 47,578 |
Contingent Consideration Liabil
Contingent Consideration Liability | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [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, currently known as Kandi Smart Battery Swap Co., Ltd. (“Kandi Smart Battery Swap”). 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 immediately prior to the closing of the acquisition valued at approximately $20.7 million to the former shareholders of Kandi Smart Battery Swap and his designees (the “KSBS Shareholders”), and may be required to pay future consideration of up to an additional 2,959,837 shares of common stock, which are being held in escrow and 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 KSBS Shareholders as a result of the 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 such shares. For the year ended December 31, 2018, Kandi Smart Battery Swap achieved its first year net profit target. Accordingly, the KSBS Shareholders 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, Kandi Smart Battery Swap achieved its second year net profit target. Accordingly, the KSBS Shareholders received 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. All the escrowed shares have been included in the Company’s registration statement on Form S-3 declared effective by the SEC on April 5, 2019. As the outbreak of COVID-19 in 2020 affected Kandi Smart Battery Swap’s operation and business, on July 7, 2020, the Company and the KSBS Shareholders made the following supplements to Condition III of the original Supplementary Agreement: The KSBC Shareholders have the right to receive an aggregate of 20.83% of the total equity consideration (i.e., 5,919,674 total shares), provided that Kandi Smart Battery Swap realizes a net profit of RMB50,000,000 or more for the period from January 1, 2020 to June 30, 2021 (as opposed to be the originally stated “December 31, 2020”), and such profit is audited or reviewed and Kandi Smart Battery Swap gets annual or quarterly financial report issued under US GAAP. On July 1, 2018, the Company completed the acquisition of 100% of the equity of SC Autosports (d/b/a Kandi America). 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 immediately prior to the closing of the acquisition 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 of up to an additional 1,547,721 shares of common stock of the Company, which are being held in escrow and 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 due to the 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. Accordingly, the former members of SC Autosports received 343,938 shares of Kandi’s restrictive common stock or 20% of the total equity consideration in the purchase price. For the year ended December 31, 2019, SC Autosports achieved its second year pre-tax profit target. Accordingly, the former members of SC Autosports received 515,907 shares of Kandi’s restrictive common stock or 30% of the total equity consideration in the purchase price. For the year ended December 31, 2020, SC Autosports partially achieved its third year pre-tax profit target. As the gap between third year’s pretax profit and pre-tax profit target is less than 20%, the former members of SC Autosports will receive 515,907 shares of Kandi’s restrictive common stock or 30% of the total equity consideration in the purchase price. All the escrowed shares have been included in the Company’s registration statement on Form S-3 declared effective by the SEC on April 5, 2019. The Company recorded contingent consideration liability of the estimated fair value of the contingent consideration the Company currently expects to pay to the KSBS Shareholders 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, 2020 and December 31, 2019, the Company’s contingent consideration liability was $3,743,000 and $5,197,000, respectively. Details of the contingent consideration liability as of December 31, 2020 and December 31, 2019 were as follow: December 31, December 31, 2020 2019 Contingent consideration liability to KSBS Shareholders $ 3,743,000 2,505,000 Contingent consideration liability to former members of SC Autosports - 2,692,000 Total contingent consideration liability $ 3,743,000 $ 5,197,000 |
Common Shares
Common Shares | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
COMMON SHARES | NOTE 22 - COMMON SHARES On November 12, 2020, Kandi entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain purchasers (the “Buyers”) pursuant to which the Company sold to the Buyers, in a registered direct offering, an aggregate of 9,404,392 units (the “Units”), each consisting of one share (the “Shares”) of our common stock, par value $0.001 per share (“Common Stock”) and 0.4 warrant to purchase a share of our Common Stock (the “Warrants”), at a purchase price of $6.38 per share, for aggregate gross proceeds to the Company of $60,000,021, before deducting fees to the placement agent and other estimated offering expenses payable, approximately $3.1 million, by the Company. At the closing, the Company issued Units consisting of an aggregate of 9,404,392 shares of our Common Stock and Warrants initially exercisable into an aggregate of up to 3,761,757 shares of our Common Stock. The Warrants have a term of 30 months and are exercisable by the holders at any time after six months of the date of issuance at an exercise price of $8.18 per share. On November 24, 2020, Kandi entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain purchasers (the “Buyers”) pursuant to which the Company sold to the Buyers, in a registered direct offering, an aggregate of 8,849,560 units (the “Units”), each consisting of one share (the “Shares”) of our common stock, par value $0.001 per share (“Common Stock”) and a warrant to purchase 0.4 share of our Common Stock (the “Warrants”), at a purchase price of $11.30 per share, for aggregate gross proceeds to the Company of $100,000,028, before deducting fees to the placement agent and other estimated offering expenses payable, approximately $5.0 million, by the Company. At the closing, the Company issued Units consisting of an aggregate of 8,849,560 shares of our Common Stock and Warrants initially exercisable into an aggregate of up to 3,539,825 shares of our Common Stock. The Warrants have a term of 30 months and are exercisable by the holders at any time after the date of issuance at an exercise price of $14.50 per share. Retirement of Treasury Shares On December 16, 2020, the Board of Directors of the Company approved to retire 487,155 shares of its common stock held in treasury, and the retirement was completed as of December 31, 2020. The shares were returned to the status of authorized but unissued shares. As a result, the treasury stock balance decreased by approximately $1.2 billion. As a part of the retirement, the Company reduced its Common Stock and Additional Paid-in Capital by $ 24,77,965 |
Stock Options
Stock Options | 12 Months Ended |
Dec. 31, 2020 | |
Stock Options [Abstract] | |
STOCK OPTIONS | NOTE 23 - STOCK OPTIONS On May 29, 2015, the Compensation Committee of the Board of Directors of the Company approved the grant of stock options to purchase 4,900,000 shares of the Company’s common stock, at an exercise price of $9.72 per share, to the Company’s directors, officers and senior employees. The stock options will vest ratably over three years and expire on the tenth anniversary of the grant date. The Company valued the stock options at $39,990,540 and had amortized the stock compensation expense using the straight-line method over the service period from May 29, 2015, through May 29, 2018. The value of the stock options was estimated using the Black Scholes Model with an expected volatility of 90%, an expected life of 10 years, a risk-free interest rate of 2.23% and an expected dividend yield of 0.00%. All expenses had been amortized as of May 29, 2018. The following is a summary of the stock option activities of the Company: Number of Shares Weighted Average Exercise Price Outstanding as of December 31, 2018 3,900,000 $ 9.72 Granted - - Exercised - - Cancelled - - Forfeited 3,900,000 9.72 Outstanding as of December 31, 2019 3,900,000 $ 9.72 Granted - - Exercised 3,000,000 9.72 Cancelled - - Forfeited - - Outstanding as of December 31, 2020 900,000 $ 9.72 The fair value of each of the 4,900,000 options issued to the employees and directors on May 29, 2015 is $8.1613 per share. |
Stock Award
Stock Award | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK AWARD | NOTE 24 - 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. Effective May 15, 2020, Ms. Zhu resigned from her position as interim Chief Financial Officer of the Company. On May 15, 2020, the Board appointed Mr. Jehn Ming Lim as the Chief Financial Officer. Mr. Lim was entitled to receive 6,000 shares of the common stock annually, which shall be issuable evenly on each six-month anniversary hereof. The fair value of stock awards with service condition is determined based on the closing price of the common stock on the date the shares are granted. The compensation costs for awards of common stock are recognized over the requisite service period. 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 Company granted 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 Company granted 238,600 shares of common stock to certain management members and employees as compensation for their past services under the 2008 Plan. On May 9, 2020, the Company granted 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, 2020 and 2019, the Company recognized $902,666 and $1,360,258 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, 2020 | |
Summarized Information Of Equity Method Investment [Abstract] | |
SUMMARIZED INFORMATION OF EQUITY METHOD INVESTMENT IN THE AFFILIATE COMPANY | NOTE 25 - SUMMARIZED INFORMATION OF EQUITY METHOD INVESTMENT IN THE AFFILIATE COMPANY The Company’s consolidated statement of operations includes the Company’s proportionate share of the net income or loss of the Company’s equity method investee. When the Company records its proportionate share of net income (loss) in such investee, it increases other income (expense) in the Company’s consolidated statements of operations and increase (decrease) the Company’s carrying value in that investment. On March 21, 2019, Zhejiang Kandi Technologies signed an Equity Transfer Agreement with Geely Technologies Group Co., Ltd. (“Geely”) 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 $48.1 million) from Geely in the year of 2019 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 $367.6 million), of which Zhejiang Kandi Technologies owned 43.47% and Geely owned 56.53%, respectively, upon the conversion of the loan into equity in the Affiliate Company. Zhejiang Kandi Technologies further sold 21.47% of its equity interests in the Affiliate Company to Geely for a total consideration of RMB 516 million (approximately $79.0 million). Zhejiang Kandi Technologies owns 22% of the equity interests of the Affiliate Company as a result of the transfer. As of September 29, 2019, the Company had received payments in cash totaling RMB 220 million (approximately $33.7 million) and certain commercial acceptance notes of RMB 296 million (approximately $45.3 million) from Geely, of which RMB 140 million (approximately $21.4 million) matured on January 20, 2020 and the remaining RMB 156 million (approximately $23.9 million) matured on March 29, 2020. As of September 30, 2019, the equity transfer had been completed. Therefore, in the third quarter of 2019, the Company recognized the gain from equity sale of $20,574,217. As of December 31, 2020, all the equity transfer payment has been collected. On February 18, 2021, Zhejiang Kandi Technologies signed an Equity Transfer Agreement with Geely to transfer all of its remaining 22% equity interests in the Affiliate Company to Geely for a total consideration of RMB 308 million (approximately $47.2 million).The first half of the equity transfer payment will be payed within 5 business days from the date of completing the industrial and commercial modification procedures, and the rest will be paid within 6 months from the date of completing such procedures. On March 16, 2021, the Company received the first half of the equity transfer payment of RMB 154,000,000 (approximately $23.6 million). The Company accounted for its investments in the Affiliate Company under the equity method of accounting. The Company recorded 22% of the Affiliate Company’s loss for the year ended December 31, 2020. The consolidated results of operations and financial position of the Affiliate Company are summarized below: Year Ended December 31, 2020 2019 Condensed income statement information: Net sales $ 94,831,334 $ 124,280,561 Gross loss (10,518,130 ) (2,609,764 ) Gross margin -11.1 % -2.1 % Net loss (76,402,392 ) (85,972,257 ) December 31, December 31, 2020 2019 Condensed balance sheet information: Current assets $ 586,040,953 $ 640,688,401 Noncurrent assets 272,818,292 64,589,516 Total assets $ 858,859,245 $ 705,277,917 Current liabilities 707,054,287 490,625,640 Noncurrent liabilities 8,635,356 - Equity 143,169,602 214,652,277 Total liabilities and equity $ 858,859,245 $ 705,277,917 The Company’s equity method investments in the Affiliate Company for the years ended December 31, 2020 and 2019 are as follows: Year Ended December 31, 2020 2019 Investment in the Affiliate Company, beginning of the period, $ 47,228,614 $ 128,929,893 Investment decreased (72,309,417 ) Gain from equity dilution - 4,263,764 Gain from equity sale - 20,438,986 Reduction in the equity of the Affiliate Company* (3,275,999 ) - Company’s share in net (loss) income of Affiliate based on 22% ownership for year ended December 31, 2020 and 50% ownership for three months ended March 31, 2019, 43.47% ownership for six months ended September 30, 2019, 22% ownership for three months ended December 31, 2019 (16,812,341 ) (30,864,754 ) Non-controlling interest (445,977 ) - Intercompany transaction elimination - (5,649 ) Prior year unrealized profit realized 5,656 153,465 Subtotal (17,252,662 ) (30,716,938 ) Exchange difference 2,192,685 (3,377,674 ) Investment in Affiliate Company, end of the period $ 28,892,638 $ 47,228,614 - Non-controlling interest carrying amount 2,611,821 - * The Affiliate Company converted RMB 1.2 billion of the debt due from Zhejiang ZuoZhongYou Automobile Service Co., Ltd (“ZuoZhongYou”) into 85% of its equity interest. ZuoZhongYou is under common control with the Affiliate Company by Geely. On August 28, 2020, there was about RMB 97.2 million of difference between the carrying value of the debt of RMB 1.2 billion and the carrying value of ZuoZhongYou’s net asset at the transaction date. Hence, there is a decrease of RMB 21.4 million (approximately $3.3 million, which is 22% of the RMB 97.2 million) of “Investment in the Affiliate Company” on the Company’s book, with a corresponding decrease to the additional paid in capital. The gain from equity dilution for three months ended March 31, 2019 resulted from the Affiliate Company issuing shares to the major shareholder of the Affiliate Company, 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, 2020, were $1,321 or 0% of the Company’s total revenue, a decrease of 100% from $ 15,861,441 of the year ended December 31, 2019. 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. As of December 31, 2020 and 2019, the net amount due from the Affiliate Company and its subsidiaries, was $21,742,226 and $31,330,763, respectively. As of December 31, 2020 and 2019 the net amount due from the Affiliate Company and its subsidiaries included $2,194,903 and $2,056,564 interest receivable related to the loan lent to the Affiliate Company that was paid off. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 26 - 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 $3,063,866 (RMB 20 million) loan from Shanghai Pudong Development Bank Jinhua Branch, with a related loan period from 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 until December 2021. 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. (2) Pledged collateral for bank loans to other parties. As of December 31, 2020 and December 31, 2019, 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. In June 2020, a similar but separate putative securities class action was filed against Kandi and certain of its current and former directors and officers in California federal court. In September 2020, this action was transferred to the New York federal court and Kandi moved to dismiss in March 2021. 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 a 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 SLC recommended to Kandi’s board of directors in June 2020 that the SLC be dissolved in light of the ongoing derivative action pending in the Delaware Court of Chancery, and this recommendation was adopted by the board in August 2020. In December 2020, a putative securities class action was filed against Kandi and certain of its current officers in the United States District Court for the Eastern District of New York. The complaint generally alleges violations of the federal securities laws based on claims made in a report issued by Hindenburg Research in November 2020, and seeks damages on behalf of a putative class of shareholders who purchased or acquired Kandi’s securities prior to March 15, 2019. This action remains pending. 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, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 27 - 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 2020 2019 Sales Revenue Sales Revenue Primary geographical markets Overseas $ 29,394,148 $ 24,623,424 China 47,526,365 111,117,912 Total $ 76,920,513 $ 135,741,336 Major products EV parts $ 40,645,696 $ 110,675,908 EV products 684,525 108,640.00 Off-road vehicles 29,824,323 22,743,142 Electric Scooters, Electric Self-Balancing Scooters and associated parts 5,765,969 2,213,646.00 Total $ 76,920,513 $ 135,741,336 Timing of revenue recognition Products transferred at a point in time $ 76,920,513 $ 135,741,336 Total $ 76,920,513 $ 135,741,336 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | NOTE 28 - SUBSEQUENT EVENT On February 18, 2021, Zhejiang Kandi Technologies signed an Equity Transfer Agreement with Geely to transfer all of its remaining 22% equity interests in the Affiliate Company to Geely for a total consideration of RMB 308 million (approximately $47.2 million).The first half of the equity transfer payment will be payed within 5 business days from the date of completing the industrial and commercial modification procedures, and the rest will be paid within 6 months from the date of completing such procedures. On March 16, 2021, the Company received the first half of the equity transfer payment of RMB 154,000,000 (approximately $23.6 million). |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
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 $92,445 and $10,765,344 at December 31, 2020 and December 31, 2019, respectively. Contingent consideration related to the acquisitions of Kandi Smart Battery Swap 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 $3,703,000 and $5,197,000 at December 31, 2020 and December 31, 2019, 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. |
Restricted cash | (d) Restricted cash Restricted cash primarily represents bank deposits for letter of credit and bank acceptance bill. As of December 31, 2020 and December 31, 2019, the Company’s restricted cash was $ 442,445 and $11,022,078, respectively. |
Inventories | (e) 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 | (f) 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, 2020 and 2019, the Company’s net amount due from the Affiliate Company includes $19.8 million net trade receivable and $2.2 million loan interest, $29.3 million net trade receivable and $2.1 million loan interest, respectively. As of December 31, 2020 and December 31, 2019, amount due from related party was $886,989 and $0, respectively. As of December 31, 2020 and December 31, 2019, amount due to related party was $500,000 and $0, respectively. As of December 31, 2020 and December 31, 2019, credit terms with the Company’s customers were typically 180 to 360 days after delivery. As of December 31, 2020 and 2019, the Company had a $110,269 and $254,665 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 | (g) 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, 2020 and 2019, the Company had notes receivable from unrelated parties of $31,404,630 and $42,487,225, respectively, which notes receivable typically mature within six months. |
Property, Plants and Equipment, net | (h) Property, Plants and Equipment, net 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, net | (i) Land Use Rights, net 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. The Company elected the practical expedient that permits the Company to carry forward the accounting treatment for land use rights in existing agreements as of the effective date of ASC 842. Upon the adoption of ASC 842 on January 1, 2019, the new land use rights agreements signed beyond the effective date are identified as operating lease right-of-use assets, whereas the existing agreements as of the effective date are separately disclosed as “Land use rights” in the Company’s consolidated balance sheets. |
Accounting for the Impairment of Long-Lived Assets | (j) 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, 2020 and 2019. |
Revenue Recognition | (k) 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 27 “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 expenses | (l) Research and Development Expenditures relating to the development of new products and processes, including improvements to existing products as well as research and development and consulting work performed by third parties, are expensed as incurred. Research and development expenses were $7,246,312 and $6,207,747 for the years ended December 31, 2020 and 2019, respectively. |
Government Grants | (m) Government Grants Government grants are recognized when there is reasonable assurance that: (1) the recipient will comply with the relevant conditions and (2) the grant will be received. After initial recognition, government grants are recognized in profit or loss on a systematic basis that mirrors the manner in which the Company recognizes the underlying costs for which the grant is intended to compensate. If some, or all, of a government grant becomes repayable (e.g. due to non-fulfillment of the grant conditions), then the repayment is accounted for prospectively as a change in accounting estimate. The effect of the change in estimate is recognized in the period in which management concludes that it is no longer reasonably assured that all of the grant conditions will be met. A corresponding financial liability is recognized for the amount of the repayment. For the years ended December 31, 2020 and 2019, $1,130,262 and $792,628, respectively, were received by the Company’s subsidiaries from the Chinese government. |
Income Taxes | (n) 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 | (o) 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, 2020 2019 Period end RMB : USD exchange rate 6.5277 6.9668 Average RMB : USD exchange rate 6.9001 6.9072 |
Comprehensive Income (Loss) | (p) Comprehensive Income (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 | (q) 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 | (r) 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, 2020 and 2019 were $0 and $0, respectively. There were no forfeitures estimated during the reporting period. |
Goodwill | (s) 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, 2020 and 2019, the Company performed goodwill impairment testing at the reporting unit level and determined that no impairment was necessary. |
Intangible Assets | (t) Intangible Assets Intangible assets consist of patent, trade names and customer relations associated with the purchase price from the allocation of Yongkang Scrou and Kandi Smart Battery Swap. Such assets are being amortized over their estimated useful lives. Intangible assets were amortized as of December 31, 2020. The amortization expenses for intangible assets were $ 625,629 and $ 625,070 for the years ended December 31, 2020 and 2019, respectively. |
Accounting for Sale of Common Stock and Warrants | (u) Accounting for Sale of Common Stock and Warrants In connection of the issuance of common stocks, the Company may issue options or warrants to purchase common stock. Warrants classified as equity are initially recorded at fair value and subsequent changes in fair value are not recognized as long as the warrants continue to be classified as equity. |
Consolidation of variable interest entities | (v) 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, Zhejiang Kandi Technologies, absorbs a majority of the risk of loss from the activities of this company, thereby enabling the Company, through Zhejiang Kandi Technologies, 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 Zhejiang Kandi Technologies as of the time the contractual agreements were entered into, establishing Zhejiang Kandi Technologies as their primary beneficiary. Zhejiang Kandi Technologies, in turn, is owned by Continental, which is owned by the Company. |
Reclassification | (w) Reclassification The Company has reclassified certain comparative amounts in the consolidated balance sheets as of December 31, 2019 to conform to the current year’s presentation. The principal reclassifications are related to the construction in progress and deferred taxes assets being reclassified from the other long term assets which is categorized separately on the balance sheets. The reclassification did not have an impact on the reported total assets, liabilities, stockholders’ equity and net income. Certain reclassifications have been made to the consolidated statements of cash flows for year ended December 31, 2019 to conform to the presentation of condensed consolidated financial statement for year ended December 31, 2020. The Company reclassified the following 1) grouping due from employees into other receivables and other assets; 2) grouping customer deposits and deferred income into other payables and accrued liabilities. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 Period end RMB : USD exchange rate 6.5277 6.9668 Average RMB : USD exchange rate 6.9001 6.9072 |
Concentrations (Tables)
Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Customers [Member] | |
Concentrations (Tables) [Line Items] | |
Schedule of concentration percentage | Sales Trade Receivable Year Ended Year Ended December 31, December 31, December 31, December 31, Major Customers 2020 2019 2020 2019 Customer A 24 % 51 % 15 % 55 % Customer B 14 % 15 % 7 % 5 % Fengsheng Vehicles Technologies Group Co., Ltd. and its subsidiaries - 12 % 33 % 32 % |
Suppliers [Member] | |
Concentrations (Tables) [Line Items] | |
Schedule of concentration percentage | Purchases Accounts Payable Year Ended Year Ended December 31, December 31, December 31, December 31, Major Suppliers 2020 2019 2020 2019 Zhejiang Kandi Supply Chain Management Co., Ltd. 49 % 73 % 9 % 8 % Supplier D 22 % 11 % 5 % - |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Schedule of accounts receivable, net | December 31, December 31, 2020 2019 Accounts receivable $ 38,657,406 $ 61,436,514 Less: allowance for doubtful accounts (110,269 ) (254,665 ) Accounts receivable, net $ 38,547,137 $ 61,181,849 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | December 31, December 31, 2020 2019 Raw material $ 7,512,259 $ 12,127,957 Work-in-progress 5,488,532 4,545,736 Finished goods 6,696,592 11,062,873 Inventories $ 19,697,383 $ 27,736,566 |
Advances to Suppliers (Tables)
Advances to Suppliers (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Advances To Suppliers Are Summarized [Abstract] | |
Schedule of advances to suppliers are summarized | December 31, December 31, 2020 2019 Advance payment for inventory purchase① $ 13,107,630 $ 52,714 Advance payment for R & D② 19,365,947 - Others 4,259,605 632,294 Total $ 36,733,182 $ 685,008 ① This amount represents the advance payment in order to lock up the purchase price of the inventory. ② This amount presents the advance payment to a third party for designing a new EV model, as well as related research and development and consulting works. The Company entered into a research and development contract with a third party on December 1, 2020 with total contract amount of $38.3 million, and advance payment of $23.0 million as per the contract. $3.4 million of expense was incurred during the year ended December 31, 2020. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plants and equipment | December 31, December 31, 2020 2019 At cost: Buildings $ 18,924,734 $ 30,447,480 Machinery and equipment 67,893,378 62,973,794 Office equipment 1,138,870 1,048,651 Motor vehicles and other transport equipment 587,785 413,046 Molds and others 12,752,789 25,836,241 101,297,556 120,719,212 Less : Accumulated depreciation (35,894,876 ) (46,311,354 ) Property, plant and equipment, net $ 65,402,680 $ 74,407,858 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, useful life 2020 2019 Gross carrying amount: Trade name 1 years $ 492,235 $ 492,235 Customer relations 1 years 304,086 304,086 Patent 4.5-6.17 years 4,871,547 4,564,506 5,667,868 5,360,827 Less : Accumulated amortization Trade name $ (439,798 ) $ (389,053 ) Customer relations (271,691 ) (240,342 ) Patent (1,723,626 ) (1,076,660 ) (2,435,115 ) (1,706,055 ) Intangible assets, net $ 3,232,753 $ 3,654,772 |
Schedule of amortization expenses | Years ending December 31, 2021 $ 625,629 2022 546,271 2023 543,534 2024 543,534 2025 481,255 Thereafter 492,530 Total $ 3,232,753 |
Land Use Rights (Tables)
Land Use Rights (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Land Use Rights [Abstract] | |
Schedule of land use rights | December 31, December 31, 2020 2019 Cost of land use rights $ 4,024,889 $ 14,731,847 Less: Accumulated amortization (767,129 ) (3,459,032 ) Land use rights, net $ 3,257,760 $ 11,272,815 |
Schedule of amortization expense | Years ending December 31, 2021 86,584 2022 86,584 2023 86,584 2024 86,584 2025 86,584 Thereafter 2,824,840 Total $ 3,257,760 |
Other Long Term Assets (Tables)
Other Long Term Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of other long term assets | December 31, December 31, 2020 2019 Long term deferred assets $ 3,706,560 $ 4,819,152 Prepayments for land use right (i) 4,319,305 4,131,530 Land and properties with certificates cancelled (ii) 13,728,557 - Other receivables- Long term 153,193 768,442 Prepayments for new product molds 6,663,909 - Operating lease right-of-use assets (iii) 3,496,993 10,743 Others 238,967 284,205 Total other long term asset $ 32,307,484 $ 10,014,072 (i) As of December 31, 2020 and 2019, the Company’s other long term asset included net value of prepayments for land use right of Hainan facility of $4,319,305 and 4,131,530, respectively. As of December 31, 2020, 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, 2020 and 2019 were $85,277 and $ 92,288, respectively. (ii) A s of December 31, 2020, the Company’s other long term asset included net value of land of Jinhua facility’s old location with certificates cancelled of $6,095,310. The amortization expense for the year ended December 31, 2020 were $93,184. As of December 31, 2020, the Company’s other long term asset included net value of properties of Jinhua facility’s old location with certificates cancelled of $7,633,247. The depreciation expense for the year ended December 31, 2020 were $224,778. (iii) As of December 31, 2020, the Company’s operating lease right-of-use assets in other long term asset included net value of newly acquired land use right of Jinhua facility of $3,450,958. The amortization expense for the year ended December 31, 2020 were $16,406. |
Short-Term and Long-Term Bank_2
Short-Term and Long-Term Bank Loans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of short-term loan | 2020 2019 Bank A Interest rate 5.66% per annum, paid off on May 22, 2020, secured by the assets of Kandi Vehicle, also guaranteed by company’s subsidiaries. Also see Note 14 and Note 16. - 7,004,650 Interest rate 5.66% per annum, paid off on May 22, 2020,secured by the assets of Kandi Vehicle, also guaranteed by company’s subsidiaries. Also see Note 14 and Note 16. - 4,621,921 Bank B Interest rate 5.22% per annum, paid off on April 22, 2020, secured by the assets of Kandi Vehicle. Also see Note 14 and Note 16. - 5,741,517 Interest rate 5.22% per annum, paid off on April 24, 2020, secured by the assets of Kandi Vehicle. Also see Note 14 and Note 16. - 4,306,138 Interest rate 5.22% per annum, paid off on April 26, 2020, secured by the assets of Kandi Vehicle. Also see Note 14 and Note 16. - 4,306,138 $ - $ 25,980,364 |
Schedule of long-term loan | December 31, December 31, 2020 2019 Long term bank loans: Bank C Interest rate 7% per annum, paid off on December 11, 2020, guaranteed by the Company’s subsidiaries. $ - 28,133,433 Long term loans - current portion - 13,779,641 Long term loans - noncurrent portion - 14,353,792 Total long term loans - current and noncurrent portion $ - 28,133,433 |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax expenses | For Year Ended December 31, 2020 2019 Current: Provision for CIT $ 302,553 $ 374,277 Deferred: Provision for CIT (5,349,722 ) (1,066,536 ) Income tax expense (benefit) $ (5,047,169 ) $ (692,259 ) |
Schedule of valuation allowance of deferred tax assets | For Year Ended December 31, 2020 2019 Expected taxation at PRC statutory tax rate $ (3,860,333 ) $ (1,970,247 ) Recognition of outside basis difference in equity investment of the Affiliate Company (4,347,061 ) - Effect of differing tax rates in different jurisdictions 93,806 363,199 Effect of PRC preferential tax rates 1,145,631 162,218 Non-taxable income (7,889 ) (86,537 ) Non-deductible expenses 615,659 1,703,235 Research and development super-deduction (458,723 ) (350,449 ) (Over) Under-accrued EIT for previous years (24,583 ) (1,792,560 ) Addition to valuation allowance 1,629,952 1,301,225 Other 166,372 (22,343 ) Income tax (benefit) expense $ (5,047,169 ) $ (692,259 ) |
Schedule of deferred tax assets and liabilities | December 31, December 31, 2020 2019 Deferred tax assets: Accruals and reserves $ 1,160,830 $ 672,983 Depreciation - 53,199 Outside basis difference of investment in the Affiliate Company 7,821,994 - Loss carried forward 3,415,400 2,401,125 Total deferred tax assets 12,398,224 3,127,307 Deferred tax liabilities: Expense (588,889 ) (680,906 ) Intangible (473,024 ) (519,006 ) Revenue (2,421,259 ) (162,874 ) Total deferred tax liability (3,483,172 ) (1,362,786 ) Net deferred tax assets (liabilities) $ 8,915,052 $ 1,764,521 less: valuation allowance (3,433,277 ) (2,401,125 ) Net deferred tax assets(liabilities),net of valuation allowance $ 5,481,775 $ (636,604 ) |
Schedule of income (loss) before income taxes | For Year Ended December 31, 2020 2019 Income(loss) before income taxes consists of: PRC $ (12,734,584 ) $ (5,413,025 ) Non-PRC (2,706,749 ) (2,467,961 ) Total $ (15,441,333 ) $ (7,880,986 ) |
Schedule of valuation allowance of deferred tax assets | Balance at December 31,2019 $ 2,401,126 Additions-change to tax expense 1,629,952 Prior year true up 180,321 Exchange rate difference 253,404 Increase/Decrease due to change of tax rate of Kandi Hainan (1,031,526 ) Balance at December 31,2020 $ 3,433,277 |
Schedule of income tax expense exemptions and reductions | Year Ended December 31, 2020 2019 Tax benefit (holiday) credit $ 690,905 $ 1,532,748 Basic net income per share effect $ 0.000 $ 0.000 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of information related to operating leases | Year ended Cash payments for operating leases $ 156,406 |
Schedule of maturities of lease liabilities | Maturity of Lease Liabilities: Lease payable Year ended December 31, 2021 47,578 Total $ 47,578 |
Contingent Consideration Liab_2
Contingent Consideration Liability (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of contingent consideration liability | December 31, December 31, 2020 2019 Contingent consideration liability to KSBS Shareholders $ 3,743,000 2,505,000 Contingent consideration liability to former members of SC Autosports - 2,692,000 Total contingent consideration liability $ 3,743,000 $ 5,197,000 |
Stock Options (Tables)
Stock Options (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of stock option activities | Number of Shares Weighted Average Exercise Price Outstanding as of December 31, 2018 3,900,000 $ 9.72 Granted - - Exercised - - Cancelled - - Forfeited 3,900,000 9.72 Outstanding as of December 31, 2019 3,900,000 $ 9.72 Granted - - Exercised 3,000,000 9.72 Cancelled - - Forfeited - - Outstanding as of December 31, 2020 900,000 $ 9.72 |
Summarized Information of Equ_2
Summarized Information of Equity Method Investment in The Affiliate Company (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Summarized Information Of Equity Method Investment [Abstract] | |
Schedule of condensed income statement information | Year Ended December 31, 2020 2019 Condensed income statement information: Net sales $ 94,831,334 $ 124,280,561 Gross loss (10,518,130 ) (2,609,764 ) Gross margin -11.1 % -2.1 % Net loss (76,402,392 ) (85,972,257 ) |
Schedule of condensed balance sheet information | December 31, December 31, 2020 2019 Condensed balance sheet information: Current assets $ 586,040,953 $ 640,688,401 Noncurrent assets 272,818,292 64,589,516 Total assets $ 858,859,245 $ 705,277,917 Current liabilities 707,054,287 490,625,640 Noncurrent liabilities 8,635,356 - Equity 143,169,602 214,652,277 Total liabilities and equity $ 858,859,245 $ 705,277,917 |
Schedule of equity method investments | Year Ended December 31, 2020 2019 Investment in the Affiliate Company, beginning of the period, $ 47,228,614 $ 128,929,893 Investment decreased (72,309,417 ) Gain from equity dilution - 4,263,764 Gain from equity sale - 20,438,986 Reduction in the equity of the Affiliate Company* (3,275,999 ) - Company’s share in net (loss) income of Affiliate based on 22% ownership for year ended December 31, 2020 and 50% ownership for three months ended March 31, 2019, 43.47% ownership for six months ended September 30, 2019, 22% ownership for three months ended December 31, 2019 (16,812,341 ) (30,864,754 ) Non-controlling interest (445,977 ) - Intercompany transaction elimination - (5,649 ) Prior year unrealized profit realized 5,656 153,465 Subtotal (17,252,662 ) (30,716,938 ) Exchange difference 2,192,685 (3,377,674 ) Investment in Affiliate Company, end of the period $ 28,892,638 $ 47,228,614 - Non-controlling interest carrying amount 2,611,821 - |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of revenues by geographic area | Year Ended December 31 2020 2019 Sales Revenue Sales Revenue Primary geographical markets Overseas $ 29,394,148 $ 24,623,424 China 47,526,365 111,117,912 Total $ 76,920,513 $ 135,741,336 Major products EV parts $ 40,645,696 $ 110,675,908 EV products 684,525 108,640.00 Off-road vehicles 29,824,323 22,743,142 Electric Scooters, Electric Self-Balancing Scooters and associated parts 5,765,969 2,213,646.00 Total $ 76,920,513 $ 135,741,336 Timing of revenue recognition Products transferred at a point in time $ 76,920,513 $ 135,741,336 Total $ 76,920,513 $ 135,741,336 |
Organization and Principal Ac_2
Organization and Principal Activities (Details) $ in Millions | Mar. 16, 2021USD ($) | Jul. 07, 2020CNY (¥)shares | Sep. 29, 2019USD ($) | Sep. 29, 2019CNY (¥) | Mar. 21, 2019USD ($) | Mar. 21, 2019CNY (¥) | Mar. 04, 2019 | Apr. 30, 2012 | Jan. 11, 2011 | Feb. 18, 2021USD ($) | May 31, 2018shares | Dec. 31, 2017shares | Apr. 30, 2013 | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | Mar. 16, 2021CNY (¥) | Feb. 18, 2021CNY (¥) | Sep. 30, 2020 | Jul. 09, 2020USD ($) | Jul. 09, 2020CNY (¥) | May 22, 2020USD ($) | May 22, 2020CNY (¥) | Mar. 10, 2020USD ($) | Mar. 10, 2020CNY (¥) | Sep. 29, 2019CNY (¥) | Mar. 21, 2019CNY (¥) |
Organization and Principal Activities (Details) [Line Items] | ||||||||||||||||||||||||||
Equity method investments on affiliate | $ 20 | ¥ 130,000,000 | $ 37 | ¥ 244,000,000 | $ 77 | ¥ 500,000,000 | ||||||||||||||||||||
Net income (in Dollars) | $ | $ 6.9 | $ 41.7 | ||||||||||||||||||||||||
Total assets (in Dollars) | $ | $ 513.4 | |||||||||||||||||||||||||
Description of transfer agreement | Zhejiang Kandi Technologies 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 Zhejiang Kandi Technologies acquired Jinhua An Kao. The two agreements were signed on December 12, 2017 and the closing took place on January 3, 2018. Zhejiang Kandi Technologies 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 have been 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. In June 2020, Jinhua An Kao Power Technology Co., Ltd. changed its name to Zhejiang Kandi Smart Battery Swap Technology Co., Ltd (“Kandi Smart Battery Swap”). As the outbreak of COVID-19 in 2020 affected Kandi Smart Battery Swap’s operation and business, on July 7, 2020, the Company and the KSBS Shareholders made the following supplements to Condition III of the original Supplementary Agreement: The KSBC Shareholders have the right to receive an aggregate of 20.83% of the total equity consideration (i.e., 5,919,674 total shares), provided that Kandi Smart Battery Swap realizes a net profit of RMB50,000,000 or more for the period from January 1, 2020 to June 30, 2021 (as opposed to be the originally stated “December 31, 2020”), and such profit is audited or reviewed and Kandi Smart Battery Swap gets annual or quarterly financial report issued under US GAAP.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 have been released for its achieving of the year 2019 net profit target. For the year ended December 31, 2020, SC Autosports partially meet its third year pre-tax profit target. As the gap between third year’s pretax profit and pre-tax profit target is less than 20%, the former members of SC Autosports will receive 515,907 shares of Kandi’s restrictive common stock or 30% of the total equity consideration in the purchase price. 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”). Zhejiang Kandi Technologies 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 since the contribution is not yet due as the relevant per PRC regulations, and is not involved in its operations. In September 2020, to better monetize its dozens of patents in the field of battery swap systems and attract strategic investors to participate across the whole sector value chain, including battery swapping services and used battery recycling, the Company formed China Battery Exchange Technology Co., Ltd. (“China Battery Exchange”). Zhejiang Kandi Technologies has 100% ownership interest in China Battery Exchange. In September 2020, intending to operate a ridesharing service across China, Zhejiang Ruiheng Technology Co., Ltd (“Ruiheng”) was established by Zhejiang Ruibo New Energy Vehicle Service Company Ltd. (“Ruibo”), Jiangsu Jinpeng Group Ltd. (“Jinpeng”) and Zhejiang Kandi Technologies. Ruibo, Jinpeng and Zhejiang Kandi Technologies each owns 80%, 10%, and 10% of Ruiheng, respectively. During January 2021, SC Autosports established a wholly owned subsidiary, Kandi America Investment, LLC (“Kandi America Investment”) in Dallas. The Company’s original primary business operations consist of designing, developing, manufacturing and commercializing EV products (through Kandi Electric Vehicles (Hainan) Co., Ltd. | |||||||||||||||||||||||||
Shares of common stock (in Shares) | 77,298,499 | 56,263,102 | ||||||||||||||||||||||||
Ownership interest | 22.00% | 22.00% | 100.00% | |||||||||||||||||||||||
Subsequent Event [Member] | ||||||||||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | ||||||||||||||||||||||||||
Percentage of ownership acquisition | 22.00% | |||||||||||||||||||||||||
Equity method investments on affiliate | $ 23.6 | $ 47.2 | ¥ 154,000,000 | ¥ 308,000,000 | ||||||||||||||||||||||
Ownership interest | 22.00% | 22.00% | ||||||||||||||||||||||||
Kandi Vehicles [Member] | ||||||||||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | ||||||||||||||||||||||||||
Percentage of economic benefits, voting rights and residual interests | 100.00% | |||||||||||||||||||||||||
Percentage of ownership acquisition | 22.00% | 22.00% | 43.47% | 43.47% | ||||||||||||||||||||||
Cash proceeds from affiliates | $ 31.6 | ¥ 220,000,000 | ||||||||||||||||||||||||
Face value of commercial acceptance notes | $ 42.5 | ¥ 296,000,000 | ||||||||||||||||||||||||
Jinhua Kandi New Energy Vehicles Co., Ltd [Member] | ||||||||||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | ||||||||||||||||||||||||||
Percentage of profit and losses | 100.00% | |||||||||||||||||||||||||
Zhejiang Kandi Technologies [Member] | ||||||||||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | ||||||||||||||||||||||||||
Percentage of economic benefits, voting rights and residual interests | 100.00% | |||||||||||||||||||||||||
Percentage of ownership acquisition | 90.00% | |||||||||||||||||||||||||
Ownership interest | 10.00% | |||||||||||||||||||||||||
Kandi New Energy [Member] | ||||||||||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | ||||||||||||||||||||||||||
Percentage of economic benefits, voting rights and residual interests | 100.00% | |||||||||||||||||||||||||
Percentage of ownership acquisition | 10.00% | |||||||||||||||||||||||||
Kandi Hainan [Member] | ||||||||||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | ||||||||||||||||||||||||||
Percentage of economic benefits, voting rights and residual interests | 100.00% | |||||||||||||||||||||||||
Jinhua An Kao Power Technology Co., Ltd [Member] | 2018 net profit target [Member] | ||||||||||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | ||||||||||||||||||||||||||
Restricted stock (in Shares) | 739,959 | |||||||||||||||||||||||||
Kandi Smart Battery [Member] | ||||||||||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | ||||||||||||||||||||||||||
Percentage of ownership acquisition | 20.83% | |||||||||||||||||||||||||
Total equity consideration (in Shares) | 5,919,674 | |||||||||||||||||||||||||
Net profit (in Yuan Renminbi) | ¥ | ¥ 50,000,000 | |||||||||||||||||||||||||
SC Autosports [Member] | ||||||||||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | ||||||||||||||||||||||||||
Percentage of profit and losses | 20.00% | |||||||||||||||||||||||||
Percentage of ownership acquisition | 30.00% | |||||||||||||||||||||||||
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 (in Shares) | 515,907 | |||||||||||||||||||||||||
SC Autosports [Member] | 2018 net profit target [Member] | ||||||||||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | ||||||||||||||||||||||||||
Restricted stock (in Shares) | 343,938 | |||||||||||||||||||||||||
SC Autosports [Member] | 2019 net profit target [Member] | ||||||||||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | ||||||||||||||||||||||||||
Restricted stock (in Shares) | 515,907 | |||||||||||||||||||||||||
Supply Chain [Member] | ||||||||||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | ||||||||||||||||||||||||||
Percentage of ownership acquisition | 90.00% | |||||||||||||||||||||||||
Geely [Member] | ||||||||||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | ||||||||||||||||||||||||||
Percentage of economic benefits, voting rights and residual interests | 21.47% | 21.47% | ||||||||||||||||||||||||
Percentage of ownership acquisition | 78.00% | 78.00% | 56.53% | 56.53% | ||||||||||||||||||||||
Cash proceeds from affiliates | $ 45.1 | ¥ 314,000,000 | ||||||||||||||||||||||||
Equity method investments on affiliate | 344.5 | ¥ 2,400,000,000 | ||||||||||||||||||||||||
Face value of commercial acceptance notes | $ 74.1 | ¥ 516,000,000 | ||||||||||||||||||||||||
Geely [Member] | Subsequent Event [Member] | ||||||||||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | ||||||||||||||||||||||||||
Equity method investments on affiliate | $ 47.2 | ¥ 308,000,000 | ||||||||||||||||||||||||
Affiliate [Member] | ||||||||||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | ||||||||||||||||||||||||||
Percentage of ownership acquisition | 22.00% | |||||||||||||||||||||||||
Affiliate [Member] | Subsequent Event [Member] | ||||||||||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | ||||||||||||||||||||||||||
Percentage of ownership acquisition | 22.00% | |||||||||||||||||||||||||
YongkangScrou [Member] | ||||||||||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | ||||||||||||||||||||||||||
Percentage of ownership acquisition | 100.00% | |||||||||||||||||||||||||
Geely Automobile Holdings Ltd [Member] | ||||||||||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | ||||||||||||||||||||||||||
Percentage of ownership acquisition | 99.00% | |||||||||||||||||||||||||
Jiangsu Jinpeng Group Ltd. (“Jinpeng”) [Member] | ||||||||||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | ||||||||||||||||||||||||||
Ownership interest | 80.00% | |||||||||||||||||||||||||
Jiangsu Jinpeng Group Ltd. (“Jinpeng”) [Member] | 2019 net profit target [Member] | ||||||||||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | ||||||||||||||||||||||||||
Restricted stock (in Shares) | 986,810 | |||||||||||||||||||||||||
Kandi Vehicles. Ruibo, Jinpeng [Member] | ||||||||||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | ||||||||||||||||||||||||||
Ownership interest | 10.00% | |||||||||||||||||||||||||
Kandi Vehicles [Member] | ||||||||||||||||||||||||||
Organization and Principal Activities (Details) [Line Items] | ||||||||||||||||||||||||||
Ownership interest | 10.00% |
Liquidity (Details)
Liquidity (Details) | Mar. 10, 2020USD ($) | Mar. 16, 2021USD ($) | Mar. 16, 2021CNY (¥) | Feb. 18, 2021USD ($) | Feb. 18, 2021CNY (¥) | Dec. 31, 2020USD ($) | Sep. 30, 2020 | Jul. 09, 2020USD ($) | Jul. 09, 2020CNY (¥) | May 22, 2020USD ($) | May 22, 2020CNY (¥) | Mar. 10, 2020CNY (¥) | Dec. 31, 2019USD ($) |
Liquidity (Details) [Line Items] | |||||||||||||
Working capital | $ 223,318,151 | $ 63,698,697 | |||||||||||
Working capital increasing | 159,619,454 | ||||||||||||
Cash and cash equivalents | 142,078,190 | 5,490,557 | |||||||||||
Restricted cash | $ 442,445 | $ 11,022,078 | |||||||||||
Real estate repurchase agreement, description | After two years of negotiations, on March 10, 2020, a real estate repurchase agreement (the “Repurchase Agreement”) was entered into by and between Zhejiang Kandi Technologies and Jinhua Economic and Technological Development Zone pursuant to which the local government shall purchase the land use right over the land of 66 acres (400 mu, 265,029 square meters) that is owned by Zhejiang Kandi Technologies for RMB 525 million ($80 million). | ||||||||||||
Equity method investments on affiliate | $ 77,000,000 | $ 20,000,000 | ¥ 130,000,000 | $ 37,000,000 | ¥ 244,000,000 | ¥ 500,000,000 | |||||||
Equity interests Percentage | 22.00% | 22.00% | 100.00% | ||||||||||
Second payment [Member] | |||||||||||||
Liquidity (Details) [Line Items] | |||||||||||||
Equity method investments on affiliate | 18,000,000 | 119,000,000 | |||||||||||
Final payment [Member] | |||||||||||||
Liquidity (Details) [Line Items] | |||||||||||||
Equity method investments on affiliate | $ 25,000,000 | ¥ 162,000,000 | |||||||||||
Subsequent Event [Member] | |||||||||||||
Liquidity (Details) [Line Items] | |||||||||||||
Equity method investments on affiliate | $ 23,600,000 | ¥ 154,000,000 | $ 47,200,000 | ¥ 308,000,000 | |||||||||
Equity interests Percentage | 22.00% | 22.00% |
Principles of Consolidation (De
Principles of Consolidation (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Principles of Consolidation (Details) [Line Items] | |
Equity interest percentage | 85.00% |
Kandi New Energy [Member] | Kandi Vehicles [Member] | |
Principles of Consolidation (Details) [Line Items] | |
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 (Details) [Line Items] | |
Percentage owned in subsidiary | 50.00% |
Kandi New Energy [Member] | Kandi Hainan [Member] | |
Principles of Consolidation (Details) [Line Items] | |
Percentage owned in subsidiary | 10.00% |
Kandi Vehicles [Member] | |
Principles of Consolidation (Details) [Line Items] | |
Equity interest percentage | 22.00% |
Kandi Vehicles [Member] | Kandi Hainan [Member] | |
Principles of Consolidation (Details) [Line Items] | |
Percentage owned in subsidiary | 90.00% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Summary of Significant Accounting Policies (Details) [Line Items] | ||
Fair value of contingent consideration | $ 92,445 | $ 10,765,344 |
Restricted cash | 442,445 | 11,022,078 |
Net amount due from the Affiliate Company | 19,800,000 | 29,300,000 |
Loan interest | 2,200,000 | 2,100,000 |
Amount due from related party | 886,989 | 0 |
Amount due to related party | 500,000 | 0 |
Allowance for doubtful accounts | 110,269 | 254,665 |
Notes receivable from unrelated parties | $ 31,404,630 | 42,487,225 |
Notes receivable maturity period | 6 months | |
ResearchAndDevelopmentExpense | $ 7,246,312 | 6,207,747 |
Subsidiaries from the chinese government | 1,130,262 | 792,628 |
Net of a reversal for forfeited stock option | 0 | 0 |
Amortization expenses | $ 625,629 | 625,070 |
Ownership interest | 100.00% | |
Affiliate Company [Member] | ||
Summary of Significant Accounting Policies (Details) [Line Items] | ||
Voting ownership interest | 50.00% | |
Minimum [Member] | ||
Summary of Significant Accounting Policies (Details) [Line Items] | ||
Current discount rate | 3.50% | |
Maximum [Member] | ||
Summary of Significant Accounting Policies (Details) [Line Items] | ||
Current discount rate | 4.50% | |
Fair Value, Inputs, Level 3 [Member] | ||
Summary of Significant Accounting Policies (Details) [Line Items] | ||
Notes payable, fair value | $ 3,703,000 | $ 5,197,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives | 12 Months Ended |
Dec. 31, 2020 | |
Building [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Property, plants and equipment, Estimated useful lives | 30 years |
Machinery and Equipment [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Property, plants and equipment, Estimated useful lives | 10 years |
Office Equipment [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Property, plants and equipment, Estimated useful lives | 5 years |
Motor vehicles [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Property, plants and equipment, Estimated useful lives | 5 years |
Molds [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Property, plants and equipment, Estimated useful lives | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of average foreign currency exchange rate | Dec. 31, 2020 | Dec. 31, 2019 |
Period end RMB: USD exchange rate [Member] | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Exchange rate | 6.5277 | 6.9668 |
Average RMB: USD exchange rate [Member] | ||
Intercompany Foreign Currency Balance [Line Items] | ||
Exchange rate | 6.9001 | 6.9072 |
Concentrations (Details)
Concentrations (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Customers [Member] | ||
Concentrations (Details) [Line Items] | ||
Concentration risk, percentage | 10.00% | 10.00% |
Suppliers [Member] | ||
Concentrations (Details) [Line Items] | ||
Concentration risk, percentage | 10.00% | 10.00% |
Concentrations (Details) - Sche
Concentrations (Details) - Schedule of concentration percentage | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Customer A [Member] | Sales [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 24.00% | 51.00% |
Customer A [Member] | Trade Receivable [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 15.00% | 55.00% |
Customer B [Member] | Sales [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 14.00% | 15.00% |
Customer B [Member] | Trade Receivable [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 7.00% | 5.00% |
Fengsheng Vehicles Technologies Group Co., Ltd. and its subsidiaries [Member] | Sales [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 12.00% | |
Fengsheng Vehicles Technologies Group Co., Ltd. and its subsidiaries [Member] | Trade Receivable [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 33.00% | 32.00% |
Concentrations (Details) - Sc_2
Concentrations (Details) - Schedule of concentration percentage | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Zhejiang Kandi Supply Chain Management Co., Ltd. [Member] | Purchases [Member] | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 49.00% | 73.00% |
Zhejiang Kandi Supply Chain Management Co., Ltd. [Member] | Accounts Payable [Member] | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 9.00% | 8.00% |
Supplier D [Member] | Purchases [Member] | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 22.00% | 11.00% |
Supplier D [Member] | Accounts Payable [Member] | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 5.00% |
Loss Per Share (Details)
Loss Per Share (Details) | 12 Months Ended |
Dec. 31, 2020shares | |
Earnings Per Share [Abstract] | |
Potentially dilutive shares | 900,000 |
Warrants were excluded | 8,131,332 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - Schedule of accounts receivable, net - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of accounts receivable, net [Abstract] | ||
Accounts receivable | $ 38,657,406 | $ 61,436,514 |
Less: allowance for doubtful accounts | (110,269) | (254,665) |
Accounts receivable, net | $ 38,547,137 | $ 61,181,849 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of inventories - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of inventories [Abstract] | ||
Raw material | $ 7,512,259 | $ 12,127,957 |
Work-in-progress | 5,488,532 | 4,545,736 |
Finished goods | 6,696,592 | 11,062,873 |
Inventories | $ 19,697,383 | $ 27,736,566 |
Notes Receivable (Details)
Notes Receivable (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Notes Receivable [Member] | ||
Notes Receivable (Details) [Line Items] | ||
Notes receivable from unrelated parties | $ 31,404,630 | |
Rate of interest | 6.00% | |
Notes receivable | $ 13,021,431 | $ 42,487,225 |
Notes Receivable One [Member] | ||
Notes Receivable (Details) [Line Items] | ||
Notes receivable from unrelated parties | $ 6,100,000 | |
Due date | Jan. 15, 2021 | |
Notes Receivable Two [Member] | ||
Notes Receivable (Details) [Line Items] | ||
Notes receivable from unrelated parties | $ 6,900,000 | |
Due date | Jan. 27, 2021 | |
Notes Receivable Three [Member] | ||
Notes Receivable (Details) [Line Items] | ||
Notes receivable from unrelated parties | $ 9,200,000 | |
Due date | Apr. 20, 2021 | |
Notes Receivable Four [Member] | ||
Notes Receivable (Details) [Line Items] | ||
Notes receivable from unrelated parties | $ 9,200,000 | |
Due date | Jun. 25, 2021 |
Advances to Suppliers (Details)
Advances to Suppliers (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Advances To Suppliers Are Summarized [Abstract] | |
Total contract amount | $ 38.3 |
Advance payment | 23 |
Expense | $ 3.4 |
Advances to Suppliers (Detail_2
Advances to Suppliers (Details) - Schedule of advances to suppliers are summarized - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of advances to suppliers are summarized [Abstract] | |||
Advance payment for inventory purchase | [1] | $ 13,107,630 | $ 52,714 |
Advance payment for R & D | [2] | 19,365,947 | |
Others | 4,259,605 | 632,294 | |
Total | $ 36,733,182 | $ 685,008 | |
[1] | This amount represents the advance payment in order to lock up the purchase price of the inventory. | ||
[2] | This amount presents the advance payment to a third party for designing a new EV model, as well as related research and development and consulting works. The Company entered into a research and development contract with a third party on December 1, 2020 with total contract amount of $38.3 million, and advance payment of $23.0 million as per the contract. $3.4 million of expense was incurred during the year ended December 31, 2020. |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | ||
Net book value of property, plant and equipment pledged as collateral bank loans | $ 0 | $ 6,484,497 |
Depreciation expenses | $ 6,976,651 | $ 7,549,836 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Details) - Schedule of property, plants and equipment - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 101,297,556 | $ 120,719,212 |
Less : Accumulated depreciation | (35,894,876) | (46,311,354) |
Property, plant and equipment, net | 65,402,680 | 74,407,858 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 18,924,734 | 30,447,480 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 67,893,378 | 62,973,794 |
Office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,138,870 | 1,048,651 |
Motor vehicles and other transport equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 587,785 | 413,046 |
Molds and others [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 12,752,789 | $ 25,836,241 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expenses for intangible assets | $ 625,629 | $ 625,070 |
Intangible Assets (Details) - S
Intangible Assets (Details) - Schedule of gross carrying value and accumulated amortization for each major class of intangible assets other than goodwill - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Intangible Assets (Details) - Schedule of gross carrying value and accumulated amortization for each major class of intangible assets other than goodwill [Line Items] | ||
Gross carrying value of intangible assets | $ 5,667,868 | $ 5,360,827 |
Less: Accumulated amortization | (2,435,115) | (1,706,055) |
Intangible assets, net | $ 3,232,753 | 3,654,772 |
Trade name [Member] | ||
Intangible Assets (Details) - Schedule of gross carrying value and accumulated amortization for each major class of intangible assets other than goodwill [Line Items] | ||
Remaining useful life | 1 year | |
Gross carrying value of intangible assets | $ 492,235 | 492,235 |
Less: Accumulated amortization | $ (439,798) | (389,053) |
Customer relations [Member] | ||
Intangible Assets (Details) - Schedule of gross carrying value and accumulated amortization for each major class of intangible assets other than goodwill [Line Items] | ||
Remaining useful life | 1 year | |
Gross carrying value of intangible assets | $ 304,086 | 304,086 |
Less: Accumulated amortization | (271,691) | (240,342) |
Patent [Member] | ||
Intangible Assets (Details) - Schedule of gross carrying value and accumulated amortization for each major class of intangible assets other than goodwill [Line Items] | ||
Gross carrying value of intangible assets | 4,871,547 | 4,564,506 |
Less: Accumulated amortization | $ (1,723,626) | $ (1,076,660) |
Patent [Member] | Minimum [Member] | ||
Intangible Assets (Details) - Schedule of gross carrying value and accumulated amortization for each major class of intangible assets other than goodwill [Line Items] | ||
Remaining useful life | 4 years 6 months | |
Patent [Member] | Maximum [Member] | ||
Intangible Assets (Details) - Schedule of gross carrying value and accumulated amortization for each major class of intangible assets other than goodwill [Line Items] | ||
Remaining useful life | 6 years 2 months 1 day |
Intangible Assets (Details) -_2
Intangible Assets (Details) - Schedule of amortization expenses - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of amortization expenses [Abstract] | ||
2021 | $ 625,629 | |
2022 | 546,271 | |
2023 | 543,534 | |
2024 | 543,534 | |
2025 | 481,255 | |
Thereafter | 492,530 | |
Total | $ 3,232,753 | $ 3,654,772 |
Land Use Rights (Details)
Land Use Rights (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Oct. 31, 2020 | |
Land Use Rights [Abstract] | ||||
Land use rights | $ 2,300,000 | |||
Gain on disposal of long-lived assets | $ 1,417,423 | |||
Gross value of land use rights | $ 3,500,000 | |||
Net book value of land use rights pledged as collateral | 0 | $ 4,937,138 | ||
Land use rights, amortization expenses | $ 201,061 | $ 327,250 |
Land Use Rights (Details) - Sch
Land Use Rights (Details) - Schedule of land use rights - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of land use rights [Abstract] | ||
Cost of land use rights | $ 4,024,889 | $ 14,731,847 |
Less: Accumulated amortization | (767,129) | (3,459,032) |
Land use rights, net | $ 3,257,760 | $ 11,272,815 |
Land Use Rights (Details) - S_2
Land Use Rights (Details) - Schedule of amortization expense - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of amortization expense [Abstract] | ||
2021 | $ 86,584 | |
2022 | 86,584 | |
2023 | 86,584 | |
2024 | 86,584 | |
2025 | 86,584 | |
Thereafter | 2,824,840 | |
Total | $ 3,257,760 | $ 11,272,815 |
Other Long Term Assets (Details
Other Long Term Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Other Long Term Assets (Details) [Line Items] | |||
Prepayments for land use right | [1] | $ 4,319,305 | $ 4,131,530 |
Amortization expense | 16,406 | ||
Old location certificates cancelled | 3,450,958 | ||
Other long term assets | 7,633,247 | ||
Depreciation expense | 224,778 | ||
Jinhua facility [Member] | |||
Other Long Term Assets (Details) [Line Items] | |||
Old location certificates cancelled | 6,095,310 | ||
Hainan [Member] | |||
Other Long Term Assets (Details) [Line Items] | |||
Prepayments for land use right | 4,319,305 | 4,131,530 | |
Amortization expense | 85,277 | $ 92,288 | |
Jinhua facility [Member] | |||
Other Long Term Assets (Details) [Line Items] | |||
Amortization expense | $ 93,184 | ||
[1] | As of December 31, 2020 and 2019, the Company’s other long term asset included net value of prepayments for land use right of Hainan facility of $4,319,305 and 4,131,530, respectively. As of December 31, 2020, 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, 2020 and 2019 were $85,277 and $ 92,288, respectively. |
Other Long Term Assets (Detai_2
Other Long Term Assets (Details) - Schedule of other long term assets - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of other long term assets [Abstract] | |||
Long term deferred assets | $ 3,706,560 | $ 4,819,152 | |
Prepayments for land use right | [1] | 4,319,305 | 4,131,530 |
Land and properties with certificates cancelled | [2] | 13,728,557 | |
Other receivables- Long term | 153,193 | 768,442 | |
Prepayments for new product molds | 6,663,909 | ||
Operating lease right-of-use assets | [3] | 3,496,993 | 10,743 |
Others | 238,967 | 284,205 | |
Total other long term asset | $ 32,307,484 | $ 10,014,072 | |
[1] | As of December 31, 2020 and 2019, the Company’s other long term asset included net value of prepayments for land use right of Hainan facility of $4,319,305 and 4,131,530, respectively. As of December 31, 2020, 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, 2020 and 2019 were $85,277 and $ 92,288, respectively. | ||
[2] | A s of December 31, 2020, the Company’s other long term asset included net value of land of Jinhua facility’s old location with certificates cancelled of $6,095,310. The amortization expense for the year ended December 31, 2020 were $93,184. As of December 31, 2020, the Company’s other long term asset included net value of properties of Jinhua facility’s old location with certificates cancelled of $7,633,247. The depreciation expense for the year ended December 31, 2020 were $224,778. | ||
[3] | As of December 31, 2020, the Company’s operating lease right-of-use assets in other long term asset included net value of newly acquired land use right of Jinhua facility of $3,450,958. The amortization expense for the year ended December 31, 2020 were $16,406. |
Short-Term and Long-Term Bank_3
Short-Term and Long-Term Bank Loans (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Disclosure [Abstract] | ||
Interest expense of short-term and long-term bank loans | $ 2,763,524 | $ 4,311,640 |
Aggregate amount of short-term and long-term loans guaranteed by various third parties | $ 0 |
Short-Term and Long-Term Bank_4
Short-Term and Long-Term Bank Loans (Details) - Schedule of short-term loan - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Short-term Debt [Line Items] | ||
Short-term loans | $ 25,980,364 | |
Paid Off on May 22, 2020 [Member] | Bank A [Member] | ||
Short-term Debt [Line Items] | ||
Short-term loans | 7,004,650 | |
Paid Off on May 22, 2020 One [Member] | Bank A [Member] | ||
Short-term Debt [Line Items] | ||
Short-term loans | 4,621,921 | |
Paid Off on April 22, 2020 [Member] | Bank B [Member] | ||
Short-term Debt [Line Items] | ||
Short-term loans | 5,741,517 | |
Paid Off on April 24, 2020 [Member] | Bank B [Member] | ||
Short-term Debt [Line Items] | ||
Short-term loans | 4,306,138 | |
Paid Off on April 26, 2020 [Member] | Bank B [Member] | ||
Short-term Debt [Line Items] | ||
Short-term loans | $ 4,306,138 |
Short-Term and Long-Term Bank_5
Short-Term and Long-Term Bank Loans (Details) - Schedule of short-term loan (Parentheticals) | 12 Months Ended |
Dec. 31, 2020 | |
Paid Off on May 22, 2020 [Member] | Bank A [Member] | |
Short-term Debt [Line Items] | |
Interest rate | 5.66% |
Paid off date | May 22, 2020 |
Paid Off on May 22, 2020 One [Member] | Bank A [Member] | |
Short-term Debt [Line Items] | |
Interest rate | 5.66% |
Paid off date | May 22, 2020 |
Paid Off on April 22, 2020 [Member] | Bank B [Member] | |
Short-term Debt [Line Items] | |
Interest rate | 5.22% |
Paid off date | Apr. 22, 2020 |
Paid Off on April 24, 2020 [Member] | Bank B [Member] | |
Short-term Debt [Line Items] | |
Interest rate | 5.22% |
Paid off date | Apr. 24, 2020 |
Paid Off on April 26, 2020 [Member] | Bank B [Member] | |
Short-term Debt [Line Items] | |
Interest rate | 5.22% |
Paid off date | Apr. 26, 2020 |
Short-Term and Long-Term Bank_6
Short-Term and Long-Term Bank Loans (Details) - Schedule of long-term loan - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Bank C | ||
Interest rate 7% per annum, paid off on December 11, 2020, guaranteed by the Company’s subsidiaries. | $ 28,133,433 | |
Long term loans - current portion | 13,779,641 | |
Long term loans - noncurrent portion | 14,353,792 | |
Total long term loans - current and noncurrent portion | $ 28,133,433 |
Taxes (Details)
Taxes (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | May 04, 2020 | Mar. 27, 2020 | |
Taxes (Details) [Line Items] | ||||
Applicable corporate income tax rate | 25.00% | |||
Reduced income tax rate | 15.00% | |||
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, 2020 and 2019 was a tax benefit of 32.69% on a reported loss before taxes of approximately $15.4 million, a tax benefit of 8.78% on a reported loss before taxes of approximately $7.9 million, respectively. | |||
Corporate income tax | 25.00% | |||
Deferred tax asset (in Dollars) | $ 3,400,000 | |||
Valuation allowance (in Dollars) | 2,800,000 | |||
Payroll expenses, percentage | 60.00% | |||
Qualifying expenses, percentage | 40.00% | |||
PPP Loan [Member] | ||||
Taxes (Details) [Line Items] | ||||
Loan amount (in Dollars) | $ 244,166 | |||
Interest rate | 1.00% | |||
Amount received under PPP and qualified the forgiveness (in Dollars) | $ 244,116 | |||
Prc [Member] | ||||
Taxes (Details) [Line Items] | ||||
Corporation income tax, description | The applicable CIT rate of each of the Company’s other subsidiaries, Kandi New Energy and Yongkang Scrou is 25%. | |||
Tax exemptions holiday percent | 25.00% | 25.00% | ||
Net loss carried forward term | 5 years | |||
Prc [Member] | HNTE Treatment [Member] | ||||
Taxes (Details) [Line Items] | ||||
Net loss carried forward term | 10 years | |||
Subsidiaries [Member] | ||||
Taxes (Details) [Line Items] | ||||
Corporate income tax | 25.00% | |||
U.S. [Member] | ||||
Taxes (Details) [Line Items] | ||||
Cumulative net operating loss (in Dollars) | $ 800,000 | |||
Hong Kong [Member] | ||||
Taxes (Details) [Line Items] | ||||
Cumulative net operating loss (in Dollars) | 100,000 | |||
Hong Kong [Member] | ||||
Taxes (Details) [Line Items] | ||||
Net Operation loss (in Dollars) | $ 21,500,000 | $ 9,600,000 |
Taxes (Details) - Schedule of i
Taxes (Details) - Schedule of income tax expenses - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | ||
Provision for CIT | $ 302,553 | $ 374,277 |
Deferred: | ||
Provision for CIT | (5,349,722) | (1,066,536) |
Income tax expense (benefit) | $ (5,047,169) | $ (692,259) |
Taxes (Details) - Schedule of p
Taxes (Details) - Schedule of provision for income taxes - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of provision for income taxes [Abstract] | ||
Expected taxation at PRC statutory tax rate | $ (3,860,333) | $ (1,970,247) |
Recognition of outside basis difference in equity investment of the Affiliate Company | (4,347,061) | |
Effect of differing tax rates in different jurisdictions | 93,806 | 363,199 |
Effect of PRC preferential tax rates | 1,145,631 | 162,218 |
Non-taxable income | (7,889) | (86,537) |
Non-deductible expenses | 615,659 | 1,703,235 |
Research and development super-deduction | (458,723) | (350,449) |
(Over) Under-accrued EIT for previous years | (24,583) | (1,792,560) |
Addition to valuation allowance | 1,629,952 | 1,301,225 |
Other | 166,372 | (22,343) |
Income tax (benefit) expense | $ (5,047,169) | $ (692,259) |
Taxes (Details) - Schedule of d
Taxes (Details) - Schedule of deferred tax assets and liabilities - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred tax assets: | ||
Accruals and reserves | $ 1,160,830 | $ 672,983 |
Depreciation | 53,199 | |
Outside basis difference of investment in the Affiliate Company | 7,821,994 | |
Loss carried forward | 3,415,400 | 2,401,125 |
Total deferred tax assets | 12,398,224 | 3,127,307 |
Deferred tax liabilities: | ||
Expense | (588,889) | (680,906) |
Intangible | (473,024) | (519,006) |
Revenue | (2,421,259) | (162,874) |
Total deferred tax liability | (3,483,172) | (1,362,786) |
Net deferred tax assets (liabilities) | 8,915,052 | 1,764,521 |
less: valuation allowance | (3,433,277) | (2,401,125) |
Net deferred tax assets(liabilities),net of valuation allowance | $ 5,481,775 | $ (636,604) |
Taxes (Details) - Schedule of_2
Taxes (Details) - Schedule of income (loss) before income taxes - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Taxes (Details) - Schedule of income (loss) before income taxes [Line Items] | ||
Total | $ (15,441,333) | $ (7,880,986) |
PRC [Member] | ||
Taxes (Details) - Schedule of income (loss) before income taxes [Line Items] | ||
Total | (12,734,584) | (5,413,025) |
Non-PRC [Member] | ||
Taxes (Details) - Schedule of income (loss) before income taxes [Line Items] | ||
Total | $ (2,706,749) | $ (2,467,961) |
Taxes (Details) - Schedule of v
Taxes (Details) - Schedule of valuation allowance of deferred tax assets | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Schedule of valuation allowance of deferred tax assets [Abstract] | |
Balance at December 31,2019 | $ 2,401,126 |
Additions-change to tax expense | 1,629,952 |
Prior year true up | 180,321 |
Exchange rate difference | 253,404 |
Increase/Decrease due to change of tax rate of Kandi Hainan | (1,031,526) |
Balance at December 31,2020 | $ 3,433,277 |
Taxes (Details) - Schedule of_3
Taxes (Details) - Schedule of income tax expense exemptions and reductions - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of income tax expense exemptions and reductions [Abstract] | ||
Tax benefit (holiday) credit | $ 690,905 | $ 1,532,748 |
Basic net income per share effect | $ 0 | $ 0 |
Leases (Details)
Leases (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Oct. 31, 2020 | Dec. 31, 2019 | ||
Leases (Details) [Line Items] | ||||
Gross value of land use rights | $ 3,500,000 | |||
Right of use asset | [1] | $ 3,496,993 | $ 10,743 | |
Lease liability | 47,578 | |||
Operating lease cost | 156,406 | |||
Lease [Member] | ||||
Leases (Details) [Line Items] | ||||
Right of use asset | 3,496,993 | |||
Lease liability | $ 47,578 | |||
SC Autosports [Member] | Corporate Office [Member] | ||||
Leases (Details) [Line Items] | ||||
Lease term | 15 months | |||
Monthly lease payment, description | The monthly lease payment is $11,000 from February 2020 to April 2020 and $12,000 from May 2020 to April 2021. | |||
Discount rate | 4.25% | |||
[1] | As of December 31, 2020, the Company’s operating lease right-of-use assets in other long term asset included net value of newly acquired land use right of Jinhua facility of $3,450,958. The amortization expense for the year ended December 31, 2020 were $16,406. |
Leases (Details) - Schedule of
Leases (Details) - Schedule of information related to operating leases | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Schedule of information related to operating leases [Abstract] | |
Cash payments for operating leases | $ 156,406 |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of maturities of lease liabilities | Dec. 31, 2020USD ($) |
Schedule of maturities of lease liabilities [Abstract] | |
Year ended December 31, 2021 | $ 47,578 |
Total | $ 47,578 |
Contingent Consideration Liab_3
Contingent Consideration Liability (Details) | Jul. 02, 2018 | Jul. 01, 2018USD ($)shares | Jan. 03, 2018USD ($)shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2018shares | Dec. 31, 2019USD ($) |
Contingent Consideration Liability (Details) [Line Items] | |||||||
Number of shares issued, value (in Dollars) | $ | $ 151,923,247 | ||||||
Contingent consideration liability (in Dollars) | $ | $ 3,743,000 | $ 5,197,000 | |||||
Jinhua An Kao [Member] | |||||||
Contingent Consideration Liability (Details) [Line Items] | |||||||
Contingent consideration liability, description | Kandi Smart Battery Swap achieved its first year net profit target. Accordingly, the KSBS Shareholders 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, Kandi Smart Battery Swap achieved its second year net profit target. Accordingly, the KSBS Shareholders received 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. All the escrowed shares have been included in the Company’s registration statement on Form S-3 declared effective by the SEC on April 5, 2019.As the outbreak of COVID-19 in 2020 affected Kandi Smart Battery Swap’s operation and business, on July 7, 2020, the Company and the KSBS Shareholders made the following supplements to Condition III of the original Supplementary Agreement: The KSBC Shareholders have the right to receive an aggregate of 20.83% of the total equity consideration (i.e., 5,919,674 total shares), provided that Kandi Smart Battery Swap realizes a net profit of RMB50,000,000 or more for the period from January 1, 2020 to June 30, 2021 (as opposed to be the originally stated “December 31, 2020”), and such profit is audited or reviewed and Kandi Smart Battery Swap gets annual or quarterly financial report issued under US GAAP. On July 1, 2018, the Company completed the acquisition of 100% of the equity of SC Autosports (d/b/a Kandi America). 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 immediately prior to the closing of the acquisition 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 of up to an additional 1,547,721 shares of common stock of the Company, which are being held in escrow and 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 due to the 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. Accordingly, the former members of SC Autosports received 343,938 shares of Kandi’s restrictive common stock or 20% of the total equity consideration in the purchase price. For the year ended December 31, 2019, SC Autosports achieved its second year pre-tax profit target. Accordingly, the former members of SC Autosports received 515,907 shares of Kandi’s restrictive common stock or 30% of the total equity consideration in the purchase price. For the year ended December 31, 2020, SC Autosports partially achieved its third year pre-tax profit target. As the gap between third year’s pretax profit and pre-tax profit target is less than 20%, the former members of SC Autosports will receive 515,907 shares of Kandi’s restrictive common stock or 30% of the total equity consideration in the purchase price. All the escrowed shares | ||||||
Number of shares issued | 2,959,837 | ||||||
KSBS Shareholders [Member] | |||||||
Contingent Consideration Liability (Details) [Line Items] | |||||||
Total equity consideration, percentage | 20.83% | 20.83% | |||||
Total shares of equity consideration | 5,919,674 | 5,919,674 | |||||
Net profit (in Yuan Renminbi) | ¥ | ¥ 50,000,000 | ||||||
SC Autosports [Member] | |||||||
Contingent Consideration Liability (Details) [Line Items] | |||||||
Contingent consideration liability, description | For the year ended December 31, 2018, SC Autosports achieved its first year pre-tax profit target. Accordingly, the former members of SC Autosports received 343,938 shares of Kandi’s restrictive common stock or 20% of the total equity consideration in the purchase price. For the year ended December 31, 2019, SC Autosports achieved its second year pre-tax profit target. Accordingly, the former members of SC Autosports received 515,907 shares of Kandi’s restrictive common stock or 30% of the total equity consideration in the purchase price. For the year ended December 31, 2020, SC Autosports partially achieved its third year pre-tax profit target. As the gap between third year’s pretax profit and pre-tax profit target is less than 20%, the former members of SC Autosports will receive 515,907 shares of Kandi’s restrictive common stock or 30% of the total equity consideration in the purchase price. All the escrowed shares have been included in the Company’s registration statement on Form S-3 declared effective by the SEC on April 5, 2019. | ||||||
Number of shares, granted | 343,938 | ||||||
Contingent consideration liability (in Dollars) | $ | $ 2,692,000 | ||||||
SC Autosports [Member] | Transfer Agreement [Member] | |||||||
Contingent Consideration Liability (Details) [Line Items] | |||||||
Number of shares issued | 1,547,721 | ||||||
Restricted Stock [Member] | Jinhua An Kao [Member] | |||||||
Contingent Consideration Liability (Details) [Line Items] | |||||||
Contingent consideration liability, description | the Company completed the acquisition of 100% of the equity of Jinhua An Kao, currently known as Kandi Smart Battery Swap Co., Ltd. (“Kandi Smart Battery Swap”). 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 immediately prior to the closing of the acquisition valued at approximately $20.7 million to the former shareholders of Kandi Smart Battery Swap and his designees (the “KSBS Shareholders”), and may be required to pay future consideration of up to an additional 2,959,837 shares of common stock, which are being held in escrow and to be released contingent upon the achievement of certain net income-based milestones in the next three years. | ||||||
Number of shares issued, value (in Dollars) | $ | $ 20,700,000 | ||||||
Numberofsharesissued | 2,959,837 | ||||||
Restricted Stock [Member] | SC Autosports [Member] | Transfer Agreement [Member] | |||||||
Contingent Consideration Liability (Details) [Line Items] | |||||||
Contingent consideration liability, description | 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 immediately prior to the closing of the acquisition 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 of up to an additional 1,547,721 shares of common stock of the Company, which are being held in escrow and to be released contingent upon the achievement of certain pre-tax profit based milestones in the next three years. | ||||||
Restricted Stock [Member] | SC Autosports [Member] | Transfer Agreement [Member] | |||||||
Contingent Consideration Liability (Details) [Line Items] | |||||||
Number of shares issued | 171,969 | ||||||
Number of shares issued, value (in Dollars) | $ | $ 800,000 |
Contingent Consideration Liab_4
Contingent Consideration Liability (Details) - Schedule of contingent consideration liability - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition, Contingent Consideration [Line Items] | ||
Total contingent consideration liability | $ 3,743,000 | $ 5,197,000 |
KSBS Shareholders [Member] | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Total contingent consideration liability | 3,743,000 | 2,505,000 |
SC Autosports [Member] | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Total contingent consideration liability | $ 2,692,000 |
Common Shares (Details)
Common Shares (Details) - USD ($) | Dec. 16, 2020 | Nov. 24, 2020 | Nov. 12, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | May 15, 2015 |
Common Shares (Details) [Line Items] | ||||||
Common stock, par value | $ 0.001 | $ 0.001 | ||||
Price per share | $ 8.1613 | |||||
Retire from treasury (in Shares) | 487,155 | |||||
Treasury stock balance decreased (in Dollars) | $ 1,200,000,000 | |||||
Reduced value of stock (in Dollars) | $ 2,477,965 | |||||
Warrant [Member] | ||||||
Common Shares (Details) [Line Items] | ||||||
Warrants per share | $ 8.18 | |||||
Securities Purchase Agreement [Member] | ||||||
Common Shares (Details) [Line Items] | ||||||
Aggregate of issued in units (in Shares) | 8,849,560 | 9,404,392 | ||||
Common stock, par value | $ 0.001 | $ 0.001 | ||||
Warrants per share | 0.4 | 0.4 | ||||
Price per share | $ 11.30 | $ 6.38 | ||||
Gross proceeds (in Dollars) | $ 100,000,028 | $ 60,000,021 | ||||
Offering expenses payable (in Dollars) | $ 5,000,000 | $ 3,100,000 | ||||
Securities Purchase Agreement [Member] | Common Stock [Member] | ||||||
Common Shares (Details) [Line Items] | ||||||
Aggregate of issued in units (in Shares) | 8,849,560 | 9,404,392 | ||||
warrants exercisable (in Shares) | 3,539,825 | 3,761,757 | ||||
Securities Purchase Agreement [Member] | Warrant [Member] | ||||||
Common Shares (Details) [Line Items] | ||||||
Warrants per share | $ 14.50 |
Stock Options (Details)
Stock Options (Details) - USD ($) | May 15, 2015 | Dec. 31, 2020 |
Stock Options (Details) [Line Items] | ||
Exercised price per share (in Dollars per share) | $ 9.72 | |
Stock options valued (in Dollars) | $ 39,990,540 | |
Expected volatility | 90.00% | |
Expected life | 10 years | |
Risk-free interest rate, percent | 2.23% | |
Expected dividend yield | 0.00% | |
Options issued to the employees and directors (in Shares) | 4,900,000 | |
Price per share (in Dollars per share) | $ 8.1613 | |
Stock options, description | The stock options will vest ratably over three years and expire on the tenth anniversary of the grant date. The Company valued the stock options at $39,990,540 and had amortized the stock compensation expense using the straight-line method over the service period from May 29, 2015, through May 29, 2018. The value of the stock options was estimated using the Black Scholes Model with an expected volatility of 90%, an expected life of 10 years, a risk-free interest rate of 2.23% and an expected dividend yield of 0.00%. All expenses had been amortized as of May 29, 2018. | |
Common Stock [Member] | ||
Stock Options (Details) [Line Items] | ||
Purchase of shares (in Shares) | 4,900,000 | 3,000,000 |
Stock Options (Details) - Sched
Stock Options (Details) - Schedule of stock option activities - Stock options [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Stock Options (Details) - Schedule of stock option activities [Line Items] | ||
Number of Shares, Outstanding beginning balance | 3,900,000 | 3,900,000 |
Weighted Average Exercise Price, Outstanding beginning balance | $ 9.72 | $ 9.72 |
Number of Shares, Outstanding ending balance | 900,000 | 3,900,000 |
Weighted Average Exercise Price, Outstanding ending balance | $ 9.72 | $ 9.72 |
Number of Shares, Granted | ||
Weighted Average Exercise Price, Granted | ||
Number of Shares, Exercised | 3,000,000 | |
Weighted Average Exercise Price, Exercised | $ 9.72 | |
Number of Shares, Cancelled | ||
Weighted Average Exercise Price, Cancelled | ||
Number of Shares, Forfeited | 3,900,000 | |
Weighted Average Exercise Price, Forfeited | $ 9.72 |
Stock Award (Details)
Stock Award (Details) - USD ($) | May 15, 2020 | May 09, 2020 | Apr. 30, 2019 | Jan. 29, 2019 | Apr. 18, 2018 | Nov. 30, 2016 | Sep. 26, 2016 | Dec. 31, 2020 | Dec. 31, 2019 |
Stock Award (Details) [Line Items] | |||||||||
Employee stock award expenses (in Dollars) | $ 902,666 | ||||||||
Employee Stock Award Expenses [Member] | |||||||||
Stock Award (Details) [Line Items] | |||||||||
Employee stock award expenses (in Dollars) | $ 1,360,258 | ||||||||
2008 Plan [Member] | |||||||||
Stock Award (Details) [Line Items] | |||||||||
Reduce total number of shares of common stock | 250,000 | ||||||||
Number of shares, granted | 238,600 | ||||||||
Mr. Henry Yu [Member] | |||||||||
Stock Award (Details) [Line Items] | |||||||||
Restricted shares of common stock | 5,000 | ||||||||
Mr. Jerry Lewin [Member] | |||||||||
Stock Award (Details) [Line Items] | |||||||||
Restricted shares of common stock | 5,000 | ||||||||
Ms. Kewa Luo [Member] | |||||||||
Stock Award (Details) [Line Items] | |||||||||
Restricted shares of common stock | 5,000 | ||||||||
Mr Mei Bing [Member] | Three Year Employment Agreement [Member] | |||||||||
Stock Award (Details) [Line Items] | |||||||||
Shares of common stock | 10,000 | ||||||||
Vested shares of four equal quarterly installments | 2,500 | ||||||||
Ms Zhu Xiaoying [Member] | 2008 Omnibus Long-Term Incentive Plan [Member] | |||||||||
Stock Award (Details) [Line Items] | |||||||||
Shares of common stock | 10,000 | ||||||||
Mr. Jehn Ming Lim [Member] | 2008 Omnibus Long-Term Incentive Plan [Member] | |||||||||
Stock Award (Details) [Line Items] | |||||||||
Shares of common stock | 6,000 | ||||||||
Management Members and Employees [Member] | |||||||||
Stock Award (Details) [Line Items] | |||||||||
Number of shares, granted | 238,600 | 238,600 |
Summarized Information of Equ_3
Summarized Information of Equity Method Investment in The Affiliate Company (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 13 Months Ended | |||||||||||||||
Aug. 28, 2020 | Sep. 29, 2019USD ($) | Sep. 29, 2019CNY (¥) | Mar. 21, 2019 | Sep. 30, 2019USD ($) | Mar. 31, 2019 | Sep. 30, 2020 | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Feb. 18, 2021USD ($) | Mar. 16, 2021USD ($) | Mar. 16, 2021CNY (¥) | Feb. 18, 2021CNY (¥) | Jul. 09, 2020USD ($) | Jul. 09, 2020CNY (¥) | May 22, 2020USD ($) | May 22, 2020CNY (¥) | Mar. 10, 2020USD ($) | Mar. 10, 2020CNY (¥) | Sep. 29, 2019CNY (¥) | |
Summarized Information of Equity Method Investment in The Affiliate Company (Details) [Line Items] | ||||||||||||||||||||
Equity method investments on affiliate | $ 20,000,000 | ¥ 130,000,000 | $ 37,000,000 | ¥ 244,000,000 | $ 77,000,000 | ¥ 500,000,000 | ||||||||||||||
Ownership percentage of net income loss | 22.00% | |||||||||||||||||||
Equity interest percentage | 85.00% | |||||||||||||||||||
Equity method investment difference between the carrying value in net assets, description | there was about RMB 97.2 million of difference between the carrying value of the debt of RMB 1.2 billion and the carrying value of ZuoZhongYou’s net asset at the transaction date.Hence, there is a decrease of RMB 21.4 million (approximately $3.3 million, which is 22% of the RMB 97.2 million) of “Investment in the Affiliate Company” on the Company’s book, with a corresponding decrease to the additional paid in capital. | |||||||||||||||||||
Sales to affiliate Company and subsidiaries, description | The gain from equity dilution for three months ended March 31, 2019 resulted from the Affiliate Company issuing shares to the major shareholder of the Affiliate Company, 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. | |||||||||||||||||||
Net amount due from the affiliate company | $ 21,742,226 | $ 31,330,763 | ||||||||||||||||||
Subsequent Event [Member] | ||||||||||||||||||||
Summarized Information of Equity Method Investment in The Affiliate Company (Details) [Line Items] | ||||||||||||||||||||
Equity method investments on affiliate | $ 47,200,000 | $ 23,600,000 | ¥ 154,000,000 | ¥ 308,000,000 | ||||||||||||||||
Affiliated Company [Member] | ||||||||||||||||||||
Summarized Information of Equity Method Investment in The Affiliate Company (Details) [Line Items] | ||||||||||||||||||||
Sales to affiliate Company and subsidiaries, description | , Ltd. (“Geely”) 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 $48.1 million) from Geely in the year of 2019 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 $367.6 million), of which Zhejiang Kandi Technologies owned 43.47% and Geely owned 56.53%, respectively, upon the conversion of the loan into equity in the Affiliate Company. Zhejiang Kandi Technologies further sold 21.47% of its equity interests in the Affiliate Company to Geely for a total consideration of RMB 516 million (approximately $79.0 million). Zhejiang Kandi Technologies owns 22% of the equity interests of the Affiliate Company as a result of the transfer. | Sales to the Company’s customers, the Affiliate Company and its subsidiaries, for the year ended December 31, 2020, were $1,321 or 0% of the Company’s total revenue, a decrease of 100% from $ 15,861,441 of the year ended December 31, 2019. 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. | ||||||||||||||||||
Realized gain from sale of equity | 20,438,986 | |||||||||||||||||||
Interest receivable related to loan | 2,194,903 | $ 2,056,564 | ||||||||||||||||||
Geely Automobile Holdings Ltd [Member] | ||||||||||||||||||||
Summarized Information of Equity Method Investment in The Affiliate Company (Details) [Line Items] | ||||||||||||||||||||
Cash proceeds from affiliates | $ 33,700,000 | ¥ 220,000,000 | ||||||||||||||||||
Equity method investments on affiliate | 45,300,000 | ¥ 296,000,000 | ||||||||||||||||||
Realized gain from sale of equity | $ 20,574,217 | |||||||||||||||||||
Conversion of debt | $ 1,200,000,000 | |||||||||||||||||||
Equity Transfer Agreement [Member] | Subsequent Event [Member] | ||||||||||||||||||||
Summarized Information of Equity Method Investment in The Affiliate Company (Details) [Line Items] | ||||||||||||||||||||
Equity method investments on affiliate | $ 47,200,000 | ¥ 308,000,000 | ||||||||||||||||||
Ownership percentage of net income loss | 22.00% | |||||||||||||||||||
Equity transfer payment received | $ 23,600,000 | ¥ 154,000,000 | ||||||||||||||||||
January 20, 2020 [Member] | Geely Automobile Holdings Ltd [Member] | ||||||||||||||||||||
Summarized Information of Equity Method Investment in The Affiliate Company (Details) [Line Items] | ||||||||||||||||||||
Equity method investments on affiliate | 21,400,000 | 140,000,000 | ||||||||||||||||||
March 29, 2020 [Member] | Geely Automobile Holdings Ltd [Member] | ||||||||||||||||||||
Summarized Information of Equity Method Investment in The Affiliate Company (Details) [Line Items] | ||||||||||||||||||||
Equity method investments on affiliate | $ 23,900,000 | ¥ 156,000,000 |
Summarized Information of Equ_4
Summarized Information of Equity Method Investment in The Affiliate Company (Details) - Schedule of condensed income statement information - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of condensed income statement information [Abstract] | ||
Net sales | $ 94,831,334 | $ 124,280,561 |
Gross loss | $ (10,518,130) | $ (2,609,764) |
Gross margin | (11.10%) | (2.10%) |
Net loss | $ (76,402,392) | $ (85,972,257) |
Summarized Information of Equ_5
Summarized Information of Equity Method Investment in The Affiliate Company (Details) - Schedule of condensed balance sheet information - Affiliated Company [Member] - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Current assets | $ 586,040,953 | $ 640,688,401 |
Noncurrent assets | 272,818,292 | 64,589,516 |
Total assets | 858,859,245 | 705,277,917 |
Current liabilities | 707,054,287 | 490,625,640 |
Noncurrent liabilities | 8,635,356 | |
Equity | 143,169,602 | 214,652,277 |
Total liabilities and equity | $ 858,859,245 | $ 705,277,917 |
Summarized Information of Equ_6
Summarized Information of Equity Method Investment in The Affiliate Company (Details) - Schedule of equity method investments - Affiliated Company [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Schedule of Equity Method Investments [Line Items] | |||
Investment in the Affiliate Company, beginning of the period, | $ 47,228,614 | $ 128,929,893 | |
Investment decreased | (72,309,417) | ||
Gain from equity dilution | 4,263,764 | ||
Gain from equity sale | 20,438,986 | ||
Reduction in the equity of the Affiliate Company | [1] | (3,275,999) | |
Company’s share in net (loss) income of Affiliate based on 22% ownership for year ended December 31, 2020 and 50% ownership for three months ended March 31, 2019, 43.47% ownership for six months ended September 30, 2019, 22% ownership for three months ended December 31, 2019 | (16,812,341) | (30,864,754) | |
Non-controlling interest | (445,977) | ||
Intercompany transaction elimination | (5,649) | ||
Prior year unrealized profit realized | 5,656 | 153,465 | |
Subtotal | (17,252,662) | (30,716,938) | |
Exchange difference | 2,192,685 | (3,377,674) | |
Investment in Affiliate Company, end of the period | 28,892,638 | 47,228,614 | |
- Non-controlling interest carrying amount | $ 2,611,821 | ||
[1] | The Affiliate Company converted RMB 1.2 billion of the debt due from Zhejiang ZuoZhongYou Automobile Service Co., Ltd (“ZuoZhongYou”) into 85% of its equity interest. ZuoZhongYou is under common control with the Affiliate Company by Geely. |
Commitments and Contingencies (
Commitments and Contingencies (Details) ¥ in Millions | Mar. 15, 2013USD ($) | Apr. 30, 2017 | Mar. 15, 2013CNY (¥) |
Nanlong Group Co Ltd [Member] | |||
Commitments and Contingencies (Details) [Line Items] | |||
Description of loans period | (“NGCL”) for NGCL’s $3,063,866 (RMB 20 million) loan from Shanghai Pudong Development Bank Jinhua Branch, with a related loan period from March 15, 2013 to March 15, 2016. | ||
Guarantee for bank loans amount | $ 3,063,866 | ¥ 20 | |
Shanghai Pudong Development Bank [Member] | |||
Commitments and Contingencies (Details) [Line Items] | |||
Loan borrowed, description | 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 $2.9 million and demanded that the guarantor bear the liability for compensation. |
Segment Reporting (Details)
Segment Reporting (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Number of operating segment | 1 |
Segment Reporting (Details) - S
Segment Reporting (Details) - Schedule of revenues by geographic area - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 76,920,513 | $ 135,741,336 |
Primary Geographical Markets [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 76,920,513 | 135,741,336 |
Major products [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 76,920,513 | 135,741,336 |
Off-road vehicles [Member] | Major products [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 29,824,323 | 22,743,142 |
Electric Scooters, Electric Self-Balancing Scooters and associated parts [Member] | Major products [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 5,765,969 | 2,213,646 |
Overseas [Member] | Primary Geographical Markets [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 29,394,148 | 24,623,424 |
China [Member] | Primary Geographical Markets [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 47,526,365 | 111,117,912 |
EV parts [Member] | Major products [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 40,645,696 | 110,675,908 |
EV products [Member] | Major products [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 684,525 | 108,640 |
Products transferred at a point in time [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 76,920,513 | $ 135,741,336 |
Subsequent Event (Details)
Subsequent Event (Details) $ in Millions | Mar. 16, 2021USD ($) | Mar. 16, 2021CNY (¥) | Feb. 18, 2021USD ($) | Feb. 18, 2021CNY (¥) | Sep. 30, 2020 |
Subsequent Event (Details) [Line Items] | |||||
Equity interest | 22.00% | 22.00% | 100.00% | ||
Subsequent event, description | The first half of the equity transfer payment will be payed within 5 business days from the date of completing the industrial and commercial modification procedures, and the rest will be paid within 6 months from the date of completing such procedures. | The first half of the equity transfer payment will be payed within 5 business days from the date of completing the industrial and commercial modification procedures, and the rest will be paid within 6 months from the date of completing such procedures. | |||
Subsequent Event [Member] | |||||
Subsequent Event (Details) [Line Items] | |||||
Equity interest | 22.00% | 22.00% | |||
Total Consideration | $ 47.2 | ¥ 308,000,000 | |||
Equity transfer payment | $ 23.6 | ¥ 154,000,000 |