Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 08, 2024 | Jun. 30, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Interactive Data Current | Yes | ||
ICFR Auditor Attestation Flag | true | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Documents Incorporated by Reference [Text Block] | None. | ||
Entity Information [Line Items] | |||
Entity Registrant Name | KANDI TECHNOLOGIES GROUP, INC. | ||
Entity Central Index Key | 0001316517 | ||
Entity File Number | 001-33997 | ||
Entity Tax Identification Number | 90-0363723 | ||
Entity Incorporation, State or Country Code | DE | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 237,630,412.8 | ||
Entity Contact Personnel [Line Items] | |||
Entity Address, Address Line One | Jinhua New Energy Vehicle Town | ||
Entity Address, Address Line Two | Zhejiang Province | ||
Entity Address, City or Town | Jinhua | ||
Entity Address, Country | CN | ||
Entity Address, Postal Zip Code | 321016 | ||
Entity Phone Fax Numbers [Line Items] | |||
City Area Code | (86 - 579) | ||
Local Phone Number | 82239856 | ||
Entity Listings [Line Items] | |||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | KNDI | ||
Security Exchange Name | NASDAQ | ||
Entity Common Stock, Shares Outstanding | 87,358,234 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Auditor [Table] | |
Auditor Name | ARK Pro CPA & Co |
Auditor Firm ID | 3299 |
Auditor Location | Hong Kong, China |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 33,756,941 | $ 84,063,717 |
Restricted cash | 59,873,127 | 66,976,554 |
Certificate of deposit | 33,947,212 | 81,191,191 |
Accounts receivable (net of allowance for doubtful accounts of $2,886,223 and $2,285,386 as of December 31, 2023 and December 31, 2022, respectively) | 18,951,745 | 38,150,876 |
Inventories | 61,551,268 | 40,475,366 |
Notes receivable | 124,473,111 | 434,461 |
Other receivables | 6,476,542 | 11,912,615 |
Prepayments and prepaid expense | 1,909,094 | 2,970,261 |
Advances to suppliers | 2,609,098 | 3,147,932 |
TOTAL CURRENT ASSETS | 343,548,138 | 329,322,973 |
NON-CURRENT ASSETS | ||
Property, plant and equipment, net | 98,803,772 | 97,168,753 |
Intangible assets, net | 6,395,825 | 7,994,112 |
Land use rights, net | 2,754,442 | 2,909,950 |
Construction in progress | 199,837 | |
Deferred tax assets | 814,610 | 1,432,527 |
Long-term investment | 144,984 | |
Goodwill | 33,146,682 | 33,178,229 |
Other long-term assets | 9,993,130 | 10,630,911 |
TOTAL NON-CURRENT ASSETS | 151,908,461 | 153,659,303 |
TOTAL ASSETS | 495,456,599 | 482,982,276 |
CURRENT LIABILITIES | ||
Accounts payable | 28,744,854 | 35,321,262 |
Other payables and accrued expenses | 7,252,814 | 14,131,414 |
Short-term loans | 9,072,336 | 5,569,154 |
Notes payable | 24,071,461 | 19,123,476 |
Income tax payable | 2,130,083 | 1,270,617 |
Other current liabilities | 5,402,081 | 6,089,925 |
TOTAL CURRENT LIABILITIES | 76,673,629 | 81,505,848 |
NON-CURRENT LIABILITIES | ||
Long-term loans | 8,389,163 | |
Deferred taxes liability | 963,691 | 1,378,372 |
Contingent consideration liability | 2,693,000 | 1,803,000 |
Other long-term liabilities | 227,024 | 602,085 |
TOTAL NON-CURRENT LIABILITIES | 12,272,878 | 3,783,457 |
TOTAL LIABILITIES | 88,946,507 | 85,289,305 |
STOCKHOLDER’S EQUITY | ||
Common stock, $0.001 par value; 100,000,000 shares authorized; 87,532,800 and 77,668,730 shares issued and 87,348,234 and 74,180,171 outstanding at December 31,2023 and December 31,2022, respectively | 87,533 | 77,669 |
Less: Treasury stock (184,566 shares with average price of $2.75 and 3,488,559 shares with average price of $2.81 at December 31, 2023 and December 31, 2022, respectively) | (507,013) | (9,807,820) |
Additional paid-in capital | 457,847,155 | 451,373,645 |
Accumulated deficit (the restricted portion is $4,422,033 and $4,422,033 at December 31, 2023 and December 31, 2022, respectively) | (16,332,633) | (16,339,765) |
Accumulated other comprehensive loss | (36,970,066) | (28,333,239) |
TOTAL KANDI TECHNOLOGIES GROUP, INC. STOCKHOLDERS’ EQUITY | 404,124,976 | 396,970,490 |
Non-controlling interests | 2,385,116 | 722,481 |
TOTAL STOCKHOLDERS’ EQUITY | 406,510,092 | 397,692,971 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 495,456,599 | $ 482,982,276 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Net of allowance for doubtful accounts (in Dollars) | $ 2,886,223 | $ 2,285,386 |
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 | 87,532,800 | 77,668,730 |
Common stock, shares outstanding | 87,348,234 | 74,180,171 |
Treasury stock, shares | 184,566 | 3,488,559 |
Treasury stock, average price (in Dollars per share) | $ 2.75 | $ 2.81 |
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, 2023 | Dec. 31, 2022 | |
Income Statement [Abstract] | ||
REVENUES, NET | $ 123,599,232 | $ 117,813,049 |
COST OF GOODS SOLD | (82,229,209) | (98,295,323) |
GROSS PROFIT | 41,370,023 | 19,517,726 |
OPERATING EXPENSE: | ||
Research and development | (4,265,176) | (6,029,608) |
Selling and marketing | (13,335,950) | (5,501,475) |
General and administrative | (35,381,496) | (32,325,889) |
Impairment of goodwill | (496,981) | (642,665) |
Impairment of long-lived assets | (942,591) | (2,697,521) |
TOTAL OPERATING EXPENSE | (54,422,194) | (47,197,158) |
LOSS FROM OPERATIONS | (13,052,171) | (27,679,432) |
OTHER INCOME (EXPENSE): | ||
Interest income | 9,984,558 | 6,427,502 |
Interest expense | (1,327,341) | (707,488) |
Change in fair value of contingent consideration | 1,803,000 | 4,196,995 |
Government grants | 2,017,551 | 1,639,328 |
Other income, net | 4,047,074 | 2,784,561 |
TOTAL OTHER INCOME , NET | 16,524,842 | 14,340,898 |
INCOME (LOSS) BEFORE INCOME TAXES | 3,472,671 | (13,338,534) |
INCOME TAX (EXPENSE) BENEFIT | (1,802,904) | 487,510 |
NET INCOME (LOSS) | 1,669,767 | (12,851,024) |
LESS: NET INCOME (LOSS) ATTRIBUTABLE TO NON-CONTROLLING INTERESTS | 1,662,635 | (727,361) |
NET INCOME (LOSS) ATTRIBUTABLE TO KANDI TECHNOLOGIES GROUP, INC. STOCKHOLDERS | 7,132 | (12,123,663) |
OTHER COMPREHENSIVE LOSS | ||
Foreign currency translation adjustment | (8,636,827) | (28,585,025) |
COMPREHENSIVE LOSS | $ (6,967,060) | $ (41,436,049) |
WEIGHTED AVERAGE SHARES OUTSTANDING BASIC (in Shares) | 78,781,094 | 75,571,702 |
WEIGHTED AVERAGE SHARES OUTSTANDING DILUTED (in Shares) | 79,902,891 | 75,571,702 |
NET INCOME (LOSS) PER SHARE, BASIC (in Dollars per share) | $ 0.02 | $ (0.17) |
NET INCOME (LOSS) PER SHARE, DILUTED (in Dollars per share) | $ 0.02 | $ (0.17) |
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) | Non-controlling interests | Total |
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 | ||||||
Stock issuance and award | $ 284 | 746,636 | 746,920 | ||||
Stock issuance and award (in Shares) | 283,600 | ||||||
Stock based compensation | 1,231,566 | 1,231,566 | |||||
Stock buyback | (7,415,617) | (84,018) | (7,499,635) | ||||
Capital contribution from shareholder | 1,449,842 | 1,449,842 | |||||
Net income (loss) | (12,123,663) | (727,361) | (12,851,024) | ||||
Foreign currency translation | (28,585,025) | (28,585,025) | |||||
Balance at Dec. 31, 2022 | $ 77,669 | (9,807,820) | 451,373,645 | (16,339,765) | (28,333,239) | 722,481 | 397,692,971 |
Balance (in Shares) at Dec. 31, 2022 | 77,668,730 | ||||||
Stock issuance and award | $ 11,686 | 9,357,192 | 9,368,878 | ||||
Stock issuance and award (in Shares) | 11,685,968 | ||||||
Cancellation of the Treasury Stock | $ (3,489) | 9,807,820 | (9,804,331) | ||||
Cancellation of the Treasury Stock (in Shares) | (3,488,559) | ||||||
Stock option exercise | $ 1,667 | 3,448,322 | $ 3,449,989 | ||||
Stock option exercise (in Shares) | 1,666,661 | 1,666,661 | |||||
Stock based compensation | 3,476,058 | $ 3,476,058 | |||||
Stock buyback | (507,013) | (3,731) | (510,744) | ||||
Net income (loss) | 7,132 | 1,662,635 | 1,669,767 | ||||
Foreign currency translation | (8,636,827) | (8,636,827) | |||||
Balance at Dec. 31, 2023 | $ 87,533 | $ (507,013) | $ 457,847,155 | $ (16,332,633) | $ (36,970,066) | $ 2,385,116 | $ 406,510,092 |
Balance (in Shares) at Dec. 31, 2023 | 87,532,800 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ 1,669,767 | $ (12,851,024) |
Adjustments to reconcile net (loss) income to net cash provided by operating activities | ||
Depreciation and amortization | 11,913,647 | 12,427,973 |
Impairments | 1,439,573 | 3,340,186 |
Provision of allowance for doubtful accounts | 656,330 | (542,801) |
Deferred taxes | 203,236 | (461,045) |
Loss from long-term Investment | 141,389 | |
Change in fair value of contingent consideration | (1,803,000) | (4,196,995) |
Stock award and stock based compensation expense | 11,059,801 | 1,926,376 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 10,560,521 | (20,965,140) |
Notes receivable | (123,992,862) | 4,726,570 |
Inventories | (21,531,323) | (9,145,298) |
Other receivables and other assets | 5,165,337 | (4,932,463) |
Advances to supplier and prepayments and prepaid expenses | 1,491,762 | 16,275,678 |
Increase (Decrease) In: | ||
Accounts payable | 38,603,301 | 62,592,477 |
Other payables and accrued liabilities | (5,062,494) | 7,842,715 |
Notes payable | (32,629,627) | (24,533,127) |
Income tax payable | 954,006 | (25,171) |
Net cash (used in) provided by operating activities | (101,160,636) | 31,478,911 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment, net | (13,172,512) | (3,690,235) |
Payment for construction in progress | (75,185) | (129,894) |
Certificate of deposit | 45,244,390 | (31,210,986) |
Acquisition of NGI | 282,135 | |
Net cash provided by (used in) investing activities | 32,278,828 | (35,031,115) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from short-term loans | 23,420,534 | 30,765,776 |
Repayments of short-term loans | (19,709,663) | (28,357,211) |
Repayments of long-term loans | (46,426) | |
Proceeds from long-term loans | 8,225,000 | |
Contribution from non-controlling shareholder | 757,981 | |
Purchase of treasury stock | (510,745) | (7,499,634) |
Proceeds from exercises stock options, stock awards and other financing | 3,449,988 | |
Net cash provided by (used in) financing activities | 14,828,688 | (4,333,088) |
NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (54,053,120) | (7,885,292) |
Effect of exchange rate changes | (3,357,083) | (9,750,444) |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR | 151,040,271 | 168,676,007 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | 93,630,068 | 151,040,271 |
-CASH AND CASH EQUIVALENTS AT END OF PERIOD | 33,756,941 | 84,063,717 |
-RESTRICTED CASH AT END OF PERIOD | 59,873,127 | 66,976,554 |
SUPPLEMENTARY CASH FLOW INFORMATION | ||
Income taxes paid | 311,504 | 350,002 |
Interest paid | 965,025 | 345,451 |
SUPPLEMENTAL NON-CASH DISCLOSURES: | ||
Contribution from non-controlling shareholder by inventories, fixed assets and intangible assets | 393,986 | |
Common stock issued for settlement of payables related to acquisitions (see Note 19) | $ 1,812,005 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2023 | |
Organization and Principal Activities [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”). Specifically, on May 18, 2010, Zhejiang Kandi Technologies signed the Agreement of Establishment of Kandi New Energy with Mr. Hu Xiaoming, pursuant to which both parties agreed to together contribute RMB 36 Million to establish Kandi New Energy, and each party will contribute 50% of the total investment. Zhejiang Kandi Technologies will make its contribution in kind equivalent to its portion and Mr. Hu will make his contribution in cash. In April 2012, pursuant to an agreement with the shareholders of Yongkang Scrou 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. The Company deemed that Supply Chain Company is not a related party with the analysis in accordance with ASC 850-10. 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. The Company deemed that Ruiheng is not a related party with the analysis in accordance with ASC 850-10. Ruiheng was dissolved in November 2023; however, its subsidiary Hainan Ruigeng still operates under different group of shareholders and managements. 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”). On June 17, 2023, SC Autosports entered into an equity transfer agreement with the owner of Northern Group, Inc. (“NGI”) to acquire 100% equity of NGI, and on March 12, 2024, the parties entered into a supplementary agreement to revise certain profit targets. The acquisition was consummated on November 30, 2023. During September 27, 2023, SC Autosports established a wholly owned subsidiary, Kandi Technologies Canada Inc. (“Kandi Canada”) in Ontario, Canada. On December 27, 2023, the shareholders of the Company approved the merger agreement and plan of merger, that the Company is to merge with and into Kandi BVI, with Kandi BVI as the surviving company upon the merger becoming effective in the second quarter of 2024 (the “Reincorporation”). On January 1, 2024, the Company established a wholly-owned subsidiary, Kandi Electric Innovation, Inc. (“Kandi Innovation”), incorporated under the laws of the state of Nevada. Subsequently, SC Autosports became the wholly-owned subsidiary of Kandi Innovation, instead of being directly owned by the Company. |
Liquidity
Liquidity | 12 Months Ended |
Dec. 31, 2023 | |
Liquidity [Abstract] | |
LIQUIDITY | NOTE 2 - LIQUIDITY The Company had working capital of $266,874,509 as of December 31, 2023, an increase of $19,057,384 from the working capital of $247,817,125 as of December 31, 2022. As of December 31, 2023 and December 31, 2022, the Company’s cash and cash equivalents were $33,756,941 and $84,063,717, respectively, and the Company’s restricted cash was $59,873,127 and $66,976,554, respectively. As of December 31, 2023 and December 31, 2022, the Company had multiple certificates of deposit with a total amount of $33,947,212 and $81,191,191, respectively. These certificates of deposit have an annual interest rate from 3.25% to 3.99% which can be transferred when necessary without any penalty or any loss of interest and principal. 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. 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 and can be utilized timely when the Company has special capital needs. The PRC subsidiaries have $7.1 million short-term bank loans and the US subsidiaries have $2.0 million short-term bank loans and $8.4 million long-term bank loans outstanding as of December 31, 2023. |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 | |
Principles of Consolidation [Abstract] | |
PRINCIPLES OF CONSOLIDATION | NOTE 4 - PRINCIPLES OF CONSOLIDATION The Company’s condensed 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”), formerly, a 50%-owned subsidiary of Zhejiang Kandi Technologies (Mr. Hu Xiaoming owned 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 was 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; (7) SC Autosports (d/b/a Kandi America), a wholly-owned subsidiary of the Company, formed under the laws of the State of Texas, USA; (8) China Battery Exchange (Zhejiang) Technology Co., Ltd. (“China Battery Exchange”), a wholly-owned subsidiary of Zhejiang Kandi Technologies, and its subsidiaries, 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; and (11) Hainan Kandi Holding New Energy Technology Co., Ltd. (“Hainan Kandi Holding”), a subsidiary of Kandi Hainan, incorporated under the laws of the PRC; Kandi Hainan owns 66.7% and a non-affiliate, Jiangsu Xingchi owns 33.3% of Hainan Kandi Holding. Consequently, effective February 15, 2022, non-controlling interests of an aggregate of 33.3% of the equity interests of Hainan Kandi Holding held by an entity are presented in the consolidated balance sheets, separately from equity attributable to the shareholders of the Company. Non-controlling interest in the results of the Company are presented on the consolidated statement of operations as an allocation of the total income or loss for the period between non-controlling interest holders and the shareholders of the Company; (12) Northern Group, Inc. (“NGI”), a wholly-owned subsidiary of SC Autosports formed under the laws of the State of Wisconsin, USA; and (13) Kandi Technologies Canada Inc. (“Kandi Canada”), a wholly-owned subsidiary of SC Autosports formed under the laws of Canada. |
Use of Estimates
Use of Estimates | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 6 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Economic and Political Risks Part of 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 $24,071,461 and $19,123,476 as of December 31, 2023 and December 31, 2022, respectively. Contingent consideration related to the acquisitions of Jiangxi Huiyi and NGI, 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 $2,693,000 and $1,803,000 as of December 31, 2023 and December 31, 2022, respectively. Also see Note 19. (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, 2023 and December 31, 2022, the Company’s restricted cash was $59,873,127 and $66,976,554, respectively. (e) Inventories In the Company’s subsidiaries located in China, 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. In the Company’s subsidiaries located in the United States, the Company values its vehicle products at the lower of specific cost or net realizable value to reflect the nature of the oversea trading operations. Specific cost consists of the amount paid to acquire the vehicle, plus the cost of transportation, custom, and duty. The cost of remaining inventory items is determined on the basis of weighted average. 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 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. As of December 31, 2023 and December 31, 2022, credit terms with the Company’s customers were typically 60 to 180 days after delivery. 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, 2023 and 2022, the Company had $2,886,223 and $2,285,386 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, 2023 and 2022. Aging of accounts receivable as of December 31, 2022 Outstanding Subsequent (1) 1 to 90 days $ 17,696,095 $ 17,269,833 91 to 180 days 1,863,518 1,775,104 Over 180 days 634,596 634,596 Over one year 1,104,456 258,981 Over two years 19,137,597 16,312,594 Total $ 40,436,262 $ 36,251,108 Aging of accounts receivable as of December 31, 2023 Outstanding Subsequent (1) 1 to 90 days $ 13,532,753 $ 8,614,006 91 to 180 days 4,810,095 1,025,240 Over 180 days 142,122 111,448 Over one year 287,967 197,550 Over two years 3,065,031 49,506 Total $ 21,837,968 $ 9,997,750 (1) the Company reviewed the subsequent collection until March 10, 2024. (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 once 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. 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 1.5% to 2.2% annually depends on different banks. As of December 31, 2023 and 2022, the Company had notes receivable from unrelated parties of $124,473,111 and $434,461, respectively, which notes receivable typically mature within six months. (h) Property, Plant and Equipment, net Property, Plant 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 20-40 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 impairment loss of $942,591 and $2,697,521 for finite-lived intangible assets as of December 31, 2023 and December 31, 2022, respectively. (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 the sales of EV parts and off-road vehicles, as well as commission income. The revenue is recognized at a point in time once the Company has determined that the customer has obtained control over the product or the control of the promised services. 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 24 “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 $4,265,176 and $6,029,608 for the years ended December 31, 2023 and 2022, 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, 2023 and 2022, $2,017,551 and $1,639,328, 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, 2023 2022 Period end RMB : USD exchange rate 7.0698 6.8973 Average RMB : USD exchange rate 7.0727 6.7284 (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 Binomial Tree 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. The stock-based option expenses for the years ended December 31, 2023 and 2022 were $3,476,058 and $1,231,566, 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 four reporting units under the goodwill impairment analysis, namely 1) SC Autosports, 2) Jinhua An kao and Yongkang Scrou, 3) Jiangxi Huiyi, and 4) NGI. As of December 31, 2023 and 2022, the Company performed goodwill impairment testing at the reporting unit level and recognized impairment loss of $496,981 and $642,665, respectively. (t) Intangible Assets Intangible assets consist of patent, trade names, customer relations and technology associated with the purchase price from the allocation of Kandi Smart Battery Swap, Jiangxi Huiyi, Hainan Kandi Holding and NGI. Such assets are being amortized over their estimated useful lives. Intangible assets were amortized as of December 31, 2023. The amortization expenses for intangible assets were $1,489,657 and $1,965,490 for the years ended December 31, 2023 and 2022, respectively. The Company recognized impairment loss of $942,591 and $2,697,521 for finite-lived intangible assets as of December 31, 2023 and December 31, 2022, 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. Based on the contractual arrangements, Kandi New Energy had been deemed as a VIE and that the Company’s wholly-owned subsidiary, Zhejiang Kandi Technologies, absorbs all risk of loss from the activities of this VIE, thereby enabling the Company, through Zhejiang Kandi Technologies, to receive all of its expected residual returns. Therefore, although Kandi Technologies only owns 50% equity in Kandi New Energy, for accounting purpose, Kandi Technologies is the sole beneficiary and shall be wholly included in the consolidation. 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. The Company has completed the conversion of Kandi New Energy to a wholly-owned subsidiary of Zhejiang Kandi Technologies, effective March 14, 2022. The Company no longer has any VIE subsequent to March 14, 2022. There was no other VIE contractual arrangements during the year ended December 31, 2023. For accounting purpose, the tables below are condensed consolidating schedules summarizing separately the results of operations, financial position and cash flows of the parent company including non-VIE subsidiaries and Kandi New Energy, which was deemed as an VIE since the Company only owned 50% of the equity, and control Kandi New Energy through several contractual agreements prior to its conversion to a wholly-owned subsidiary of Zhejiang Kandi Technologies effective March 14, 2022, together with eliminating adjustments: Consolidated Statements of Operations Information For the year ended December 31, 2022 Parent including non-VIE subsidiaries VIE* Elimination Consolidated Revenues $ 117,813,049 $ - $ - $ 117,813,049 Gross profit $ 19,517,726 $ - $ - $ 19,517,726 Loss from operations $ (27,679,432 ) $ - $ - $ (27,679,432 ) Loss before income taxes $ (13,338,534 ) $ - $ - $ (13,338,534 ) Net loss $ (12,851,024 ) $ - $ - $ (12,851,024 ) * Effective March 14, 2022, the Company has completed the conversion of Kandi New Energy to a wholly-owned subsidiary of Zhejiang Kandi Technologies and the VIE agreements were terminated. The Company no longer has any VIE as of the date of this report. Consolidated Balance Sheets Information As of December 31, 2022 Parent including non-VIE subsidiaries VIE* Elimination Consolidated Cash and cash equivalents $ 84,063,717 $ - $ - $ 84,063,717 Total current assets $ 329,322,973 $ - $ - $ 329,322,973 Total non-current assets $ 153,659,303 $ - $ - $ 153,659,303 Total current liabilities $ 81,505,848 $ - $ - $ 81,505,848 Total non-current liabilities $ 3,783,457 $ - $ - $ 3,783,457 Total stockholders’ equity $ 397,692,971 $ - $ - $ 397,692,971 * Effective March 14, 2022, the Company has completed the conversion of Kandi New Energy to a wholly-owned subsidiary of Zhejiang Kandi Technologies and the VIE agreements were terminated. The Company no longer has any VIE as of the date of this report. Percentage of VIE’s assets and liabilities compared to consolidated assets and liabilities As of December 31, 2022 Parent including non-VIE subsidiaries Consolidated % of VIE’s assets and liabilities in consolidated assets and liabilities Cash and cash equivalents $ 84,063,717 $ 84,063,717 - Total current assets $ 329,322,973 $ 329,322,973 - Total non-current assets $ 153,659,303 $ 153,659,303 - Total current liabilities $ 81,505,848 $ 81,505,848 - Total non-current liabilities $ 3,783,457 $ 3,783,457 - Total stockholders’ equity $ 397,692,971 $ 397,692,971 - * Effective March 14, 2022, the Company has completed the conversion of Kandi New Energy to a wholly-owned subsidiary of Zhejiang Kandi Technologies and the VIE agreements were terminated. The Company no longer has any VIE as of the date of this report. Consolidated Cash Flows Information For the year ended December 31, 2022 Parent including non-VIE subsidiaries VIE* Elimination Consolidated Net cash provided by operating activities $ 31,478,911 $ - $ - $ 31,478,911 Net cash used in investing activities $ (35,031,115 ) $ - $ - $ (35,031,115 ) Net cash used in financing activities $ (4,333,088 ) $ - $ - $ (4,333,088 ) * Effective March 14, 2022, the Company has completed the conversion of Kandi New Energy to a wholly-owned subsidiary of Zhejiang Kandi Technologies and the VIE agreements were terminated. The Company no longer has any VIE as of the date of this report. |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2023 | |
New Accounting Pronouncements [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | NOTE 7 - NEW ACCOUNTING PRONOUNCEMENTS Accounting Pronouncements Adopted In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805) – Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”, which requires that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, as if it had originated the contracts. Prior to this ASU, an acquirer generally recognizes contract assets acquired and contract liabilities assumed that arose from contracts with customers at fair value on the acquisition date. The ASU is effective for fiscal years beginning after December 15, 2022, with early adoption permitted. The ASU is applied prospectively to business combinations occurring on or after the effective date of the amendment (or if adopted early as of an interim period, as of the beginning of the fiscal year that includes the interim period of early application). The Company has adopted this accounting pronouncement from January 1, 2023, and there was no material impact on its consolidated financial statements from the adoption. Issued Accounting Standards Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in the ASU require that a public entity discloses, on an annual and interim basis, significant segment expenses that are regularly provided to an entity’s chief operating decision maker (“CODM”), a description of other segment items by reportable segment, and any additional measures of a segment’s profit or loss used by the CODM when deciding how to allocate resources. The amendments in this ASU are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Retrospective application is required for all prior periods presented, and early adoption is permitted. The Company does not expect the adoption of ASU No. 2023-07 to have a material impact on the Company’s consolidated financial statements or disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes: Improvements to Income Tax Disclosures. This guidance requires consistent categories and greater disaggregation of information in the rate reconciliation and disclosures of income taxes paid by jurisdiction. The guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and should be applied either prospectively or retrospectively. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements and related disclosures. |
Concentrations
Concentrations | 12 Months Ended |
Dec. 31, 2023 | |
Concentrations [Abstract] | |
CONCENTRATIONS | NOTE 8 - CONCENTRATIONS (a) Customers For the years ended December 31, 2023 and 2022, the Company’s major customers, who accounted for more than 10% of the Company’s consolidated revenue, were as follows: Sales Trade Receivable Year Ended December 31 , December 31 , December 31 , Major Customers 2023 2023 2022 Customer A 26 % 1 % 1 % Customer B 19 % 4 % - Customer C 11 % 4 % - Sales Trade Receivable Year Ended December 31, December 31, December 31, Major Customers 2022 2022 2021 Customer A 26 % 1 % - (b) Suppliers For the years ended December 31, 2023 and 2022, the Company’s material suppliers, each of whom accounted for more than 10% of the Company’s total purchases, were as follows: Purchases Accounts Payable Year Ended December 31 , December 31 , December 31 , Major Suppliers 2023 2023 2022 Zhejiang Kandi Supply Chain Management Co., Ltd. (1) 20 % 26 % 32 % Purchases Accounts Payable Year Ended December 31, December 31, December 31, Major Suppliers 2022 2022 2021 Zhejiang Kandi Supply Chain Management Co., Ltd. (1) 22 % 32 % 11 % (1) Zhejiang Kandi Technologies owns 10% equity interest of the supplier. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings (Loss) 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 being below the exercise price of certain options and warrants, approximately 968,019 options and 8,131,332 warrants that were wholly expired in May 2023 were excluded from the calculation of diluted earnings per share, for the year ended December 31, 2023. There were dilutive effects of 1,121,797 shares for 3,333,339 stock options granted on September 7, 2022, at an exercise price of $2.07 per share, for the year ended December 31, 2023. Due to the net loss for the year ended December 31, 2022, approximately 5,900,000 options and 8,131,332 warrants were excluded from the calculation of diluted loss per share, for the year ended December 31, 2022. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2023 | |
Accounts Receivable, Net [Abstract] | |
ACCOUNTS RECEIVABLE, NET | NOTE 10 - ACCOUNTS RECEIVABLE, NET Accounts receivable are summarized as follows: December 31, December 31, 2023 2022 Accounts receivable $ 21,837,968 $ 40,436,262 Less: allowance for doubtful accounts (2,886,223 ) (2,285,386 ) Accounts receivable, net $ 18,951,745 $ 38,150,876 The following table sets forth the movement of provision for doubtful accounts: Allowance for BALANCE AT DECEMBER 31, 2021 $ 3,053,277 Provision 456,974 Recovery (999,775 ) Exchange rate difference (225,090 ) BALANCE AT DECEMBER 31, 2022 $ 2,285,386 Provision 690,236 Recovery (33,906 ) Exchange rate difference (55,493 ) BALANCE AT DECEMBER 31, 2023 $ 2,886,223 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2023 | |
Inventories [Abstract] | |
INVENTORIES | NOTE 11 - INVENTORIES Inventories are summarized as follows: December 31, December 31, 2023 2022 Raw material $ 6,248,888 $ 6,551,450 Work-in-progress 4,061,146 4,114,550 Finished goods and finished goods on consignment* 51,241,234 29,809,366 Inventories $ 61,551,268 $ 40,475,366 * As of December 31, 2023, approximately $50.5 million of finished goods and finished goods on consignment of off-roads and EVs held by SC Autosports were pledged as collateral for the $2,000,000 short-term loan. |
Notes Receivable
Notes Receivable | 12 Months Ended |
Dec. 31, 2023 | |
Notes Recievable [Abstract] | |
NOTES RECEIVABLE | NOTE 12 - NOTES RECEIVABLE Notes receivable are summarized as follows: December 31, December 31, 2023 2022 Notes receivable as below: Bank acceptance notes $ - $ 434,461 Commercial acceptance notes 124,473,111 * - Notes receivable $ 124,473,111 $ 434,461 * As of December 31, 2023, there was $124,473,111 notes receivable from unrelated parties, among which $60.8 million was due on January 3, 2024 and $63.7 million was due on January 5, 2024. By end of January 2024, $124,473,111 notes receivable was wholly settled with cash collection subsequently. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 13 - PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment as of December 31, 2023 and 2022 consisted of the following: December 31, December 31, 2023 2022 At cost: Buildings (1) $ 61,964,058 $ 49,239,626 Machinery and equipment (2) 74,520,599 77,845,979 Office equipment 1,474,944 1,528,135 Motor vehicles and other transport equipment 695,383 1,810,825 Molds and others 13,011,196 10,983,573 151,666,180 141,408,138 Less : Accumulated depreciation (52,862,408 ) (44,239,385 ) Property, plant and equipment, net $ 98,803,772 $ 97,168,753 The Company’s Jinhua factory completed the relocation to a new industrial park in April 2021. The new location covers an area of more than 58,000 square meters and a construction area of more than 96,000 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. The Company’s Jinhua factory owns the above production facilities. The Company’s EV products, EV parts and electrical off-road vehicles, including Neighborhood EVs (“NEVs”), pure electric utility vehicles (“UTV”), pure electric golf cart and EV parts are manufactured in the Hainan factory. The Company’s Hainan factory expects to have production capacity with an annual output (three shifts) of 100,000 units of various models of EV products, EV parts and electrical off-road vehicles and owns the above facilities. As of December 31, 2023, the Hainan factory has passed the completion acceptance inspection. Depreciation expenses for the years ended December 31, 2023 and 2022 were $10,141,120 and $10,165,138, respectively. (1) As of December 31, 2023, approximately $12.4 million of buildings held by Kandi Investment were pledged as collateral for the $8,178,574 long-term loan. (2) As of December 31, 2023, machinery and equipment with carrying value totaling approximately $24.2 million were pledged to banks as collateral for credit limits and loans. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets [Abstract] | |
INTANGIBLE ASSETS | NOTE 14 - 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 2023 2022 Cost: Patent 1.5-3.17 years $ 4,818,262 4,938,765 Technology 3-5 years 9,759,823 10,003,915 Customer relation 2.92 years 1,030,000 - 15,608,085 14,942,680 Less : Accumulated amortization Patent $ (3,281,463 ) (2,744,024 ) Technology (2,391,950 ) (1,573,079 ) Customer relation (28,611 ) - (5,702,024 ) (4,317,103 ) Less : Accumulated impairment for intangible assets (3,510,236 ) (2,631,465 ) Intangible assets, net $ 6,395,825 $ 7,994,112 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 $1,489,657 and $1,965,490 for the year ended December 31, 2023 and 2022, respectively. Amortization expenses for the next five years and thereafter are as follows: Years ended December 31, 2024 $ 1,718,689 2025 1,657,930 2026 1,426,023 2027 820,390 2028 772,793 Thereafter - Total $ 6,395,825 |
Land Use Rights
Land Use Rights | 12 Months Ended |
Dec. 31, 2023 | |
Land Use Rights [Abstract] | |
LAND USE RIGHTS | NOTE 15 - LAND USE RIGHTS The Company’s land use rights consist of the following: December 31, December 31, 2023 2022 Cost of land use rights $ 3,716,267 $ 3,809,211 Less: Accumulated amortization (961,825 ) (899,261 ) Land use rights, net $ 2,754,442 $ 2,909,950 The amortization expense for the years ended December 31, 2023 and 2022 were $84,471 and $88,794, respectively. Amortization expense for the next five years and thereafter is as follows: Years ended December 31, 2024 $ 84,471 2025 84,471 2026 84,471 2027 84,471 2028 84,471 Thereafter 2,332,087 Total $ 2,754,442 |
Other Long-Term Assets
Other Long-Term Assets | 12 Months Ended |
Dec. 31, 2023 | |
Other Long Term Assets [Abstract] | |
OTHER LONG-TERM ASSETS | NOTE 16 - OTHER LONG-TERM ASSETS December 31, December 31, 2023 2022 Prepayments for land use right (i) $ 3,738,418 3,917,226 Right - of - use asset (ii) 5,889,690 6,383,824 Others 365,022 329,861 Total other long-term asset $ 9,993,130 $ 10,630,911 (i) As of December 31, 2023 and December 31, 2022, the Company’s other long term assets included net value of prepayments for land use right of Hainan facility of $3,738,418 and $3,917,226, respectively. As of December 31, 2023, 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, 2023 and 2022 were $83,196 and $87,453, respectively. (ii) As of December 31, 2023 and December 31, 2022, the Company’s operating lease right-of-use assets in other long term assets included net value of land use right of Jinhua facility acquired in October 2020 and Jiangxi facility acquired in October 2021 of $5,443,448 and $5,697,720, respectively, as well as the amount of $446,242 and $686,104 related to the lease of Hangzhou office starting January 1, 2022. The amortization expense of land use right of Jinhua facility and Jiangxi facility for the year ended December 31, 2023 and 2022 were $115,204 and $121,099, respectively. |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Taxes [Abstract] | |
TAXES | NOTE 17 - 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 a reduced income tax rate of 15% for the years presented. An HNTE Certificate is valid for three years. An entity may renew its HNTE certificate when the prior certificate expires. Historically, Zhejiang Kandi Technologies, Kandi Smart Battery Swap, Jiangxi Huiyi and Kandi Hainan have successfully renewed for such certificates when their prior certificates expired. Additionally, Hainan Kandi Holding also has an income tax rate of 15% due to its local preferred tax rate in Hainan Free Trade Port. The applicable CIT rate of each of the Company’s other PRC subsidiaries, Kandi New Energy, Yongkang Scrou, China Battery Exchange and its subsidiaries is 25%. The Company’s provision or benefit from income taxes for interim periods is determined using an estimate of the Company’s 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, management makes a cumulative adjustment. For 2023, the Company’s effective tax rate is favorably affected by a super-deduction for qualified research and development costs in China and adversely affected by non-deductible expenses such as stock rewards for non-US employees, add back of GILTI income and part of entertainment expenses. The Company records valuation allowances against the deferred tax assets associated with losses and other timing differences for which we may not realize a related tax benefit. After combining research and development tax credits of 25% on certain qualified research and development expenses, the Company’s effective tax rate for December 31, 2023 and 2022 was a tax expense of 51.92% on a reported income before taxes of approximately $3.5 million and a tax benefit of 3.65% on a reported loss before taxes of approximately $13.3 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, 2023 and 2022. 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, 2023, 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, 2023, 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, 2023, the Company has no accrued interest or penalties related to uncertain tax positions. Income tax expenses (benefit) for the year ended December 31, 2023 and 2022 are summarized as follows: For Year Ended December 31, 2023 2022 Current: Provision for CIT $ 1,599,668 $ (26,465 ) Deferred: Provision for CIT 203,236 (461,045 ) Income tax expense (benefit) $ 1,802,904 $ (487,510 ) The reconciliation of taxes at the PRC statutory rate (25% in 2023 and 2022) to our provision for income taxes for the years ended December 31, 2023 and 2022 was as follows: For Year Ended December 31, 2023 2022 Expected taxation at PRC statutory tax rate $ 1,885,374 $ (3,334,633) Effect of differing tax rates in different jurisdictions 650,434 (81,257 ) Effect of PRC preferential tax rates (2,471,114 ) 790,053 Non-taxable income (898,290 ) (1,984,855 ) Non-deductible expenses 3,830,387 2,315,146 Research and development super-deduction (1,516,020 ) (1,672,428 ) Over-accrued EIT for previous years (431 ) (538,545 ) Addition to valuation allowance 467,366 2,800,862 Foreign tax credit (70,708 ) (84,045 ) Other (including intercompany transaction ) (74,094 ) 1,302,192 Income tax expense (benefit) $ 1,802,904 $ (487,510 ) The tax effects of temporary differences that give rise to the Company’s net deferred tax assets and liabilities as of December 31, 2023 and December 31, 2022 are summarized as follows: December 31, December 31, 2023 2022 Deferred tax assets: Accruals and reserves $ 6,388,121 $ 6,759,952 Loss carried forward 9,412,846 8,547,725 Total deferred tax assets 15,800,967 15,307,677 Deferred tax liabilities: Expense (345,033 ) (212,143 ) Tangible (218,406 ) (207,905 ) Intangible (763,627 ) (1,146,339 ) Revenue (1,222,344 ) (426,504 ) Total deferred tax liability (2,549,410 ) (1,992,891 ) Net deferred tax assets $ 13,251,557 $ 13,314,786 less: valuation allowance (13,400,638 ) (13,260,631 ) Net deferred tax (liabilities) assets, net of valuation allowance $ (149,081 ) $ 54,155 The tax effected aggregate Net Operating Loss (“NOL”) was $9.4 million and $8.5 million in tax year 2023 and 2022, which were deriving from entities in the PRC and Hong Kong. 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 $0.7 million and $8.6 million respectfully, to offset future net profits for income tax purposes. The Company recorded valuation allowances of $ 13.4 Income (loss) before income taxes from PRC and non-PRC sources for the year ended December 31, 2023 and 2022 are summarized as follows: For Year Ended December 31, 2023 2022 Income (loss) before income taxes consists of: PRC $ 23,550,796 $ (10,448,802 ) Non-PRC (20,078,125 ) (2,889,732 ) T otal $ 3,472,671 $ (13,338,534 ) 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 31,2022 $ 13,260,631 Additions-change to tax expense 467,366 Prior year true up (5,478 ) Exchange rate difference (321,881 ) Balance at December 31,2023 $ 13,400,638 (b) Tax Holiday Effect For the year ended December 31, 2023 and 2022, the PRC CIT rate was 25%. Certain subsidiaries of the Company are entitled to tax exemptions (tax holidays) for the years ended December 31, 2023 and 2022. The combined effects of income tax expense exemptions and reductions available to the Company for the years ended December 31, 2023 and 2022 are as follows: Year Ended December 31, 2023 2022 Tax benefit (holiday) credit $ 2,421,539 $ 1,202,615 Basic net income per share effect $ 0.03 $ 0.02 |
Leases and Right-of-Use-Assets
Leases and Right-of-Use-Assets | 12 Months Ended |
Dec. 31, 2023 | |
Leases and Right-of-Use-Assets [Abstract] | |
LEASES AND RIGHT-OF-USE-ASSETS | NOTE 18 - LEASES AND RIGHT-OF-USE-ASSETS 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. This land use rights was wholly prepaid. The Company has entered into a lease for Hangzhou office, with a term of 48 months from January 1, 2022 to December 31, 2025. The Company recorded operating lease assets and operating lease liabilities on January 1, 2022, with a remaining lease term of 48 months and discount rate of 3.70%. The annual lease payment for 2022 was prepaid as of January 1, 2022. As of December 31, 2023, the Company has paid the lease amount of both year 2022 and 2023 totaling $ 490,198 The Company also elected to apply the short-term lease exception for lease arrangements with a lease term of 12 months or less at commencement. Lease terms used to compute the present value of lease payments do not include any option to extend, renew or terminate the lease that the Company is not able to reasonably certain to exercise upon the lease inception. Accordingly, operating lease right-of-use assets and liabilities do not include leases with a lease term of 12 months or less. As of December 31, 2023, the Company’s operating lease right-of-use assets (grouped in other long-term assets on the balance sheet) was $ 5,889,690 445,948 338,233 Supplemental information related to operating leases was as follows: Year Ended December 31, 2023 2022 Cash payments for operating leases $ 338,233 $ 355,541 Maturities of lease liabilities as of December 31, 2023 were as follow: Maturity of Lease Liabilities: Lease payable Years ended December 31, 2024 $ 218,924 2025 227,024 |
Contingent Consideration Liabil
Contingent Consideration Liability | 12 Months Ended |
Dec. 31, 2023 | |
Contingent Consideration Liability [Abstract] | |
CONTINGENT CONSIDERATION LIABILITY | NOTE 19 - CONTINGENT CONSIDERATION LIABILITY On July 19, 2021, Zhejiang Kandi Technologies signed a share transfer agreement and its supplementary agreement (“No.1 Supplementary Agreement”) with the former shareholders of Jiangxi Huiyi (the “Transferors”). On October 31, 2021, the Company completed the acquisition of 100% of the equity of Jiangxi Huiyi. Pursuant to the share transfer agreement, the Company paid approximately RMB 50 million (approximately $7.9 million) at the closing of the transaction using cash on hand and, as agreed upon under No.1 Supplementary Agreement, may be required to pay future consideration of up to an additional 2,576,310 shares of common stock, or the total make good shares, upon the achievement of certain net income-based milestones in the next three years (“Evaluation Period”, as discussed below). Due to the latest COVID-19 outbreak and extended lockdown in some areas in China, in June 2022, the Company agreed with the Transferors and jointly signed a No.2 supplementary agreement (“No.2 Supplementary Agreement”, collectively with No.1 Supplementary Agreement, “Supplementary Agreements”) to revise the conditions of the annual profit target and extension of evaluation period for the first year, which were set under No.1 Supplementary Agreement. Pursuant to the No.2 Supplementary Agreement, the Transferors have the right to obtain 858,770 KNDI shares in each of the below-mentioned periods, provided that Jiangxi Huiyi achieves a net income of 1) RMB 8 million yuan or more during the period from July 1, 2021 to September 30, 2022 (“Period I”); 2) RMB 15 million yuan or more during the period from October 1, 2022 to September 30, 2023 (“Period II”); 3) RMB 15 million yuan or more during the period from October 1, 2023 to September 30, 2024 (“Period III”). If the net income of Jiangxi Huiyi fails to reach the respective target number in any of the three periods, the shares that the Transferors are entitled to obtain in that period will be adjusted accordingly: 1) if the difference between the net income in each Period and its Target Number is less than or equivalent to 20% of its Target Number (RMB 8 Million in Period I or RMB 15 Million in Period II or Period III), the transferee or KNDI has right to directly subtract 171,754 KNDI shares from the total make good shares, and the Transferor are entitled to obtain 687,016 KNDI shares; 2) if the difference between the net income in each Period and its Target Number (RMB 8 Million in Period I or RMB 15 Million in Period II or Period III) is more than 20% of its Target Number but less than 40% of its Target Number, the transferee or KNDI has the right to directly subtract 343,508 KNDI shares from the total make good shares, and the Transferors have the right to obtain 515,262 KNDI shares; 3) if the difference between the net income in each Period and its Target Number (RMB 8 Million in Period I or RMB 15 Million in Period II or Period III) is greater than or equal to 40% of its Target Number, the transferee of KNDI has the right to directly subtract 858,770 KNDI shares from the total make good shares, and the Transferors will not have the right to obtain any shares in such year. For the period from July 1, 2021 to September 30, 2022, Jiangxi Huiyi achieved its net profit target. Accordingly, the Transferors received 858,770 shares of Kandi’s restrictive common stock in October 2023. In 2023, after evaluating the actual operation of Jiangxi Huiyi, the Company believes that taking over the management rights and conducting resources integration to combine Jiangxi Huiyi with the Company’s strategy are beneficial for improving the Company’s overall business performance. On August 3, 2023, Zhejiang Kandi Technologies and the Transferors signed an agreement on termination of make good shares (the “Termination Agreement”), pursuant to which the Supplementary Agreements were terminated. Zhejiang Kandi Technologies will take over the management rights while the Transferors shall not participate the management of Jiangxi Huiyi, and there was no further Evaluation Period or make good shares. On November 30, 2023, SC Autosports acquired Northern Group, Inc. (“NGI”), a Wisconsin company, please refer to Note 25 – Acquisitions for more details. On July 12, 2023, pursuant to the Equity Transfer Agreement, the Company issued a total of 3,951,368 shares of restrictive stock to sole shareholder of NGI, which are being held in escrow with certain escrow restrictions, to be released contingent upon the achievement of certain agreed-upon milestones during the escrow period. The Company recorded contingent consideration liability of the estimated fair value of the contingent consideration the Company currently expects to pay to the Transferors for the achievement of the milestones. The fair value of the contingent consideration liability associated with remaining shares of restrictive common stock was estimated by using the Monte Carlo simulation method, which took into account all possible scenarios. This fair value measurement is classified as Level 3 within the fair value hierarchy prescribed by ASC Topic 820, Fair Value Measurement and Disclosures. In accordance with ASC Topic 805, Business Combinations, the Company will re-measure this liability each reporting period and record changes in the fair value through a separate line item within the Company’s consolidated statements of income. As of December 31, 2023 and December 31, 2022, the Company’s contingent consideration liability was $2,693,000 and $1,803,000, respectively. Details of the contingent consideration liability as of December 31, 2023 and December 31, 2022 were as follow: December 31, December 31, 2023 2022 Contingent consideration liability to former members of Jiangxi Huiyi $ - 1,803,000 Contingent consideration liability to former members of NGI 2,693,000 - Total contingent consideration liability $ 2,693,000 $ 1,803,000 |
Common Shares
Common Shares | 12 Months Ended |
Dec. 31, 2023 | |
Common Shares [Abstract] | |
COMMON SHARES | NOTE 20 - COMMON SHARES Purchases of Equity Securities by the Issuer and Affiliated Purchasers On November 21, 2023, the board of directors had authorized the repurchase of up to $30 million worth of the Company’s common stock in open market transactions or in privately negotiated transactions. As of December 31, 2023, the Company had repurchased a total of 184,566 2.75 Retirement of Treasury Shares On June 9, 2023, the Board of Directors of the Company approved to retire 3,488,559 shares of its common stock held in treasury, and the retirement was completed in June, 2023. The shares were returned to the status of authorized but unissued shares. As a part of the retirement, the Company reduced its common stock and additional paid-in capital by $9,807,820. Issuance of Shares On May 25, 2023, the Company entered into a consulting agreement (“Consultant Agreement”) with a consulting firm to advise the Company on business growth and financial advisory services about which this consulting firm has knowledge or experience. Pursuant to the Consultant Agreement, the Company issued the consulting firm and its designees (the “Consultant”) an aggregate of 300,000 restricted shares of the Company’s common stock for its services from May 25, 2023 to May 24, 2024. For the year ended December 31, 2023, the Company recognized $1,083,000 of expenses for stock issued to the Consultant, respectively. On November 30, 2023, SC Autosports acquired NGI, a Wisconsin incorporated company, please refer to Note 25 – Acquisition for more details. |
Stock Options
Stock Options | 12 Months Ended |
Dec. 31, 2023 | |
Stock Options [Abstract] | |
STOCK OPTIONS | NOTE 21 - STOCK OPTIONS On September 7, 2022, the Compensation Committee of the Board of Directors of the Company approved the grant of stock options to purchase 5,000,000 shares of the Company’s common stock, at an exercise price of $2.07 per share, to the Company’s senior employees. The stock options will vest ratably over three years on October 7, 2023, October 7, 2024 and October 7, 2025, respectively, and expire on the tenth anniversary of the grant date. The Company valued the stock options at $6,704,829 and has amortized the stock compensation expense using the graded vesting method over the service period from September 7, 2022, through October 7, 2025. The value of the stock options was estimated using the Binomial Tree Model with an expected volatility of 79.83%, an expected life of 10 years, a risk-free interest rate of 3.27% and an expected dividend yield of 0.00%. On July 1, 2023, the Compensation Committee of the Board of Directors of the Company approved the grant of stock options to purchase 68,019 shares of the Company’s common stock, at an exercise price of $3.96 per share, to the Company’s employees. The stock options will vest ratably over three years on July 1, 2024, July 1, 2025 and July 1, 2026, respectively, and expire on the tenth anniversary of the grant date. The Company valued the stock options at $172,601 and has amortized the stock compensation expense using the graded vesting method over the service period from July 1, 2023, to July 1, 2026. The value of the stock options was estimated using the Binomial Tree Model with an expected volatility of 78.08%, an expected life of 10 years, a risk-free interest rate of 3.81% and an expected dividend yield of 0.00%. The following is a summary of the stock option activities of the Company: Number of Weighted Outstanding as of December 31, 2021 900,000 $ 9.72 Granted 5,000,000 2.07 Exercised - - Cancelled - - Forfeited - - Outstanding as of December 31, 2022 5,900,000 $ 3.24 Granted 68,019 3.96 Exercised (1,666,661 ) 2.07 Cancelled - - Forfeited - - Outstanding as of December 31, 2023 4,301,358 $ 3.70 The fair value of each of the 900,000 options issued to the employees and directors on May 29, 2015 is $8.16 per share option. The fair value of each of the 5,000,000 options issued to the employees on September 7, 2022 is $1.34 per share. The fair value of each of the 68,019 options issued to the employees on July1, 2023 is $2.54 per share. There were $ 3,476,058 |
Stock Award
Stock Award | 12 Months Ended |
Dec. 31, 2023 | |
Stock Award [Abstract] | |
STOCK AWARD | NOTE 22 - STOCK AWARD In connection with the appointment of Mr. Henry Yu as a member of the Board of Directors (the “Board”), the Board authorized the Company to compensate Mr. Henry Yu with 5,000 shares of Company’s restricted common stock every six months as compensation, beginning in July 2011. As compensation for Mr. Jerry Lewin’s services as a member of the Board, the Board authorized the Company to compensate Mr. Jerry Lewin with 5,000 shares of Company’s restricted common stock every six months, beginning in August 2011. As compensation for Ms. Kewa Luo’s services as the Company’s investor relation officer, the Board authorized the Company to compensate Ms. Kewa Luo with 2,500 shares of the Company’s common stock every three months, beginning in September 2013. 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. Mr. Lim was entitled to receive 10,000 shares of the common stock per year which shall be issuable evenly on each six-month anniversary as per the renewed contract effective on May 15, 2023. On January 10, 2023, the Board appointed Dr. Xueqin Dong as the Chief Executive Officer, Dr. Dong was entitled to receive 20,000 shares of the common stock annually. 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 May 10, 2022, 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 29, 2023, May 5, 2023 and July 1, 2023 the Company granted 588,019 shares of common stock to certain management members and employees as compensation for their past services under the 2008 Plan. On March 13, 2023, Kandi Technologies entered into an Equity Incentive Agreement (the “Equity Incentive Agreement”) with Pan Guoqing (the “Receiving Party”), who is the representative of the project management team of the project of crossover golf carts of Kandi Electric Vehicles (Hainan) Co., Ltd. (“Kandi EV Hainan”), a wholly owned subsidiary of the Company organized under the laws of the People’s Republic of China. The Receiving Party originally led the management team of golf crossover project of Hainan Kandi Holding New Energy Technology Co., Ltd. (“Hainan Kandi Holding”), a company organized under the laws of the People’s Republic of China. The Receiving Party and its management team has agreed to be employed as management team of Kandi EV Hainan, responsible for the operation of the golf crossover project of Kandi EV Hainan, and stop production and operation of Hainan Kandi Holding’s business. Pursuant to the Equity Incentive Agreement, for the next three calendar years ending in December 31, 2025 (the “Incentive Period”), the Company will provide equity incentives to the Receiving Party, subject to the Receiving Party meeting certain performance milestones in its role as the management team of the golf crossover project (the “Crossover Project”) of Kandi EV Hainan. The performance milestones are measured in terms of the net profit of the Crossover Project after deducting relevant operating costs and income taxes, excluding various incentives, allowances and rebates, among others, and shall be audited and confirmed by the third party auditor designated by the granting party, or the Company. The net profit target (the “Net Profit Target”) for the Incentive Period is RMB 150 million (approximately $21,719,613), with an annual net profit target (the “Annual Net Profit Target”) of RMB 50 million (approximately $7,239,871). Should the Receiving Party meet or exceed the Net Profit Target over the Incentive Period, the Company will issue to the Receiving Party as incentive compensation up to a maximum of 5,957,811 shares (the “Maximum Equity Awards”) of the Company’s common stock (the “Award Shares”) under the Company’s 2008 Omnibus Long-Term Incentive Plan, as amended (the “2008 Plan”). The amount of Award Shares issued within each calendar year of the Vesting Period is adjusted based on the net profit of the Crossover Project within that calendar year. If the net profit of every of the three calendar years is below 60% of the Annual Net Profit Target, the Receiving Party will receive no Equity Awards. If the net profit of every of the three calendar years is at or above the Annual Net Profit Target, the Receiving Party will receive the Maximum Equity Awards, with higher performance resulting in receiving the Equity Awards earlier. If the net profit of every of the three calendar years fall between 60% of the Annual Net Profit Target and the Annual Net Profit Target, the Receiving Party will receive an amount of Equity Awards below the Maximum Equity Awards. On August 28, 2023, both parties agreed to issue 5,957,811 shares ahead of the original timeline due to the good performance achieved from January to July 2023. These shares are Restricted Shares under the 2008 Plan, to be to be vested upon the achievement of certain performance targets. The Receiving Party has no relationship to the Company other than as described above. On September 18, 2023, the Company issued a total of 5,957,811 Restricted Shares under the 2008 Plan but have not been vested to the relevant members of the project management team. For the year ended December 31, 2023, the Annual Net Profit Target of the Crossover Project was met. Accordingly, 1,985,937 shares of Kandi’s restricted common stock will be vested to the Receiving Party. For the years ended December 31, 2023 and 2022, the Company recognized $ 6,500,743 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 23 - COMMITMENTS AND CONTINGENCIES Guarantees and pledged collateral for bank loans to other parties: (1) Guarantees for bank loans On March 15, 2013, the Company entered into a guarantee contract to serve as the guarantor of Nanlong Group Co., Ltd. (“NGCL”) for NGCL’s $ 2,828,934 (2) Pledged collateral for bank loans for which the parties other than the Company are the borrowers. As of December 31, 2023 and December 31, 2022, none of the Company’s land use rights or plants and equipment were pledged as collateral securing bank loans for which the parties other than the Company are the borrowers. 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 was granted in part and denied in part in September 2022. Discovery is ongoing as to the remaining claims and defendants. 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. Discovery is ongoing. 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. Kandi moved to dismiss in February 2022, and that motion 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. On September 21, 2023, the SEC filed a settled administrative order (the “Order”) against Kandi alleging violations of certain provisions of the United States’ securities laws. The Order sets forth certain findings, which the Company neither admits nor denies, regarding statements the Company made in its periodic filings and press releases that issued during the years 2020 and 2019. These statements concerned the Company’s then plans to sell highway passenger electric vehicles in the United States. Pursuant to the Order, the Company agreed to settle and completed the payment of the settlement of $710,000 by September 30, 2023. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 24 - 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 U.S. The Company does not have manufacturing operations outside of China. The following table sets forth disaggregation of revenue: Year Ended December 31 2023 2022 Sales Revenue Sales Revenue Primary geographical markets U.S. and other countries/areas $ 93,979,363 $ 65,871,112 China 29,619,869 51,941,937 Total $ 123,599,232 $ 117,813,049 Major products and Services EV parts $ 5,807,973 $ 8,964,094 EV products 1,214,786 7,926,233 Off-road vehicles and associated parts 106,983,891 70,622,278 Electric Scooters, Electric Self-Balancing Scooters and associated parts 683,952 4,616,683 Battery exchange equipment and Battery exchange service 674,927 1,691,486 Lithium-ion cells 7,994,227 23,992,275 Commission income 239,476 - Total $ 123,599,232 $ 117,813,049 Timing of revenue recognition Products transferred at a point in time $ 123,359,756 $ 117,813,049 Sales transactions completed at a point in time 239,476 - Total $ 123,599,232 $ 117,813,049 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2023 | |
Acquisitions [Abstract] | |
ACQUISITIONS | NOTE 25 - ACQUISITIONS Acquisition of Northern Group Inc. NGI, a Wisconsin incorporated company that was founded in 2000, has extensive sales experience and sales channels in the United States rooted in wholesale, retail, supply chain and analytics solutions, including more than 20 team members, 16 major retailers and 20 suppliers and brands. On November 30, 2023, the Company, through SC Autosports, completed the acquisition of NGI pursuant to certain equity transfer agreement SC Autosports entered into with the owner of NGI to acquire 100% equity of NGI. The Company acquired all the equity interests of NGI for a purchase price of $13 million, in form of the Company’s restricted shares to the Transferors. The Company shall issue a total of 3,951,368 restricted shares (which is calculated as the Transfer Value divided by the average closing price of the Company’s stock for the twenty trading days prior to June 1, 2023, i.e., $3.29 per share) of common stock, par value $0.001 (the “KNDI Stock”) of the Company to the Transferor, holding in escrow pending the satisfaction of the Profit Targets agreed upon. On July 12, 2023, pursuant to the Equity Transfer Agreement, the Company issued a total of 3,951,368 shares of restrictive stock to sole shareholder of NGI, which are being held in escrow with certain escrow restrictions, to be released contingent upon the achievement of certain agreed-upon milestones during the escrow period. Pursuant to the terms of the Equity Transfer Agreement and the Supplementary Agreement, dated as of March 12, 2024, the escrow restrictions on the KNDI Stock shall be removed sequentially based on the following conditions: 1) when NGI achieves pretax income of $4.6 million or more (“Profit Target I”) during the period from December 1, 2023 to November 30, 2024, 2,431,612 shares of KNDI Stock Transferor holds shall be fully vested by removing the escrow restriction. Notwithstanding the above, the Transferor, on December 31, 2023, can apply for vesting certain number of shares, but no more than 1,418,440 shares, with its value equal to the actual amount of pre-tax income achieved hereinunder (for example: if the pre-tax income is $3.5 million, 1,063,830 shares (3,500,000/3.29=1,063,830) shall be fully vested and without escrow restriction); 2) when NGI achieves pretax income of $5.25 million or more (“Profit Target II”) during the period from December 1, 2024 to November 30, 2025, 759,878 shares of KNDI Stock Transferor holds shall be fully vested by removing its escrow restriction; and 3) when NGI achieves pretax income of $6 million or more (“Profit Target III”, collectively with Profit Target I, and Profit Target II, “Profit Targets”) during the period from December 1, 2025 to November 30, 2026, 759,878 shares of KNDI Stock Transferor holds shall be fully vested by removing the escrow restriction. If NGI fails to reach any of the Profit Targets in any period as mentioned above, the number of KNDI Stock to be removed escrow restriction in that period shall be adjusted based on the percentage of the actual achieved pretax income. If there is any loss incurred in that period, the Transferor shall assume the loss. As of the acquisition date, the Company recorded a contingent consideration liability of approximately $2.7 million, representing the estimated fair value of the contingent consideration the Company currently expects to pay to the NGI Transferors upon the achievement of certain Profit Targets aforementioned. The fair value of the contingent consideration liability associated with 3,951,368 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 NGI are as follows: NGI Fair value of contingent consideration $ 2,693,000 Total $ 2,693,000 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: NGI Goodwill $ 1,139,438 Amortizable intangible assets 1,030,000 Other net assets 523,562 Total $ 2,693,000 Transaction costs of $45,267 associated with the acquisition were expensed as incurred through general and administrative expenses in the statement of income in 2023. The Company allocated the preliminary purchase price to specific intangible asset categories as of the acquisition date for NGI as follows: Amount Estimated Amortizable intangible assets: Customer relation $ 1,030,000 3 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 NGI’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 $0.2 million of revenue and approximately $6,641 of operating income related to the operating results for NGI 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 January 1, 2023. 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 January 1, 2023. 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. For the year ended December 31, 2023, the unaudited pro forma combined statements of income information consists of the revenue with $127,578,305, loss from operations with $12,544,014 and net income with $2,177,924. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Event [Abstract] | |
SUBSEQUENT EVENT | NOTE 26 - SUBSEQUENT EVENT During January and February of 2024, the Company had repurchased a total of 540,362 common shares at an average stock price of $2.74 per share under the repurchase plan. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 7,132 | $ (12,123,663) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Economic and Political Risks | (a) Economic and Political Risks Part of 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 $24,071,461 and $19,123,476 as of December 31, 2023 and December 31, 2022, respectively. Contingent consideration related to the acquisitions of Jiangxi Huiyi and NGI, 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 $2,693,000 and $1,803,000 as of December 31, 2023 and December 31, 2022, respectively. Also see Note 19. |
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, 2023 and December 31, 2022, the Company’s restricted cash was $59,873,127 and $66,976,554, respectively. |
Inventories | (e) Inventories In the Company’s subsidiaries located in China, 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. In the Company’s subsidiaries located in the United States, the Company values its vehicle products at the lower of specific cost or net realizable value to reflect the nature of the oversea trading operations. Specific cost consists of the amount paid to acquire the vehicle, plus the cost of transportation, custom, and duty. The cost of remaining inventory items is determined on the basis of weighted average. 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 | (f) Accounts Receivable 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. As of December 31, 2023 and December 31, 2022, credit terms with the Company’s customers were typically 60 to 180 days after delivery. 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, 2023 and 2022, the Company had $2,886,223 and $2,285,386 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, 2023 and 2022. Aging of accounts receivable as of December 31, 2022 Outstanding Subsequent (1) 1 to 90 days $ 17,696,095 $ 17,269,833 91 to 180 days 1,863,518 1,775,104 Over 180 days 634,596 634,596 Over one year 1,104,456 258,981 Over two years 19,137,597 16,312,594 Total $ 40,436,262 $ 36,251,108 Aging of accounts receivable as of December 31, 2023 Outstanding Subsequent (1) 1 to 90 days $ 13,532,753 $ 8,614,006 91 to 180 days 4,810,095 1,025,240 Over 180 days 142,122 111,448 Over one year 287,967 197,550 Over two years 3,065,031 49,506 Total $ 21,837,968 $ 9,997,750 (1) the Company reviewed the subsequent collection until March 10, 2024. |
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 once 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. 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 1.5% to 2.2% annually depends on different banks. As of December 31, 2023 and 2022, the Company had notes receivable from unrelated parties of $124,473,111 and $434,461, respectively, which notes receivable typically mature within six months. |
Property, Plant and Equipment, net | (h) Property, Plant and Equipment, net Property, Plant 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 20-40 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 impairment loss of $942,591 and $2,697,521 for finite-lived intangible assets as of December 31, 2023 and December 31, 2022, respectively. |
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 the sales of EV parts and off-road vehicles, as well as commission income. The revenue is recognized at a point in time once the Company has determined that the customer has obtained control over the product or the control of the promised services. 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 24 “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 $4,265,176 and $6,029,608 for the years ended December 31, 2023 and 2022, 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, 2023 and 2022, $2,017,551 and $1,639,328, 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, 2023 2022 Period end RMB : USD exchange rate 7.0698 6.8973 Average RMB : USD exchange rate 7.0727 6.7284 |
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 Binomial Tree 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. The stock-based option expenses for the years ended December 31, 2023 and 2022 were $3,476,058 and $1,231,566, 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 four reporting units under the goodwill impairment analysis, namely 1) SC Autosports, 2) Jinhua An kao and Yongkang Scrou, 3) Jiangxi Huiyi, and 4) NGI. As of December 31, 2023 and 2022, the Company performed goodwill impairment testing at the reporting unit level and recognized impairment loss of $496,981 and $642,665, respectively. |
Intangible Assets | (t) Intangible Assets Intangible assets consist of patent, trade names, customer relations and technology associated with the purchase price from the allocation of Kandi Smart Battery Swap, Jiangxi Huiyi, Hainan Kandi Holding and NGI. Such assets are being amortized over their estimated useful lives. Intangible assets were amortized as of December 31, 2023. The amortization expenses for intangible assets were $1,489,657 and $1,965,490 for the years ended December 31, 2023 and 2022, respectively. The Company recognized impairment loss of $942,591 and $2,697,521 for finite-lived intangible assets as of December 31, 2023 and December 31, 2022, 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. Based on the contractual arrangements, Kandi New Energy had been deemed as a VIE and that the Company’s wholly-owned subsidiary, Zhejiang Kandi Technologies, absorbs all risk of loss from the activities of this VIE, thereby enabling the Company, through Zhejiang Kandi Technologies, to receive all of its expected residual returns. Therefore, although Kandi Technologies only owns 50% equity in Kandi New Energy, for accounting purpose, Kandi Technologies is the sole beneficiary and shall be wholly included in the consolidation. 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. The Company has completed the conversion of Kandi New Energy to a wholly-owned subsidiary of Zhejiang Kandi Technologies, effective March 14, 2022. The Company no longer has any VIE subsequent to March 14, 2022. There was no other VIE contractual arrangements during the year ended December 31, 2023. For accounting purpose, the tables below are condensed consolidating schedules summarizing separately the results of operations, financial position and cash flows of the parent company including non-VIE subsidiaries and Kandi New Energy, which was deemed as an VIE since the Company only owned 50% of the equity, and control Kandi New Energy through several contractual agreements prior to its conversion to a wholly-owned subsidiary of Zhejiang Kandi Technologies effective March 14, 2022, together with eliminating adjustments: Consolidated Statements of Operations Information For the year ended December 31, 2022 Parent including non-VIE subsidiaries VIE* Elimination Consolidated Revenues $ 117,813,049 $ - $ - $ 117,813,049 Gross profit $ 19,517,726 $ - $ - $ 19,517,726 Loss from operations $ (27,679,432 ) $ - $ - $ (27,679,432 ) Loss before income taxes $ (13,338,534 ) $ - $ - $ (13,338,534 ) Net loss $ (12,851,024 ) $ - $ - $ (12,851,024 ) * Effective March 14, 2022, the Company has completed the conversion of Kandi New Energy to a wholly-owned subsidiary of Zhejiang Kandi Technologies and the VIE agreements were terminated. The Company no longer has any VIE as of the date of this report. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Summarized the Aging of the Accounts Receivable | The table below summarized the aging of the accounts receivable as of December 31, 2023 and 2022. Aging of accounts receivable as of December 31, 2022 Outstanding Subsequent (1) 1 to 90 days $ 17,696,095 $ 17,269,833 91 to 180 days 1,863,518 1,775,104 Over 180 days 634,596 634,596 Over one year 1,104,456 258,981 Over two years 19,137,597 16,312,594 Total $ 40,436,262 $ 36,251,108 Aging of accounts receivable as of December 31, 2023 Outstanding Subsequent (1) 1 to 90 days $ 13,532,753 $ 8,614,006 91 to 180 days 4,810,095 1,025,240 Over 180 days 142,122 111,448 Over one year 287,967 197,550 Over two years 3,065,031 49,506 Total $ 21,837,968 $ 9,997,750 (1) the Company reviewed the subsequent collection until March 10, 2024. |
Schedule of Estimated Useful Lives | Estimated useful lives are as follows: Buildings 20-40 years Machinery and equipment 10 years Office equipment 5 years Motor vehicles 5 years Molds 5 years |
Schedule of Assets and liabilities are Translated at the Exchange Rates as of Balance Sheet Date | 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, 2023 2022 Period end RMB : USD exchange rate 7.0698 6.8973 Average RMB : USD exchange rate 7.0727 6.7284 |
Schedule of Consolidated Statements of Operations Information | Consolidated Statements of Operations Information For the year ended December 31, 2022 Parent including non-VIE subsidiaries VIE* Elimination Consolidated Revenues $ 117,813,049 $ - $ - $ 117,813,049 Gross profit $ 19,517,726 $ - $ - $ 19,517,726 Loss from operations $ (27,679,432 ) $ - $ - $ (27,679,432 ) Loss before income taxes $ (13,338,534 ) $ - $ - $ (13,338,534 ) Net loss $ (12,851,024 ) $ - $ - $ (12,851,024 ) * Effective March 14, 2022, the Company has completed the conversion of Kandi New Energy to a wholly-owned subsidiary of Zhejiang Kandi Technologies and the VIE agreements were terminated. The Company no longer has any VIE as of the date of this report. |
Schedule of Consolidated Balance Sheets Information | Consolidated Balance Sheets Information As of December 31, 2022 Parent including non-VIE subsidiaries VIE* Elimination Consolidated Cash and cash equivalents $ 84,063,717 $ - $ - $ 84,063,717 Total current assets $ 329,322,973 $ - $ - $ 329,322,973 Total non-current assets $ 153,659,303 $ - $ - $ 153,659,303 Total current liabilities $ 81,505,848 $ - $ - $ 81,505,848 Total non-current liabilities $ 3,783,457 $ - $ - $ 3,783,457 Total stockholders’ equity $ 397,692,971 $ - $ - $ 397,692,971 * Effective March 14, 2022, the Company has completed the conversion of Kandi New Energy to a wholly-owned subsidiary of Zhejiang Kandi Technologies and the VIE agreements were terminated. The Company no longer has any VIE as of the date of this report. As of December 31, 2022 Parent including non-VIE subsidiaries Consolidated % of VIE’s assets and liabilities in consolidated assets and liabilities Cash and cash equivalents $ 84,063,717 $ 84,063,717 - Total current assets $ 329,322,973 $ 329,322,973 - Total non-current assets $ 153,659,303 $ 153,659,303 - Total current liabilities $ 81,505,848 $ 81,505,848 - Total non-current liabilities $ 3,783,457 $ 3,783,457 - Total stockholders’ equity $ 397,692,971 $ 397,692,971 - |
Schedule of Consolidated Cash Flows Information | Consolidated Cash Flows Information For the year ended December 31, 2022 Parent including non-VIE subsidiaries VIE* Elimination Consolidated Net cash provided by operating activities $ 31,478,911 $ - $ - $ 31,478,911 Net cash used in investing activities $ (35,031,115 ) $ - $ - $ (35,031,115 ) Net cash used in financing activities $ (4,333,088 ) $ - $ - $ (4,333,088 ) * Effective March 14, 2022, the Company has completed the conversion of Kandi New Energy to a wholly-owned subsidiary of Zhejiang Kandi Technologies and the VIE agreements were terminated. The Company no longer has any VIE as of the date of this report. |
Concentrations (Tables)
Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Customers [Member] | |
Concentrations (Tables) [Line Items] | |
Schedule of Major Customers | For the years ended December 31, 2023 and 2022, the Company’s major customers, who accounted for more than 10% of the Company’s consolidated revenue, were as follows: Sales Trade Receivable Year Ended December 31 , December 31 , December 31 , Major Customers 2023 2023 2022 Customer A 26 % 1 % 1 % Customer B 19 % 4 % - Customer C 11 % 4 % - Sales Trade Receivable Year Ended December 31, December 31, December 31, Major Customers 2022 2022 2021 Customer A 26 % 1 % - |
Suppliers [Member] | |
Concentrations (Tables) [Line Items] | |
Schedule of Material Supplier | For the years ended December 31, 2023 and 2022, the Company’s material suppliers, each of whom accounted for more than 10% of the Company’s total purchases, were as follows: Purchases Accounts Payable Year Ended December 31 , December 31 , December 31 , Major Suppliers 2023 2023 2022 Zhejiang Kandi Supply Chain Management Co., Ltd. (1) 20 % 26 % 32 % Purchases Accounts Payable Year Ended December 31, December 31, December 31, Major Suppliers 2022 2022 2021 Zhejiang Kandi Supply Chain Management Co., Ltd. (1) 22 % 32 % 11 % (1) Zhejiang Kandi Technologies owns 10% equity interest of the supplier. |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounts Receivable, Net [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable are summarized as follows: December 31, December 31, 2023 2022 Accounts receivable $ 21,837,968 $ 40,436,262 Less: allowance for doubtful accounts (2,886,223 ) (2,285,386 ) Accounts receivable, net $ 18,951,745 $ 38,150,876 |
Schedule of Provision for Doubtful Accounts | The following table sets forth the movement of provision for doubtful accounts: Allowance for BALANCE AT DECEMBER 31, 2021 $ 3,053,277 Provision 456,974 Recovery (999,775 ) Exchange rate difference (225,090 ) BALANCE AT DECEMBER 31, 2022 $ 2,285,386 Provision 690,236 Recovery (33,906 ) Exchange rate difference (55,493 ) BALANCE AT DECEMBER 31, 2023 $ 2,886,223 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventories [Abstract] | |
Schedule of Inventories | Inventories are summarized as follows: December 31, December 31, 2023 2022 Raw material $ 6,248,888 $ 6,551,450 Work-in-progress 4,061,146 4,114,550 Finished goods and finished goods on consignment* 51,241,234 29,809,366 Inventories $ 61,551,268 $ 40,475,366 * As of December 31, 2023, approximately $50.5 million of finished goods and finished goods on consignment of off-roads and EVs held by SC Autosports were pledged as collateral for the $2,000,000 short-term loan. |
Notes Receivable (Tables)
Notes Receivable (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes Receivable [Member] | |
Notes Receivable (Tables) [Line Items] | |
Schedule of Notes Receivable | Notes receivable are summarized as follows: December 31, December 31, 2023 2022 Notes receivable as below: Bank acceptance notes $ - $ 434,461 Commercial acceptance notes 124,473,111 * - Notes receivable $ 124,473,111 $ 434,461 * As of December 31, 2023, there was $124,473,111 notes receivable from unrelated parties, among which $60.8 million was due on January 3, 2024 and $63.7 million was due on January 5, 2024. By end of January 2024, $124,473,111 notes receivable was wholly settled with cash collection subsequently. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment, Net [Abstract] | |
Schedule of Property, Plants and Equipment | Property, plant and equipment as of December 31, 2023 and 2022 consisted of the following: December 31, December 31, 2023 2022 At cost: Buildings (1) $ 61,964,058 $ 49,239,626 Machinery and equipment (2) 74,520,599 77,845,979 Office equipment 1,474,944 1,528,135 Motor vehicles and other transport equipment 695,383 1,810,825 Molds and others 13,011,196 10,983,573 151,666,180 141,408,138 Less : Accumulated depreciation (52,862,408 ) (44,239,385 ) Property, plant and equipment, net $ 98,803,772 $ 97,168,753 (1) As of December 31, 2023, approximately $12.4 million of buildings held by Kandi Investment were pledged as collateral for the $8,178,574 long-term loan. (2) As of December 31, 2023, machinery and equipment with carrying value totaling approximately $24.2 million were pledged to banks as collateral for credit limits and loans. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets [Abstract] | |
Schedule of Major Class of Our Intangible Assets, Other than Goodwill | 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 2023 2022 Cost: Patent 1.5-3.17 years $ 4,818,262 4,938,765 Technology 3-5 years 9,759,823 10,003,915 Customer relation 2.92 years 1,030,000 - 15,608,085 14,942,680 Less : Accumulated amortization Patent $ (3,281,463 ) (2,744,024 ) Technology (2,391,950 ) (1,573,079 ) Customer relation (28,611 ) - (5,702,024 ) (4,317,103 ) Less : Accumulated impairment for intangible assets (3,510,236 ) (2,631,465 ) Intangible assets, net $ 6,395,825 $ 7,994,112 |
Schedule of Amortization Expenses | Amortization expenses for the next five years and thereafter are as follows: Years ended December 31, 2024 $ 1,718,689 2025 1,657,930 2026 1,426,023 2027 820,390 2028 772,793 Thereafter - Total $ 6,395,825 |
Land Use Rights (Tables)
Land Use Rights (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Land Use Rights, Net [Abstract] | |
Schedule of Land Use Rights | The Company’s land use rights consist of the following: December 31, December 31, 2023 2022 Cost of land use rights $ 3,716,267 $ 3,809,211 Less: Accumulated amortization (961,825 ) (899,261 ) Land use rights, net $ 2,754,442 $ 2,909,950 |
Schedule of Amortization Expense | Amortization expense for the next five years and thereafter is as follows: Years ended December 31, 2024 $ 84,471 2025 84,471 2026 84,471 2027 84,471 2028 84,471 Thereafter 2,332,087 Total $ 2,754,442 |
Other Long-Term Assets (Tables)
Other Long-Term Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Long Term Assets [Abstract] | |
Schedule of Other Long-Term Assets | December 31, December 31, 2023 2022 Prepayments for land use right (i) $ 3,738,418 3,917,226 Right - of - use asset (ii) 5,889,690 6,383,824 Others 365,022 329,861 Total other long-term asset $ 9,993,130 $ 10,630,911 (i) As of December 31, 2023 and December 31, 2022, the Company’s other long term assets included net value of prepayments for land use right of Hainan facility of $3,738,418 and $3,917,226, respectively. As of December 31, 2023, 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, 2023 and 2022 were $83,196 and $87,453, respectively. (ii) As of December 31, 2023 and December 31, 2022, the Company’s operating lease right-of-use assets in other long term assets included net value of land use right of Jinhua facility acquired in October 2020 and Jiangxi facility acquired in October 2021 of $5,443,448 and $5,697,720, respectively, as well as the amount of $446,242 and $686,104 related to the lease of Hangzhou office starting January 1, 2022. The amortization expense of land use right of Jinhua facility and Jiangxi facility for the year ended December 31, 2023 and 2022 were $115,204 and $121,099, respectively. |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Taxes [Abstract] | |
Schedule of Income Tax Expenses | Income tax expenses (benefit) for the year ended December 31, 2023 and 2022 are summarized as follows: For Year Ended December 31, 2023 2022 Current: Provision for CIT $ 1,599,668 $ (26,465 ) Deferred: Provision for CIT 203,236 (461,045 ) Income tax expense (benefit) $ 1,802,904 $ (487,510 ) |
Schedule of Net Change Valuation Allowance of Deferred Tax Assets | The reconciliation of taxes at the PRC statutory rate (25% in 2023 and 2022) to our provision for income taxes for the years ended December 31, 2023 and 2022 was as follows: For Year Ended December 31, 2023 2022 Expected taxation at PRC statutory tax rate $ 1,885,374 $ (3,334,633) Effect of differing tax rates in different jurisdictions 650,434 (81,257 ) Effect of PRC preferential tax rates (2,471,114 ) 790,053 Non-taxable income (898,290 ) (1,984,855 ) Non-deductible expenses 3,830,387 2,315,146 Research and development super-deduction (1,516,020 ) (1,672,428 ) Over-accrued EIT for previous years (431 ) (538,545 ) Addition to valuation allowance 467,366 2,800,862 Foreign tax credit (70,708 ) (84,045 ) Other (including intercompany transaction ) (74,094 ) 1,302,192 Income tax expense (benefit) $ 1,802,904 $ (487,510 ) |
Schedule of Net Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to the Company’s net deferred tax assets and liabilities as of December 31, 2023 and December 31, 2022 are summarized as follows: December 31, December 31, 2023 2022 Deferred tax assets: Accruals and reserves $ 6,388,121 $ 6,759,952 Loss carried forward 9,412,846 8,547,725 Total deferred tax assets 15,800,967 15,307,677 Deferred tax liabilities: Expense (345,033 ) (212,143 ) Tangible (218,406 ) (207,905 ) Intangible (763,627 ) (1,146,339 ) Revenue (1,222,344 ) (426,504 ) Total deferred tax liability (2,549,410 ) (1,992,891 ) Net deferred tax assets $ 13,251,557 $ 13,314,786 less: valuation allowance (13,400,638 ) (13,260,631 ) Net deferred tax (liabilities) assets, net of valuation allowance $ (149,081 ) $ 54,155 |
Schedule of Income (Loss) Before Income Taxes Prc and Non-Prc Sources | Income (loss) before income taxes from PRC and non-PRC sources for the year ended December 31, 2023 and 2022 are summarized as follows: For Year Ended December 31, 2023 2022 Income (loss) before income taxes consists of: PRC $ 23,550,796 $ (10,448,802 ) Non-PRC (20,078,125 ) (2,889,732 ) T otal $ 3,472,671 $ (13,338,534 ) |
Schedule of Net Change Valuation Allowance of Deferred Tax Assets | 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 31,2022 $ 13,260,631 Additions-change to tax expense 467,366 Prior year true up (5,478 ) Exchange rate difference (321,881 ) Balance at December 31,2023 $ 13,400,638 |
Schedule of Income Tax Expense | The combined effects of income tax expense exemptions and reductions available to the Company for the years ended December 31, 2023 and 2022 are as follows: Year Ended December 31, 2023 2022 Tax benefit (holiday) credit $ 2,421,539 $ 1,202,615 Basic net income per share effect $ 0.03 $ 0.02 |
Leases and Right-of-Use-Assets
Leases and Right-of-Use-Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases and Right-of-Use-Assets [Abstract] | |
Schedule of Information Related to Operating Leases | Supplemental information related to operating leases was as follows: Year Ended December 31, 2023 2022 Cash payments for operating leases $ 338,233 $ 355,541 |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities as of December 31, 2023 were as follow: Maturity of Lease Liabilities: Lease payable Years ended December 31, 2024 $ 218,924 2025 227,024 |
Contingent Consideration Liab_2
Contingent Consideration Liability (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Contingent Consideration Liability [Abstract] | |
Schedule of Contingent Consideration Liability | Details of the contingent consideration liability as of December 31, 2023 and December 31, 2022 were as follow: December 31, December 31, 2023 2022 Contingent consideration liability to former members of Jiangxi Huiyi $ - 1,803,000 Contingent consideration liability to former members of NGI 2,693,000 - Total contingent consideration liability $ 2,693,000 $ 1,803,000 |
Stock Options (Tables)
Stock Options (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Stock Options [Abstract] | |
Schedule of Stock Option Activities | The following is a summary of the stock option activities of the Company: Number of Weighted Outstanding as of December 31, 2021 900,000 $ 9.72 Granted 5,000,000 2.07 Exercised - - Cancelled - - Forfeited - - Outstanding as of December 31, 2022 5,900,000 $ 3.24 Granted 68,019 3.96 Exercised (1,666,661 ) 2.07 Cancelled - - Forfeited - - Outstanding as of December 31, 2023 4,301,358 $ 3.70 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Forth Disaggregation of Revenue | The following table sets forth disaggregation of revenue: Year Ended December 31 2023 2022 Sales Revenue Sales Revenue Primary geographical markets U.S. and other countries/areas $ 93,979,363 $ 65,871,112 China 29,619,869 51,941,937 Total $ 123,599,232 $ 117,813,049 Major products and Services EV parts $ 5,807,973 $ 8,964,094 EV products 1,214,786 7,926,233 Off-road vehicles and associated parts 106,983,891 70,622,278 Electric Scooters, Electric Self-Balancing Scooters and associated parts 683,952 4,616,683 Battery exchange equipment and Battery exchange service 674,927 1,691,486 Lithium-ion cells 7,994,227 23,992,275 Commission income 239,476 - Total $ 123,599,232 $ 117,813,049 Timing of revenue recognition Products transferred at a point in time $ 123,359,756 $ 117,813,049 Sales transactions completed at a point in time 239,476 - Total $ 123,599,232 $ 117,813,049 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Acquisitions [Abstract] | |
Schedule of Preliminary Purchase Price as of the Acquisition Date | The components of the preliminary purchase price as of the acquisition date for NGI are as follows: NGI Fair value of contingent consideration $ 2,693,000 Total $ 2,693,000 |
Schedule of Preliminary Purchase Price Allocations | The following summarizes the preliminary purchase price allocations: NGI Goodwill $ 1,139,438 Amortizable intangible assets 1,030,000 Other net assets 523,562 Total $ 2,693,000 |
Schedule of Preliminary Purchase Price to Specific Intangible Asset | The Company allocated the preliminary purchase price to specific intangible asset categories as of the acquisition date for NGI as follows: Amount Estimated Amortizable intangible assets: Customer relation $ 1,030,000 3 |
Organization and Principal Ac_2
Organization and Principal Activities (Details) $ in Millions | 1 Months Ended | |||||||||||||
Feb. 15, 2022 USD ($) | Sep. 30, 2020 | Mar. 04, 2019 | May 18, 2010 CNY (¥) | Apr. 30, 2013 | Dec. 31, 2023 | Jun. 17, 2023 | Mar. 14, 2022 | Feb. 15, 2022 CNY (¥) | Jul. 13, 2021 | Feb. 18, 2021 | May 31, 2018 | Dec. 31, 2017 | Apr. 30, 2012 | |
Organization and Principal Activities [Line Items] | ||||||||||||||
Percentage of ownership interest | 50% | |||||||||||||
Percentage of ownership acquisition | 90% | |||||||||||||
Zhejiang Kandi Technologies [Member] | ||||||||||||||
Organization and Principal Activities [Line Items] | ||||||||||||||
Percentage of ownership interest | 100% | |||||||||||||
Percentage of ownership acquisition | 90% | 100% | ||||||||||||
Zhejiang Kandi Technologies [Member] | Ruiheng [Member] | ||||||||||||||
Organization and Principal Activities [Line Items] | ||||||||||||||
Percentage of ownership interest | 10% | |||||||||||||
SC Autosports [Member] | ||||||||||||||
Organization and Principal Activities [Line Items] | ||||||||||||||
Percentage of ownership acquisition | 100% | |||||||||||||
Supply Chain [Member] | ||||||||||||||
Organization and Principal Activities [Line Items] | ||||||||||||||
Percentage of ownership interest | 10% | |||||||||||||
Kandi Hainan and Jiangsu Xingchi [Member] | ||||||||||||||
Organization and Principal Activities [Line Items] | ||||||||||||||
Invested amount | $ 4.6 | ¥ 30,000,000 | ||||||||||||
NGI [Member] | ||||||||||||||
Organization and Principal Activities [Line Items] | ||||||||||||||
Percentage of ownership acquisition | 100% | |||||||||||||
Kandi New Energy to Zhejiang Kandi Technologies [Member] | ||||||||||||||
Organization and Principal Activities [Line Items] | ||||||||||||||
Percentage of equity interests | 50% | |||||||||||||
Mr. Hu Xiaoming [Member] | ||||||||||||||
Organization and Principal Activities [Line Items] | ||||||||||||||
Contribute amount (in Yuan Renminbi) | ¥ 36,000,000 | |||||||||||||
Percentage of ownership interest | 50% | |||||||||||||
Fengsheng Automotive Technology Group Co., Ltd. [Member] | ||||||||||||||
Organization and Principal Activities [Line Items] | ||||||||||||||
Percentage of ownership acquisition | 22% | |||||||||||||
Kandi Hainan [Member] | ||||||||||||||
Organization and Principal Activities [Line Items] | ||||||||||||||
Percentage of ownership interest | 66.70% | 45% | ||||||||||||
Kandi New Energy [Member] | ||||||||||||||
Organization and Principal Activities [Line Items] | ||||||||||||||
Percentage of ownership interest | 55% | |||||||||||||
Jiangxi Huiyi [Member] | ||||||||||||||
Organization and Principal Activities [Line Items] | ||||||||||||||
Percentage of ownership acquisition | 100% | |||||||||||||
Jiangsu Xingchi [Member] | ||||||||||||||
Organization and Principal Activities [Line Items] | ||||||||||||||
Percentage of ownership interest | 33.30% | |||||||||||||
Yongkang Scrou [Member] | ||||||||||||||
Organization and Principal Activities [Line Items] | ||||||||||||||
Percentage of ownership acquisition | 100% | |||||||||||||
Zhejiang Kandi Technologies [Member] | ||||||||||||||
Organization and Principal Activities [Line Items] | ||||||||||||||
Voting rights and residual interests | 100% | |||||||||||||
Jinhua Kandi New Energy Vehicles Co., Ltd. [Member] | ||||||||||||||
Organization and Principal Activities [Line Items] | ||||||||||||||
Voting rights and residual interests | 100% |
Liquidity (Details)
Liquidity (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Liquidity [Line Items] | ||
Working capital | $ 266,874,509 | |
Cash and cash equivalents | 33,756,941 | $ 84,063,717 |
Restricted cash | 59,873,127 | 66,976,554 |
Deposit amount | 33,947,212 | 81,191,191 |
Short-term bank loans | 9,072,336 | 5,569,154 |
Long-term bank loans | 8,389,163 | |
Minimum [Member] | ||
Liquidity [Line Items] | ||
Working capital | $ 19,057,384 | |
Annual interest rate | 3.25% | |
Maximum [Member] | ||
Liquidity [Line Items] | ||
Working capital | $ 247,817,125 | |
Annual interest rate | 3.99% | |
PRC Subsidiaries [Member] | ||
Liquidity [Line Items] | ||
Short-term bank loans | $ 7,100,000 | |
US Subsidiaries [Member] | ||
Liquidity [Line Items] | ||
Short-term bank loans | $ 2,000,000 |
Principles of Consolidation (De
Principles of Consolidation (Details) | 12 Months Ended | ||
Mar. 14, 2022 | Feb. 15, 2022 | Dec. 31, 2023 | |
Zhejiang Kandi Technologies [Member] | |||
Principles of Consolidation [Line Items] | |||
Percentage owned in subsidiary | 50% | ||
Percentage of economic benefits, voting rights and residual interests | 100% | ||
Equity method investment ownership percentage | 50% | ||
Mr. Hu Xiaoming [Member] | |||
Principles of Consolidation [Line Items] | |||
Percentage owned in subsidiary | 50% | ||
Hainan Kandi Holding [Member] | |||
Principles of Consolidation [Line Items] | |||
Equity method investment ownership percentage | 33.30% | ||
Kandi Hainan [Member] | Zhejiang Kandi Technologies [Member] | |||
Principles of Consolidation [Line Items] | |||
Percentage owned in subsidiary | 45% | ||
Kandi Hainan [Member] | Kandi New Energy [Member] | |||
Principles of Consolidation [Line Items] | |||
Percentage owned in subsidiary | 55% | ||
Hainan Kandi Holding [Member] | Kandi Hainan [Member] | |||
Principles of Consolidation [Line Items] | |||
Percentage owned in subsidiary | 66.70% | ||
Hainan Kandi Holding [Member] | Jiangsu Xingchi [Member] | |||
Principles of Consolidation [Line Items] | |||
Percentage owned in subsidiary | 33.30% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Mar. 14, 2022 | |
Summary of Significant Accounting Policies [Line Items] | |||
Fair value | $ 24,071,461 | $ 19,123,476 | |
Fair value of contingent consideration | 2,693,000 | 1,803,000 | |
Restricted cash | 59,873,127 | 66,976,554 | |
Allowance for Doubtful Accounts, Premiums and Other Receivables | 2,886,223 | 2,285,386 | |
Notes receivable | 124,473,111 | 434,461 | |
Recognized impairment loss for finite-lived intangible assets | 942,591 | 2,697,521 | |
Research and development expense | 4,265,176 | 6,029,608 | |
Government grants | 2,017,551 | 1,639,328 | |
Stock-based option expense | 1,083,000 | ||
Recognized impairment loss for goodwill | 496,981 | 642,665 | |
Amortization expenses for intangible assets | 1,489,657 | 1,965,490 | |
Impairment loss | $ 942,591 | 2,697,521 | |
Owned percentage of equity | 100% | 50% | |
Minimum [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Current discount rate | 1.50% | ||
Stock-based option expense | $ 1,231,566 | ||
Maximum [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Current discount rate | 2.20% | ||
Stock-based option expense | $ 3,476,058 | ||
Zhejiang Kandi Technologies [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Owned percentage of equity | 50% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of Summarized the Aging of the Accounts Receivable - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Accounts Receivable, Noncurrent, Past Due [Line Items] | |||
Outstanding balance | $ 21,837,968 | $ 40,436,262 | |
Subsequent collection | [1] | 9,997,750 | 36,251,108 |
1 to 90 days [Member] | |||
Accounts Receivable, Noncurrent, Past Due [Line Items] | |||
Outstanding balance | 13,532,753 | 17,696,095 | |
Subsequent collection | [1] | 8,614,006 | 17,269,833 |
91 to 180 days [Member] | |||
Accounts Receivable, Noncurrent, Past Due [Line Items] | |||
Outstanding balance | 4,810,095 | 1,863,518 | |
Subsequent collection | [1] | 1,025,240 | 1,775,104 |
Over 180 days [Member] | |||
Accounts Receivable, Noncurrent, Past Due [Line Items] | |||
Outstanding balance | 142,122 | 634,596 | |
Subsequent collection | [1] | 111,448 | 634,596 |
Over one year [Member] | |||
Accounts Receivable, Noncurrent, Past Due [Line Items] | |||
Outstanding balance | 287,967 | 1,104,456 | |
Subsequent collection | [1] | 197,550 | 258,981 |
Over two years [Member] | |||
Accounts Receivable, Noncurrent, Past Due [Line Items] | |||
Outstanding balance | 3,065,031 | 19,137,597 | |
Subsequent collection | [1] | $ 49,506 | $ 16,312,594 |
[1]the Company reviewed the subsequent collection until March 10, 2024. |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives | Dec. 31, 2023 |
Building [Member] | Minimum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property, plants and equipment, Estimated useful lives | 20 years |
Building [Member] | Maximum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property, plants and equipment, Estimated useful lives | 40 years |
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 |
Vehicles [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property, plants and equipment, Estimated useful lives | 5 years |
Tools, Dies and Molds [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property, plants and equipment, Estimated useful lives | 5 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of Assets and liabilities are Translated at the Exchange Rates as of Balance Sheet Date | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule Of Assets And Liabilities Are Translated At The Exchange Rates As Of Balance Sheet Date Abstract | ||
Period end RMB : USD exchange rate | 7.0698 | 6.8973 |
Average RMB : USD exchange rate | 7.0727 | 6.7284 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details) - Schedule of Consolidated Statements of Operations Information | 12 Months Ended | |
Dec. 31, 2022 USD ($) | ||
Parent including non-VIE subsidiaries [Member] | ||
Condensed Statement of Income Captions [Line Items] | ||
Revenues | $ 117,813,049 | |
Gross profit | 19,517,726 | |
Loss from operations | (27,679,432) | |
Loss before income taxes | (13,338,534) | |
Net loss | (12,851,024) | |
VIE [Member] | ||
Condensed Statement of Income Captions [Line Items] | ||
Revenues | [1] | |
Gross profit | [1] | |
Loss from operations | [1] | |
Loss before income taxes | [1] | |
Net loss | [1] | |
Elimination [Member] | ||
Condensed Statement of Income Captions [Line Items] | ||
Revenues | ||
Gross profit | ||
Loss from operations | ||
Loss before income taxes | ||
Net loss | ||
Consolidated [Member] | ||
Condensed Statement of Income Captions [Line Items] | ||
Revenues | 117,813,049 | |
Gross profit | 19,517,726 | |
Loss from operations | (27,679,432) | |
Loss before income taxes | (13,338,534) | |
Net loss | $ (12,851,024) | |
[1]Effective March 14, 2022, the Company has completed the conversion of Kandi New Energy to a wholly-owned subsidiary of Zhejiang Kandi Technologies and the VIE agreements were terminated. The Company no longer has any VIE as of the date of this report. |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Details) - Schedule of Consolidated Balance Sheets Information | Dec. 31, 2022 USD ($) | |
Parent including non-VIE subsidiaries [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Cash and cash equivalents | $ 84,063,717 | |
Total current assets | 329,322,973 | |
Total non-current assets | 153,659,303 | |
Total current liabilities | 81,505,848 | |
Total non-current liabilities | 3,783,457 | |
Total stockholders’ equity | 397,692,971 | |
VIE [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Cash and cash equivalents | [1] | |
Total current assets | [1] | |
Total non-current assets | [1] | |
Total current liabilities | [1] | |
Total non-current liabilities | [1] | |
Total stockholders’ equity | [1] | |
Elimination [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Cash and cash equivalents | ||
Total current assets | ||
Total non-current assets | ||
Total current liabilities | ||
Total non-current liabilities | ||
Total stockholders’ equity | ||
Consolidated [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Cash and cash equivalents | 84,063,717 | |
Total current assets | 329,322,973 | |
Total non-current assets | 153,659,303 | |
Total current liabilities | 81,505,848 | |
Total non-current liabilities | 3,783,457 | |
Total stockholders’ equity | 397,692,971 | |
VIE’s assets and liabilities in consolidated assets and liabilities [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Cash and cash equivalents | ||
Total current assets | ||
Total non-current assets | ||
Total current liabilities | ||
Total non-current liabilities | ||
Total stockholders’ equity | ||
[1]Effective March 14, 2022, the Company has completed the conversion of Kandi New Energy to a wholly-owned subsidiary of Zhejiang Kandi Technologies and the VIE agreements were terminated. The Company no longer has any VIE as of the date of this report. |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Details) - Schedule of Consolidated Cash Flows Information | 12 Months Ended | |
Dec. 31, 2022 USD ($) | ||
Parent including non-VIE subsidiaries [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by operating activities | $ 31,478,911 | |
Net cash used in investing activities | (35,031,115) | |
Net cash used in financing activities | (4,333,088) | |
VIE [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by operating activities | [1] | |
Net cash used in investing activities | [1] | |
Net cash used in financing activities | [1] | |
Elimination [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by operating activities | ||
Net cash used in investing activities | ||
Net cash used in financing activities | ||
Consolidated [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by operating activities | 31,478,911 | |
Net cash used in investing activities | (35,031,115) | |
Net cash used in financing activities | $ (4,333,088) | |
[1] Effective March 14, 2022, the Company has completed the conversion of Kandi New Energy to a wholly-owned subsidiary of Zhejiang Kandi Technologies and the VIE agreements were terminated. The Company no longer has any VIE as of the date of this report. |
Concentrations (Details)
Concentrations (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Zhejiang Kandi [Member] | ||
Concentrations [Line Items] | ||
Equity interest of supplier | 10% | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Major Customer [Member] | ||
Concentrations [Line Items] | ||
Concentration risk, percentage | 10% | 10% |
Major Suppliers [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||
Concentrations [Line Items] | ||
Concentration risk, percentage | 10% | 10% |
Concentrations (Details) - Sche
Concentrations (Details) - Schedule of Major Customers - Customer [Member] | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Sales [Member] | Customer A [Member] | |||
Schedule of Major Customers [Line Items] | |||
Concentration risk, percentage | 26% | 26% | |
Sales [Member] | Customer B [Member] | |||
Schedule of Major Customers [Line Items] | |||
Concentration risk, percentage | 19% | ||
Sales [Member] | Customer C [Member] | |||
Schedule of Major Customers [Line Items] | |||
Concentration risk, percentage | 11% | ||
Trade Receivable [Member] | Customer A [Member] | |||
Schedule of Major Customers [Line Items] | |||
Concentration risk, percentage | 1% | 1% | |
Trade Receivable [Member] | Customer B [Member] | |||
Schedule of Major Customers [Line Items] | |||
Concentration risk, percentage | 4% | ||
Trade Receivable [Member] | Customer C [Member] | |||
Schedule of Major Customers [Line Items] | |||
Concentration risk, percentage | 4% |
Concentrations (Details) - Sc_2
Concentrations (Details) - Schedule of Material Supplier - Zhejiang Kandi Supply Chain Management Co., Ltd. [Member] - Supplier Concentration Risk [Member] | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Purchases [Member] | ||||
Schedule of Material Supplier [Line Items] | ||||
Concentration risk percentage | [1] | 20% | 22% | |
Accounts Payable [Member] | ||||
Schedule of Material Supplier [Line Items] | ||||
Concentration risk percentage | [1] | 26% | 32% | 11% |
[1]Zhejiang Kandi Technologies owns 10% equity interest of the supplier. |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - $ / shares | 12 Months Ended | ||
Sep. 07, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Earnings (Loss) Per Share [Line Items] | |||
Expiration period | May 2023 | ||
Shares granted | 1,121,797 | ||
Stock options granted | 68,019 | 5,000,000 | |
Exercise price per share (in Dollars per share) | $ 2.07 | ||
Options Held [Member] | |||
Earnings (Loss) Per Share [Line Items] | |||
Share issued | 968,019 | ||
Stock options granted | 3,333,339 | ||
Options [Member] | |||
Earnings (Loss) Per Share [Line Items] | |||
Stock options | 5,900,000 | ||
Warrant [Member] | |||
Earnings (Loss) Per Share [Line Items] | |||
Share issued | 8,131,332 | ||
Stock options | 8,131,332 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - Schedule of Accounts Receivable - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Accounts Receivable [Abstract] | ||
Accounts receivable | $ 21,837,968 | $ 40,436,262 |
Less: allowance for doubtful accounts | (2,886,223) | (2,285,386) |
Accounts receivable, net | $ 18,951,745 | $ 38,150,876 |
Accounts Receivable, Net (Det_2
Accounts Receivable, Net (Details) - Schedule of Provision for Doubtful Accounts - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Provision for Doubtful Accounts [Abstract] | ||
Balance, beginning | $ 2,285,386 | $ 3,053,277 |
Provision | 690,236 | 456,974 |
Recovery | (33,906) | (999,775) |
Exchange rate difference | (55,493) | (225,090) |
Balance, ending | $ 2,886,223 | $ 2,285,386 |
Inventories (Details)
Inventories (Details) | Dec. 31, 2023 USD ($) |
Off-Road [Member] | |
Inventories [Line Items] | |
Inventory | $ 50,500,000 |
SC Autosports [Member] | |
Inventories [Line Items] | |
Short-term loan | $ 2,000,000 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of Inventories - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Inventories [Abstract] | |||
Raw material | $ 6,248,888 | $ 6,551,450 | |
Work-in-progress | 4,061,146 | 4,114,550 | |
Finished goods and finished goods on consignment | [1] | 51,241,234 | 29,809,366 |
Inventories | $ 61,551,268 | $ 40,475,366 | |
[1]As of December 31, 2023, approximately $50.5 million of finished goods and finished goods on consignment of off-roads and EVs held by SC Autosports were pledged as collateral for the $2,000,000 short-term loan. |
Notes Receivable (Details)
Notes Receivable (Details) - USD ($) | Jan. 30, 2024 | Jan. 05, 2024 | Jan. 03, 2024 | Dec. 31, 2023 | Dec. 31, 2022 |
Notes Receivable [Line Items] | |||||
Notes receivable | $ 124,473,111 | $ 434,461 | |||
Subsequent Event [Member] | |||||
Notes Receivable [Line Items] | |||||
Notes receivable | $ 124,473,111 | $ 63,700,000 | $ 60,800,000 |
Notes Receivable (Details) - Sc
Notes Receivable (Details) - Schedule of Notes Receivable - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Schedule Of Notes Receivable Abstract | |||
Bank acceptance notes | $ 434,461 | ||
Commercial acceptance notes | 124,473,111 | [1] | |
Notes receivable | $ 124,473,111 | $ 434,461 | |
[1]As of December 31, 2023, there was $124,473,111 notes receivable from unrelated parties, among which $60.8 million was due on January 3, 2024 and $63.7 million was due on January 5, 2024. By end of January 2024, $124,473,111 notes receivable was wholly settled with cash collection subsequently. |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) | 12 Months Ended | |
Dec. 31, 2023 USD ($) m² shares | Dec. 31, 2022 USD ($) | |
Property, Plant and Equipment [Line Items] | ||
Production capacity with an annual output (in Shares) | shares | 100,000 | |
Depreciation expenses | $ 10,141,120 | $ 10,165,138 |
Long-term loan | 8,178,574 | |
Machinery and equipment carrying value | $ 24,200,000 | |
Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Area square meters (in Square Meters) | m² | 58,000 | |
Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Area square meters (in Square Meters) | m² | 96,000 | |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Buildings, gross | $ 12,400,000 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Details) - Schedule of Property, Plants and Equipment - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 151,666,180 | $ 141,408,138 | |
Less : Accumulated depreciation | (52,862,408) | (44,239,385) | |
Property, plant and equipment, net | 98,803,772 | 97,168,753 | |
Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | [1] | 61,964,058 | 49,239,626 |
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | [2] | 74,520,599 | 77,845,979 |
Office Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 1,474,944 | 1,528,135 | |
Vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 695,383 | 1,810,825 | |
Molds and Others [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 13,011,196 | $ 10,983,573 | |
[1]As of December 31, 2023, approximately $12.4 million of buildings held by Kandi Investment were pledged as collateral for the $8,178,574 long-term loan.[2]As of December 31, 2023, machinery and equipment with carrying value totaling approximately $24.2 million were pledged to banks as collateral for credit limits and loans. |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Intangible Assets [Abstract] | ||
Amortization of intangible assets | $ 1,489,657 | $ 1,965,490 |
Intangible Assets (Details) - S
Intangible Assets (Details) - Schedule of Major Class of Our Intangible Assets, Other than Goodwill - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Intangible Assets (Details) - Schedule of Major Class of Our Intangible Assets, Other than Goodwill [Line Items] | ||
Gross carrying amount | $ 15,608,085 | $ 14,942,680 |
Less : Accumulated amortization | (5,702,024) | (4,317,103) |
Less : Accumulated impairment for intangible assets | (3,510,236) | (2,631,465) |
Intangible assets, net | $ 6,395,825 | 7,994,112 |
Minimum [Member] | ||
Intangible Assets (Details) - Schedule of Major Class of Our Intangible Assets, Other than Goodwill [Line Items] | ||
Remaining useful life | 3 years | |
Patent [Member] | ||
Intangible Assets (Details) - Schedule of Major Class of Our Intangible Assets, Other than Goodwill [Line Items] | ||
Gross carrying amount | $ 4,818,262 | 4,938,765 |
Less : Accumulated amortization | $ (3,281,463) | (2,744,024) |
Patent [Member] | Minimum [Member] | ||
Intangible Assets (Details) - Schedule of Major Class of Our Intangible Assets, Other than Goodwill [Line Items] | ||
Remaining useful life | 1 year 6 months | |
Patent [Member] | Maximum [Member] | ||
Intangible Assets (Details) - Schedule of Major Class of Our Intangible Assets, Other than Goodwill [Line Items] | ||
Remaining useful life | 3 years 2 months 1 day | |
Technology [Member] | ||
Intangible Assets (Details) - Schedule of Major Class of Our Intangible Assets, Other than Goodwill [Line Items] | ||
Gross carrying amount | $ 9,759,823 | 10,003,915 |
Less : Accumulated amortization | $ (2,391,950) | (1,573,079) |
Technology [Member] | Minimum [Member] | ||
Intangible Assets (Details) - Schedule of Major Class of Our Intangible Assets, Other than Goodwill [Line Items] | ||
Remaining useful life | 3 years | |
Technology [Member] | Maximum [Member] | ||
Intangible Assets (Details) - Schedule of Major Class of Our Intangible Assets, Other than Goodwill [Line Items] | ||
Remaining useful life | 5 years | |
Customer Relation [Member] | ||
Intangible Assets (Details) - Schedule of Major Class of Our Intangible Assets, Other than Goodwill [Line Items] | ||
Gross carrying amount | $ 1,030,000 | |
Less : Accumulated amortization | $ (28,611) | |
Customer Relation [Member] | Minimum [Member] | ||
Intangible Assets (Details) - Schedule of Major Class of Our Intangible Assets, Other than Goodwill [Line Items] | ||
Remaining useful life | 2 years 11 months 1 day | |
Customer Relation [Member] | Maximum [Member] | ||
Intangible Assets (Details) - Schedule of Major Class of Our Intangible Assets, Other than Goodwill [Line Items] | ||
Remaining useful life | 2 years 11 months 1 day |
Intangible Assets (Details) -_2
Intangible Assets (Details) - Schedule of Amortization Expenses - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Amortization Expenses [Abstract] | ||
2024 | $ 1,718,689 | |
2025 | 1,657,930 | |
2026 | 1,426,023 | |
2027 | 820,390 | |
2028 | 772,793 | |
Thereafter | ||
Total | $ 6,395,825 | $ 7,994,112 |
Land Use Rights (Details)
Land Use Rights (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Land Use Rights, Net [Abstract] | ||
Amortization expenses | $ 84,471 | $ 88,794 |
Land Use Rights (Details) - Sch
Land Use Rights (Details) - Schedule of Land Use Rights - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Land Use Rights, Net [Abstract] | ||
Cost of land use rights | $ 3,716,267 | $ 3,809,211 |
Less: Accumulated amortization | (961,825) | (899,261) |
Land use rights, net | $ 2,754,442 | $ 2,909,950 |
Land Use Rights (Details) - S_2
Land Use Rights (Details) - Schedule of Amortization Expense - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Amortization Expenses [Abstract] | ||
2024 | $ 84,471 | |
2025 | 84,471 | |
2026 | 84,471 | |
2027 | 84,471 | |
2028 | 84,471 | |
Thereafter | 2,332,087 | |
Total | $ 2,754,442 | $ 2,909,950 |
Other Long-Term Assets (Details
Other Long-Term Assets (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Other Long Term Assets [Line Items] | ||
Amortization expense | $ 84,471 | $ 88,794 |
Net value of land use right | 5,443,448 | 5,697,720 |
Lease, amount | 446,242 | 686,104 |
Hainan [Member] | ||
Other Long Term Assets [Line Items] | ||
Prepayments for land use right | 3,738,418 | 3,917,226 |
Amortization expense | 83,196 | 87,453 |
Jiangxi facility [Member] | ||
Other Long Term Assets [Line Items] | ||
Amortization expense | $ 115,204 | $ 121,099 |
Other Long-Term Assets (Detai_2
Other Long-Term Assets (Details) - Schedule of Other Long-Term Assets - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Other Long Term Assets [Abstract] | |||
Prepayments for land use right | [1] | $ 3,738,418 | $ 3,917,226 |
Right - of - use asset | [2] | 5,889,690 | 6,383,824 |
Others | 365,022 | 329,861 | |
Total other long-term asset | $ 9,993,130 | $ 10,630,911 | |
[1]As of December 31, 2023 and December 31, 2022, the Company’s other long term assets included net value of prepayments for land use right of Hainan facility of $3,738,418 and $3,917,226, respectively. As of December 31, 2023, 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, 2023 and 2022 were $83,196 and $87,453, respectively.[2]As of December 31, 2023 and December 31, 2022, the Company’s operating lease right-of-use assets in other long term assets included net value of land use right of Jinhua facility acquired in October 2020 and Jiangxi facility acquired in October 2021 of $5,443,448 and $5,697,720, respectively, as well as the amount of $446,242 and $686,104 related to the lease of Hangzhou office starting January 1, 2022. The amortization expense of land use right of Jinhua facility and Jiangxi facility for the year ended December 31, 2023 and 2022 were $115,204 and $121,099, respectively. |
Taxes (Details)
Taxes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Taxes [Line Items] | ||
Tax benefit rate | 51.92% | 3.65% |
Reduced income tax rate | 15% | |
Research and development tax credits | 25% | |
Income before taxes (in Dollars) | $ 3,500,000 | |
Income before taxes (in Dollars) | 13,300,000 | |
Valuation allowances (in Dollars) | $ 13,400,638 | $ 13,260,631 |
Corporate income tax percentage | 25% | 25% |
Hainan Kandi Holding [Member] | ||
Taxes [Line Items] | ||
Reduced income tax rate | 15% | |
Subsidiaries [Member] | ||
Taxes [Line Items] | ||
Corporation income tax | 25% | |
PRC [Member] | ||
Taxes [Line Items] | ||
Net operating loss carried forward term | 5 years | |
PRC, Hong Kong and U.S. [Member] | ||
Taxes [Line Items] | ||
Net operating loss (in Dollars) | $ 9,400,000 | $ 8,500,000 |
High and New Technology Enterprise [Member] | Minimum [Member] | ||
Taxes [Line Items] | ||
Net operating loss (in Dollars) | 700,000 | |
High and New Technology Enterprise [Member] | Maximum [Member] | ||
Taxes [Line Items] | ||
Net operating loss (in Dollars) | $ 8,600,000 | |
Corporation Income Tax [Member] | ||
Taxes [Line Items] | ||
Tax benefit rate | 25% | |
HNTE [Member] | PRC [Member] | ||
Taxes [Line Items] | ||
Net operating loss carried forward term | 10 years |
Taxes (Details) - Schedule of I
Taxes (Details) - Schedule of Income Tax Expenses - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Income Tax Expenses [Line Items] | ||
Provision for CIT | $ 1,599,668 | $ (26,465) |
Provision for CIT | 203,236 | (461,045) |
Income tax expense (benefit) | $ 1,802,904 | $ (487,510) |
Taxes (Details) - Schedule of P
Taxes (Details) - Schedule of Provision for Income Taxes - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Provision for Income Taxes [Line Items] | ||
Expected taxation at PRC statutory tax rate | $ 1,885,374 | $ (3,334,633) |
Effect of differing tax rates in different jurisdictions | 650,434 | (81,257) |
Effect of PRC preferential tax rates | (2,471,114) | 790,053 |
Non-taxable income | (898,290) | (1,984,855) |
Non-deductible expenses | 3,830,387 | 2,315,146 |
Research and development super-deduction | (1,516,020) | (1,672,428) |
Over-accrued EIT for previous years | (431) | (538,545) |
Addition to valuation allowance | 467,366 | 2,800,862 |
Foreign tax credit | (70,708) | (84,045) |
Other (including intercompany transaction ) | (74,094) | 1,302,192 |
Income tax expense (benefit) | $ 1,802,904 | $ (487,510) |
Taxes (Details) - Schedule of N
Taxes (Details) - Schedule of Net Deferred Tax Assets and Liabilities - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Accruals and reserves | $ 6,388,121 | $ 6,759,952 |
Loss carried forward | 9,412,846 | 8,547,725 |
Total deferred tax assets | 15,800,967 | 15,307,677 |
Deferred tax liabilities: | ||
Expense | (345,033) | (212,143) |
Tangible | (218,406) | (207,905) |
Intangible | (763,627) | (1,146,339) |
Revenue | (1,222,344) | (426,504) |
Total deferred tax liability | (2,549,410) | (1,992,891) |
Net deferred tax assets | 13,251,557 | 13,314,786 |
less: valuation allowance | (13,400,638) | (13,260,631) |
Net deferred tax (liabilities) assets, net of valuation allowance | $ (149,081) | $ 54,155 |
Taxes (Details) - Schedule of_2
Taxes (Details) - Schedule of Income (Loss) Before Income Taxes Prc and Non-Prc Sources - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Income (Loss) Before Income Taxes Prc and Non-Prc Sources [Line Items] | ||
Total | $ 3,472,671 | $ (13,338,534) |
PRC [Member] | ||
Schedule of Income (Loss) Before Income Taxes Prc and Non-Prc Sources [Line Items] | ||
Total | 23,550,796 | (10,448,802) |
Non-PRC [Member] | ||
Schedule of Income (Loss) Before Income Taxes Prc and Non-Prc Sources [Line Items] | ||
Total | $ (20,078,125) | $ (2,889,732) |
Taxes (Details) - Schedule of_3
Taxes (Details) - Schedule of Net Change Valuation Allowance of Deferred Tax Assets | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Net change of valuation allowance of Deferred tax assets | |
Balance at December 31,2022 | $ 13,260,631 |
Additions-change to tax expense | 467,366 |
Prior year true up | (5,478) |
Exchange rate difference | (321,881) |
Balance at December 31,2023 | $ 13,400,638 |
Taxes (Details) - Schedule of_4
Taxes (Details) - Schedule of Income Tax Expense - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Income Tax Expense [Line Items] | ||
Tax benefit (holiday) credit | $ 2,421,539 | $ 1,202,615 |
Basic net income per share effect | $ 0.03 | $ 0.02 |
Leases and Right-of-Use-Asset_2
Leases and Right-of-Use-Assets (Details) - USD ($) | 12 Months Ended | ||||
Oct. 31, 2021 | Oct. 31, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Leases and Right-of-Use-Assets [Abstract] | |||||
Land use right of gross value | $ 2,800,000 | $ 3,500,000 | |||
Lease term | 48 months | ||||
Discount rate | 3.70% | ||||
Lease amount | $ 490,198 | $ 490,198 | |||
Operating lease right-of-use assets | 5,889,690 | ||||
Lease liability | 445,948 | ||||
Operating lease expense | $ 338,233 | $ 355,541 |
Leases and Right-of-Use-Asset_3
Leases and Right-of-Use-Assets (Details) - Schedule of Information Related to Operating Leases - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Information Related to Operating Leases [Abstract] | ||
Cash payments for operating leases | $ 338,233 | $ 355,541 |
Leases and Right-of-Use-Asset_4
Leases and Right-of-Use-Assets (Details) - Schedule of Maturities of Lease Liabilities | Dec. 31, 2023 USD ($) |
Schedule of Maturities of Lease Liabilities [Abstract] | |
2024 | $ 218,924 |
2025 | $ 227,024 |
Contingent Consideration Liab_3
Contingent Consideration Liability (Details) ¥ in Millions | 12 Months Ended | |||||
Sep. 30, 2022 shares | Dec. 31, 2023 USD ($) | Jul. 12, 2023 shares | Dec. 31, 2022 USD ($) | Oct. 31, 2021 USD ($) shares | Oct. 31, 2021 CNY (¥) shares | |
Contingent Consideration Liability [Line Items] | ||||||
Cash on hand | $ 7,900,000 | ¥ 50 | ||||
Supplementary agreement, description | Pursuant to the No.2 Supplementary Agreement, the Transferors have the right to obtain 858,770 KNDI shares in each of the below-mentioned periods, provided that Jiangxi Huiyi achieves a net income of 1) RMB 8 million yuan or more during the period from July 1, 2021 to September 30, 2022 (“Period I”); 2) RMB 15 million yuan or more during the period from October 1, 2022 to September 30, 2023 (“Period II”); 3) RMB 15 million yuan or more during the period from October 1, 2023 to September 30, 2024 (“Period III”). If the net income of Jiangxi Huiyi fails to reach the respective target number in any of the three periods, the shares that the Transferors are entitled to obtain in that period will be adjusted accordingly: 1) if the difference between the net income in each Period and its Target Number is less than or equivalent to 20% of its Target Number (RMB 8 Million in Period I or RMB 15 Million in Period II or Period III), the transferee or KNDI has right to directly subtract 171,754 KNDI shares from the total make good shares, and the Transferor are entitled to obtain 687,016 KNDI shares; 2) if the difference between the net income in each Period and its Target Number (RMB 8 Million in Period I or RMB 15 Million in Period II or Period III) is more than 20% of its Target Number but less than 40% of its Target Number, the transferee or KNDI has the right to directly subtract 343,508 KNDI shares from the total make good shares, and the Transferors have the right to obtain 515,262 KNDI shares; 3) if the difference between the net income in each Period and its Target Number (RMB 8 Million in Period I or RMB 15 Million in Period II or Period III) is greater than or equal to 40% of its Target Number, the transferee of KNDI has the right to directly subtract 858,770 KNDI shares from the total make good shares, and the Transferors will not have the right to obtain any shares in such year. | |||||
Received shares | 858,770 | |||||
Contingent consideration liability | $ | $ 2,693,000 | $ 1,803,000 | ||||
SC Autosports [Member] | ||||||
Contingent Consideration Liability [Line Items] | ||||||
Percentage of equity | 100% | 100% | ||||
Common Stock [Member] | ||||||
Contingent Consideration Liability [Line Items] | ||||||
Shares issued | 2,576,310 | 2,576,310 | ||||
Restrictive Stock [Member] | ||||||
Contingent Consideration Liability [Line Items] | ||||||
Total share issued | 3,951,368 |
Contingent Consideration Liab_4
Contingent Consideration Liability (Details) - Schedule of Contingent Consideration Liability - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Business Acquisition, Contingent Consideration [Line Items] | ||
Total contingent consideration liability | $ 2,693,000 | $ 1,803,000 |
Jiangxi Huiyi [Member] | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Total contingent consideration liability | 1,803,000 | |
NGI [Member] | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Total contingent consideration liability | $ 2,693,000 |
Common Shares (Details)
Common Shares (Details) - USD ($) | 12 Months Ended | ||||
Jun. 09, 2023 | May 25, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Nov. 21, 2023 | |
Common Shares [Line Items] | |||||
Repurchase common stock | $ 30,000,000 | ||||
Restricted shares | 300,000 | 184,566 | |||
Repurchase per share | $ 2.75 | ||||
Shares of common stock | 68,019 | 5,000,000 | |||
Additional paid-in capital | $ 9,807,820 | ||||
Expenses for stock issued | $ 1,083,000 | ||||
Board of Directors [Member] | |||||
Common Shares [Line Items] | |||||
Shares of common stock | 3,488,559 |
Stock Options (Details)
Stock Options (Details) - USD ($) | 12 Months Ended | |||||||
Jul. 31, 2023 | Jul. 01, 2023 | Jun. 09, 2023 | Sep. 07, 2022 | May 29, 2015 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stock Options [Line Items] | ||||||||
Shares of common stock granted (in Shares) | 68,019 | 5,000,000 | ||||||
Exercise price (in Dollars per share) | $ 3.96 | $ 3.7 | $ 3.24 | $ 9.72 | ||||
Vesting period | 3 years | |||||||
Stock compensation expense (in Dollars) | $ 172,601 | $ 6,704,829 | ||||||
Volatility rate | 79.83% | 78.08% | ||||||
Expected term | 10 years | 10 years | ||||||
Risk free interest rate | 3.27% | 3.81% | ||||||
Dividend rate | 0% | 0% | ||||||
Fair value options issued (in Shares) | 68,019 | 5,000,000 | 900,000 | 1,666,661 | ||||
Price per share option (in Dollars per share) | $ 2.54 | $ 1.34 | $ 8.16 | |||||
Stock based compensation (in Dollars) | $ 1,083,000 | |||||||
Common Stock [Member] | ||||||||
Stock Options [Line Items] | ||||||||
Shares of common stock granted (in Shares) | 68,019 | |||||||
Equity Option [Member] | ||||||||
Stock Options [Line Items] | ||||||||
Vesting period | 3 years | |||||||
Stock based compensation (in Dollars) | $ 3,476,058 | $ 1,231,566 | ||||||
Board of Directors [Member] | ||||||||
Stock Options [Line Items] | ||||||||
Shares of common stock granted (in Shares) | 3,488,559 | |||||||
Exercise price (in Dollars per share) | $ 2.07 | |||||||
Board of Directors [Member] | Equity Option [Member] | ||||||||
Stock Options [Line Items] | ||||||||
Shares of common stock granted (in Shares) | 5,000,000 |
Stock Options (Details) - Sched
Stock Options (Details) - Schedule of Stock Option Activities - $ / shares | 12 Months Ended | |||||
Jul. 31, 2023 | Jul. 01, 2023 | Sep. 07, 2022 | May 29, 2015 | Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule Of Stock Option Activities Abstract | ||||||
Number of Shares, Outstanding as of Beginning Balance | 5,900,000 | 900,000 | ||||
Weighted Average Exercise Price, Outstanding as of Beginning Balance (in Dollars per share) | $ 3.24 | $ 9.72 | ||||
Number of Shares, Outstanding as of Ending Balance | 4,301,358 | 5,900,000 | ||||
Weighted Average Exercise Price, Outstanding as of Ending Balance (in Dollars per share) | $ 3.96 | $ 3.7 | $ 3.24 | |||
Number of Shares, Granted | 68,019 | 5,000,000 | ||||
Weighted Average Exercise Price, Granted (in Dollars per share) | $ 3.96 | $ 2.07 | ||||
Number of Shares, Exercised | (68,019) | (5,000,000) | (900,000) | (1,666,661) | ||
Weighted Average Exercise Price, Exercised (in Dollars per share) | $ 2.07 | |||||
Number of Shares, Cancelled | ||||||
Weighted Average Exercise Price, Cancelled (in Dollars per share) | ||||||
Number of Shares, Forfeited |
Stock Award (Details)
Stock Award (Details) ¥ in Millions | 12 Months Ended | |||||||||||
Sep. 18, 2023 shares | Aug. 28, 2023 shares | Jul. 01, 2023 shares | May 15, 2023 shares | May 05, 2023 shares | Apr. 29, 2023 shares | Jan. 10, 2023 shares | May 10, 2022 shares | May 15, 2020 shares | Dec. 31, 2023 USD ($) shares | Dec. 31, 2023 CNY (¥) shares | Dec. 31, 2022 USD ($) shares | |
Stock Award [Line Items] | ||||||||||||
Shares of common stock granted | 68,019 | 68,019 | 5,000,000 | |||||||||
Net profit | $ 21,719,613 | ¥ 150 | ||||||||||
Annual net profit | $ 7,239,871 | ¥ 50 | ||||||||||
Incentive shares | 5,957,811 | 5,957,811 | ||||||||||
Net profit percentage | 60% | 60% | ||||||||||
Restricted Shares | 1,985,937 | 5,957,811 | ||||||||||
Employee stock award expenses (in Dollars) | $ | $ 6,500,743 | $ 694,810 | ||||||||||
Equity Incentive Agreement [Member] | ||||||||||||
Stock Award [Line Items] | ||||||||||||
Net profit percentage | 60% | 60% | ||||||||||
Mr. Henry Yu [Member] | ||||||||||||
Stock Award [Line Items] | ||||||||||||
Restricted common stock | 5,000 | 5,000 | ||||||||||
Mr. Jerry Lewin [Member] | ||||||||||||
Stock Award [Line Items] | ||||||||||||
Restricted common stock | 5,000 | 5,000 | ||||||||||
Ms. Kewa Luo [Member] | ||||||||||||
Stock Award [Line Items] | ||||||||||||
Shares of common stock | 2,500 | 2,500 | ||||||||||
Mr. Jehn Ming Lim [Member] | ||||||||||||
Stock Award [Line Items] | ||||||||||||
Shares of common stock | 10,000 | 6,000 | ||||||||||
Dr. Xueqin Dong [Member] | ||||||||||||
Stock Award [Line Items] | ||||||||||||
Shares of common stock | 20,000 | |||||||||||
Management Members And Employees [Member] | ||||||||||||
Stock Award [Line Items] | ||||||||||||
Shares of common stock granted | 588,019 | 588,019 | 588,019 | 238,600 | ||||||||
Restricted Shares [Member] | Project management team [Member] | ||||||||||||
Stock Award [Line Items] | ||||||||||||
Restricted Shares | 5,957,811 |
Commitments and Contingencies (
Commitments and Contingencies (Details) ¥ in Millions | 9 Months Ended | |||
Mar. 15, 2023 USD ($) | Mar. 15, 2023 CNY (¥) | Sep. 30, 2023 USD ($) | Apr. 30, 2017 USD ($) | |
Commitments and Contingencies [Line Items] | ||||
Guarantee contract | $ 2,828,934 | ¥ 20 | ||
Paid settlement amount | $ 710,000 | |||
Shanghai Pudong Development Bank [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Principal amount | $ 2,900,000 |
Segment Reporting (Details)
Segment Reporting (Details) | 12 Months Ended |
Dec. 31, 2023 Segment | |
Segment Reporting [Abstract] | |
Number of operating segment | 1 |
Segment Reporting (Details) - S
Segment Reporting (Details) - Schedule of Forth Disaggregation of Revenue - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 123,599,232 | $ 117,813,049 |
Sales transactions completed at a point in time | 239,476 | |
Commission income | 239,476 | |
Timing of revenue recognition [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 123,599,232 | 117,813,049 |
U.S. and other countries/areas [Member] | Primary geographical markets [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 93,979,363 | 65,871,112 |
China [Member] | Primary geographical markets [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 29,619,869 | 51,941,937 |
EV parts [Member] | Major Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 5,807,973 | 8,964,094 |
EV products [Member] | Major Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,214,786 | 7,926,233 |
Off-road vehicles and associated parts [Member] | Major Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 106,983,891 | 70,622,278 |
Electric Scooters, Electric Self-Balancing Scooters and associated parts [Member] | Major Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 683,952 | 4,616,683 |
Battery exchange equipment and Battery exchange service [Member] | Major Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 674,927 | 1,691,486 |
Lithium-ion cells [Member] | Major Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 7,994,227 | 23,992,275 |
Products transferred at a point in time [Member] | Timing of revenue recognition [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 123,359,756 | $ 117,813,049 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Nov. 30, 2023 | Jul. 12, 2023 | |
Acquisitions [Line Items] | ||||
Purchase price | $ 13,000,000 | |||
Trading days | 20 days | |||
Price of per share (in Dollars per share) | $ 3.29 | |||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 | ||
Equity transfer agreement, description | Pursuant to the terms of the Equity Transfer Agreement and the Supplementary Agreement, dated as of March 12, 2024, the escrow restrictions on the KNDI Stock shall be removed sequentially based on the following conditions: 1) when NGI achieves pretax income of $4.6 million or more (“Profit Target I”) during the period from December 1, 2023 to November 30, 2024, 2,431,612 shares of KNDI Stock Transferor holds shall be fully vested by removing the escrow restriction. Notwithstanding the above, the Transferor, on December 31, 2023, can apply for vesting certain number of shares, but no more than 1,418,440 shares, with its value equal to the actual amount of pre-tax income achieved hereinunder (for example: if the pre-tax income is $3.5 million, 1,063,830 shares (3,500,000/3.29=1,063,830) shall be fully vested and without escrow restriction); 2) when NGI achieves pretax income of $5.25 million or more (“Profit Target II”) during the period from December 1, 2024 to November 30, 2025, 759,878 shares of KNDI Stock Transferor holds shall be fully vested by removing its escrow restriction; and 3) when NGI achieves pretax income of $6 million or more (“Profit Target III”, collectively with Profit Target I, and Profit Target II, “Profit Targets”) during the period from December 1, 2025 to November 30, 2026, 759,878 shares of KNDI Stock Transferor holds shall be fully vested by removing the escrow restriction. If NGI fails to reach any of the Profit Targets in any period as mentioned above, the number of KNDI Stock to be removed escrow restriction in that period shall be adjusted based on the percentage of the actual achieved pretax income. If there is any loss incurred in that period, the Transferor shall assume the loss. | |||
Contingent liability | $ 2,700,000 | |||
Transaction costs | 45,267 | |||
Revenue | 0.00 | |||
Operating income | 0.006641 | |||
Revenue | 123,599,232 | $ 117,813,049 | ||
Loss from operations | 3,500,000 | |||
Net income | $ 7,132 | $ (12,123,663) | ||
Restricted Shares [Member] | ||||
Acquisitions [Line Items] | ||||
Total restricted shares (in Shares) | 3,951,368 | 3,951,368 | ||
Restrictive Common Stock [Member] | ||||
Acquisitions [Line Items] | ||||
Total restricted shares (in Shares) | 3,951,368 | |||
NGI [Member] | ||||
Acquisitions [Line Items] | ||||
Percentage of owner | 100% | |||
Pro Forma [Member] | ||||
Acquisitions [Line Items] | ||||
Revenue | $ 127,578,305 | |||
Loss from operations | 12,544,014 | |||
Net income | $ 2,177,924 |
Acquisitions (Details) - Schedu
Acquisitions (Details) - Schedule of Preliminary Purchase Price as of the Acquisition Date | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Acquisition [Line Items] | |
Fair value of contingent consideration | $ 2,693,000 |
Total | $ 2,693,000 |
Acquisitions (Details) - Sche_2
Acquisitions (Details) - Schedule of Preliminary Purchase Price Allocations - Northern Group, Inc [Member] | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Acquisitions (Details) - Schedule of Preliminary Purchase Price Allocations [Line Items] | |
Goodwill | $ 1,139,438 |
Amortizable intangible assets | 1,030,000 |
Other net assets | 523,562 |
Total | $ 2,693,000 |
Acquisitions (Details) - Sche_3
Acquisitions (Details) - Schedule of Preliminary Purchase Price to Specific Intangible Asset | Dec. 31, 2023 USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
Amount Assigned | $ 1,030,000 |
Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life (in years) | 3 years |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event [Member] | Feb. 28, 2024 $ / shares shares |
Subsequent Event [Line Items] | |
Repurchased, shares | shares | 540,362 |
Stock price, per share | $ / shares | $ 2.74 |