Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 10, 2022 | Jun. 30, 2021 | |
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 | 76,256,345 | ||
Entity Public Float | $ 365,214,591 | ||
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, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | true | ||
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 | ||
City Area Code | (86 - 579) | ||
Local Phone Number | 82239856 | ||
Entity Address, Address Line One | Jinhua City Industrial Zone | ||
Entity Address, City or Town | Jinhua | ||
Entity Address, Address Line Two | Zhejiang Province | ||
Entity Address, Country | CN | ||
Entity Address, Postal Zip Code | 321016 | ||
Title of 12(b) Security | Common Stock | ||
Security Exchange Name | NASDAQ | ||
Entity Interactive Data Current | Yes | ||
Auditor Name | Marcum Bernstein & Pinchuk LLP | ||
Auditor Location | New York, NY | ||
Auditor Firm ID | 5395 | ||
Paris, Kreit & Chiu CPA LLP [Member] | |||
Document Information Line Items | |||
Auditor Name | Paris, Kreit & Chiu CPA LLP | ||
Auditor Location | New York, NY | ||
Auditor Firm ID | 6651 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 129,223,443 | $ 142,078,190 |
Restricted cash | 39,452,564 | 442,445 |
Certificate of deposit | 55,041,832 | |
Accounts receivable (net of allowance for doubtful accounts of $3,053,277 and $110,269 as of December 31, 2021 and December 31, 2020, respectively) | 52,896,305 | 38,547,137 |
Inventories | 33,171,973 | 19,697,383 |
Notes receivable | 323,128 | 31,404,630 |
Other receivables | 8,901,109 | 1,875,245 |
Prepayments and prepaid expense | 17,657,326 | 13,708,149 |
Advances to suppliers | 5,940,456 | 36,733,182 |
Amount due from the Affiliate Company | 21,742,226 | |
Amount due from related party | 886,989 | |
TOTAL CURRENT ASSETS | 342,608,136 | 307,115,576 |
NON-CURRENT ASSETS | ||
Property, plant and equipment, net | 111,577,411 | 65,402,680 |
Intangible assets, net | 13,249,079 | 3,232,753 |
Land use rights, net | 3,250,336 | 3,257,760 |
Construction in progress | 79,317 | 16,317,662 |
Deferred tax assets | 2,219,297 | 8,964,946 |
Long-term investment | 157,262 | 45,958 |
Investment in the Affiliate Company | 28,892,638 | |
Goodwill | 36,027,425 | 29,712,383 |
Other long-term assets | 10,992,009 | 32,307,484 |
TOTAL NON-CURRENT ASSETS | 177,552,136 | 188,134,264 |
TOTAL ASSETS | 520,160,272 | 495,249,840 |
CURRENT LIABILITIES | ||
Accounts payable | 36,677,802 | 34,257,935 |
Other payables and accrued expenses | 9,676,973 | 7,218,395 |
Short-term loans | 950,000 | |
Notes payable | 8,198,193 | 92,445 |
Income tax payable | 1,620,827 | 1,313,754 |
Advance receipts | 38,229,242 | |
Amount due to related party | 500,000 | |
Other current liabilities | 7,038,895 | 2,185,654 |
TOTAL CURRENT LIABILITIES | 64,162,690 | 83,797,425 |
NON-CURRENT LIABILITIES | ||
Long-term loans | 2,210,589 | |
Deferred tax liability | 2,460,141 | 3,483,171 |
Contingent consideration liability | 7,812,000 | 3,743,000 |
Other long-term liabilities | 314,525 | 459,580 |
TOTAL NON-CURRENT LIABILITIES | 12,797,255 | 7,685,751 |
TOTAL LIABILITIES | 76,959,945 | 91,483,176 |
STOCKHOLDER’S EQUITY | ||
Common stock, $0.001 par value; 100,000,000 shares authorized; 77,385,130 and 77,298,499 shares issued and 76,705,381 and 75,377,555 outstanding at December 31,2021 and December 31,2020, respectively | 77,385 | 75,377 |
Less: Treasury stock (679,749 shares and 0 shares with average price of $3.52 at December 31,2021 and December 31,2020, respectively) | (2,392,203) | |
Additional paid-in capital | 449,479,461 | 439,549,338 |
Accumulated deficit (the restricted portion is $4,422,033 and $4,422,033 at December 31,2021 and December 31,2020, respectively) | (4,216,102) | (27,079,900) |
Accumulated other comprehensive income (loss) | 251,786 | (8,778,151) |
TOTAL STOCKHOLDERS’ EQUITY | 443,200,327 | 403,766,664 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 520,160,272 | $ 495,249,840 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Net of allowance for doubtful accounts (in Dollars) | $ 3,053,277 | $ 110,269 |
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 | 77,385,130 | 77,298,499 |
Common stock, shares outstanding | 76,705,381 | 75,377,555 |
Treasury stock, shares | 679,749 | 0 |
Treasury stock, average price (in Dollars per share) | $ 3.52 | $ 3.52 |
Restricted portion of accumulated deficit (in Dollars) | $ 4,422,033 | $ 4,422,033 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | ||
REVENUES FROM UNRELATED PARTIES, NET | $ 91,484,792 | $ 76,176,609 |
REVENUES FROM THE AFFILIATE COMPANY AND RELATED PARTIES, NET | 1,592 | 743,904 |
REVENUES, NET | 91,486,384 | 76,920,513 |
COST OF GOODS SOLD | (75,238,522) | (63,432,580) |
GROSS PROFIT | 16,247,862 | 13,487,933 |
OPERATING INCOME (EXPENSE): | ||
Research and development | (38,971,986) | (7,246,312) |
Selling and marketing | (4,736,000) | (6,619,355) |
General and administrative | (19,605,468) | (13,042,103) |
Gain on disposal of long-lived assets | 48,401,797 | 14,174,233 |
TOTAL OPERATING EXPENSE | (14,911,657) | (12,733,537) |
INCOME FROM OPERATIONS | 1,336,205 | 754,396 |
OTHER INCOME (EXPENSE): | ||
Interest income | 4,208,751 | 2,190,678 |
Interest expense | (407,620) | (3,750,233) |
Change in fair value of contingent consideration | 2,834,000 | (565,000) |
Government grants | 1,233,192 | 1,130,262 |
Gain from sale of equity in the Affiliate Company | 17,788,351 | |
Share of loss after tax of the Affiliate Company | (2,592,334) | (17,252,662) |
Other income, net | 4,809,743 | 2,051,226 |
TOTAL OTHER INCOME (EXPENSE), NET | 27,874,083 | (16,195,729) |
INCOME (LOSS) BEFORE INCOME TAXES | 29,210,288 | (15,441,333) |
INCOME TAX (EXPENSE) BENEFIT | (6,346,490) | 5,047,169 |
NET INCOME (LOSS) | 22,863,798 | (10,394,164) |
OTHER COMPREHENSIVE INCOME | ||
Foreign currency translation adjustment | 9,029,937 | 13,945,430 |
COMPREHENSIVE INCOME | $ 31,893,735 | $ 3,551,266 |
WEIGHTED AVERAGE SHARES OUTSTANDING BASIC AND DILUTED (in Shares) | 76,148,688 | 55,960,010 |
NET INCOME (LOSS) PER SHARE, BASIC AND DILUTED (in Dollars per share) | $ 0.3 | $ (0.19) |
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 Income (Loss) | Total |
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 | $ 1,771 | 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 | |||||
Warrants issuance | ||||||
Stock option exercise | $ 3,000 | 29,157,000 | $ 29,160,000 | |||
Stock option exercise (in Shares) | 3,000,000 | 3,000,000 | ||||
Net income (Loss) | (10,394,164) | $ (10,394,164) | ||||
Foreign currency translation | 13,945,430 | 13,945,430 | ||||
Reduction in the Affiliate Company’s equity | (2,784,599) | (2,784,599) | ||||
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 | $ 2,008 | 7,178,928 | $ 7,180,936 | |||
Stock issuance and award (in Shares) | 2,007,575 | |||||
Stock option exercise (in Shares) | ||||||
Net income (Loss) | 22,863,798 | $ 22,863,798 | ||||
Foreign currency translation | 9,029,937 | 9,029,937 | ||||
Reduction in the Affiliate Company’s equity | 2,771,652 | 2,771,652 | ||||
Stock buyback | (2,392,203) | (2,392,203) | ||||
Commission in stock buyback | (20,457) | (20,457) | ||||
Balance at Dec. 31, 2021 | $ 77,385 | $ (2,392,203) | $ 449,479,461 | $ (4,216,102) | $ 251,786 | $ 443,200,327 |
Balance (in Shares) at Dec. 31, 2021 | 77,385,130 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders’ Equity (Parentheticals) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||
Net off tax effect | $ 491,400 | $ 491,400 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ 22,863,798 | $ (10,394,164) |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 10,038,976 | 8,222,984 |
Provision (reversal) of allowance for doubtful accounts | 862,414 | (152,809) |
Deferred taxes | 4,073,315 | (5,349,722) |
Share of loss after tax of the Affiliate Company | 2,592,334 | 17,252,662 |
Gain from equity sale in the Affiliate Company | (17,788,351) | |
Gain on disposal of long-lived assets | (48,401,797) | (14,174,233) |
Change in fair value of contingent consideration | (2,834,000) | 565,000 |
Stock based compensation expense | 1,484,576 | 902,666 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (2,542,692) | 19,247,519 |
Inventories | (7,522,761) | 9,246,455 |
Other receivables and other assets | (291,235) | 2,008,612 |
Advances to supplier and prepayments and prepaid expenses | 27,786,143 | (36,330,634) |
Amount due from the Affiliate Company | 4,237,103 | |
Due from related party | (500,000) | (339,118) |
Increase (Decrease) In: | ||
Accounts payable | 2,176,638 | (30,993,717) |
Other payables and accrued liabilities | 10,513,511 | (173,806) |
Notes payable | (2,423,514) | (13,912,842) |
Income tax payable | 154,334 | (745,208) |
Net cash provided by (used in) operating activities | 241,689 | (50,883,252) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment, net | (11,574,706) | (7,483,743) |
Purchases of land use rights and other intangible assets | (2,356,626) | (3,281,115) |
Acquisition of Jiangxi Huiyi | (7,117,310) | |
Payment for construction in progress | (5,210,642) | (7,419,644) |
Proceeds from disposal of long-lived assets | 23,306,007 | 52,579,492 |
Loan to third party | 31,783,439 | (26,097,991) |
Certificate of deposit | (54,264,407) | |
Cash received from sales of equity in the Affiliate Company | 47,752,678 | 42,897,929 |
Long-term investment | (108,529) | (43,478) |
Net cash provided by investing activities | 22,209,904 | 51,151,450 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from short-term loans | 950,000 | 24,642,399 |
Repayments of short-term loans | (50,873,903) | |
Repayments of long-term loans | (28,799,501) | |
Proceeds from long-term loans | 2,210,589 | 394,116 |
Proceeds from issuance of common stock and warrants | 151,923,247 | |
Purchase of treasury stock | (2,412,660) | |
Proceeds from exercises stock options, stock awards and other financing | 29,160,000 | |
Net cash provided by financing activities | 747,929 | 126,446,358 |
NET INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | 23,199,522 | 126,714,556 |
Effect of exchange rate changes | 2,955,850 | (706,556) |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR | 142,520,635 | 16,512,635 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | 168,676,007 | 142,520,635 |
-CASH AND CASH EQUIVALENTS AT END OF PERIOD | 129,223,443 | 142,078,190 |
-RESTRICTED CASH AT END OF PERIOD | 39,452,564 | 442,445 |
SUPPLEMENTARY CASH FLOW INFORMATION | ||
Income taxes paid | 2,074,668 | 1,046,127 |
Interest paid | 35,001 | 653,507 |
SUPPLEMENTAL NON-CASH DISCLOSURES: | ||
Decrease in investment in the Affiliate Company due to change in its equity | 3,099,193 | |
Reversal of decrease in investment in the Affiliate Company due to change in its equity (net of tax effect of $491,400) | 2,824,115 | |
Purchase of construction in progress in accounts payable and other payable | 7,945,414 | |
Common stock issued from settlement of payables related to acquisitions | $ 5,762,000 | $ 3,166,427 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parentheticals) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Cash Flows [Abstract] | ||
Net off tax effect | $ 491,400 | $ 491,400 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | NOTE 1 - ORGANIZATION AND PRINCIPAL ACTIVITIES Kandi Technologies Group, Inc. (“Kandi Technologies”) was incorporated under the laws of the State of Delaware on March 31, 2004. As used herein, the terms “Company” or “Kandi” refer to Kandi Technologies and its operating subsidiaries, as described below. Headquartered in Jinhua City, Zhejiang Province, People’s Republic of China (“China” or “PRC”), the Company is one of China’s leading producers and manufacturers of electric vehicle (“EV”) products, 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) and its wholly-owned subsidiary, Kandi America Investment, LLC (“Kandi Investment”). 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 agreements signed by Zhejiang Kandi Technologies and Mr. Hu Xiaoming, from January 2011 to March 13, 2022, 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”). Effective March 14, 2022, Mr. Hu Xiaoming transferred his 50% equity interests of Kandi New Energy to Zhejiang Kandi Technologies. As a result, Kandi New Energy has become a wholly-owned subsidiary of Zhejiang Kandi Technologies. In April 2012, pursuant to an agreement with the shareholders of YongkangScrou Electric Co, Ltd. (“Yongkang Scrou”), the Company acquired 100% of Yongkang Scrou, a manufacturer of automobile and EV parts. In September 2020, Zhejiang Kandi Technologies transferred all of its equity interest in Yongkang Scrou to its wholly owned subsidiary, Zhejiang Kandi Smart Battery Swap Technology Co., Ltd. (“Kandi Smart Battery Swap”). On February 18, 2021, Zhejiang Kandi Technologies signed an Equity Transfer Agreement with Geely to transfer the remaining 22% equity interests of the Fengsheng Automotive Technology Group Co., Ltd. to Geely. As of September 10, 2021, the Company received all the equity transfer payment. 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 45% ownership interest in Kandi Hainan, and Kandi New Energy has the remaining 55% ownership interest. 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 100% equity of Jinhua An Kao. In June 2020, Jinhua An Kao changed its name to Kandi Smart Battery Swap. 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. 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 10% ownership interest in Supply Chain Company, the remaining 90% is owned by unrelated other parties. As of the date of this report, Zhejiang Kandi Technologies 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, In order to make full use of 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 (Zhejiang) Technology Co., Ltd. (“China Battery Exchange”) and its subsidiaries. Zhejiang Kandi Technologies has 100% ownership interest in China Battery Exchange and its subsidiaries. In September 2020, intending to explore ridesharing service business, the Company participated in the formation of Zhejiang Ruiheng Technology Co., Ltd (“Ruiheng”). Zhejiang Kandi Technologies has 10% ownership interest in Ruiheng, the remaining 90% is owned by unrelated other parties. During January 2021, SC Autosports established a wholly owned subsidiary, Kandi America Investment, LLC (“Kandi Investment”) in Dallas. On July 13, 2021, Zhejiang Kandi Technologies entered into a Share Transfer Agreement and Supplementary Agreement with three individual shareholders of Jiangxi Province Huiyi New Energy Co., Ltd. (“Jiangxi Huiyi”) to acquire 100% equity of Jiangxi Huiyi. The acquisition was consummated at October 31, 2021. On February 15, 2022, Kandi Hainan and Jiangsu Xingchi Signed a joint venture agreement, the two parties jointly invested RMB 30,000,000 (approximately $4.6 million) in Haikou, Hainan (of which Kandi Hainan owns 66.7% and Jiangsu Xingchi owns 33.3%) to establish Hainan Kandi Holding New Energy Technology Co., Ltd. (“Hainan Kandi Holding”). |
Liquidity
Liquidity | 12 Months Ended |
Dec. 31, 2021 | |
Liquidity [Abstract] | |
LIQUIDITY | NOTE 2 - LIQUIDITY The Company had working capital of $278,445,446 as of December 31, 2021, an increase of $55,127,295 from the working capital of $ 223,318,151 as of December 31, 2020. As of December 31, 2021 and 2020, the Company’s cash and cash equivalents were $129,223,443 and $142,078,190, respectively. The Company’s restricted cash was $39,452,564 and $ 442,445, respectively. As of December 31, 2021, the Company had multiple certificates of deposit with a total amount of $55,041,832. These certificates of deposit have an annual interest rate from 3.7% to 3.99% which can be transferred when necessary without any penalty or any loss of interest and principal. 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 ($83 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 ($79 million) over the next eight years. On May 22, 2020, the Company received the first payment of RMB 244 million (approximately $38 million) under the Repurchase Agreement. On July 9, 2020, the Company received the second payment of RMB 119 million (approximately $19 million) under the Repurchase Agreement. By the end of March 2021, the Company finished relocating production and offices to the new industrial park and vacated the old factory property. In early April, the relevant Economic Zone authorities inspected the vacated land and determined that it met all stipulated conditions. On May 20, 2021, the Company received the final portion of repurchase payment of RMB 150 million (approximately $24 million) under the Repurchase Agreement. In addition, there was RMB 12 million (approximately $2 million) reward for moving out of the old location has been submitted to the government for approval and will be collected after the approval. 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 $48 million). On March 16, 2021, the Company received the first half of the equity transfer payment of RMB 154,000,000 (approximately $24 million). On September 10, 2021, the Company received the second half of the equity transfer payment of RMB 154,000,000 (approximately $24 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. Currently the Company has sufficient cash in hand to meet the existing operational needs, but the credit line is retained which can be utilized timely when the Company has special capital needs. The PRC subsidiaries do not have any short-term bank loans and the US subsidiaries has $3.2 million short-term and long-term bank loans as of December 31, 2021. |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2021 | |
Basis of Presentation [Abstract] | |
BASIS OF PRESENTATION | NOTE 3 - BASIS OF PRESENTATION The Company’s financial statements and notes are the representations of the Company’s management. Accounting policies adopted by the Company conform to generally accepted accounting principles in the United States and have been consistently applied in the Company’s presentation of its financial statements. |
Principles of Consolidation
Principles of Consolidation | 12 Months Ended |
Dec. 31, 2021 | |
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. Effective March 14, 2022, Mr. Hu Xiaoming transferred his 50% equity interests of Kandi New Energy to Zhejiang Kandi Technologies. As a result, Kandi New Energy has become a wholly-owned subsidiary of Zhejiang Kandi Technologies; (4) Kandi Electric Vehicles (Hainan) Co., Ltd. (“Kandi Hainan”), a subsidiary, 55% owned by Kandi New Energy and 45% 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 (Zhejiang) Technology Co., Ltd. (“China Battery Exchange”) and its subsidiaries, a wholly-owned subsidiary of Zhejiang Kandi Technologies, incorporated under the laws of the PRC. (9) Kandi America Investment, LLC (“Kandi Investment”), a wholly-owned subsidiary of SC Autosports formed under the laws of the State of Texas, USA. (10) Jiangxi Province Huiyi New Energy Co., Ltd., (“Jiangxi Huiyi”) 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 income also includes the Company’s proportionate share of the net income or loss of its equity method investment in the Affiliate Company, in which the Company owned 22% equity interest until March 9, 2021. 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. As the equity transfer was completed on March 9, 2021, the Company recorded 22% of the Affiliate Company’s loss for the period from January 1, 2021 to March 9, 2021 and recognized the gain from equity sale of $17.7 million during the first quarter of 2021. As of December 31, 2021, the amount due from the Affiliate Company has been reclassed to accounts receivable of $18.0 million and other receivables of $2.3 million. If the transfer of the remaining 22% equity interests of the Affiliate Company took place on January 1, 2020, the net income for the year ended December 31, 2021 and 2020 would have been $7.7 million and $6.9 million, respectively. 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, 2021 | |
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, 2021 | |
Basis of Presentation [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 $8,198,193 and $92,445 as of December 31, 2021 and December 31, 2020, respectively. Contingent consideration related to the acquisitions of Kandi Smart Battery Swap, SC Autosports and Jiangxi Huiyi, 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 $ 7,812,000 and $3,743,000 as of December 31, 2021 and December 31, 2020, respectively. Also see Note 20. (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, 2021 and December 31, 2020, the Company’s restricted cash was $39,452,564 and $ 442,445, 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. The Company establishes provision for doubtful accounts when there is objective evidence that the Company may not be able to collect amounts due. Management reviews the adequacy of the provision for doubtful accounts on an ongoing basis, using historical collection trends and individual account analysis. The provision is based on management’s best estimates of specific losses on individual customer exposures, as well as historical trends of collections. Account balances are charged off against the provision after all means of collection have been exhausted and the likelihood of collection is not probable. An allowance for doubtful accounts is recorded for periods in which the Company determines credit losses are probable. In order to measure expected credit losses of the accounts receivable, the Company’s policy is to adopt aging method by reviewing and analyzing the aging of each customer, especially those with aged balances without any movement, and then assessing their financial conditions and payment plans. On top of the aging analysis, the Company also analyzed the nature and background of the customers, and analyzed the probability of recovery of the receivables. 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, the Company’s net amount due from the Affiliate Company includes $19.8 million net trade receivable and $2.2 million loan interest. As of December 31, 2021, the amount due from the Affiliate Company has been reclassed to accounts receivable of $18.0 million and other receivables of $2.3 million. As of December 31, 2021 and December 31, 2020, amount due from related party was $0 and $886,989, respectively. As of December 31, 2021 and December 31, 2020, amount due to related party was $0 and $500,000, respectively. As of December 31, 2021 and December 31, 2020, credit terms with the Company’s customers were typically 60 to 180 days after delivery. Besides, the Company has a credit term with Fengsheng, a former affiliate of the Company which it disposed the ownership of Fengsheng in March 2021, that allows Fengsheng to repay the receivable amount when it receives the subsidy from the government. The Company has agreements or purchase orders signed with the customers which state the payment term based on the scale of sales and background of the customers. The terms and agreements signed are legally enforceable. As of December 31, 2021 and 2020, the Company had a $3,053,277 and $110,269 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. The table below summarized the aging of the accounts receivable as of December 31, 2021 and 2020. Aging of accountings receivable as of December 31, 2021 Outstanding balance Subsequent collection (1) 1 to 90 days $ 19,978,931 $ 11,040,304 91 to 180 days 8,317,622 3,868,362 Over 180 days 1,815,817 646,224 Over one year 13,960,230 * 50,881 Over two years 11,876,982 * - Total $ 55,949,582 $ 15,605,771 Aging of accountings receivable as of December 31, 2020 Outstanding balance Subsequent collection (1) 1 to 90 days $ 28,298,032 $ 23,894,359 91 to 180 days 7,084,537 6,567,082 Over 180 days 3,164,568 2,847,605 Over one year - - Over two years 110,269 - Total $ 38,657,406 $ 33,309,046 (1) the Company reviewed the subsequent collection until March 10, 2022. * The increase of accounts receivable as of December 31, 2021 compared to the amount as of December 31, 2020 was due to the acquisition of Jiangxi Huiyi, and the disposal of ownership of Fengsheng which the amount due from Fengsheng was recorded under “Amount due from the Affiliate Company” prior to the disposal. (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 2.1% to 2.7% annually depends on different banks. As of December 31, 2021 and 2020, the Company had notes receivable from unrelated parties of $323,128 and $31,404,630, 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 20-30 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 ASC Topic 360 Impairment or Disposal of Long-Lived Assets. 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, 2021 and 2020. (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 26 “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 $38,971,986 and $7,246,312 for the years ended December 31, 2021 and 2020, 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, 2021 and 2020, $1,233,192 and $1,130,262, 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, 2021 2020 Period end RMB: USD exchange rate 6.3588 6.5277 Average RMB: USD exchange rate 6.4499 6.9001 (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, 2021 and 2020 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. The Company applies the reporting unit criteria in ASC 350-20 to the components to determine if the reporting unit should be identified one level below the operating segment. Each component will be evaluated to determine if: (a) it is a business (as defined in ASC 805), (b) discrete financial information is available and (c) the operating results are regularly reviewed by the segment manager(s). If the components of a specific operating segment meet these criteria, they might be deemed to be separate reporting units. However, if they have similar economic characteristics (which is a matter of judgment based on individual facts and circumstances), these components must be aggregated into one reporting unit. There are three reporting units under the goodwill impairment analysis, namely 1) SC Autosports, 2) Jinhua An kao and Yongkang Scrou, and 3) Jiangxi Huiyi. As of December 31, 2021 and 2020, 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, Kandi Smart Battery Swap and Jiangxi Huiyi. Such assets are being amortized over their estimated useful lives. Intangible assets were amortized as of December 31, 2021. The amortization expenses for intangible assets were $906,618 and $ 625,629 for the years ended December 31, 2021 and 2020, 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 as of December 31, 2021 and for the past two years that are covered by this report, Kandi New Energy had been 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 owned 100% of Kandi New Energy, and had 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. Effective March 14, 2022, Mr. Hu Xiaoming transferred his 50% equity interests of Kandi New Energy to Zhejiang Kandi Technologies. As a result, Kandi New Energy has become a wholly-owned subsidiary of Zhejiang Kandi Technologies. The Company no longer has any VIEs as of the date of this report. |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2021 | |
New Accounting Pronouncements [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | NOTE 7 - NEW ACCOUNTING PRONOUNCEMENTS 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 October 2021, the FASB issued ASU 2021-08, “ Business Combinations (Topic 805) – Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” |
Concentrations
Concentrations | 12 Months Ended |
Dec. 31, 2021 | |
Concentrations [Abstract] | |
CONCENTRATIONS | NOTE 8 - CONCENTRATIONS (a) Customers For the years ended December 31, 2021 and 2020, the Company’s major customers, who accounted for more than 10% of the Company’s consolidated revenue, were as follows: Sales Trade Receivable Major Customers Year Ended Year Ended December 31, December 31, Customer A 15% 9% 13% 13% Customer B 14% 14% 2% 7% Customer C 3% 24% 1% 15% (b) Suppliers For the years ended December 31, 2021 and 2020, 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 Major Suppliers Year Ended Year Ended December 31, December 31, Zhejiang Kandi Supply Chain Management Co., Ltd. 50% 49% 11% 9% Massimo Motor Sports, LLC 6% 22% - 5% |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | NOTE 9 - EARNINGS (LOSS) PER SHARE The Company calculates earnings (loss) per share in accordance with ASC 260, Earnings Per Share, which requires a dual presentation of basic and diluted earnings (loss) per share. Basic earnings (loss) per share are computed using the weighted average number of shares outstanding during the reporting period. Diluted earnings (loss) per share represents basic earnings (loss) 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 earnings per share, for the year ended December 31, 2021. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2021 | |
Credit Loss, Additional Improvements [Abstract] | |
ACCOUNTS RECEIVABLE, NET | NOTE 10 - ACCOUNTS RECEIVABLE, NET Accounts receivable are summarized as follows: December 31, December 31, Accounts receivable $ 55,949,582 $ 38,657,406 Less: allowance for doubtful accounts (3,053,277 ) (110,269 ) Accounts receivable, net $ 52,896,305 $ 38,547,137 The following table sets forth the movement of provision for doubtful accounts: Allowance for Doubtful Accounts BALANCE AT DECEMBER 31, 2019 $ 254,665 Provision - Reverse (152,809 ) Exchange rate difference 8,413 BALANCE AT DECEMBER 31, 2020 $ 110,269 Provision 1,147,679 Reverse - Addition of allowance resulted from acquisition of Jiangxi Huiyi 1,763,231 Exchange rate difference 32,098 BALANCE AT DECEMBER 31, 2021 $ 3,053,277 The addition of allowance for doubtful accounts during the year ended December 31, 2021 was primarily due to newly acquired entity, Jiangxi Huiyi, which it adopted the Company’s accounting policy for provision for doubtful accounts after being consolidated to the Company’s financial statements. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 11 - INVENTORIES Inventories are summarized as follows: December 31, December 31, Raw material $ 9,291,441 $ 7,512,259 Work-in-progress 9,116,194 5,488,532 Finished goods* 14,764,338 6,696,592 Inventories $ 33,171,973 $ 19,697,383 * As of December 31, 2021, approximately $3.8 million of inventory of off-roads and EVs held by SC Autosports were pledged as collateral for the $950,000 short-term loan, which was initiated during year 2021. |
Notes Receivable
Notes Receivable | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
NOTES RECEIVABLE | NOTE 12 - NOTES RECEIVABLE As of December 31, 2021, there was $323,128 notes receivable from unrelated parties. 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 collected on January 15, 2021, $6.9 million was collected on January 27, 2021, $9.2 million was collected on April 20, 2021 and $9.2 million was collected on June 22, 2021. |
Advances to Suppliers
Advances to Suppliers | 12 Months Ended |
Dec. 31, 2021 | |
Advances To Suppliers Are Summarized [Abstract] | |
ADVANCES TO SUPPLIERS | NOTE 13 - ADVANCES TO SUPPLIERS Advances to suppliers are summarized as follows: 2021 2020 Advance payment for inventory purchase (1) $ 4,110,835 $ 13,107,630 Advance payment for R & D (2) - 19,365,947 Others 1,829,621 4,259,605 Total $ 5,940,456 $ 36,733,182 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. This advance payment will be expensed progressively according to the progress of the R & D project. In the year 2021, $18.2 million expense was incurred accordingly. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 14 - PROPERTY, PLANT AND EQUIPMENT Property, plants and equipment as of December 31, 2021 and 2020 consisted of the following: December 31, December 31, 2021 2020 At cost: Buildings $ 52,481,460 $ 18,924,734 Machinery and equipment 81,994,596 67,893,378 Office equipment 1,497,461 1,138,870 Motor vehicles and other transport equipment 1,068,616 587,785 Molds and others 11,852,568 12,752,789 148,894,701 101,297,556 Less: Accumulated depreciation (37,317,290 ) (35,894,876 ) Property, plant and equipment, net $ 111,577,411 $ 65,402,680 The Company’s Jinhua factory completed the relocation to new industrial park in April 2021. The new location covers an area of more than 57,000 square meters and a construction area of more than 98,000 square meters. The Company’s off-road vehicles, EV battery packs, electric scooters battery packs, smart battery swap system and some EV parts are manufactured in the Jinhua factory. Jinhua factory owns the above production facilities. The Company’s EV products are manufactured in the Hainan factory. Currently, Hainan factory has production capacity with an annual output (three shifts) of 100,000 units of various models of EV products and owns the above facilities. Depreciation expenses for the years ended December 31, 2021 and 2020 were $8,650,755 and $6,976,651, respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | NOTE 15 - INTANGIBLE ASSETS Intangible assets include acquired other intangibles of trade name, customer relations, patent and technology 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 2021 2020 Gross carrying amount: Trade name 0 years $ 492,235 $ 492,235 Customer relations 0 years 304,086 304,086 Patent 3.5-5.17 years 5,000,944 4,871,547 Technology 6.83-9.83 years 10,851,104 - 16,648,369 5,667,868 Less: Accumulated amortization Trade name $ (492,235 ) $ (439,798 ) Customer relations (304,086 ) (271,691 ) Patent (2,359,212 ) (1,723,626 ) Technology (243,757 ) - (3,399,290 ) (2,435,115 ) Intangible assets, net $ 13,249,079 $ 3,232,753 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 $906,618 and $ 625,629 for the year ended December 31, 2021 and 2020, respectively. Amortization expenses for the next five years and thereafter are as follows: Years ended December 31, 2022 $ 2,023,355 2023 2,023,355 2024 2,023,355 2025 1,956,729 2026 1,733,803 Thereafter 3,488,482 Total $ 13,249,079 |
Land Use Rights
Land Use Rights | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 Cost of land use rights $ 4,131,797 $ 4,024,889 Less: Accumulated amortization (881,461 ) (767,129 ) Land use rights, net $ 3,250,336 $ 3,257,760 The amortization expense for the years ended December 31, 2021 and 2020 were $92,628 and $201,061, respectively. Amortization expense for the next five years and thereafter is as follows: Years ended December 31, $ 92,628 2022 92,628 2023 92,628 2024 92,628 2025 92,628 2026 92,628 Thereafter 2,694,568 Total $ 3,250,336 |
Other Long-Term Assets
Other Long-Term Assets | 12 Months Ended |
Dec. 31, 2021 | |
Other Long Term Assets [Abstract] | |
OTHER LONG-TERM ASSETS | NOTE 17 - OTHER LONG-TERM ASSETS Other long-term assets as of December 31, 2021 and 2020 consisted of the following: December 31, December 31, 2021 2020 Long-term deferred assets $ - $ 3,706,560 Prepayments for land use right (i) 4,341,496 4,319,305 Land and properties with certificates cancelled (ii) - 13,728,557 Prepayments for new product molds - 6,663,909 Right - of - use asset (iii) 6,308,374 3,496,993 Others 342,139 392,160 Total other long-term asset $ 10,992,009 $ 32,307,484 (i) As of December 31, 2021 and December 31, 2020, the Company’s other long term asset included net value of prepayments for land use right of Hainan facility of $4,341,496 and $4,319,305, respectively. As of December 31, 2021, the land use right of Hainan was not recognized since the land certificate is still in process. The amortization expense for the year ended December 31, 2021 and 2020 were $91,229 and $85,277, respectively. (ii) As 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 and net value of properties (or buildings/housing) of Jinhua facility’s old location with certificates cancelled of $7,633,247, respectively. In the second quarter of 2021, the land and property of Jinhua facility’s old location has been written off. The land amortization expense of Jinhua facility’s old location for the year ended December 31, 2021 were $68,106. The property depreciation expense of Jinhua facility’s old location for the year ended December 31, 2021 were $151,694. The Company’s Jinhua facility moved out of the old location and completed the relocation process in April 2021. The relevant Economic Zone authorities inspected the vacated land and determined that the relocation was formally completed by meeting all stipulated conditions. In the second quarter of 2021, the property of Jinhua facility’s old location has been fully disposed, and the related $48 million gain on disposal of long-live asset was recognized. (iii) As of December 31, 2021 and 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 and Jiangxi facility of $6,308,374 and $3,436,310, respectively. The amortization expense for the year ended December 31, 2021 were $79,557. |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Taxes [Abstract] | |
TAXES | NOTE 18 - 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, Kandi Smart Battery Swap, Jiangxi Huiyi 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 Kandi Smart Battery Swap, Jiangxi Huiyi has successfully re-applied for such certificates when the its prior certificates expired. 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 2021, the Company’s effective tax rate is favorably affected by preferential tax rate for qualified Chinese entities, a super-deduction for qualified research and development costs, intercompany dividend deductions and adversely affected by non-deductible expenses such as stock rewards for non-US employees, part of entertainment expenses, and valuation allowances. 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, 2021 and 2020 was a tax expense of 21.73% on a reported income before taxes of approximately $29.2 million, a tax benefit of 32.69% on a reported loss before taxes of approximately $15.4 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, 2021 and 2020. 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, 2021, 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. 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, 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, 2021, the Company has no accrued interest or penalties related to uncertain tax positions. Income tax expenses for the year ended December 31, 2021 and 2020 are summarized as follows: For Year Ended December 31, 2021 2020 Current: Provision for CIT $ 2,273,175 $ 302,553 Deferred: Provision for CIT 4,073,315 (5,349,722 ) Income tax expense (benefit) $ 6,346,490 $ (5,047,169 ) The reconciliation of taxes at the PRC statutory rate (25% in 2021 and 2020) to our provision for income taxes for the years ended December 31, 2021 and 2020 was as follows: For Year Ended December 31, 2021 2020 Expected taxation at PRC statutory tax rate $ 7,302,572 $ (3,860,333 ) Gain or loss difference due to outside basis in equity investments 106,289 (4,347,061 ) Effect of differing tax rates in different jurisdictions 66,108 93,806 Effect of PRC preferential tax rates (704,361 ) 1,145,631 Non-taxable income (1,976,661 ) (7,889 ) Non-deductible expenses 1,352,085 615,659 Research and development super-deduction (2,006,682 ) (458,723 ) (Over) Under-accrued EIT for previous years 323,427 (24,583 ) Addition to valuation allowance 8,499,993 1,629,952 Divided received deduction (3,023,303 ) - Local tax adjustment 1,734,997 - Other (including inter-company transaction) (5,327,974 ) 166,372 Income tax (benefit) expense $ 6,346,490 $ (5,047,169 ) The tax effects of temporary differences that give rise to the Company’s net deferred tax assets and liabilities as of December 31, 2021 and December 31, 2020 are summarized as follows: December 31, December 31, 2021 2020 Deferred tax assets: Accruals and reserves $ 7,471,881 $ 1,160,830 Depreciation - - Outside basis difference of investment in the Affiliate Company - 7,821,994 Loss carried forward 7,195,729 3,415,400 Total deferred tax assets 14,667,610 12,398,224 Deferred tax liabilities: Expense (411,195 ) (588,889 ) Intangible (1,981,862 ) (473,024 ) Revenue (462,623 ) (2,421,259 ) Total deferred tax liability (2,855,680 ) (3,483,172 ) Net deferred tax assets (liabilities) $ 11,811,930 $ 8,915,052 less: valuation allowance (12,052,774 ) (3,433,277 ) Net deferred tax assets(liabilities),net of valuation allowance $ (240,844 ) $ 5,481,775 The tax effected aggregate Net Operating Loss (“NOL”) was $7.2 million and $3.4 million in tax year 2021 and 2020, which were deriving from entities in the PRC, Hong Kong and U.S. Some of the NOLs will start to expire from 2026 if they are not used. The cumulative NOL in the PRC can be carried forward for five years in general, and ten years for entities qualify High and New Technology Enterprise (“HNTE”) treatment, which is $0.8 million and $6.4 million respectfully, to offset future net profits for income tax purposes. The Company also has $0.5 million tax effected NOL in U.S. to carry forward with indefinite carryforward period, and $0.1 million tax effected NOL in Hong Kong can be carried forward without an expiration date as well. The Company recorded valuation allowances of 12.0 million at December 31, 2021, against the deferred tax assets associated with losses and other timing differences for which we may not realize a related tax benefit. 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 reversed 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. Income (loss) before income taxes from PRC and non-PRC sources for the year ended December 31,2021 and 2020 are summarized as follows: For Year Ended December 31, 2021 2020 Income(loss) before income taxes consists of: PRC $ 30,719,006 $ (12,734,584 ) Non-PRC (1,508,718 ) (2,706,749 ) Total $ 29,210,288 $ (15,441,333 ) Net change in the valuation allowance of deferred tax assets are summarized as follows: Net change of valuation allowance of Deferred tax assets Balance at December 31,2020 $ 3,433,277 Additions-change to tax expense 8,499,993 Prior year true up 131,364 Exchange rate difference (11,860 ) Balance at December 31,2021 $ 12,052,774 (b) Tax Holiday Effect For the year ended December 31, 2021 and 2020, the PRC CIT rate was 25%. Certain subsidiaries of the Company are entitled to tax exemptions (tax holidays) for the year ended December 31, 2021 and 2020. The combined effects of income tax expense exemptions and reductions available to the Company for the year ended December 31, 2021 and 2020 are as follows: Year Ended December 31, 2021 2020 Tax benefit (holiday) credit $ 2,226,944 $ 690,905 Basic net income per share effect $ 0.03 $ 0.01 (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 4, 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. In January 2021, SC Autosports obtained the PPP loan in the amount of $207,867 with an interest rate of 1.0% and a five-year term to maturity. As of December 31, 2021, the Company received $451,983 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 and Right-of-Use-Assets
Leases and Right-of-Use-Assets | 12 Months Ended |
Dec. 31, 2021 | |
Leases and Right-of-Use-Assets [Abstract] | |
LEASES AND RIGHT-OF-USE-ASSETS | NOTE 19 – LEASES AND RIGHT-OF-USE-ASSETS 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 on 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. On October 31, 2021, the Company acquired $2.8 million of land use rights through the acquisition of Jiangxi Huiyi. Above lease was wholly prepaid. See NOTE 17 for more details. As of December 31, 2021, the Company’s operating lease right-of-use assets (grouped in other long-term assets on the balance sheet) was $6,308,374. For the year ended December 31, 2021, the Company’s operating lease expense was $79,557. Supplemental information related to operating leases was as follows: Year ended Cash payments for operating leases $ 79,557 |
Contingent Consideration Liabil
Contingent Consideration Liability | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
CONTINGENT CONSIDERATION LIABILITY | NOTE 20 - 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 KSBS 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 million (approximately $8 million) 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. For the period from January 1, 2020 to June 30, 2021, Kandi Smart Battery Swap achieved its net profit target. Accordingly, the KSBS Shareholders received 1,233,068 shares of Kandi’s restrictive common stock or 20.83% 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. 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 received 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. On October 31, 2021, the Company completed the acquisition of 100% of the equity of Jiangxi Huiyi. The Company paid approximately RMB 50 million (approximately $7.9 million) at the closing of the transaction using cash on hand and may be required to pay future consideration of up to an additional 2,576,310 shares of common stock, upon the achievement of certain net income-based milestones in the next three years. As of December 31, 2021 and 2020, the Company’s contingent consideration liability was $7,812,000 and $3,743,000, respectively. Details of the contingent consideration liability as of December 31, 2021 and December 31, 2020 were as follow: December 31, December 31, 2021 2020 Contingent consideration liability to KSBS Shareholders $ - 3,743,000 Contingent consideration liability to former members of Jiangxi Huiyi 7,812,000 - Total contingent consideration liability $ 7,812,000 $ 3,743,000 |
Common Shares
Common Shares | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
COMMON SHARES | NOTE 21 - 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. The Company issued to FT Global Capital, Inc. (the “Placement Agent”) warrants to purchase an aggregate of up to six percent (6%) of the aggregate number of shares of our common stock sold in the offering, or 564,264 shares of the common stock (the “Placement Agent Warrants”). The Placement Agent Warrants shall generally be on the same terms and conditions as the Warrants, exercisable at a price of $8.18 per share, provided that Placement Agent Warrants will not provide for certain anti-dilution protections included in the Warrants. On November 24, 2020, Kandi entered into a Securities Purchase Agreement (the “Second RD Purchase Agreement”) with certain purchasers (the “Second RD Buyers”) pursuant to which the Company sold to the Second RD 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 and a warrant to purchase 0.4 share of our Common Stock (the “Second RD 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 the Second RD Warrants initially exercisable into an aggregate of up to 3,539,825 shares of our Common Stock. The Second RD 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. The Company issued to the Placement Agent warrants to purchase an aggregate of up to three percent (3%) of the aggregate number of shares of our common stock sold in the offering, or 265,487 shares of the common stock (the “Second RD Placement Agent Warrants”). The Second RD Placement Agent Warrants shall generally be on the same terms and conditions as the Second RD Warrants, exercisable at a price of $14.50 per share, provided that the Second RD Placement Agent Warrants will not provide for certain anti-dilution protections included in the Second RD Warrants. 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 Purchases of Equity Securities by the Issuer and Affiliated Purchasers On December 1, 2021, the board of directors had authorized the repurchase of up to $20 million worth of the Company’s common stock in open market transactions or in privately negotiated transactions. As of December 31, 2021, the Company had repurchased a total of 679,749 common shares at an average stock price of $3.52 per share under the repurchase plan. |
Stock Options
Stock Options | 12 Months Ended |
Dec. 31, 2021 | |
Stock Options [Abstract] | |
STOCK OPTIONS | NOTE 22 - 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 Weighted Average 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 Granted - - Exercised - - Cancelled - - Forfeited - - Outstanding as of December 31, 2021 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 $8.16 per share. |
Stock Award
Stock Award | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK AWARD | NOTE 23 - 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. 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. On April 30, 2021, 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, 2021 and 2020, the Company recognized $1,484,576 and $902,666 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. |
Equity Method Investment in the
Equity Method Investment in the Affiliate Company | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
EQUITY METHOD INVESTMENT IN THE AFFILIATE COMPANY | NOTE 24 - EQUITY METHOD INVESTMENT IN THE AFFILIATE COMPANY The Company’s consolidated net income (loss) includes the Company’s proportionate share of the net income or loss of the Company’s equity method investees. When the Company records its proportionate share of net income in such investees, it increases equity income (loss) – net in the Company’s consolidated statements of income (loss) and the Company’s carrying value in that investment. Conversely, when the Company records its proportionate share of net loss in such investees, it decreases equity income (loss) – net in the Company’s consolidated statements of income (loss) and the Company’s carrying value in that investment. All intra-entity profits and losses with the Company’s equity method investees have been eliminated. On 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 $48 million). Zhejiang Provincial Administration for Market Regulation recorded the update of the ownership of Fengsheng on March 9, 2021. On March 16, 2021, the Company received the first half of the equity transfer payment of RMB 154,000,000 (approximately $24 million). On September 10, 2021, the Company received the second half of the equity transfer payment of RMB 154,000,000 (approximately $24 million). The Company accounted for its investments in the Affiliate Company under the equity method of accounting. As the equity transfer was completed on March 9, 2021, the Company recorded 22% of the Affiliate Company’s loss for the period until completion of equity transfer during the first quarter of 2021. The Company’s equity method investments in the Affiliate Company for the years ended December 31, 2021 and 2020 are as follows: Year Ended December 31, 2021 2020 Investment in the Affiliate Company, beginning of the period, $ 28,892,638 $ 47,228,614 Investment decreased in 2021 (48,436,812 ) - Gain from equity sale 17,788,351 - Reversal of prior year reduction in the equity of the Affiliate Company* 3,363,015 (3,275,999 ) Company’s share in net loss of Affiliate based on 22% ownership for period from January 1, 2021 to March 9, 2021 and year ended December 31, 2020 (2,692,225 ) (16,812,341 ) Non-controlling interest 99,891 (445,977 ) Prior year unrealized profit realized - 5,656 Subtotal (2,592,334 ) (17,252,662 ) Exchange difference 985,142 2,192,685 Investment in Affiliate Company, end of the period $ - $ 28,892,638 - Non-controlling interest carrying amount 2,611,821 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 25 - 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 $3,145,248 (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. 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, 2021 and December 31, 2020, 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 on 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 sought 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, that motion was granted in September 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. This action was transferred to the New York federal court in September 2020, Kandi moved to dismiss in March 2021, and that motion was granted in October 2021. The plaintiff in this case subsequently filed an amended complaint, Kandi moved to dismiss that complaint in January 2022, and the motion remains pending. 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, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 26 - 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 2021 2020 Sales Revenue Sales Revenue Primary geographical markets Overseas $ 32,669,996 $ 29,394,148 China 58,816,388 47,526,365 Total $ 91,486,384 $ 76,920,513 Major products EV parts $ 25,348,003 $ 40,645,696 EV products 1,478,566 684,525 Off-road vehicles 29,336,693 29,824,323 Electric Scooters, Electric Self-Balancing Scooters and associated parts 30,018,290 5,765,969 Battery exchange equipment and Battery exchange service 785,183 - Lithium-ion cells 4,519,649 - Total $ 91,486,384 $ 76,920,513 Timing of revenue recognition Products transferred at a point in time $ 91,486,384 $ 76,920,513 Total $ 91,486,384 $ 76,920,513 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2021 | |
Acquisitions [Abstract] | |
ACQUISITIONS | NOTE 27 - ACQUISITIONS Jiangxi Huiyi Jiangxi Huiyi, located in Gaoxin Development Zone, Xinyu City, Jiangxi Province, was formed on November 16, 2016. Jiangxi Huiyi owns an intelligent production line with a daily output of 250,000 units of 18650 lithium batteries. Besides, as of December 31, 2021, it has 7 invention patents, 28 utility model patents, and 10 appearance patents approved by the PRC State Intellectual Property Offices. On October 31, 2021, the Company, through Zhejiang Kandi Technologies, completed the acquisition of Jingxi Huiyi. The Company acquired all the equity interests of Jiangxi Huiyi for a purchase price of RMB 50 million (approximately $7.7 million) in cash to the Transferors. The first 50% of the purchase price or RMB 25 million (approximately $3.9 million) was paid on July 19, 2021. The remaining 50% of the purchase price or RMB 25 million (approximately $3.9 million) was paid on October 20, 2021. In addition, pursuant to the Supplementary Agreement by and between the two parties, the Company may issue 858,770 shares of registered stock (the “Shares”) to the Transferors each year for the next three years, conditioned on the fulfillment of the undertaking by the Transferors of Jiangxi Huiyi to achieve no less than RMB 15 million (approximately $2.3 million) net income (the “Annual Profit Target”) over the course of each of the following three years without additional investment by Zhejiang Kandi Technologies. The Shares will be registered on proper registration statement. The Supplementary Agreement sets forth the terms and conditions of the issuance of the Shares for the three year period subsequent to the consummation of acquisition from July 1, 2021 to June 30, 2022, 2023 and 2024 as below: If Jiangxi Huiyi achieves the Annual Profit Target, 858,770 shares will be issued to the Transferors. However, a reduced number of shares may be issued to Transferors if Jiangxi Huiyi fails to achieve its Annual Profit Target: If the annual net profits of Jiangxi Huiyi fall below the Annual Profit Target by 20% or less, 687,016 shares will be issued to the Transferors; if net profits of Jiangxi Huiyi fall below the Annual Profit Target by a percentage between 20% and 40%, 515,262 shares will be issued to the Transferors; and if net profits of Jiangxi Huiyi fall below the Annual Profit Target by 40% or more, no shares will be issued to the Transferors. All the profit targets referenced above shall follow the United States Generally Accepted Accounting Principles. As of the acquisition date, the Company recorded a contingent liability of approximately $10.6 million, representing the estimated fair value of the contingent consideration the Company currently expects to pay to the Jiangxi Huiyi Transferors upon the achievement of certain net income-based milestones. The Supplementary Agreement sets forth the terms and conditions of the issuance of these shares. The fair value of the contingent consideration liability associated with additional 2,576,310 shares of restrictive common stock was estimated by using 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 Operations and Comprehensive Income (Loss). The components of the preliminary purchase price as of the acquisition date for Jiangxi Huiyi are as follows: Jiangxi Huiyi Cash $ 7,806,767 Fair value of contingent consideration 10,646,000 Total $ 18,452,767 The Company accounted for the acquisition as business combinations, in accordance with ASC Topic 805. The Company has recorded the assets acquired and liabilities assumed at their respective fair values as of the acquisition date. The following summarizes the preliminary purchase price allocations: Jiangxi Huiyi Goodwill $ 5,682,051 Amortizable intangible assets 10,773,338 Other net assets 3,094,810 Deferred tax liability (1,097,432 ) Total $ 18,452,767 Transaction costs of $60,347 associated with the acquisition were expensed as incurred through general and administrative expenses in the statement of income in 2021. The Company allocated the preliminary purchase price to specific intangible asset categories as of the acquisition date for Jiangxi Huiyi as follows: Amount Estimated Amortizable intangible assets: Technology $ 10,773,338 7-10 The Company allocated the preliminary purchase price to specific intangible assets for patents that the Company acquired. The Company believes that the estimated intangible asset value so determined represents the fair value on the date of acquisition and do not exceed the amount a third party would pay for the assets. The Company used the asset based approach to derive the fair value of the amortizable intangible assets. These fair value measurements are based on significant unobservable inputs, including estimates and assumptions and, accordingly, are classified as Level 3 within the fair value hierarchy prescribed by the ASC Topic 820. The Company recorded the excess of the purchase price over the estimated fair values of the identified assets as goodwill, which is non-deductible for tax purposes. Goodwill was established due to primarily to revenue and earnings projections associated with Jiangxi Huiyi’s future operations, as well as synergies expected to be gained from the integration of the business into the Company’s existed operations. The Company’s condensed consolidated financial statements included approximately $4.6 million of revenue and approximately $0.2 million of operating loss related to the operating results for Jiangxi Huiyi from its date of acquisition. The following unaudited pro forma financial information presents the combined results of operations of Kandi and the Acquired Business as if the acquisition had occurred as of October 31, 2020. The pro forma information is not necessarily indicative of what the financial position or results of operations actually would have been had the acquisition been completed as of October 31, 2020. In addition, the unaudited pro forma financial information is not indicative of, nor does it purport to project, the future financial position or operation results of Kandi. The unaudited pro forma financial information excludes acquisition and integration costs and does not give effect to any estimated and potential cost savings or other operating efficiencies that could result from acquisition. Unaudited Pro Forma Combined Statements of Operations Information Year Ended 2021 2020 Revenue $ 116,847,257 $ 79,931,122 LOSS FROM OPERATIONS $ 755,314 $ 606,360 NET LOSS $ 23,696,197 $ (10,586,299 ) |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | NOTE 28 - SUBSEQUENT EVENT In January 2022, the Company had repurchased a total of 459,036 common shares at an average stock price of $3.42 per share under the repurchase plan. Since SC Autosports is purchasing electric golf crossover vehicles from Jiangsu Xingchi Electric Technology Co., Ltd. (“Jiangsu Xingchi”), and Jiangsu Xingchi’s existing production capacity is far from meeting the needs of the U.S. market, in order to expand production capacity to meet the needs of the U.S. market, on February 15, 2022, Kandi Hainan and Jiangsu Xingchi jointly invested RMB 30,000,000 (approximately $4.6 million) in Haikou, Hainan (of which Kandi Hainan owns 66.7% and Jiangsu Xingchi owns 33.3%) to establish Hainan Kandi Holding New Energy Technology Co., Ltd. (“Hainan Kandi Holding”). Hainan Kandi Holding will specialize in the production of electric golf crossover vehicles and other products in Kandi Hainan’s factory. Effective March 14, 2022, Mr. Hu Xiaoming transferred his 50% equity interests of Kandi New Energy to Zhejiang Kandi Technologies for $2.83 million (RMB 18 million, equal to the subscribed capital contributed by Mr. Hu Xiaoming to Kandi New Energy). As a result, Kandi New Energy has become a wholly-owned subsidiary of Zhejiang Kandi Technologies. As of the date of this report, the Company does not have any VIE. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Basis of Presentation [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 $8,198,193 and $92,445 as of December 31, 2021 and December 31, 2020, respectively. Contingent consideration related to the acquisitions of Kandi Smart Battery Swap, SC Autosports and Jiangxi Huiyi, 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 $ 7,812,000 and $3,743,000 as of December 31, 2021 and December 31, 2020, respectively. Also see Note 20. |
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, 2021 and December 31, 2020, the Company’s restricted cash was $39,452,564 and $ 442,445, 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. The Company establishes provision for doubtful accounts when there is objective evidence that the Company may not be able to collect amounts due. Management reviews the adequacy of the provision for doubtful accounts on an ongoing basis, using historical collection trends and individual account analysis. The provision is based on management’s best estimates of specific losses on individual customer exposures, as well as historical trends of collections. Account balances are charged off against the provision after all means of collection have been exhausted and the likelihood of collection is not probable. An allowance for doubtful accounts is recorded for periods in which the Company determines credit losses are probable. In order to measure expected credit losses of the accounts receivable, the Company’s policy is to adopt aging method by reviewing and analyzing the aging of each customer, especially those with aged balances without any movement, and then assessing their financial conditions and payment plans. On top of the aging analysis, the Company also analyzed the nature and background of the customers, and analyzed the probability of recovery of the receivables. 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, the Company’s net amount due from the Affiliate Company includes $19.8 million net trade receivable and $2.2 million loan interest. As of December 31, 2021, the amount due from the Affiliate Company has been reclassed to accounts receivable of $18.0 million and other receivables of $2.3 million. As of December 31, 2021 and December 31, 2020, amount due from related party was $0 and $886,989, respectively. As of December 31, 2021 and December 31, 2020, amount due to related party was $0 and $500,000, respectively. As of December 31, 2021 and December 31, 2020, credit terms with the Company’s customers were typically 60 to 180 days after delivery. Besides, the Company has a credit term with Fengsheng, a former affiliate of the Company which it disposed the ownership of Fengsheng in March 2021, that allows Fengsheng to repay the receivable amount when it receives the subsidy from the government. The Company has agreements or purchase orders signed with the customers which state the payment term based on the scale of sales and background of the customers. The terms and agreements signed are legally enforceable. As of December 31, 2021 and 2020, the Company had a $3,053,277 and $110,269 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. The table below summarized the aging of the accounts receivable as of December 31, 2021 and 2020. Aging of accountings receivable as of December 31, 2021 Outstanding balance Subsequent collection (1) 1 to 90 days $ 19,978,931 $ 11,040,304 91 to 180 days 8,317,622 3,868,362 Over 180 days 1,815,817 646,224 Over one year 13,960,230 * 50,881 Over two years 11,876,982 * - Total $ 55,949,582 $ 15,605,771 Aging of accountings receivable as of December 31, 2020 Outstanding balance Subsequent collection (1) 1 to 90 days $ 28,298,032 $ 23,894,359 91 to 180 days 7,084,537 6,567,082 Over 180 days 3,164,568 2,847,605 Over one year - - Over two years 110,269 - Total $ 38,657,406 $ 33,309,046 (1) the Company reviewed the subsequent collection until March 10, 2022. * The increase of accounts receivable as of December 31, 2021 compared to the amount as of December 31, 2020 was due to the acquisition of Jiangxi Huiyi, and the disposal of ownership of Fengsheng which the amount due from Fengsheng was recorded under “Amount due from the Affiliate Company” prior to the disposal. |
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 2.1% to 2.7% annually depends on different banks. As of December 31, 2021 and 2020, the Company had notes receivable from unrelated parties of $323,128 and $31,404,630, 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 20-30 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 ASC Topic 360 Impairment or Disposal of Long-Lived Assets. 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, 2021 and 2020. |
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 26 “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 | (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 $38,971,986 and $7,246,312 for the years ended December 31, 2021 and 2020, 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, 2021 and 2020, $1,233,192 and $1,130,262, 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, 2021 2020 Period end RMB: USD exchange rate 6.3588 6.5277 Average RMB: USD exchange rate 6.4499 6.9001 |
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, 2021 and 2020 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. The Company applies the reporting unit criteria in ASC 350-20 to the components to determine if the reporting unit should be identified one level below the operating segment. Each component will be evaluated to determine if: (a) it is a business (as defined in ASC 805), (b) discrete financial information is available and (c) the operating results are regularly reviewed by the segment manager(s). If the components of a specific operating segment meet these criteria, they might be deemed to be separate reporting units. However, if they have similar economic characteristics (which is a matter of judgment based on individual facts and circumstances), these components must be aggregated into one reporting unit. There are three reporting units under the goodwill impairment analysis, namely 1) SC Autosports, 2) Jinhua An kao and Yongkang Scrou, and 3) Jiangxi Huiyi. As of December 31, 2021 and 2020, 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, Kandi Smart Battery Swap and Jiangxi Huiyi. Such assets are being amortized over their estimated useful lives. Intangible assets were amortized as of December 31, 2021. The amortization expenses for intangible assets were $906,618 and $ 625,629 for the years ended December 31, 2021 and 2020, 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 as of December 31, 2021 and for the past two years that are covered by this report, Kandi New Energy had been 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 owned 100% of Kandi New Energy, and had 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. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Basis of Presentation [Abstract] | |
Schedule of aging of the accounts receivable | Aging of accountings receivable as of December 31, 2021 Outstanding balance Subsequent collection (1) 1 to 90 days $ 19,978,931 $ 11,040,304 91 to 180 days 8,317,622 3,868,362 Over 180 days 1,815,817 646,224 Over one year 13,960,230 * 50,881 Over two years 11,876,982 * - Total $ 55,949,582 $ 15,605,771 Aging of accountings receivable as of December 31, 2020 Outstanding balance Subsequent collection (1) 1 to 90 days $ 28,298,032 $ 23,894,359 91 to 180 days 7,084,537 6,567,082 Over 180 days 3,164,568 2,847,605 Over one year - - Over two years 110,269 - Total $ 38,657,406 $ 33,309,046 (1) the Company reviewed the subsequent collection until March 10, 2022. * The increase of accounts receivable as of December 31, 2021 compared to the amount as of December 31, 2020 was due to the acquisition of Jiangxi Huiyi, and the disposal of ownership of Fengsheng which the amount due from Fengsheng was recorded under “Amount due from the Affiliate Company” prior to the disposal. |
Schedule of asset’s estimated useful life | Buildings 20-30 years Machinery and equipment 10 years Office equipment 5 years Motor vehicles 5 years Molds 5 years |
Schedule of average exchange rate of the reporting period | December 31, December 31, 2021 2020 Period end RMB: USD exchange rate 6.3588 6.5277 Average RMB: USD exchange rate 6.4499 6.9001 |
Concentrations (Tables)
Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Customers [Member] | |
Concentrations (Tables) [Line Items] | |
Schedule of concentration percentage | Sales Trade Receivable Major Customers Year Ended Year Ended December 31, December 31, Customer A 15% 9% 13% 13% Customer B 14% 14% 2% 7% Customer C 3% 24% 1% 15% |
Suppliers [Member] | |
Concentrations (Tables) [Line Items] | |
Schedule of concentration percentage | Purchases Accounts Payable Major Suppliers Year Ended Year Ended December 31, December 31, Zhejiang Kandi Supply Chain Management Co., Ltd. 50% 49% 11% 9% Massimo Motor Sports, LLC 6% 22% - 5% |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Credit Loss, Additional Improvements [Abstract] | |
Schedule of accounts receivable | December 31, December 31, Accounts receivable $ 55,949,582 $ 38,657,406 Less: allowance for doubtful accounts (3,053,277 ) (110,269 ) Accounts receivable, net $ 52,896,305 $ 38,547,137 |
Schedule of provision for doubtful accounts | Allowance for Doubtful Accounts BALANCE AT DECEMBER 31, 2019 $ 254,665 Provision - Reverse (152,809 ) Exchange rate difference 8,413 BALANCE AT DECEMBER 31, 2020 $ 110,269 Provision 1,147,679 Reverse - Addition of allowance resulted from acquisition of Jiangxi Huiyi 1,763,231 Exchange rate difference 32,098 BALANCE AT DECEMBER 31, 2021 $ 3,053,277 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | December 31, December 31, Raw material $ 9,291,441 $ 7,512,259 Work-in-progress 9,116,194 5,488,532 Finished goods* 14,764,338 6,696,592 Inventories $ 33,171,973 $ 19,697,383 * As of December 31, 2021, approximately $3.8 million of inventory of off-roads and EVs held by SC Autosports were pledged as collateral for the $950,000 short-term loan, which was initiated during year 2021. |
Advances to Suppliers (Tables)
Advances to Suppliers (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Advances To Suppliers Are Summarized [Abstract] | |
Schedule of advances to suppliers | 2021 2020 Advance payment for inventory purchase (1) $ 4,110,835 $ 13,107,630 Advance payment for R & D (2) - 19,365,947 Others 1,829,621 4,259,605 Total $ 5,940,456 $ 36,733,182 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plants and equipment | December 31, December 31, 2021 2020 At cost: Buildings $ 52,481,460 $ 18,924,734 Machinery and equipment 81,994,596 67,893,378 Office equipment 1,497,461 1,138,870 Motor vehicles and other transport equipment 1,068,616 587,785 Molds and others 11,852,568 12,752,789 148,894,701 101,297,556 Less: Accumulated depreciation (37,317,290 ) (35,894,876 ) Property, plant and equipment, net $ 111,577,411 $ 65,402,680 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of gross carrying value and accumulated amortization for each major class of our intangible assets other than goodwill | Remaining December 31, December 31, useful life 2021 2020 Gross carrying amount: Trade name 0 years $ 492,235 $ 492,235 Customer relations 0 years 304,086 304,086 Patent 3.5-5.17 years 5,000,944 4,871,547 Technology 6.83-9.83 years 10,851,104 - 16,648,369 5,667,868 Less: Accumulated amortization Trade name $ (492,235 ) $ (439,798 ) Customer relations (304,086 ) (271,691 ) Patent (2,359,212 ) (1,723,626 ) Technology (243,757 ) - (3,399,290 ) (2,435,115 ) Intangible assets, net $ 13,249,079 $ 3,232,753 |
Schedule of amortization expenses | Years ended December 31, 2022 $ 2,023,355 2023 2,023,355 2024 2,023,355 2025 1,956,729 2026 1,733,803 Thereafter 3,488,482 Total $ 13,249,079 |
Land Use Rights (Tables)
Land Use Rights (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Land Use Rights [Abstract] | |
Schedule of land use rights | December 31, December 31, 2021 2020 Cost of land use rights $ 4,131,797 $ 4,024,889 Less: Accumulated amortization (881,461 ) (767,129 ) Land use rights, net $ 3,250,336 $ 3,257,760 |
Schedule of amortization expense | Years ended December 31, $ 92,628 2022 92,628 2023 92,628 2024 92,628 2025 92,628 2026 92,628 Thereafter 2,694,568 Total $ 3,250,336 |
Other Long-Term Assets (Tables)
Other Long-Term Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Long Term Assets [Abstract] | |
Schedule of other long term assets | December 31, December 31, 2021 2020 Long-term deferred assets $ - $ 3,706,560 Prepayments for land use right (i) 4,341,496 4,319,305 Land and properties with certificates cancelled (ii) - 13,728,557 Prepayments for new product molds - 6,663,909 Right - of - use asset (iii) 6,308,374 3,496,993 Others 342,139 392,160 Total other long-term asset $ 10,992,009 $ 32,307,484 (i) As of December 31, 2021 and December 31, 2020, the Company’s other long term asset included net value of prepayments for land use right of Hainan facility of $4,341,496 and $4,319,305, respectively. As of December 31, 2021, the land use right of Hainan was not recognized since the land certificate is still in process. The amortization expense for the year ended December 31, 2021 and 2020 were $91,229 and $85,277, respectively. (ii) As 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 and net value of properties (or buildings/housing) of Jinhua facility’s old location with certificates cancelled of $7,633,247, respectively. In the second quarter of 2021, the land and property of Jinhua facility’s old location has been written off. The land amortization expense of Jinhua facility’s old location for the year ended December 31, 2021 were $68,106. The property depreciation expense of Jinhua facility’s old location for the year ended December 31, 2021 were $151,694. The Company’s Jinhua facility moved out of the old location and completed the relocation process in April 2021. The relevant Economic Zone authorities inspected the vacated land and determined that the relocation was formally completed by meeting all stipulated conditions. In the second quarter of 2021, the property of Jinhua facility’s old location has been fully disposed, and the related $48 million gain on disposal of long-live asset was recognized. (iii) As of December 31, 2021 and 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 and Jiangxi facility of $6,308,374 and $3,436,310, respectively. The amortization expense for the year ended December 31, 2021 were $79,557. |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Taxes [Abstract] | |
Schedule of income tax expenses | For Year Ended December 31, 2021 2020 Current: Provision for CIT $ 2,273,175 $ 302,553 Deferred: Provision for CIT 4,073,315 (5,349,722 ) Income tax expense (benefit) $ 6,346,490 $ (5,047,169 ) |
Schedule of valuation allowance of deferred tax assets | For Year Ended December 31, 2021 2020 Expected taxation at PRC statutory tax rate $ 7,302,572 $ (3,860,333 ) Gain or loss difference due to outside basis in equity investments 106,289 (4,347,061 ) Effect of differing tax rates in different jurisdictions 66,108 93,806 Effect of PRC preferential tax rates (704,361 ) 1,145,631 Non-taxable income (1,976,661 ) (7,889 ) Non-deductible expenses 1,352,085 615,659 Research and development super-deduction (2,006,682 ) (458,723 ) (Over) Under-accrued EIT for previous years 323,427 (24,583 ) Addition to valuation allowance 8,499,993 1,629,952 Divided received deduction (3,023,303 ) - Local tax adjustment 1,734,997 - Other (including inter-company transaction) (5,327,974 ) 166,372 Income tax (benefit) expense $ 6,346,490 $ (5,047,169 ) |
Schedule of deferred tax assets and liabilities | December 31, December 31, 2021 2020 Deferred tax assets: Accruals and reserves $ 7,471,881 $ 1,160,830 Depreciation - - Outside basis difference of investment in the Affiliate Company - 7,821,994 Loss carried forward 7,195,729 3,415,400 Total deferred tax assets 14,667,610 12,398,224 Deferred tax liabilities: Expense (411,195 ) (588,889 ) Intangible (1,981,862 ) (473,024 ) Revenue (462,623 ) (2,421,259 ) Total deferred tax liability (2,855,680 ) (3,483,172 ) Net deferred tax assets (liabilities) $ 11,811,930 $ 8,915,052 less: valuation allowance (12,052,774 ) (3,433,277 ) Net deferred tax assets(liabilities),net of valuation allowance $ (240,844 ) $ 5,481,775 |
Schedule of valuation allowance of deferred tax assets | For Year Ended December 31, 2021 2020 Income(loss) before income taxes consists of: PRC $ 30,719,006 $ (12,734,584 ) Non-PRC (1,508,718 ) (2,706,749 ) Total $ 29,210,288 $ (15,441,333 ) |
Schedule of valuation allowance of deferred tax assets | Net change of valuation allowance of Deferred tax assets Balance at December 31,2020 $ 3,433,277 Additions-change to tax expense 8,499,993 Prior year true up 131,364 Exchange rate difference (11,860 ) Balance at December 31,2021 $ 12,052,774 |
Schedule of income tax expense exemptions and reductions | Year Ended December 31, 2021 2020 Tax benefit (holiday) credit $ 2,226,944 $ 690,905 Basic net income per share effect $ 0.03 $ 0.01 |
Leases and Right-of-Use-Assets
Leases and Right-of-Use-Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases and Right-of-Use-Assets [Abstract] | |
Schedule of information related to operating leases | Year ended Cash payments for operating leases $ 79,557 |
Contingent Consideration Liab_2
Contingent Consideration Liability (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of contingent consideration liability | December 31, December 31, 2021 2020 Contingent consideration liability to KSBS Shareholders $ - 3,743,000 Contingent consideration liability to former members of Jiangxi Huiyi 7,812,000 - Total contingent consideration liability $ 7,812,000 $ 3,743,000 |
Stock Options (Tables)
Stock Options (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Long Term Assets [Abstract] | |
Schedule of stock option activities | Number of Weighted Average 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 Granted - - Exercised - - Cancelled - - Forfeited - - Outstanding as of December 31, 2021 900,000 $ 9.72 |
Equity Method Investment in t_2
Equity Method Investment in the Affiliate Company (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of equity method investments | Year Ended December 31, 2021 2020 Investment in the Affiliate Company, beginning of the period, $ 28,892,638 $ 47,228,614 Investment decreased in 2021 (48,436,812 ) - Gain from equity sale 17,788,351 - Reversal of prior year reduction in the equity of the Affiliate Company* 3,363,015 (3,275,999 ) Company’s share in net loss of Affiliate based on 22% ownership for period from January 1, 2021 to March 9, 2021 and year ended December 31, 2020 (2,692,225 ) (16,812,341 ) Non-controlling interest 99,891 (445,977 ) Prior year unrealized profit realized - 5,656 Subtotal (2,592,334 ) (17,252,662 ) Exchange difference 985,142 2,192,685 Investment in Affiliate Company, end of the period $ - $ 28,892,638 - Non-controlling interest carrying amount 2,611,821 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of revenues by geographic area | Year Ended 2021 2020 Sales Revenue Sales Revenue Primary geographical markets Overseas $ 32,669,996 $ 29,394,148 China 58,816,388 47,526,365 Total $ 91,486,384 $ 76,920,513 Major products EV parts $ 25,348,003 $ 40,645,696 EV products 1,478,566 684,525 Off-road vehicles 29,336,693 29,824,323 Electric Scooters, Electric Self-Balancing Scooters and associated parts 30,018,290 5,765,969 Battery exchange equipment and Battery exchange service 785,183 - Lithium-ion cells 4,519,649 - Total $ 91,486,384 $ 76,920,513 Timing of revenue recognition Products transferred at a point in time $ 91,486,384 $ 76,920,513 Total $ 91,486,384 $ 76,920,513 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Acquisitions [Abstract] | |
Schedule of preliminary purchase price as of the acquisition date | Jiangxi Huiyi Cash $ 7,806,767 Fair value of contingent consideration 10,646,000 Total $ 18,452,767 |
Schedule of preliminary purchase price allocations | Jiangxi Huiyi Goodwill $ 5,682,051 Amortizable intangible assets 10,773,338 Other net assets 3,094,810 Deferred tax liability (1,097,432 ) Total $ 18,452,767 |
Schedule of preliminary purchase price to specific intangible asset | Amount Estimated Amortizable intangible assets: Technology $ 10,773,338 7-10 |
Schedule of unaudited pro forma combined statements of operations information | Year Ended 2021 2020 Revenue $ 116,847,257 $ 79,931,122 LOSS FROM OPERATIONS $ 755,314 $ 606,360 NET LOSS $ 23,696,197 $ (10,586,299 ) |
Organization and Principal Ac_2
Organization and Principal Activities (Details) $ in Millions | Mar. 04, 2019 | Feb. 15, 2022USD ($) | Sep. 30, 2020 | Apr. 30, 2013 | Dec. 01, 2021 | Feb. 15, 2022CNY (¥) | Jul. 13, 2021 | Feb. 18, 2021 | May 31, 2018 | Dec. 31, 2017 | Apr. 30, 2012 |
Organization and Principal Activities (Details) [Line Items] | |||||||||||
Ownership interest | 50.00% | ||||||||||
Percentage of ownership acquisition | 90.00% | ||||||||||
Yongkang Scrou [Member] | |||||||||||
Organization and Principal Activities (Details) [Line Items] | |||||||||||
Percentage of ownership acquisition | 100.00% | ||||||||||
Zhejiang Kandi Technologies [Member] | |||||||||||
Organization and Principal Activities (Details) [Line Items] | |||||||||||
Percentage of economic benefits, voting rights and residual interests | 100.00% | ||||||||||
Ownership interest | 100.00% | ||||||||||
Percentage of ownership acquisition | 90.00% | 100.00% | |||||||||
Zhejiang Kandi Technologies [Member] | Ruiheng [Member] | |||||||||||
Organization and Principal Activities (Details) [Line Items] | |||||||||||
Ownership interest | 10.00% | ||||||||||
Jinhua Kandi New Energy Vehicles Co., Ltd. [Member] | |||||||||||
Organization and Principal Activities (Details) [Line Items] | |||||||||||
Percentage of economic benefits, voting rights and residual interests | 100.00% | ||||||||||
SC Autosports [Member] | |||||||||||
Organization and Principal Activities (Details) [Line Items] | |||||||||||
Percentage of ownership acquisition | 100.00% | ||||||||||
Supply Chain [Member] | |||||||||||
Organization and Principal Activities (Details) [Line Items] | |||||||||||
Ownership interest | 10.00% | ||||||||||
Kandi Hainan and Jiangsu Xingchi [Member] | Subsequent Event [Member] | |||||||||||
Organization and Principal Activities (Details) [Line Items] | |||||||||||
Amount invested | $ 4.6 | ¥ 30,000,000 | |||||||||
Fengsheng Automotive Technology Group Co., Ltd. [Member] | |||||||||||
Organization and Principal Activities (Details) [Line Items] | |||||||||||
Equity interests percentage | 22.00% | ||||||||||
Kandi Hainan [Member] | |||||||||||
Organization and Principal Activities (Details) [Line Items] | |||||||||||
Ownership interest | 45.00% | ||||||||||
Kandi Hainan [Member] | Subsequent Event [Member] | |||||||||||
Organization and Principal Activities (Details) [Line Items] | |||||||||||
Ownership interest | 66.70% | ||||||||||
Kandi New Energy [Member] | |||||||||||
Organization and Principal Activities (Details) [Line Items] | |||||||||||
Ownership interest | 55.00% | ||||||||||
Jiangxi Huiyi [Member] | |||||||||||
Organization and Principal Activities (Details) [Line Items] | |||||||||||
Percentage of ownership acquisition | 100.00% | ||||||||||
Jiangsu Xingchi [Member] | Subsequent Event [Member] | |||||||||||
Organization and Principal Activities (Details) [Line Items] | |||||||||||
Ownership interest | 33.30% |
Liquidity (Details)
Liquidity (Details) | Jul. 09, 2020USD ($) | Jul. 09, 2020CNY (¥) | Mar. 10, 2020USD ($) | Mar. 10, 2020CNY (¥) | May 20, 2021USD ($) | May 20, 2021CNY (¥) | Feb. 18, 2021USD ($) | Feb. 18, 2021CNY (¥) | May 22, 2020USD ($) | May 22, 2020CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2021CNY (¥) | Sep. 10, 2021USD ($) | Sep. 10, 2021CNY (¥) | Mar. 16, 2021USD ($) | Mar. 16, 2021CNY (¥) | Mar. 09, 2021 | Dec. 31, 2020USD ($) |
Liquidity (Details) [Line Items] | ||||||||||||||||||
Working capital | $ 278,445,446 | $ 223,318,151 | ||||||||||||||||
Working capital increasing | 55,127,295 | |||||||||||||||||
Cash and cash equivalents | 129,223,443 | 142,078,190 | ||||||||||||||||
Restricted cash | 39,452,564 | 442,445 | ||||||||||||||||
Certificate of deposit | 55,041,832 | |||||||||||||||||
Real estate repurchase agreement, description | 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 ($83 million). | 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 ($83 million). | ||||||||||||||||
Eligible for tax rebates | $ 79,000,000 | ¥ 500,000,000 | ||||||||||||||||
First payment under repurchase agreement | $ 38,000,000 | ¥ 244,000,000 | ||||||||||||||||
Second payment under repurchase agreement | $ 19,000,000 | ¥ 119,000,000 | ||||||||||||||||
Final payment under repurchase agreement | $ 24,000,000 | ¥ 150,000,000 | ||||||||||||||||
Additional value of repurchase | $ 2,000,000 | ¥ 12,000,000 | ||||||||||||||||
Remaining equity interests Percentage | 22.00% | |||||||||||||||||
Short-term bank loans | $ 3,200,000 | |||||||||||||||||
First Half [Member] | ||||||||||||||||||
Liquidity (Details) [Line Items] | ||||||||||||||||||
Equity transfer payment | $ 24,000,000 | ¥ 154,000,000 | ||||||||||||||||
Second Half [Member] | ||||||||||||||||||
Liquidity (Details) [Line Items] | ||||||||||||||||||
Equity transfer payment | $ 24,000,000 | ¥ 154,000,000 | ||||||||||||||||
Geely [Member] | ||||||||||||||||||
Liquidity (Details) [Line Items] | ||||||||||||||||||
Remaining equity interests Percentage | 22.00% | 22.00% | 22.00% | |||||||||||||||
Total consideration | $ 48,000,000 | ¥ 308,000,000 | ||||||||||||||||
Minimum [Member] | ||||||||||||||||||
Liquidity (Details) [Line Items] | ||||||||||||||||||
Percentage of annual certificate of deposit | 3.70% | |||||||||||||||||
Maximum [Member] | ||||||||||||||||||
Liquidity (Details) [Line Items] | ||||||||||||||||||
Percentage of annual certificate of deposit | 3.99% |
Principles of Consolidation (De
Principles of Consolidation (Details) - USD ($) | Mar. 09, 2021 | Nov. 24, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Nov. 29, 2021 | Feb. 18, 2021 |
Principles of Consolidation (Details) [Line Items] | ||||||
Percentage of equity interest | 22.00% | |||||
Gain from equity sale (in Dollars) | $ 17,700,000 | $ 100,000,028 | ||||
Accounts receivable (in Dollars) | $ 18,000,000 | |||||
Other receivables (in Dollars) | 2,300,000 | |||||
Net income (in Dollars) | $ 7,700,000 | $ 6,900,000 | ||||
Mr. Hu Xiaoming [Member] | ||||||
Principles of Consolidation (Details) [Line Items] | ||||||
Percentage owned in subsidiary | 50.00% | |||||
Geely [Member] | ||||||
Principles of Consolidation (Details) [Line Items] | ||||||
Percentage of equity interest | 22.00% | 22.00% | ||||
Kandi New Energy [Member] | Zhejiang Kandi Technologies [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 Hainan [Member] | Zhejiang Kandi Technologies [Member] | ||||||
Principles of Consolidation (Details) [Line Items] | ||||||
Percentage owned in subsidiary | 45.00% | |||||
Kandi Hainan [Member] | Kandi New Energy [Member] | ||||||
Principles of Consolidation (Details) [Line Items] | ||||||
Percentage owned in subsidiary | 55.00% | |||||
Equity Method Investees [Member] | ||||||
Principles of Consolidation (Details) [Line Items] | ||||||
Percentage of equity interest | 22.00% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | Mar. 14, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 01, 2021 |
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Notes payable | $ 8,198,193 | $ 92,445 | ||
Restricted cash | 39,452,564 | 442,445 | ||
Net amount due from the affiliate | 19,800,000 | |||
Loan interest | 2,200,000 | |||
Accounts receivable | 18,000,000 | |||
Other receivables | 2,300,000 | |||
Amount due from related party | 0 | 886,989 | ||
Amount due to related party | 0 | 500,000 | ||
Allowance for doubtful accounts | 3,053,277 | 110,269 | ||
Notes receivable from unrelated parties | $ 323,128 | 31,404,630 | ||
Receivable typically mature period | 6 months | |||
Research and development expenses | $ 38,971,986 | 7,246,312 | ||
Subsidiaries from the chinese government | 1,233,192 | 1,130,262 | ||
Stock-based option expense | 0 | 0 | ||
Amortisation expenses | $ 906,618 | 625,629 | ||
Ownership interest | 50.00% | |||
Kandi New Energy [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Ownership interest | 100.00% | |||
Zhejiang Kandi Technologies [Member] | Subsequent Event [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Ownership interest | 50.00% | |||
Minimum [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Current discount rate | 2.10% | |||
Maximum [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Current discount rate | 2.70% | |||
Fair Value, Inputs, Level 3 [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Notes payable, fair value | $ 7,812,000 | $ 3,743,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of aging of the accounts receivable - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | |||
Financing Receivable, Impaired [Line Items] | ||||
Outstanding balance | $ 55,949,582 | $ 38,657,406 | ||
Subsequent collection | [1] | 15,605,771 | 33,309,046 | |
1 to 90 days [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Outstanding balance | 19,978,931 | 28,298,032 | ||
Subsequent collection | [1] | 11,040,304 | 23,894,359 | |
91 to 180 days [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Outstanding balance | 8,317,622 | 7,084,537 | ||
Subsequent collection | [1] | 3,868,362 | 6,567,082 | |
Over 180 days [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Outstanding balance | 1,815,817 | 3,164,568 | ||
Subsequent collection | [1] | 646,224 | 2,847,605 | |
Over one year [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Outstanding balance | 13,960,230 | [2] | ||
Subsequent collection | [1] | 50,881 | ||
Over two years [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Outstanding balance | 11,876,982 | [2] | 110,269 | |
Subsequent collection | [1] | |||
[1] | the Company reviewed the subsequent collection until March 10, 2022. | |||
[2] | The increase of accounts receivable as of December 31, 2021 compared to the amount as of December 31, 2020 was due to the acquisition of Jiangxi Huiyi, and the disposal of ownership of Fengsheng which the amount due from Fengsheng was recorded under “Amount due from the Affiliate Company” prior to the disposal. |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of asset’s estimated useful life | 12 Months Ended |
Dec. 31, 2021 | |
Machinery and equipment [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property, plants and equipment, Estimated useful lives | 10 years |
Office equipment [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property, plants and equipment, Estimated useful lives | 5 years |
Motor vehicles [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property, plants and equipment, Estimated useful lives | 5 years |
Molds [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property, plants and equipment, Estimated useful lives | 5 years |
Minimum [Member] | Buildings [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property, plants and equipment, Estimated useful lives | 20 years |
Maximum [Member] | Buildings [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property, plants and equipment, Estimated useful lives | 30 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of average exchange rate of the reporting period | Dec. 31, 2021 | Dec. 31, 2020 |
Period end RMB: USD Exchange Rate[Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of average exchange rate of the reporting period [Line Items] | ||
Exchange rate | 6.3588 | 6.5277 |
Average RMB: USD Exchange Rate [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of average exchange rate of the reporting period [Line Items] | ||
Exchange rate | 6.4499 | 6.9001 |
Concentrations (Details)
Concentrations (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
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, 2021 | Dec. 31, 2020 | |
Customer A [Member] | Sales [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 15.00% | 9.00% |
Customer A [Member] | Trade Receivable [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 13.00% | 13.00% |
Customer B [Member] | Sales [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 14.00% | 14.00% |
Customer B [Member] | Trade Receivable [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 2.00% | 7.00% |
Customer C [Member] | Sales [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 3.00% | 24.00% |
Customer C [Member] | Trade Receivable [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 1.00% | 15.00% |
Concentrations (Details) - Sc_2
Concentrations (Details) - Schedule of concentration percentage | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Purchases [Member] | Zhejiang Kandi Supply Chain Management Co., Ltd. [Member] | ||
Concentrations (Details) - Schedule of concentration percentage [Line Items] | ||
Concentration percentage | 50.00% | 49.00% |
Purchases [Member] | Massimo Motor Sports, LLC [Member] | ||
Concentrations (Details) - Schedule of concentration percentage [Line Items] | ||
Concentration percentage | 6.00% | 22.00% |
Accounts Payable [Member] | Zhejiang Kandi Supply Chain Management Co., Ltd. [Member] | ||
Concentrations (Details) - Schedule of concentration percentage [Line Items] | ||
Concentration percentage | 11.00% | 9.00% |
Accounts Payable [Member] | Massimo Motor Sports, LLC [Member] | ||
Concentrations (Details) - Schedule of concentration percentage [Line Items] | ||
Concentration percentage | 5.00% |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) | 12 Months Ended |
Dec. 31, 2021shares | |
Option [Member] | |
Earnings (Loss) Per Share (Details) [Line Items] | |
Excluded from the calculation of diluted net earnings per share | 900,000 |
Warrants [Member] | |
Earnings (Loss) Per Share (Details) [Line Items] | |
Excluded from the calculation of diluted net earnings per share | 8,131,332 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - Schedule of accounts receivable - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of accounts receivable [Abstract] | ||
Accounts receivable | $ 55,949,582 | $ 38,657,406 |
Less: allowance for doubtful accounts | (3,053,277) | (110,269) |
Accounts receivable, net | $ 52,896,305 | $ 38,547,137 |
Accounts Receivable, Net (Det_2
Accounts Receivable, Net (Details) - Schedule of provision for doubtful accounts - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of provision for doubtful accounts [Abstract] | ||
BALANCE | $ 110,269 | $ 254,665 |
Provision | 1,147,679 | |
Reverse | (152,809) | |
Addition of allowance resulted from acquisition of Jiangxi Huiyi | 1,763,231 | |
Exchange rate difference | 32,098 | 8,413 |
BALANCE | $ 3,053,277 | $ 110,269 |
Inventories (Details)
Inventories (Details) | Dec. 31, 2021USD ($) |
Off-roads [Member] | |
Inventories (Details) [Line Items] | |
Inventory | $ 3,800,000 |
SC Autosports [Member] | |
Inventories (Details) [Line Items] | |
Short-term loan | $ 950,000 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of inventories - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of inventories [Abstract] | |||
Raw material | $ 9,291,441 | $ 7,512,259 | |
Work-in-progress | 9,116,194 | 5,488,532 | |
Finished goods* | [1] | 14,764,338 | 6,696,592 |
Inventories | $ 33,171,973 | $ 19,697,383 | |
[1] | As of December 31, 2021, approximately $3.8 million of inventory of off-roads and EVs held by SC Autosports were pledged as collateral for the $950,000 short-term loan, which was initiated during year 2021. |
Notes Receivable (Details)
Notes Receivable (Details) - USD ($) | Dec. 31, 2021 | Jun. 22, 2021 | Apr. 20, 2021 | Jan. 27, 2021 | Jan. 15, 2021 | Dec. 31, 2020 |
Notes Receivable (Details) [Line Items] | ||||||
Notes receivable from unrelated parties | $ 31,404,630 | |||||
Notes Receivable One [Member] | ||||||
Notes Receivable (Details) [Line Items] | ||||||
Notes receivable from unrelated parties | $ 323,128 | |||||
Notes Receivable [Member] | ||||||
Notes Receivable (Details) [Line Items] | ||||||
Rate of annual interest | 6.00% | |||||
Notes Receivable Two [Member] | ||||||
Notes Receivable (Details) [Line Items] | ||||||
Notes receivable from unrelated parties | $ 9,200,000 | $ 9,200,000 | $ 6,900,000 | $ 6,100,000 |
Advances to Suppliers (Details)
Advances to Suppliers (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 01, 2020 | |
Advances To Suppliers Are Summarized [Abstract] | ||
Total contract amount | $ 38.3 | |
Advance payment | $ 23 | |
Expense incurred | $ 18.2 |
Advances to Suppliers (Detail_2
Advances to Suppliers (Details) - Schedule of advances to suppliers - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of advances to suppliers [Abstract] | |||
Advance payment for inventory purchase | [1] | $ 4,110,835 | $ 13,107,630 |
Advance payment for R & D | [2] | 19,365,947 | |
Others | 1,829,621 | 4,259,605 | |
Total | $ 5,940,456 | $ 36,733,182 | |
[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. This advance payment will be expensed progressively according to the progress of the R & D project. In the year 2021, $18.2 million expense was incurred accordingly. |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) | 12 Months Ended | |
Dec. 31, 2021USD ($)m²shares | Dec. 31, 2020USD ($) | |
Property, Plant and Equipment (Details) [Line Items] | ||
Production capacity with an annual output | shares | 100,000 | |
Depreciation expenses | $ | $ 8,650,755 | $ 6,976,651 |
New Location [Member] | ||
Property, Plant and Equipment (Details) [Line Items] | ||
Area | 57,000 | |
Construction [Member] | ||
Property, Plant and Equipment (Details) [Line Items] | ||
Area | 98,000 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Details) - Schedule of property, plants and equipment - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 148,894,701 | $ 101,297,556 |
Less : Accumulated depreciation | (37,317,290) | (35,894,876) |
Property, plant and equipment, net | 111,577,411 | 65,402,680 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 52,481,460 | 18,924,734 |
Machinery and equipment [member | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 81,994,596 | 67,893,378 |
Office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,497,461 | 1,138,870 |
Motor vehicles and other transport equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,068,616 | 587,785 |
Molds and Others [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 11,852,568 | $ 12,752,789 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expenses for intangible assets | $ 906,618 | $ 625,629 |
Intangible Assets (Details) - S
Intangible Assets (Details) - Schedule of gross carrying value and accumulated amortization for each major class of our intangible assets other than goodwill - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Intangible Assets (Details) - Schedule of gross carrying value and accumulated amortization for each major class of our intangible assets other than goodwill [Line Items] | ||
Gross carrying amount of intangible assets | $ 16,648,369 | $ 5,667,868 |
Less: Accumulated amortization | (3,399,290) | (2,435,115) |
Intangible assets, net | $ 13,249,079 | 3,232,753 |
Trade name [Member] | ||
Intangible Assets (Details) - Schedule of gross carrying value and accumulated amortization for each major class of our intangible assets other than goodwill [Line Items] | ||
Remaining useful life | 0 years | |
Gross carrying amount of intangible assets | $ 492,235 | 492,235 |
Less: Accumulated amortization | $ (492,235) | (439,798) |
Customer relations [Member] | ||
Intangible Assets (Details) - Schedule of gross carrying value and accumulated amortization for each major class of our intangible assets other than goodwill [Line Items] | ||
Remaining useful life | 0 years | |
Gross carrying amount of intangible assets | $ 304,086 | 304,086 |
Less: Accumulated amortization | (304,086) | (271,691) |
Patent [Member] | ||
Intangible Assets (Details) - Schedule of gross carrying value and accumulated amortization for each major class of our intangible assets other than goodwill [Line Items] | ||
Gross carrying amount of intangible assets | 5,000,944 | 4,871,547 |
Less: Accumulated amortization | $ (2,359,212) | $ (1,723,626) |
Patent [Member] | Minimum [Member] | ||
Intangible Assets (Details) - Schedule of gross carrying value and accumulated amortization for each major class of our intangible assets other than goodwill [Line Items] | ||
Remaining useful life | 3 years 6 months | |
Patent [Member] | Maximum [Member] | ||
Intangible Assets (Details) - Schedule of gross carrying value and accumulated amortization for each major class of our intangible assets other than goodwill [Line Items] | ||
Remaining useful life | 5 years 2 months 1 day | |
Technology [Member] | ||
Intangible Assets (Details) - Schedule of gross carrying value and accumulated amortization for each major class of our intangible assets other than goodwill [Line Items] | ||
Gross carrying amount of intangible assets | $ 10,851,104 | |
Less: Accumulated amortization | $ (243,757) | |
Technology [Member] | Minimum [Member] | ||
Intangible Assets (Details) - Schedule of gross carrying value and accumulated amortization for each major class of our intangible assets other than goodwill [Line Items] | ||
Remaining useful life | 6 years 9 months 29 days | |
Technology [Member] | Maximum [Member] | ||
Intangible Assets (Details) - Schedule of gross carrying value and accumulated amortization for each major class of our intangible assets other than goodwill [Line Items] | ||
Remaining useful life | 9 years 9 months 29 days |
Intangible Assets (Details) -_2
Intangible Assets (Details) - Schedule of amortization expenses | Dec. 31, 2021USD ($) |
Schedule of amortization expenses [Abstract] | |
2022 | $ 2,023,355 |
2023 | 2,023,355 |
2024 | 2,023,355 |
2025 | 1,956,729 |
2026 | 1,733,803 |
Thereafter | 3,488,482 |
Total | $ 13,249,079 |
Land Use Rights (Details)
Land Use Rights (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Land Use Rights [Abstract] | ||
Amortization expenses | $ 92,628 | $ 201,061 |
Land Use Rights (Details) - Sch
Land Use Rights (Details) - Schedule of land use rights - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of land use rights [Abstract] | ||
Cost of land use rights | $ 4,131,797 | $ 4,024,889 |
Less: Accumulated amortization | (881,461) | (767,129) |
Land use rights, net | $ 3,250,336 | $ 3,257,760 |
Land Use Rights (Details) - S_2
Land Use Rights (Details) - Schedule of amortization expense | Dec. 31, 2021USD ($) |
Schedule of amortization expense [Abstract] | |
Years ended December 31, | $ 92,628 |
2022 | 92,628 |
2023 | 92,628 |
2024 | 92,628 |
2025 | 92,628 |
2026 | 92,628 |
Thereafter | 2,694,568 |
Total | $ 3,250,336 |
Other Long-Term Assets (Details
Other Long-Term Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Other Long-Term Assets (Details) [Line Items] | |||
Prepayments for land use right | [1] | $ 4,341,496 | $ 4,319,305 |
Amortization expense | 92,628 | $ 201,061 | |
Land and Properties Description | (ii)As 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 and net value of properties (or buildings/housing) of Jinhua facility’s old location with certificates cancelled of $7,633,247, respectively. | ||
Newly acquired land use right | 6,308,374 | $ 3,436,310 | |
Amortization expense | 79,557 | ||
Hainan [Member] | |||
Other Long-Term Assets (Details) [Line Items] | |||
Amortization expense | 91,229 | $ 85,277 | |
Jinhua Facility [Member] | |||
Other Long-Term Assets (Details) [Line Items] | |||
Amortization expense | 68,106 | ||
Depreciation Expense on Reclassified Assets | 151,694 | ||
Disposal of long-live asset | $ 48,000,000 | ||
[1] | As of December 31, 2021 and December 31, 2020, the Company’s other long term asset included net value of prepayments for land use right of Hainan facility of $4,341,496 and $4,319,305, respectively. As of December 31, 2021, the land use right of Hainan was not recognized since the land certificate is still in process. The amortization expense for the year ended December 31, 2021 and 2020 were $91,229 and $85,277, respectively. |
Other Long-Term Assets (Detai_2
Other Long-Term Assets (Details) - Schedule of other long term assets - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of other long term assets [Abstract] | |||
Long term deferred assets | $ 3,706,560 | ||
Prepayments for land use right | [1] | 4,341,496 | 4,319,305 |
Land and properties with certificates cancelled | [2] | 13,728,557 | |
Prepayments for new product molds | 6,663,909 | ||
Right - of - use asset | [3] | 6,308,374 | 3,496,993 |
Others | 342,139 | 392,160 | |
Total other long term asset | $ 10,992,009 | $ 32,307,484 | |
[1] | As of December 31, 2021 and December 31, 2020, the Company’s other long term asset included net value of prepayments for land use right of Hainan facility of $4,341,496 and $4,319,305, respectively. As of December 31, 2021, the land use right of Hainan was not recognized since the land certificate is still in process. The amortization expense for the year ended December 31, 2021 and 2020 were $91,229 and $85,277, respectively. | ||
[2] | As 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 and net value of properties (or buildings/housing) of Jinhua facility’s old location with certificates cancelled of $7,633,247, respectively. In the second quarter of 2021, the land and property of Jinhua facility’s old location has been written off. The land amortization expense of Jinhua facility’s old location for the year ended December 31, 2021 were $68,106. The property depreciation expense of Jinhua facility’s old location for the year ended December 31, 2021 were $151,694. The Company’s Jinhua facility moved out of the old location and completed the relocation process in April 2021. The relevant Economic Zone authorities inspected the vacated land and determined that the relocation was formally completed by meeting all stipulated conditions. In the second quarter of 2021, the property of Jinhua facility’s old location has been fully disposed, and the related $48 million gain on disposal of long-live asset was recognized. | ||
[3] | As of December 31, 2021 and 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 and Jiangxi facility of $6,308,374 and $3,436,310, respectively. The amortization expense for the year ended December 31, 2021 were $79,557. |
Taxes (Details)
Taxes (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | May 04, 2020 | Mar. 27, 2020 | |
Taxes (Details) [Line Items] | ||||
Applicable corporate income tax rate | 25.00% | |||
Reduced income tax rate | 15.00% | |||
Corporate income tax | 25.00% | 25.00% | ||
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, 2021 and 2020 was a tax expense of 21.73% on a reported income before taxes of approximately $29.2 million, a tax benefit of 32.69% on a reported loss before taxes of approximately $15.4 million, respectively. | |||
PRC statutory rate | 25.00% | 25.00% | ||
Indefinite carryforward period (in Dollars) | $ 500,000 | $ 100,000 | ||
Valuation allowance (in Dollars) | 12,000,000 | |||
Interest rate | 1.00% | |||
Payroll expenses, percentage | 60.00% | |||
Other qualifying expenses, percentage | 40.00% | |||
PPP loan amount (in Dollars) | $ 207,867 | |||
SBA PPP loan program and the entire amount has qualified for forgiveness (in Dollars) | $ 451,983 | |||
PPP loan [Member] | ||||
Taxes (Details) [Line Items] | ||||
Loan amount (in Dollars) | $ 244,166 | |||
Interest rate | 1.00% | |||
Subsidiaries [Member] | ||||
Taxes (Details) [Line Items] | ||||
Corporate income tax | 25.00% | |||
PRC [Member] | ||||
Taxes (Details) [Line Items] | ||||
Net operating loss carried forward term | 5 years | |||
HNTE [Member] | PRC [Member] | ||||
Taxes (Details) [Line Items] | ||||
Net operating loss carried forward term | 10 years | |||
PRC, Hong Kong and U.S. [Member] | ||||
Taxes (Details) [Line Items] | ||||
Net operation loss (in Dollars) | $ 7,200,000 | 3,400,000 | ||
High and New Technology Enterprise [Member] | ||||
Taxes (Details) [Line Items] | ||||
Net operation loss (in Dollars) | $ 800,000 | $ 6,400,000 |
Taxes (Details) - Schedule of i
Taxes (Details) - Schedule of income tax expenses - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | ||
Provision for CIT | $ 2,273,175 | $ 302,553 |
Deferred: | ||
Provision for CIT | 4,073,315 | (5,349,722) |
Income tax expense (benefit) | $ 6,346,490 | $ (5,047,169) |
Taxes (Details) - Schedule of p
Taxes (Details) - Schedule of provision for income taxes - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of provision for income taxes [Abstract] | ||
Expected taxation at PRC statutory tax rate | $ 7,302,572 | $ (3,860,333) |
Gain or loss difference due to outside basis in equity investments | 106,289 | (4,347,061) |
Effect of differing tax rates in different jurisdictions | 66,108 | 93,806 |
Effect of PRC preferential tax rates | (704,361) | 1,145,631 |
Non-taxable income | (1,976,661) | (7,889) |
Non-deductible expenses | 1,352,085 | 615,659 |
Research and development super-deduction | (2,006,682) | (458,723) |
(Over) Under-accrued EIT for previous years | 323,427 | (24,583) |
Addition to valuation allowance | 8,499,993 | 1,629,952 |
Divided received deduction | (3,023,303) | |
Local tax adjustment | 1,734,997 | |
Other (including inter-company transaction) | (5,327,974) | 166,372 |
Income tax (benefit) expense | $ 6,346,490 | $ (5,047,169) |
Taxes (Details) - Schedule of d
Taxes (Details) - Schedule of deferred tax assets and liabilities - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Accruals and reserves | $ 7,471,881 | $ 1,160,830 |
Depreciation | ||
Outside basis difference of investment in the Affiliate Company | 7,821,994 | |
Loss carried forward | 7,195,729 | 3,415,400 |
Total deferred tax assets | 14,667,610 | 12,398,224 |
Deferred tax liabilities: | ||
Expense | (411,195) | (588,889) |
Intangible | (1,981,862) | (473,024) |
Revenue | (462,623) | (2,421,259) |
Total deferred tax liability | (2,855,680) | (3,483,172) |
Net deferred tax assets (liabilities) | 11,811,930 | 8,915,052 |
less: valuation allowance | (12,052,774) | (3,433,277) |
Net deferred tax assets(liabilities),net of valuation allowance | $ (240,844) | $ 5,481,775 |
Taxes (Details) - Schedule of_2
Taxes (Details) - Schedule of income (loss) before income taxes - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Taxes (Details) - Schedule of income (loss) before income taxes [Line Items] | ||
Total | $ 29,210,288 | $ (15,441,333) |
PRC [Member] | ||
Taxes (Details) - Schedule of income (loss) before income taxes [Line Items] | ||
Total | 30,719,006 | (12,734,584) |
Non-PRC [Member] | ||
Taxes (Details) - Schedule of income (loss) before income taxes [Line Items] | ||
Total | $ (1,508,718) | $ (2,706,749) |
Taxes (Details) - Schedule of v
Taxes (Details) - Schedule of valuation allowance of deferred tax assets | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Net change of valuation allowance of Deferred tax assets | |
Balance at December 31,2020 | $ 3,433,277 |
Additions-change to tax expense | 8,499,993 |
Prior year true up | 131,364 |
Exchange rate difference | (11,860) |
Balance at December 31,2021 | $ 12,052,774 |
Taxes (Details) - Schedule of_3
Taxes (Details) - Schedule of income tax expense exemptions and reductions - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of income tax expense exemptions and reductions [Abstract] | ||
Tax benefit (holiday) credit | $ 2,226,944 | $ 690,905 |
Basic net income per share effect | $ 0.03 | $ 0.01 |
Leases and Right-of-Use-Asset_2
Leases and Right-of-Use-Assets (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2021 | Oct. 31, 2020 | Dec. 31, 2021 | Apr. 30, 2021 | Jan. 31, 2020 | |
Leases and Right-of-Use-Assets (Details) [Line Items] | |||||
Lease term | 15 months | ||||
Discount rate | 4.25% | ||||
Acquired for land use | $ 2,800,000 | ||||
Operating right of use asset | $ 6,308,374 | ||||
Operating lease expense | $ 79,557 | ||||
Lease [Member] | |||||
Leases and Right-of-Use-Assets (Details) [Line Items] | |||||
Land use rights of gross value | $ 3,500,000 | ||||
Corporate Office Lease [Member] | SC Autosports [Member] | |||||
Leases and Right-of-Use-Assets (Details) [Line Items] | |||||
Lease term | 15 months | ||||
Lease payment, description | The monthly lease payment is $11,000 from February 2020 to April 2020 and $12,000 from May 2020 to April 2021. |
Leases and Right-of-Use-Asset_3
Leases and Right-of-Use-Assets (Details) - Schedule of information related to operating leases | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Schedule of information related to operating leases [Abstract] | |
Cash payments for operating leases | $ 79,557 |
Contingent Consideration Liab_3
Contingent Consideration Liability (Details) ¥ in Millions | Jul. 01, 2018USD ($)shares | Jan. 03, 2018USD ($)shares | Oct. 31, 2021 | Dec. 31, 2021USD ($)shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019CNY (¥) | Dec. 31, 2018shares |
Contingent Consideration Liability (Details) [Line Items] | |||||||
Value of shares issued (in Dollars) | $ | $ 151,923,247 | ||||||
Number of total shares | 5,919,674 | ||||||
Percentage of acquisition of equity | 22.00% | ||||||
Number of shares, granted | |||||||
Equity consideration percentage | 100.00% | 20.00% | |||||
Cash on hand | $ 7,900,000 | ¥ 50 | |||||
Additional shares | 2,576,310 | ||||||
Contingent consideration liability (in Dollars) | $ | $ 7,812,000 | $ 3,743,000 | |||||
SC Autosports [Member] | |||||||
Contingent Consideration Liability (Details) [Line Items] | |||||||
Contingent consideration liability, description | 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 received 515,907 shares of Kandi’s restrictive common stock or 30% of the total equity consideration in the purchase price. | ||||||
Percentage of acquisition of equity | 100.00% | ||||||
Percentage of outstanding shares | 0.30% | ||||||
Number of shares, granted | 343,938 | ||||||
SC Autosports [Member] | Restricted Stock [Member] | |||||||
Contingent Consideration Liability (Details) [Line Items] | |||||||
Number of shares issued | 171,969 | ||||||
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. | 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 KSBS 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 million (approximately $8 million) 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. For the period from January 1, 2020 to June 30, 2021, Kandi Smart Battery Swap achieved its net profit target. Accordingly, the KSBS Shareholders received 1,233,068 shares of Kandi’s restrictive common stock or 20.83% of the total equity consideration (i.e., 5,919,674 total shares) as part of the purchase price. | |||||
Number of shares issued | 2,959,837 | ||||||
Value of shares issued (in Dollars) | $ | $ 20,700,000 | ||||||
KSBS Shareholders [Member] | |||||||
Contingent Consideration Liability (Details) [Line Items] | |||||||
Total equity consideration, percentage | 20.83% | ||||||
Transfer Agreement [Member] | SC Autosports [Member] | |||||||
Contingent Consideration Liability (Details) [Line Items] | |||||||
Number of shares issued | 1,547,721 | ||||||
Transfer Agreement [Member] | SC Autosports [Member] | Restricted Stock [Member] | |||||||
Contingent Consideration Liability (Details) [Line Items] | |||||||
Value of shares issued (in Dollars) | $ | $ 800,000 |
Contingent Consideration Liab_4
Contingent Consideration Liability (Details) - Schedule of contingent consideration liability - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Total contingent consideration liability | $ 7,812,000 | $ 3,743,000 |
KSBS Shareholders [Member] | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Total contingent consideration liability | 3,743,000 | |
Jiangxi Huiyi [Member] | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Total contingent consideration liability | $ 7,812,000 |
Common Shares (Details)
Common Shares (Details) - USD ($) | Mar. 09, 2021 | Nov. 12, 2020 | Dec. 01, 2021 | Dec. 16, 2020 | Nov. 24, 2020 | Dec. 16, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Common Shares (Details) [Line Items] | ||||||||
Common stock, par value | $ 0.001 | $ 0.001 | ||||||
Gross proceeds | $ 17,700,000 | $ 100,000,028 | ||||||
Aggregate purchase percentage | 6.00% | |||||||
Common stock shares | 564,264 | |||||||
Warrants, exercisable price | $ 8.18 | |||||||
Retire from treasury | 487,155 | |||||||
Treasury stock balance decreased | $ 1,200,000,000 | |||||||
Assets | $ 77,965 | $ 77,965 | $ 520,160,272 | $ 495,249,840 | ||||
Reduced value of stock | $ 2,477,965 | |||||||
Securities Purchase Agreement [Member] | ||||||||
Common Shares (Details) [Line Items] | ||||||||
Aggregate of issued in units | 9,404,392 | 8,849,560 | ||||||
Common stock, par value | $ 0.001 | |||||||
Warrants per share | 0.4 | $ 0.4 | ||||||
Price per share | $ 6.38 | $ 11.3 | ||||||
Gross proceeds | $ 60,000,021 | |||||||
Offering expenses payable | $ 3,100,000 | $ 5,000,000 | ||||||
Common Stock [Member] | Securities Purchase Agreement [Member] | ||||||||
Common Shares (Details) [Line Items] | ||||||||
Aggregate of issued in units | 9,404,392 | 8,849,560 | ||||||
warrants exercisable | 3,761,757 | 3,539,825 | ||||||
Warrant exercise price | $ 8.18 | |||||||
Warrant [Member] | Securities Purchase Agreement [Member] | ||||||||
Common Shares (Details) [Line Items] | ||||||||
Warrants per share | $ 14.5 | |||||||
Director [Member] | ||||||||
Common Shares (Details) [Line Items] | ||||||||
Stock Repurchased value | $ 20,000,000 | |||||||
Stock Repurchased shares | 679,749 | |||||||
Repurchase average stock price | $ 3.52 | |||||||
Placement Agent Warrants [Member] | ||||||||
Common Shares (Details) [Line Items] | ||||||||
Aggregate purchase percentage | 3.00% | |||||||
Common stock shares | 265,487 | |||||||
Warrants, exercisable price | $ 14.5 |
Stock Options (Details)
Stock Options (Details) | 1 Months Ended |
May 29, 2015USD ($)$ / sharesshares | |
Stock Options (Details) [Line Items] | |
Stock option vest expire date, description | The stock options will vest ratably over three years and expire on the tenth anniversary of the grant date. |
Stock option vested term | 3 years |
Stock options, description | 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. |
Stock option (in Dollars) | $ | $ 39,990,540 |
Expected volatility | 90.00% |
Expected life | 10 years |
Risk free interest rate | 2.23% |
Expected dividend yield | 0.00% |
Board of Directors [Member] | |
Stock Options (Details) [Line Items] | |
Stock opton to purchase (in Shares) | shares | 4,900,000 |
Directors, Officers and Senior Employees [Member] | |
Stock Options (Details) [Line Items] | |
Exercised price per share (in Dollars per share) | $ / shares | $ 9.72 |
Employees and Directors [Member] | |
Stock Options (Details) [Line Items] | |
Fair value of stock option issued (in Shares) | shares | 4,900,000 |
Fair value of stock opttion issued per share (in Dollars per share) | $ / shares | $ 8.16 |
Stock Options (Details) - Sched
Stock Options (Details) - Schedule of stock option activities - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of stock option activities [Abstract] | ||
Number of Shares, Outstanding beginning balance | 900,000 | 3,900,000 |
Weighted Average Exercise Price, Outstanding beginning 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 | ||
Weighted Average Exercise Price, Forfeited | ||
Number of Shares, Outstanding ending balance | 900,000 | 900,000 |
Weighted Average Exercise Price, Outstanding ending balance | $ 9.72 | $ 9.72 |
Stock Award (Details)
Stock Award (Details) - USD ($) | May 15, 2020 | May 09, 2020 | Apr. 30, 2021 | Apr. 30, 2019 | Jan. 29, 2019 | Apr. 18, 2018 | Sep. 26, 2016 | Dec. 31, 2021 | Dec. 31, 2020 |
Stock Award (Details) [Line Items] | |||||||||
Shares granted to certain management members and employees as compensation | |||||||||
Expenses for stock compensation (in Dollars) | $ 1,484,576 | $ 902,666 | |||||||
2008 Plan [Member] | |||||||||
Stock Award (Details) [Line Items] | |||||||||
Total number of shares of common stock grant to key employees | 250,000 | ||||||||
Shares granted to certain management members and employees as compensation | 238,600 | ||||||||
Mr. Henry Yu [Member] | |||||||||
Stock Award (Details) [Line Items] | |||||||||
Restricted shares of common stock compensate | 5,000 | ||||||||
Mr. Jerry Lewin [Member] | |||||||||
Stock Award (Details) [Line Items] | |||||||||
Restricted shares of common stock compensate | 5,000 | ||||||||
Ms. Kewa Luo [Member] | |||||||||
Stock Award (Details) [Line Items] | |||||||||
Shares of common stock compensate | 5,000 | ||||||||
Ms Zhu Xiaoying [Member] | 2008 Omnibus Long-Term Incentive Plan [Member] | |||||||||
Stock Award (Details) [Line Items] | |||||||||
Shares of common stock compensate | 10,000 | ||||||||
Mr. Jehn Ming Lim [Member] | 2008 Omnibus Long-Term Incentive Plan [Member] | |||||||||
Stock Award (Details) [Line Items] | |||||||||
Shares of common stock compensate | 6,000 | ||||||||
Certain management members and employees [Member] | |||||||||
Stock Award (Details) [Line Items] | |||||||||
Shares granted to certain management members and employees as compensation | 238,600 | 238,600 | 238,600 |
Equity Method Investment in t_3
Equity Method Investment in the Affiliate Company (Details) $ in Millions | Sep. 10, 2021USD ($) | Sep. 10, 2021CNY (¥) | Mar. 16, 2021USD ($) | Mar. 16, 2021CNY (¥) | Dec. 31, 2021 | Mar. 09, 2021 | Feb. 18, 2021USD ($) | Feb. 18, 2021CNY (¥) |
Equity Method Investment in the Affiliate Company (Details) [Line Items] | ||||||||
Equity interests percentage | 22.00% | |||||||
First Half [Member] | ||||||||
Equity Method Investment in the Affiliate Company (Details) [Line Items] | ||||||||
Equity transfer payment | $ 24 | ¥ 154,000,000 | ||||||
Second Half [Member] | ||||||||
Equity Method Investment in the Affiliate Company (Details) [Line Items] | ||||||||
Equity transfer payment | $ 24 | ¥ 154,000,000 | ||||||
Equity Transfer Agreement [Member] | ||||||||
Equity Method Investment in the Affiliate Company (Details) [Line Items] | ||||||||
Equity interests percentage | 22.00% | 22.00% | ||||||
Total consideration | $ 48 | ¥ 308,000,000 | ||||||
Affiliate [Member] | ||||||||
Equity Method Investment in the Affiliate Company (Details) [Line Items] | ||||||||
Equity interests percentage | 22.00% |
Equity Method Investment in t_4
Equity Method Investment in the Affiliate Company (Details) - Schedule of equity method investments - Affiliated Company [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||
Investment in the Affiliate Company, beginning of the period, | $ 28,892,638 | $ 47,228,614 |
Investment decreased in 2021 | (48,436,812) | |
Gain from equity sale | 17,788,351 | |
Reversal of prior year reduction in the equity of the Affiliate Company* | 3,363,015 | (3,275,999) |
Company’s share in net loss of Affiliate based on 22% ownership for period from January 1, 2021 to March 9, 2021 and year ended December 31, 2020 | (2,692,225) | (16,812,341) |
Non-controlling interest | 99,891 | (445,977) |
Prior year unrealized profit realized | 5,656 | |
Subtotal | (2,592,334) | (17,252,662) |
Exchange difference | 985,142 | 2,192,685 |
Investment in Affiliate Company, end of the period | 28,892,638 | |
- Non-controlling interest carrying amount | $ 2,611,821 |
Equity Method Investment in t_5
Equity Method Investment in the Affiliate Company (Details) - Schedule of equity method investments (Parentheticals) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Affiliated Company [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Affiliate ownership | 22.00% | 22.00% |
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 $3,145,248 (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 | $ 3,145,248 | ¥ 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 $2.9 million and demanded that the guarantor bear the liability for compensation. |
Segment Reporting (Details)
Segment Reporting (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Number of operating segment | 1 |
Segment Reporting (Details) - S
Segment Reporting (Details) - Schedule of revenues by geographic area - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Primary geographical markets [Member] | ||
Segment Reporting (Details) - Schedule of revenues by geographic area [Line Items] | ||
Revenues | $ 91,486,384 | $ 76,920,513 |
Major Products [Member] | ||
Segment Reporting (Details) - Schedule of revenues by geographic area [Line Items] | ||
Revenues | 91,486,384 | 76,920,513 |
Timing of revenue recognition [Member] | ||
Segment Reporting (Details) - Schedule of revenues by geographic area [Line Items] | ||
Revenues | 91,486,384 | 76,920,513 |
Off-road vehicles [Member] | Major Products [Member] | ||
Segment Reporting (Details) - Schedule of revenues by geographic area [Line Items] | ||
Revenues | 29,336,693 | 29,824,323 |
Electric Scooters, Electric Self-Balancing Scooters and associated parts [Member] | Major Products [Member] | ||
Segment Reporting (Details) - Schedule of revenues by geographic area [Line Items] | ||
Revenues | 30,018,290 | 5,765,969 |
Battery exchange equipment and Battery exchange service [Member] | Major Products [Member] | ||
Segment Reporting (Details) - Schedule of revenues by geographic area [Line Items] | ||
Revenues | 785,183 | |
Lithium-ion cells [Member] | Major Products [Member] | ||
Segment Reporting (Details) - Schedule of revenues by geographic area [Line Items] | ||
Revenues | 4,519,649 | |
Products transferred at a point in time [Member] | Timing of revenue recognition [Member] | ||
Segment Reporting (Details) - Schedule of revenues by geographic area [Line Items] | ||
Revenues | 91,486,384 | 76,920,513 |
Overseas [Member] | Primary geographical markets [Member] | ||
Segment Reporting (Details) - Schedule of revenues by geographic area [Line Items] | ||
Revenues | 32,669,996 | 29,394,148 |
China [Member] | Primary geographical markets [Member] | ||
Segment Reporting (Details) - Schedule of revenues by geographic area [Line Items] | ||
Revenues | 58,816,388 | 47,526,365 |
EV parts [Member] | Major Products [Member] | ||
Segment Reporting (Details) - Schedule of revenues by geographic area [Line Items] | ||
Revenues | 25,348,003 | 40,645,696 |
EV products [Member] | Major Products [Member] | ||
Segment Reporting (Details) - Schedule of revenues by geographic area [Line Items] | ||
Revenues | $ 1,478,566 | $ 684,525 |
Acquisitions (Details)
Acquisitions (Details) ¥ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Oct. 31, 2021USD ($) | Oct. 31, 2021CNY (¥) | Oct. 20, 2021USD ($) | Oct. 20, 2021CNY (¥) | Jul. 19, 2021USD ($) | Jul. 19, 2021CNY (¥) | Nov. 16, 2016 | Dec. 31, 2021USD ($)shares | |
Acquisitions (Details) [Line Items] | ||||||||
Supplementary agreement, description | In addition, pursuant to the Supplementary Agreement by and between the two parties, the Company may issue 858,770 shares of registered stock (the “Shares”) to the Transferors each year for the next three years, conditioned on the fulfillment of the undertaking by the Transferors of Jiangxi Huiyi to achieve no less than RMB 15 million (approximately $2.3 million) net income (the “Annual Profit Target”) over the course of each of the following three years without additional investment by Zhejiang Kandi Technologies. The Shares will be registered on proper registration statement.The Supplementary Agreement sets forth the terms and conditions of the issuance of the Shares for the three year period subsequent to the consummation of acquisition from July 1, 2021 to June 30, 2022, 2023 and 2024 as below: If Jiangxi Huiyi achieves the Annual Profit Target, 858,770 shares will be issued to the Transferors. However, a reduced number of shares may be issued to Transferors if Jiangxi Huiyi fails to achieve its Annual Profit Target: If the annual net profits of Jiangxi Huiyi fall below the Annual Profit Target by 20% or less, 687,016 shares will be issued to the Transferors; if net profits of Jiangxi Huiyi fall below the Annual Profit Target by a percentage between 20% and 40%, 515,262 shares will be issued to the Transferors; and if net profits of Jiangxi Huiyi fall below the Annual Profit Target by 40% or more, no shares will be issued to the Transferors. All the profit targets referenced above shall follow the United States Generally Accepted Accounting Principles. | |||||||
Contingent liability | $ 10,600,000 | |||||||
Additional shares of restrictive common stock (in Shares) | shares | 2,576,310 | |||||||
Transaction costs | $ 60,347 | |||||||
Jiangxi Huiyi [Member] | ||||||||
Acquisitions (Details) [Line Items] | ||||||||
Purchase price | $ 7,700,000 | ¥ 50 | $ 3,900,000 | ¥ 25 | $ 3,900,000 | ¥ 25 | ||
Revenue | 4,600,000 | |||||||
Operating loss | $ 200,000 | |||||||
Business Combination [Member] | Jiangxi Huiyi [Member] | ||||||||
Acquisitions (Details) [Line Items] | ||||||||
Acquisition, description | Jiangxi Huiyi owns an intelligent production line with a daily output of 250,000 units of 18650 lithium batteries. Besides, as of December 31, 2021, it has 7 invention patents, 28 utility model patents, and 10 appearance patents approved by the PRC State Intellectual Property Offices. | |||||||
Purchase price percentage | 50.00% | 50.00% | 50.00% | 50.00% |
Acquisitions (Details) - Schedu
Acquisitions (Details) - Schedule of preliminary purchase price as of the acquisition date - Jiangxi Huiyi [Member] | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Business Acquisition [Line Items] | |
Cash | $ 7,806,767 |
Fair value of contingent consideration | 10,646,000 |
Total | $ 18,452,767 |
Acquisitions (Details) - Sche_2
Acquisitions (Details) - Schedule of preliminary purchase price allocations - Jiangxi Huiyi [Member] | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Acquisitions (Details) - Schedule of preliminary purchase price allocations [Line Items] | |
Goodwill | $ 5,682,051 |
Amortizable intangible assets | 10,773,338 |
Other net assets | 3,094,810 |
Deferred tax liability | (1,097,432) |
Total | $ 18,452,767 |
Acquisitions (Details) - Sche_3
Acquisitions (Details) - Schedule of preliminary purchase price to specific intangible asset - Technology [Member] | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Amortizable intangible assets: | |
Amount Assigned (in Dollars) | $ 10,773,338 |
Minimum [Member] | |
Amortizable intangible assets: | |
Estimated useful life (in years) | 7 years |
Maximum [Member] | |
Amortizable intangible assets: | |
Estimated useful life (in years) | 10 years |
Acquisitions (Details) - Sche_4
Acquisitions (Details) - Schedule of unaudited pro forma combined statements of operations information - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of unaudited pro forma combined statements of operations information [Abstract] | ||
Revenue | $ 116,847,257 | $ 79,931,122 |
LOSS FROM OPERATIONS | 755,314 | 606,360 |
NET LOSS | $ 23,696,197 | $ (10,586,299) |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event [Member] $ / shares in Units, $ in Thousands, ¥ in Millions | Mar. 14, 2022USD ($) | Feb. 15, 2022 | Mar. 14, 2022CNY (¥) | Jan. 31, 2022$ / sharesshares |
Subsequent Event (Details) [Line Items] | ||||
Subsequent event, description | (“Jiangsu Xingchi”), and Jiangsu Xingchi’s existing production capacity is far from meeting the needs of the U.S. market, in order to expand production capacity to meet the needs of the U.S. market, on February 15, 2022, Kandi Hainan and Jiangsu Xingchi jointly invested RMB 30,000,000 (approximately $4.6 million) in Haikou, Hainan (of which Kandi Hainan owns 66.7% and Jiangsu Xingchi owns 33.3%) to establish Hainan Kandi Holding New Energy Technology Co., Ltd. (“Hainan Kandi Holding”). Hainan Kandi Holding will specialize in the production of electric golf crossover vehicles and other products in Kandi Hainan’s factory. | |||
Zhejiang Kandi Technologies [Member] | ||||
Subsequent Event (Details) [Line Items] | ||||
Ownership interest | 50.00% | |||
Subscribed capital contributed value | $ 2,830 | ¥ 18 | ||
Common Stock [Member] | ||||
Subsequent Event (Details) [Line Items] | ||||
Common shares issued | shares | 459,036 | |||
Average stock price per share | $ / shares | $ 3.42 |