Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Document Information Line Items | |
Entity Registrant Name | SOS Ltd |
Trading Symbol | SOS |
Document Type | 20-F |
Current Fiscal Year End Date | --12-31 |
Amendment Flag | false |
Entity Central Index Key | 0001346610 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Document Period End Date | Dec. 31, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | true |
Entity Shell Company | false |
Entity Ex Transition Period | true |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-38051 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | Building 6, East Seaview Park |
Entity Address, Address Line Two | 298 Haijing Road, Yinzhu Street |
Entity Address, Address Line Three | West Coast New District |
Entity Address, City or Town | Qingdao City |
Entity Address, Postal Zip Code | 266400 |
Entity Address, Country | CN |
Title of 12(b) Security | Class A ordinary shares, par value US$0.0001 per share |
Security Exchange Name | NYSE |
Entity Interactive Data Current | Yes |
Document Accounting Standard | U.S. GAAP |
Business Contact | |
Document Information Line Items | |
Entity Address, Address Line One | Building 6, East Seaview Park |
Entity Address, Address Line Two | 298 Haijing Road, Yinzhu Street |
Entity Address, Address Line Three | West Coast New District |
Entity Address, City or Town | Qingdao City |
Entity Address, Postal Zip Code | 266400 |
Entity Address, Country | CN |
Contact Personnel Name | Yandai Wang |
City Area Code | +86 |
Local Phone Number | 532-86617117 |
Class A ordinary shares | |
Document Information Line Items | |
Entity Common Stock, Shares Outstanding | 327,616,985 |
Class B ordinary shares | |
Document Information Line Items | |
Entity Common Stock, Shares Outstanding | 24,468,652 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | |||
Cash and cash equivalents | $ 3,722 | $ 41 | $ 13 |
Accounts receivable, net | 10,235 | 8,171 | 2,721 |
Other receivables, net | 47,373 | 11,512 | 10,160 |
Amount due from related parties | 3,693 | 822 | 4,100 |
Total current assets | 65,023 | 20,546 | 16,994 |
Non-current assets: | |||
Operating lease, right-of-use asset | 4,158 | ||
Property, plant and equipment, net | 509 | 6 | 7 |
Goodwill | 72 | ||
Total non-current assets | 4,739 | 6 | 7 |
Total assets | 69,762 | 20,552 | 17,001 |
Current liabilities: | |||
Accounts payable | 1,078 | 13,018 | 9,167 |
Amount due to related parties | 1,909 | 5,575 | 7,509 |
Operating lease liabilities - current | 834 | ||
Contract liabilities | 610 | 64 | 32 |
Tax payable | 665 | 374 | 10 |
Other payables | 1,681 | 197 | 414 |
Total current liabilities | 6,777 | 19,228 | 17,132 |
Non-current liabilities: | |||
Operating lease liability | 2,749 | ||
Total non-current liabilities | 2,749 | ||
Total liabilities | 9,526 | 19,228 | 17,132 |
Shareholder’s equity | |||
Ordinary shares, $0.001 par value, 1,000,000,000 shares authorized, 327,616,985 Class A shares and 24,468,652 Class B shares issued and outstanding as of December 31, 2020. 46,051,534 Class A shares and 16,409,405 Class B shares issued and outstanding as of December 31, 2019 and 2018. | 60 | 6 | 6 |
Additional paid-in capital | 53,600 | (6) | (6) |
Retained earnings | 5,838 | 1,340 | (135) |
Accumulated other comprehensive income (loss) | 738 | (16) | 5 |
Total shareholder’s equity | 60,236 | 1,324 | (130) |
Total liabilities and shareholders’ equity | $ 69,762 | $ 20,552 | $ 17,002 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Ordinary shares, par value (in Dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 |
Ordinary shares, authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 |
Class A shares | |||
Ordinary shares,issued | 327,616,985 | 46,051,534 | 46,051,534 |
Ordinary shares,outstanding | 327,616,985 | 46,051,534 | 46,051,534 |
Class B shares | |||
Ordinary shares,issued | 24,468,652 | 16,409,405 | 16,409,405 |
Ordinary shares,outstanding | 24,468,652 | 16,409,405 | 16,409,405 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
REVENUES | $ 50,289 | $ 11,577 | $ 24,930 |
COST OF REVENUES | (37,295) | (9,459) | (24,620) |
GROSS PROFIT | 12,994 | 2,118 | 310 |
OPERATING EXPENSES: | |||
General and administrative | (2,401) | (365) | (477) |
Share-based compensation | (506) | ||
Total operating expenses | (2,907) | (365) | (477) |
INCOME FROM OPERATIONS | 10,087 | 1,753 | (167) |
OTHER INCOME (EXPENSE) | |||
Loss on acquisition | (5,679) | ||
Other income (expense), net | 625 | 41 | 45 |
Total other (expenses) income, net | (5,054) | 41 | 45 |
INCOME (LOSS) BEFORE INCOME TAXES | 5,033 | 1,794 | (122) |
INCOME TAXES | (147) | (324) | (15) |
NET INCOME (LOSS) – CONTINUING OPERATION | 4,886 | 1,470 | (137) |
DISCONTINUED OPEARTIONS | |||
Loss from discontinued operations | (545) | ||
Income from disposal of discontinued operations | 63 | ||
Loss from discontinued operations | (482) | ||
NET PROFIT (LOSS) | 4,404 | 1,470 | (137) |
OTHER COMPREHESIVE INCOME (LOSS) | |||
Foreign currency translation adjustment – net of tax | 874 | (16) | 5 |
COMPREHESIVE INCOME (LOSS) | $ 5,278 | $ 1,454 | $ (132) |
Weighted average number of ordinary shares | |||
Basic (in Shares) | 325,996,667 | 59,323,349 | 59,323,349 |
Diluted (in Shares) | 488,960,010 | 59,323,349 | 59,323,349 |
EARNINGS PER SHARE | |||
Basic (in Dollars per share) | $ 0.0135 | $ 0.0248 | $ (0.0023) |
Diluted (in Dollars per share) | $ 0.0090 | $ 0.0248 | $ (0.0023) |
Consolidated Statements of chan
Consolidated Statements of changes in Equity - USD ($) $ in Thousands | Class A shares | Class B shares | Treasury Stock | Total Ordinary Shares | Ordinary shares Par value | Additional paid - in capital | Retained earnings | Accumulated other comprehensive income | Total |
Balance at Dec. 31, 2017 | $ 1 | $ 1 | $ 2 | ||||||
Balance (in Shares) at Dec. 31, 2017 | |||||||||
Reverse acquisition adjustments | 6 | (6) | |||||||
Reverse acquisition adjustments (in Shares) | 46,051,534 | 16,409,405 | 62,460,939 | ||||||
Net income | (136) | (136) | |||||||
Foreign currency translation | 4 | 4 | |||||||
Balance at Dec. 31, 2018 | 6 | (6) | (135) | 5 | (130) | ||||
Balance (in Shares) at Dec. 31, 2018 | 46,051,534 | 16,409,405 | 62,460,939 | ||||||
Net income | 1,470 | 1,470 | |||||||
Foreign currency translation | 5 | (21) | (16) | ||||||
Balance at Dec. 31, 2019 | 6 | (6) | 1,340 | (16) | 1,324 | ||||
Balance (in Shares) at Dec. 31, 2019 | 46,051,534 | 16,409,405 | 62,460,939 | ||||||
Acquisition of China Rapid Finance | 7 | 9,654 | 9,661 | ||||||
Acquisition of China Rapid Finance (in Shares) | 66,700,624 | 5,935,606 | 72,636,230 | ||||||
Cash paid by investors pursuant to reverse acquisition | 1,000 | 1,000 | |||||||
Issuance of Class A Ordinary Shares and warrant closed on July 1, 2020, August 27, 2020, Movement 3, 2020 | 19 | 38,425 | 38,444 | ||||||
Issuance of Class A Ordinary Shares and warrant closed on July 1, 2020, August 27, 2020, Movement 3, 2020 (in Shares) | 186,363,343 | 186,363,343 | |||||||
Issuance of Class A Ordinary Shares and warrant closed on 23/12/2020 | 3 | 3,575 | 3,578 | ||||||
Issuance of Class A Ordinary Shares and warrant closed on 23/12/2020 (in Shares) | 52,000,000 | (26,000,000) | 26,000,000 | ||||||
Share based compensation granted to management | 1 | 952 | (2) | 951 | |||||
Share based compensation granted to management (in Shares) | 2,501,484 | 2,123,641 | 4,625,125 | ||||||
Net income | 4,404 | 4,404 | |||||||
Foreign currency translation | 24 | 94 | 756 | 874 | |||||
Balance at Dec. 31, 2020 | $ 60 | $ 53,600 | $ 5,838 | $ 738 | $ 60,236 | ||||
Balance (in Shares) at Dec. 31, 2020 | 353,616,985 | 24,468,652 | (26,000,000) | 352,085,637 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flow - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
cash flows from Operating activities: | |||
Net income (loss) | $ 4,404 | $ 1,470 | $ (137) |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Depreciation of property, plant and equipment | 2 | 2 | 1 |
Share-based compensation | 506 | ||
Allowance for doubtful accounts - accounts receivables | 1 | 5 | 1 |
Allowance for doubtful accounts - other receivables | 158 | 146 | 81 |
Loss on acquisition | 5,679 | ||
Income from disposal of discontinued operations | (63) | ||
Changes in operating assets and liabilities: | |||
Accounts receivable | (2,065) | (5,455) | (713) |
Other receivables | (36,019) | (1,498) | (7,966) |
Amount due from related parties | (2,871) | 3,278 | (4,100) |
Tax payables | 292 | 364 | 4 |
Accounts payable | (11,940) | 3,851 | 6,995 |
Other payables | 1,484 | (217) | (1,750) |
Amount due to related parties | (3,666) | (1,934) | 7,509 |
Contract liabilities | 546 | 32 | 30 |
Net cash (used in) generated from operating activities | (43,552) | 44 | (45) |
cash flows from Investing activities: | |||
Purchases of property and equipment | (501) | 2 | |
Proceed from disposals of discontinued operations | 3,500 | ||
Net cash (used in) generated from investing activities | 2,999 | 2 | |
Cash flows from Financing activities: | |||
Proceed from share issuance, net of issuance costs | 3,578 | ||
Proceeds from private equity placement, net of issuance costs | 39,973 | ||
Net cash generated from (used in) financing activities | 43,551 | ||
Effect of exchange rates on cash | 683 | (16) | 2 |
Net changes in cash and cash equivalents | 3,681 | 28 | (41) |
CASH AND CASH EQUIVALENTS, beginning of year | 41 | 13 | 54 |
CASH AND CASH EQUIVALENTS, end of year | $ 3,722 | $ 41 | $ 13 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1. organization and principal activities We were formed in Delaware on July 12, 2004 as China Risk Finance LLC. We began our credit analytics service provider business in 2001. We developed our proprietary, advanced technology over the past 18 years, during which our founders and management team advised many of China’s largest banks in analyzing consumer credit to issue over one hundred million credit cards to consumers. On April 28, 2017, our ADSs commenced trading on the NYSE under the symbol “XRF.” In May 2017, we completed our IPO in which we sold a total of 11,500,000 of our ADSs, each representing ten Class A Ordinary Shares and listing of our ADSs on the NYSE. In the third quarter 2018, due to regulatory changes that made it cost-prohibitive, and in some ways very risky from the regulatory compliance perspective, to own and operate our legacy marketplace lending platform, we decided to cease the customer acquisition and loan facilitation at our legacy marketplace lending platform and started to transition our business to other industries. On May 5, 2020, we entered into a set of agreements with YBT, the shareholders of YBT (the “YBT Shareholders”), eight individual investors introduced by YBT (collectively with the YBT Shareholders, the “Investors”) and True North Financial, LLC to acquire YBT, which controls its variable interest entity SOS Information. The transaction was consummated on May 15, 2020. As a result, we now own 100% of YBT, which controls its variable interest entity, SOS Information. The shares issued to the Investors were relied on exemption from registration in accordance with Regulation S and/or Rule 4(a)(2) under the Securities Act of 1933, as amended. Accordingly, we started our newly acquired data mining and targeted marketing services business through SOS Information. On August 3, 2020, we entered into certain share purchase agreement (the “Disposition SPA”) with Hantu (Hangzhou) Asset Management Co., Ltd. (the “Purchaser”). Pursuant to the Disposition SPA, the Purchaser agreed to purchase CRF China Holding Co. Limited, a Hong Kong limited company, China Capital Financial LLC, a Delaware limited liability company, CRF China Limited, a British Virgin Islands company, CRF Technology LLC, a California limited liability company, and HML China LLC, a Delaware limited liability company (collectively, the “XRF Subsidiaries”) in exchange for cash consideration of $3.5 million. Upon the closing of the transaction (the “Disposition”) contemplated by the Disposition SPA, the Purchaser will become the sole shareholder of the XRF Subsidiaries and as a result, assume all assets and liabilities of all the subsidiaries and variable interest entities owned or controlled by the XRF Subsidiaries. The Disposition closed on August 6, 2020. As a result of the Disposition, we ceased our legacy peer-to-peer lending business and have since focused on becoming a leading high-technology services business with services including marketing data, technology and solutions for insurance companies and emergency rescue services in China. We also changed our trading symbol to “SOS.” We provide a wide range of data mining and analysis services to our corporate and individual members, including providing marketing data, technology and solutions for insurance companies, emergency rescue services, and insurance product and health care information portal in China. Our mission is to make it easier, safer and more efficient for our clients to obtain and process the data of their target customers. We primarily address the large unmet demand for marketing-related data for clients such as insurance companies, financial institutions, medical institutions, healthcare providers and other service providers in the emergency rescue services industry by creating a SOS cloud emergency rescue service software as a service (SaaS) platform. Recently, we have launched our crypto mining business, and aim to start infrastructure services in blockchain security for our big data insurance marketing as well as provide insurance and banking services for digital assets and cryptocurrencies. The accompanying consolidated financial statements reflect the activities of SOS Limited and each of the following entities: Name Background SOS Information Technology New York Inc. A New York company Incorporated on July 15, 2020 A holding company SOS NY Yong Bao Two Ltd. A British Virgin Island company Incorporated on February 29, 2020 A holding company YBT China SOS Ltd. A Hong Kong limited liability company Incorporated on June 19, 2019 A holding company China SOS Qingdao SOS Investment Management Co., Ltd. A PRC limited liability company and deemed a Incorporated on July 5, 2020 WFOE Qingdao SOS Investment LLP A PRC limited liability company Incorporated on December 21, 2020 A investment holding company Qingdao SOS SOS Industrial Holding Co., Ltd. A PRC limited liability company Incorporated on June 12, 2019 VIE SOS Information Technology Co., Ltd. A PRC limited liability company Incorporated on March 2, 2016 Operates insurance marketing business, 10086 hot -line, SOS IT Inner Mongolia SOS Insurance Agency Co., Ltd. A PRC limited liability company Incorporated on June 18, 2020 Operates insurance brokerage business within Inner Mongolia region Mongolia SOS SOS International Trading Co., Ltd. A PRC limited liability company Incorporated on September 4, 2020 Engaged in commodity trading SOS trading |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Practices | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES | 2. Summary of Significant Accounting Policies and Practices Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for information pursuant to the rules and regulations of the SEC. Principles of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries, which include the wholly- foreign owned enterprise (“WFOE”) and variable interest entities (“VIEs”) over which the Company exercises control and, when applicable, entities for which the Company has a controlling financial interest or is the primary beneficiary. All transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation. Variable Interest Entity Agreements On May 14, 2020, Weibao Enterprise Management Consulting (Shijiazhuang) Co., Ltd. (“Weibao Enterprise”), Guian New Area Zhongyuan Technology Co., Ltd. (“Zhongyuan Technology”), and Messrs. Yilin Wang, Weidong Feng, and Xianlong Wu, citizens of China and shareholders of Zhongyuan Technology, entered into the following agreements, or collectively, the “Variable Interest Entity Agreements” or “VIE Agreements,” pursuant to which Weibao Enterprise has contractual rights to control and operate the business of Zhongyuan Technology (the “VIE”). Therefore, pursuant to ASC 810, Zhongyuan Technology has been included in the Company’s consolidated financial statements since then. The VIE Agreements are as follows: 1) Technical Consulting and Service Agreement by and between Weibao Enterprise and Zhongyuan Technology. Pursuant to the Exclusive Technical Consulting and Service Agreement, Weibao Enterprise agreed to act as the exclusive consultant of Zhongyuan Technology and provide technical consulting and services to Zhongyuan Technology. In exchange, Zhongyuan Technology agreed to pay Weibao Enterprise a technical consulting and service fee, the amount of which is to be equivalent to the amount of net profit before tax of Zhongyuan Technology, payable on a quarterly basis after making up losses of previous years (if necessary) and deducting necessary costs, expenses and taxes related to the business operations of Zhongyuan Technology. Without the prior written consent of Weibao Enterprise, Zhongyuan Technology may not accept the same or similar technical consulting and services provided by any third party during the term of the agreement. All the benefits and interests generated from the agreement, including but not limited to intellectual property rights, know-how and trade secrets, will be Weibao Enterprise’s sole and exclusive property. This agreement has a term of 20 years and may be extended unilaterally by Weibao Enterprise with Weibao Enterprise’s written confirmation prior to the expiration date. Zhongyuan Technology cannot terminate the agreement early unless Weibao Enterprise commits fraud, gross negligence or illegal acts, or becomes bankrupt or winds up. 2) Equity Interest Purchase Option Agreement by and among Weibao Enterprise, Zhongyuan Technology, and Messrs. Yilin Wang, Weidong Feng and Xianlong Wu. Pursuant to the Exclusive Purchase Option Agreement, Messrs. Yilin Wang, Weidong Feng and Xianlong Wu granted to Weibao Enterprise and any party designated by Weibao Enterprise the exclusive right to purchase, at any time during the term of this agreement, all or part of the equity interests in Zhongyuan Technology, or the “Equity Interests,” at a purchase price equal to the registered capital paid by Messrs. Yilin Wang, Weidong Feng and Xianlong Wu for the Equity Interests, or, in the event that applicable law requires an appraisal of the Equity Interests, the lowest price permitted under applicable law. Pursuant to powers of attorney executed by Messrs. Yilin Wang, Weidong Feng and Xianlong Wu, they irrevocably authorized any person appointed by Weibao Enterprise to exercise all shareholder rights, including but not limited to voting on their behalf on all matters requiring approval of Zhongyuan Technology’s shareholders, disposing of all or part of the shareholders’ equity interest in Zhongyuan Technology, and electing, appointing or removing directors and executive officers. The person designated by Weibao Enterprise is entitled to dispose of dividends and profits on the equity interest without reliance on any oral or written instructions of Messrs. Yilin Wang, Weidong Feng and Xianlong Wu. The powers of attorney will remain in force for so long as Messrs. Yilin Wang, Weidong Feng and Xianlong Wu remain the shareholders of Zhongyuan Technology. Messrs. Yilin Wang, Weidong Feng and Xianlong Wu have waived all the rights which have been authorized to Weibao Enterprise’s designated person under the powers of attorney. 3) Equity Pledge Agreement by and among Weibao Enterprise, Zhongyuan Technology, and Messrs. Yilin Wang, Weidong Feng and Xianlong Wu. Pursuant to the Equity Pledge Agreement, Mr. Messrs. Yilin Wang, Weidong Feng and Xianlong Wu pledged all of the Equity Interests to Weibao Enterprise to secure the full and complete performance of the obligations and liabilities on the part of Zhongyuan Technology and them under this and the above contractual arrangements. If Zhongyuan Technology, Messrs. Yilin Wang, Weidong Feng or Xianlong Wu breaches their contractual obligations under these agreements, then Weibao Enterprise, as pledgee, will have the right to dispose of the pledged equity interests. Messrs. Yilin Wang, Weidong Feng and Xianlong Wu agree that, during the term of the Equity Pledge Agreements, they will not dispose of the pledged equity interests or create or allow any encumbrance on the pledged equity interests, and they also agree that Weibao Enterprise’s rights relating to the equity pledge should not be interfered with or impaired by the legal actions of the shareholders of Zhongyuan Technology, their successors or designees. During the term of the equity pledge, Weibao Enterprise has the right to receive all of the dividends and profits distributed on the pledged equity. The Equity Pledge Agreement will terminate as soon as reasonably practical when Zhongyuan Technology, Messrs. Yilin Wang, Weidong Feng and Xianlong Wu have completed all their obligations under the contractual agreements described above. 4) Voting Rights Proxy and Financial Support Agreement by and among Weibao Enterprise, Zhongyuan Technology, and Messrs. Yilin Wang, Weidong Feng and Xianlong Wu. Pursuant to the Voting Rights Proxy and Financial Support Agreement, Messrs. Yilin Wang, Weidong Feng and Xianlong Wu entrusts Weibao Enterprise or Weibao Enterprise’s designee to vote on their behalf at the shareholder meetings of Zhongyuan Technology. As consideration for the entrustment of the voting rights of Messrs. Yilin Wang, Weidong Feng and Xianlong Wu at Zhongyuan Technology’s shareholder meetings to Weibao Enterprise, Weibao Enterprise agreed to arrange for funds to be provided as necessary in connection with the business operations of Zhongyuan Technology. Weibao Enterprise further agreed that if the business were to fail in the ordinary course of business, none of Messrs. Yilin Wang, Weidong Feng and Xianlong Wu shall have any obligation to repay the financial support provided by Weibao Enterprise. Reverse Acquisitions of China Rapid Finance by SOS On May 18, 2020, the Company completed the reverse acquisition with Yong Bao Two Ltd. (“YBT”), the parent company of SOS Information Technology Co., Ltd. (“SOS”), acquiring 37,985,203 Class A ordinary shares, and 3,465,574 Class B ordinary shares, par value $0.193 per ordinary share, for its SOS’s asset injection and private placement transactions. Following the completion of the acquisition, the operations of the Company were primarily comprised of the operations of SOS. SOS was determined to be the accounting acquirer of the Company. As such, the historical financial statements are those of SOS, and SOS’s equity has been re-cast to reflect the equity structure of the Company and the shares of common stock received. The reverse acquisition was accounted for as asset acquisitions. The purchase price for China Rapid Finance (“CRF”) was $9.7 million. The transaction price of CRF includes 100% of all outstanding stock valued at net $9.7 million. The stock exchanged equal to the 72,636,230 shares of CRF outstanding prior to the issuance of additional shares in the acquisition, at the market price of $0.133 per share. The total purchase price has been allocated based on an estimate of the fair value of CRF’s assets acquired and liabilities assumed with the remainder recorded as an expense. On May 18, 2020, the fair value of the following assets and liabilities were acquired resulting in the total loss of approximately $5.7 million: Dollars in thousands Total Purchase Price $ 9,660 Net Assets (Liabilities) Acquired: Assets Cash and cash equivalents 13,664 Restricted cash 26,524 Accounts receivable 7,426 Inventories 8 Prepaid expenses and other current assets 110 Intangible assets 2,969 Other assets 2,682 Total Assets 53,419 Liabilities Warrant derivative liability - Accounts payable & accrued liabilities (49,437 ) Total Liabilities (49,437 ) Net Assets (Liabilities) Acquired 3,982 Loss on Acquisitions $ 5,679 On August 3, 2020, SOS Limited (the “Company,” previously known as China Rapid Finance Limited) and Hantu (Hangzhou) Asset Management Co., Ltd. (the “Purchaser”) entered into certain share purchase agreement (the “Disposition SPA”). Pursuant to the Disposition SPA, the Purchaser agreed to purchase CRF China Holding Co. Limited, a Hong Kong limited company (“CRF China”), China Capital Financial LLC, a Delaware limited liability company (“China Capital”), CRF China Limited, a British Virgin Islands company (“CRF BVI”), CRF Technology LLC, a California limited liability company (“CRF Technology”), and HML China LLC, a Delaware limited liability company (“HML”) (collectively, the “Subsidiaries”) in exchange for cash consideration of $3.5 million (the “Purchase Price”). Upon the closing of the transaction (the “Disposition”) contemplated by the Disposition SPA, the Purchaser will become the sole shareholder of the Subsidiaries and as a result, assume all assets and liabilities of all the subsidiaries and variable interest owned or controlled by the Subsidiaries. On August 3, 2020, the fair value of the following assets and liabilities were disposed of resulting in the total gain of approximately $0.063 million: Dollars in thousands Total Selling Price $ 3,500 Net Assets (Liabilities) Disposed: Total Assets 53,654 Total Liabilities (50,217 ) Net Assets (Liabilities) Acquired 3,437 Income from disposal of discontinued operations $ 63 Loss on discontinued operations for the year ended December 31, 2020 was as follows: Dollars in thousands Revenue $ 453 Expenses (998 ) Loss on discontinued operations $ (545 ) Use of estimates and assumptions The preparation of 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 disclosures of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Significant accounting estimates reflected in the Company’s consolidated financial statements include the useful lives of plant and equipment and intangible assets, capitalized development costs, impairment of long-lived assets, allowance for doubtful accounts, revenue recognition, allowance for deferred tax assets and uncertain tax position, and inventory allowance. Actual results could differ from these estimates. Foreign currency translation and transaction The reporting currency of the Company is the U.S. dollar. The Company in China conducts its businesses in the local currency, Renminbi (RMB), as its functional currency. Assets and liabilities are translated at the unified exchange rate as quoted by the People’s Bank of China at the end of the period. The statement of income accounts is translated at the average translation rates and the equity accounts are translated at historical rates. Translation adjustments resulting from this process are included in accumulated other comprehensive income. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. Translation adjustments included in accumulated other comprehensive income (loss) amounted to $738,038, ($16,358) and $4,875 as of December 31, 2020, 2019 and 2018, respectively. The balance sheet amounts, with the exception of shareholders’ equity at December 31, 2020, 2019 and 2018 were translated at 6.8632 RMB, 6.9762 RMB and 6.5249 RMB, respectively. The shareholders’ equity accounts were stated at their historical rate. The average translation rates applied to statement of income accounts for the years ended December 31, 2020, 2019 and 2018 were 6.6174 RMB, 6.8985 RMB and 6.8976 RMB to $1.00, respectively. Cash flows are also translated at average translation rates for the periods, therefore, amounts reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheet. Cash and cash equivalents Cash and cash equivalents consist of cash on hand; demand deposits and time deposits placed with banks or other financial institutions and have original maturities of less than three months. Accounts receivable, net Accounts receivable include trade accounts due from customers. Accounts are considered overdue after 30 days. In establishing the required allowance for doubtful accounts, management considers historical collection experience, aging of the receivables, the economic environment, industry trend analysis, and the credit history and financial conditions of the customers. Management reviews its receivables on a regular basis to determine if the bad debt allowance is adequate, and adjusts the allowance when necessary. Delinquent account balances are written-off against allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. Other receivables, net Other receivables primarily include deposits for business acquisitions, setup of research center, advances to employees, and others. Management regularly reviews the aging of receivables and changes in payment trends and records allowances when management believes collection of amounts due are at risk. Accounts considered uncollectable are written off against allowances after exhaustive efforts at collection are made. Property and equipment, net Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The estimated useful lives are as follows: Category Depreciation method Estimated useful lives Office equipment, fixtures and furniture Straight-line 5 years The cost and accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the consolidated statements of income and comprehensive income. Expenditures for maintenance and repairs are charged to earnings as incurred, while additions, renewals and betterments, which are expected to extend the useful life of assets, are capitalized. The Company also re-evaluates the periods of depreciation to determine whether subsequent events and circumstances warrant revised estimates of useful lives. Intangible assets Goodwill Goodwill of $71,977 was recognized as of December 31, 2020 in connection with the SOS IT Acquisition. In future years, the Company will complete an annual impairment test for goodwill that includes an assessment of qualitative factors including, but not limited to, macroeconomic conditions, industry and market conditions, and entity specific factors such as strategies and financial performance. The Company will perform annual impairment tests as of December 31, 2020 or earlier if indicators of impairment exist. There were no indicators of goodwill impairment as of December 31, 2020. Impairment for long-lived assets Long-lived assets, including property and equipment and intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, the Company would reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. As of December 31, 2020, 2019 and 2018, no impairment of long-lived assets was recognized. Long-term investments Long-term investments include cost method investment and equity method investments. Entities in which the Company has the ability to exercise significant influence, but does not have a controlling interest, are accounted for using the equity method. Significant influence is generally considered to exist when the Company has voting shares between 20% and 50%, and other factors, such as representation on the Board of Directors, voting rights and the impact of commercial arrangements, are considered in determining whether the equity method of accounting is appropriate. Under this method of accounting, the Company records its proportionate share of the net earnings or losses of equity method investees and a corresponding increase or decrease to the investment balances. Dividends received from the equity method investments are recorded as reductions in the cost of such investments. The Company accounts for investments with less than 20% of the voting shares and does not have the ability to exercise significant influence over operating and financial policies of the investee using the cost method. The Company records cost method investments at the historical cost in its consolidated financial statements and subsequently records any dividends received from the net accumulated earrings of the investee as income. Dividends received in excess of earnings are considered a return of investment and are recorded as reduction in the cost of the investments. Long-term investments are evaluated for impairment when facts or circumstances indicate that the fair value of the long-term investments is less than its carrying value. Impairment is recognized when a decline in fair value is determined to be other-than-temporary. The Company reviews several factors to determine whether a loss is other-than-temporary. These factors include, but are not limited to, the: (i) nature of the investment; (ii) cause and duration of the impairment; (iii) extent to which fair value is less than cost; financial condition and near term prospects of the investments; and (v) ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. No event had occurred and indicated that other-than-temporary impairment existed and therefore the Company did not record any impairment charges for its investments for the years ended December 31, 2020, 2019 and 2018. Fair value measurement The accounting standard regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company. The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures. The three levels are defined as follow: Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. Revenue recognition The Company adopted Accounting Standards Update (“ASU”) 2014-09 Revenue from Contracts with Customers (ASC 606). The ASU requires the use of a new five-step model to recognize revenue from customer contracts. The five-step model requires that the Company (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation. The Company recognizes services revenue for all kind of services provided according to monthly statements with customers, depending on the terms, provided that: there will be acknowledgment by customer as services provided; persuasive evidence of an agreement exists documenting the specific terms of the transaction; the sales price is fixed or determinable; and collectability is reasonably assured. Management assesses the business environment, the customer’s financial condition, historical collection experience, accounts receivable aging, and customer disputes to determine whether collectability is reasonably assured. The products sold in the PRC are subject to a Chinese value-added tax (“VAT”). VAT taxes are presented as a reduction of revenue. Operating leases A lease for which substantially all the benefits and risks incidental to ownership remain with the lessor is classified by the lessee as an operating lease. All leases of the Company are currently classified as operating leases. The Company records the total expenses on a straight-line basis over the lease term, and the accounting of operating lease in this report has been updated to reflect the adoption of FASB’s new guidance on the recognition and measurement of leases. Value added taxes Revenue represents the invoiced value of service, net of VAT. The VAT is based on gross sales price and VAT rates range up to 6%, depending on the type of service provided. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded in tax payable. All of the VAT returns filed by the Company’s subsidiaries in China have been and remain subject to examination by the tax authorities for five years from the date of filing. Income taxes The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. The charge for taxation is based on the results for the fiscal year as adjusted for items, which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred taxes are accounted for using the asset and liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the consolidated financial statements and the corresponding tax basis used in the computation of assessable tax profit. In principle, deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which deductible temporary differences can be utilized. Deferred tax is calculated using tax rates that are expected to apply to the period when the asset is realized or the liability is settled. Deferred tax is charged or credited in the income statement, except when it is related to items credited or charged directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities. Comprehensive income Comprehensive income consists of two components, net income and other comprehensive (loss) income. Other comprehensive (loss) income refers to revenue, expenses, gains and losses that under U.S. GAAP are recorded as an element of shareholders’ equity but are excluded from net income. Other comprehensive (loss) income consists of a foreign currency translation adjustment resulting from the Company not using the U.S. dollar as its functional currencies. Earnings per share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share”. ASC 260 requires companies to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average ordinary share outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of the potential ordinary shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential ordinary shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. For the years ended December 31, 2020, there are 162,963,343 dilutive share. For the years ended December 31, 2019 and 2018, there were no dilutive shares. Share-based compensation The Company recognizes compensation expense for all share–based payments in accordance with FASB ASC Topic 718, Compensation – Stock Compensation. The Company follows the fair value method of accounting for awards granted to employees, directors, officers and consultants. Share-based awards are measured at their estimated fair value on each respective grant date. The Company recognizes share-based payment expenses over the vesting period. The Company’s share-based compensation awards are subject only to service based vesting conditions. Forfeitures are accounted for as they occur. The fair value of an option award is estimated on the date of grant using the Black–Scholes option valuation model. The Black–Scholes option valuation model requires the development of assumptions that are inputs into the model. These assumptions are the expected stock volatility, the risk–free interest rate, the expected life of the option and the expected dividend yield which is based on the historical dividends issued by the Company. The Company has never paid cash dividends and does not expect to pay any cash dividends in the foreseeable future. Expected volatility is calculated based on the analysis of other public companies. Risk–free interest rates are calculated based on risk–free rates for the appropriate term. The expected life is calculated as (i) the mid-point between the average vested date and the contractual expiration of the option for executives and directors and (ii) three years from the average vesting date for all others due to limited exercise history. Determining the appropriate fair value model and calculating the fair value of equity–based payment awards requires the input of the subjective assumptions described above. The assumptions used in calculating the fair value of equity–based payment awards represent management’s best estimates, which involve inherent uncertainties and the application of management’s judgment. Employee benefits The full-time employees of the Company are entitled to staff welfare benefits including medical care, housing fund, pension benefits, unemployment insurance and other welfare, which are government mandated defined contribution plans by law. The Company is required to accrue for these benefits based on certain percentages of the employees’ respective salaries, subject to certain ceilings, in accordance with the relevant PRC regulations, and make cash contributions to the state-sponsored plans out of the amounts accrued. Recently issued accounting pronouncements In January 2020, the FASB issued ASU No. 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815)—Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (a consensus of the FASB Emerging Issues Task Force) (“ASU 2020-01”), which clarifies the interactions of the accounting for certain equity securities under ASC 321, investments accounted for under the equity method of accounting in ASC 323, and the accounting for certain forward contracts and purchased options accounted for under ASC 815. ASU 2020-01 could change how an entity accounts for (i) an equity security under the measurement alternative and (ii) a forward contract or purchased option to purchase securities that, upon settlement of the forward contract or exercise of the purchased option, would be accounted for under the equity method of accounting or the fair value option in accordance with ASC 825. These amendments improve current U.S. GAAP by reducing diversity in practice and increasing comparability of the accounting for these interactions. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 31, 2020. Early adoption is permitted. The Company is currently in the process of evaluating the of adopting ASU 2020-01 on its consolidated financial statements and related disclosure. In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), which focuses on amending the legacy guidance on convertible instruments and the derivatives scope exception for contracts in an entity’s own equity. ASU 2020-06 simplifies an issuer’s accounting for convertible instruments by reducing the number of accounting models that require separate accounting for embedded conversion features. ASU 2020-06 also simplifies the settlement assessment that entities are required to perform to determine whether a contract qualifies for equity classification. Further, ASU 2020-06 enhances information transparency by making targeted improvements to the disclosures for convertible instruments and earnings-per-share (EPS) guidance, i.e., aligning the diluted EPS calculation for convertible instruments by requiring that an entity use the if-converted method and that the effect of potential share settlement be included in the diluted EPS calculation when an instrument may be settled in cash or shares, adding information about events or conditions that occur during the reporting period that cause conversion contingencies to be met or conversion terms to be significantly changed. This update will be effective for the Company’s fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Entities can elect to adopt the new guidance through either a modified retrospective method of transition or a fully retrospective method of transition. The Company is currently in the process of evaluating the impact of adopting ASU 2020-06 on its consolidated financial statements and related disclosure. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2020 | |
Credit Loss, Additional Improvements [Abstract] | |
ACCOUNTS RECEIVABLE, NET | 3. Accounts receivable, net Accounts receivable, net consist of the following: December 31, December 31, December 31, Accounts receivable $ 10,242 $ 8,177 $ 2,722 Allowance for doubtful accounts (7 ) (6 ) (1 ) Total accounts receivable, net $ 10,235 $ 8,171 $ 2,721 Movements of allowance for doubtful accounts are as follows: Beginning balance $ 6 $ 1 $ - Addition 1 5 1 Ending balance $ 7 $ 6 $ 1 |
Other Receivables, Net
Other Receivables, Net | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
OTHER RECEIVABLES, NET | 4. Other receivables, net Other receivables consist of the following: December 31, December 31, December 31, Deposit to non-trade suppliers $ 43,591 $ 11,127 $ 7,932 Other receivables from disposal of subsidiaries 3,500 - - Advance to employees 667 612 2,309 Allowance for doubtful accounts (385 ) (227 ) (81 ) Total other receivables, net $ 47,373 $ 11,512 $ 10,160 Movements of allowance for doubtful accounts are as follows: Beginning balance $ 227 $ 81 $ - Addition 158 146 81 Ending balance $ 385 $ 227 $ 81 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
LEASES | 5. Leases The Company adopted ASU No. 2016-02 and related standards (collectively ASC 842, Leases), which replaced previous lease accounting guidance, on January 1, 2019 using the modified retrospective method of adoption. The Company elected the transition method expedient which allows entities to initially apply the requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. As a result of electing this transition method, prior periods have not been restated. Operating lease expense for the years ended December 31, 2020, 2019 and 2018 was $338,381, $ Nil Nil Supplemental balance sheet information related to leases is as follows: Location on Face of December 31, Operating leases: Operating lease right of use assets Operating lease, right-of-use assets $ 4,158 Current operating lease liabilities Operating lease liabilities - current $ 834 Noncurrent operating lease liabilities Operating lease liabilities 2,749 Total operating lease liabilities $ 3,583 Weighted average remaining lease term (in years): Operating leases 4.0 Weighted discount rate: Operating leases 4.75 % Maturities of lease liabilities were as follows: For the year ended December 31, Operating lease 2021 $ 985 2022 985 2023 985 2024 985 Total 3,941 Less: amount representing interest 358 Present value of future minimum lease payments 3,583 Less: Current obligations 834 Long-term obligations $ 2,749 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | 6. Property and equipment, net Property and equipment consist of the following: December 31, December 31, December 31, Office equipment, fixtures and furniture $ 514 $ 9 $ 8 Less: accumulated depreciation and amortization (5 ) (3 ) (1 ) Total $ 509 $ 6 $ 7 The depreciation expenses for the years ended December 31, 2020, 2019 and 2018 was $2,577, $1,547 and $1,196, respectively. |
Other Payables
Other Payables | 12 Months Ended |
Dec. 31, 2020 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
OTHER PAYABLES | 7. Other payables Other payables and accrued liabilities consist of the following: December 31, December 31, December 31, Payables to non-trade vendors and service providers $ 1,513 $ 177 $ 371 Accrued salary 2 2 2 Others 166 18 41 $ 1,681 $ 197 $ 414 |
Related Party Balances and Tran
Related Party Balances and Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY BALANCES AND TRANSACTIONS | 8. Related party balances and transactions Amount due from related parties Name of Related Party Relationship Nature December 31, December 31, December 31, Yongbao Insurance agency Co., Ltd. and subsidiaries Common shareholder Inter-transaction $ 3,525 $ - $ 3,457 Wang Yaxian Shareholder of the Company Other receivables - 613 643 Kong Deyu Senior management of the Company Other receivables 160 151 - Li Xingliang CFO of the Company Other receivables 7 - - Wang Yilin Director of China SOS Other receivables 1 58 $ 3,693 $ 822 $ 4,100 Amount due to related parties Name of Related Party Relationship Nature December 31, December 31, December 31, Yongbao Insurance agency Co., Ltd. Common shareholder Inter-transaction $ 1,831 $ 4,811 $ 7,507 Wang Yilin Director of China SOS Other payables 70 4 2 Wang Yaxian Shareholder of the Company Other payables 5 760 - Bian Jingxue Senior management of the Company Other payables 3 - - $ 1,909 $ 5,575 $ 7,509 |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
TAXES | 9. Taxes Income tax Cayman Islands Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. Additionally, upon payments of dividends to the shareholders, no Cayman Islands withholding tax will be imposed. British Virgin Islands YBT is incorporated in the British Virgin Islands and is not subject to tax on income or capital gains under current British Virgin Islands law. In addition, upon payments of dividends by these entities to their shareholders, no British Virgin Islands withholding tax will be imposed. Hong Kong China SOS is incorporated in Hong Kong and is subject to Hong Kong Profits Tax on the taxable income as reported in its statutory financial statements adjusted in accordance with relevant Hong Kong tax laws. The applicable tax rate is 16.5% in Hong Kong. The Company did not make any provisions for Hong Kong profit tax as there were no assessable profits derived from or earned in Hong Kong since inception. Under Hong Kong tax law, xxx HK is exempted from income tax on its foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends. PRC The subsidiaries including WOFE, Qingdao SOS, VIE, SOS IT, Mangolia SOS and SOS trading are governed by the income tax laws of the PRC and the income tax provision in respect to operations in the PRC is calculated at the applicable tax rates on the taxable income for the periods based on existing legislation, interpretations and practices in respect thereof. Under the Enterprise Income Tax Laws of the PRC (the “EIT Laws”), domestic enterprises and Foreign Investment Enterprises (the “FIE”) are usually subject to a unified 25% enterprise income tax rate while preferential tax rates, tax holidays and even tax exemption may be granted on case- by-case basis. SOS IT obtained the “high-tech enterprise” tax status since 2020, which reduced its statutory income tax rate to 15% in 2020. Significant components of the provision for income taxes are as follows: December 31, 2020 December 31, December 31, Current $ 147 $ 324 $ 15 Deferred - - - Income tax expenses $ 147 $ 324 $ 15 The following table reconciles China statutory rates to the Company’s effective tax rate: Year ended Year ended Year ended 2020 2019 2018 China statutory income tax rate 25.0 % 25.0 % 25.0 % Preferential tax rate reduction (10 )% - - Permanent difference 2 % 7 % (26 )% Effective tax rate 17 % 32.0 % (-1 )% Uncertain tax positions The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits and measures the unrecognized benefits associated with the tax positions. As of December 31, 2020, 2019 and 2018, the Company did not have any significant unrecognized uncertain tax positions. The Company did not incur any interest and penalties tax for the years ended December 31, 2020, 2019 and 2018. The Company does not anticipate any significant increases or decreases in unrecognized tax benefits in the next twelve months from December 31, 2020. Value added tax All of the Company’s service revenues that are earned and received in the PRC are subject to a Chinese VAT. The rate of Chinese VAT is 6%. Taxes payable consisted of the following: December 31, December 31, December 31, VAT taxes payable $ 197 $ 39 $ (5 ) Other taxes payable 468 335 15 Totals $ 665 $ 374 $ 10 |
Concentration of Risk
Concentration of Risk | 12 Months Ended |
Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION OF RISK | 10. Concentration of risk Credit risk The Company is exposed to risk from its accounts receivable and other receivables. These assets are subjected to credit evaluations. An allowance has been made for estimated unrecoverable amounts which have been determined by reference to past default experience and the current economic environment. A majority of the Company’s expense transactions are denominated in RMB and a significant portion of the Company and its subsidiaries’ assets and liabilities are denominated in RMB. RMB is not freely convertible into foreign currencies. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China (“PBOC”). Remittances in currencies other than RMB by the Company in China must be processed through the PBOC or other China foreign exchange regulatory bodies which require certain supporting documentation in order to affect the remittance. Our functional currency is the RMB, and our financial statements are presented in U.S. dollars. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the RMB and the U.S. dollar in the future. The change in the value of the RMB relative to the U.S. dollar may affect our financial results reported in the U.S. dollar terms without giving effect to any underlying changes in our business or results of operations. Currently, our assets, liabilities, revenues and costs are denominated in RMB. To the extent that the Company needs to convert U.S. dollars into RMB for capital expenditures and working capital and other business purposes, appreciation of RMB against U.S. dollar would have an adverse effect on the RMB amount the Company would receive from the conversion. Conversely, if the Company decides to convert RMB into U.S. dollar for the purpose of making payments for dividends, strategic acquisition or investments or other business purposes, appreciation of U.S. dollar against RMB would have a negative effect on the U.S. dollar amount available to the Company. |
Shareholders_ Equity
Shareholders’ Equity | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS’ EQUITY | 11. Shareholders’ equity Ordinary shares SOS Limited was established under the laws of Cayman Islands on August 18, 2015. The authorized number of ordinary shares is 1,000,000,000 shares with a par value of $0.0001 per ordinary share. Common stock Securities Purchase Agreement Registered Direct Offering in December 2020 On December 22, 2020, the Company entered into certain securities purchase agreement (the “December SPA”) with the Purchasers pursuant to which the Company agreed to sell 2,600,000 of its ADSs and warrants (“December Warrants”) to purchase 2,600,000 ADSs (the “December Offering”), for gross proceeds of approximately $4 million. The December Warrants will be exercisable immediately following the date of issuance for a period of five years at an initial exercise price of $1.55. The purchase price for each ADS and the corresponding December Warrant is $1.55. Each December Warrant is subject to anti-dilution provisions to reflect stock dividends and splits, subsequent rights offerings or other similar transactions, but not as a result of future securities offerings at lower prices. The December Warrants contain a mandatory exercise right for the Company to force exercise of the December Warrants if the Company’s ADSs trade at or above $4.65 for ten (10) consecutive trading days and when certain other conditions are met. Upon the occurrence of a Fundamental Transaction (as defined in the December Warrants), the December Warrants are subject to mandatory redemption for cash consideration equal to the Black Scholes Value (as defined in the December Warrants) of such portion of such December Warrant to be redeemed. The December Offering closed on December 24, 2020. Registered Direct Offering in January 2021 On January 7, 2021, the Company entered into certain securities purchase agreement (the “January SPA”) with the Purchasers pursuant to which the Company agreed to sell 13,525,000 of its ADSs and warrants (“January Warrants”) to purchase 13,525,000 ADSs (the “January Offering”), for gross proceeds of approximately $25 million. The January Warrants will be exercisable immediately following the date of issuance for a period of five years at an initial exercise price of $1.85. The purchase price for each ADS and the corresponding January Warrant is $1.85. Each January Warrant is subject to anti-dilution provisions to reflect stock dividends and splits, subsequent rights offerings or other similar transactions, but not as a result of future securities offerings at lower prices. The January Warrants contain a mandatory exercise right for the Company to force exercise of the January Warrants if the Company’s ADSs trade at or above $5.55 for ten (10) consecutive trading days and when certain other conditions are met. Upon the occurrence of a Fundamental Transaction (as defined in the January Warrants), the January Warrants are subject to mandatory redemption for cash consideration equal to the Black Scholes Value (as defined in the January Warrants) of such portion of such January Warrant to be redeemed. The January Offering closed on January 12, 2021. January 2021 Warrant Solicitation On January 15, 2021, the Company entered into a letter agreement (the “January Letter Agreement”) with certain holders of Company’s warrants, pursuant to which the holders of Company’s warrants exercised all of the unexercised December Warrants and January Warrants (collectively, the “Existing Warrants”) to purchase up 14,925,000 of the Company’s ADSs. Pursuant to the January Letter Agreement, each holder received new warrants (the “January Inducement Warrants”) to purchase up to 23,880,000 ADSs in exchange for their exercise of all of the unexercised Existing Warrants with cash. The gross proceeds to the Company from the exercise of the unexercised Existing Warrants were approximately $27.1 million, prior to deducting placement agent fees and estimated offering expenses. The January Inducement Warrants have substantially the same terms as the Existing Warrants, except for having (i) provisions customary for an unregistered warrant, including a restrictive legend, (ii) registration rights whereby the Company agreed to register the ADSs underlying the January Inducement Warrants within fifteen (15) days of closing, (iii) being exercisable immediately upon issuance, (iv) having a term of five (5) years from the date of issuance, and (v) having an exercise price of $2.00 per ADS. February 2021 Warrant Solicitations On February 9, 2021, the Company entered into a letter agreement (the “February Letter Agreement”) with certain holders of the Company’s warrants, pursuant to which the holders of the Company’s warrants exercised all of the January Inducement Warrants to purchase up to 23,880,000 of the Company’s ADSs. Pursuant to the February Letter Agreement, each holder received new warrants (the “February Inducement Warrants”) to purchase up to 23,880,000 ADSs in exchange for their exercise of all of the January Inducement Warrants with cash. The gross proceeds to the Company from the exercise of the January Inducement Warrants were approximately $48 million, prior to deducting placement agent fees and estimated offering expenses. The February Inducement Warrants have substantially the same terms as the January Inducement Warrants, except for having (i) registration rights whereby the Company agreed to register the ADSs underlying the February Inducement Warrants within twenty-one (21) days of closing, and (ii) an exercise price of $4.05 per ADS. On February 24, 2021, the Company entered into a letter agreement (the “Second February Letter Agreement”) with certain holders of the Company’s warrants, pursuant to which the holders of the Company’s warrants exercised all of the February Inducement Warrants to purchase up to 23,880,000 of the Company’s ADSs. Pursuant to the Second February Letter Agreement, each holder received new warrants (the “Second February Inducement Warrants”) to purchase up to 23,880,000 ADSs in exchange for their exercise of all of the February Inducement Warrants with cash. The gross proceeds to the Company from the exercise of the February Inducement Warrants were approximately $96.7 million, prior to deducting placement agent fees and estimated offering expenses. The Second February Inducement Warrants have substantially the same terms as the February Inducement Warrants, except for having (i) registration rights whereby the Company agrees to register the ADSs underlying the Second February Inducement Warrants within eight (8) days of closing, and (ii) an exercise price $7.00 per ADS. Registered Direct Offerings in February 2021 On February 11, 2021, the Company entered into certain securities purchase agreement (the “February SPA”) with the Purchasers pursuant to which the Company agreed to sell 22,000,000 of its ADSs and warrants (“February Warrants”) to purchase 16,500,000 ADSs (the “February Offering”), for gross proceeds of approximately $110 million. The February Warrants will be exercisable immediately following the date of issuance for a period of five years at an initial exercise price of $5.00. The purchase price for each ADS and the corresponding February Warrant is $5.00. Each February Warrant is subject to anti-dilution provisions to reflect stock dividends and splits, subsequent rights offerings or other similar transactions, but not as a result of future securities offerings at lower prices. The February Warrants contain a mandatory exercise right for the Company to force exercise of the February Warrants if the Company’s ADSs trade at or above $15.00 for ten (10) consecutive trading days and when certain other conditions are met. Upon the occurrence of a Fundamental Transaction (as defined in the February Warrants), the February Warrants are subject to mandatory redemption for cash consideration equal to the Black Scholes Value (as defined in the February Warrants) of such portion of such February Warrant to be redeemed. The February Offering closed on February 17, 2021. On February 18, 2021, the Company entered into certain securities purchase agreement (the “Second February SPA”) with the Purchasers pursuant to which the Company agreed to sell 8,600,000 of its ADSs and warrants (“Second February Warrants”) to purchase 4,300,000 ADSs (the “Second February Offering”), for gross proceeds of approximately $86 million. The Second February Warrants will be exercisable immediately following the date of issuance for a period of five years at an initial exercise price of $10.00. The purchase price for each ADS and the corresponding Second February Warrant is $10.00. Each Second February Warrant is subject to anti-dilution provisions to reflect stock dividends and splits, subsequent rights offerings or other similar transactions, but not as a result of future securities offerings at lower prices. The Second February Warrants contain a mandatory exercise right for the Company to force exercise of the Second February Warrants if the Company’s ADSs trade at or above $30.00 for ten (10) consecutive trading days and when certain other conditions are met. Upon the occurrence of a Fundamental Transaction (as defined in the Second February Warrants), the Second February Warrants are subject to mandatory redemption for cash consideration equal to the Black Scholes Value (as defined in the Second February Warrants) of such portion of such Second February Warrant to be redeemed. The Second February Offering closed on February 22, 2021. On March 29, 2021, we entered security purchase agreement with certain accredited investors to sell 25,000,000 American Depositary Shares. Representing 250,000,000 Class A Ordinary Shares and Warrants to Purchase up to 25,000,000 American Depositary Shares Representing Warrants to Purchase up to 250,000,000 Class A Ordinary Share We expect that delivery of the ADSs and warrants being offered pursuant to this prospectus supplement and the accompanying prospectus will be made on or about April 1, 2021. For year ended December 31, 2020, the shareholders did not exercised any outstanding warrants. The Company’s outstanding warrants are classified as equity since they qualify for exception from derivative accounting as they are considered to be indexed to the Company’s own stock and require net share settlement. The fair value of the warrants were recorded as additional paid-in capital from common stock Following is a summary of the status of warrants outstanding and exercisable as of December 31, 2020: Warrants Weighted Warrants outstanding, as of December 31, 2019 - $ - Issued 212,363,343 0.266 Exercised - - Expired - - Warrants outstanding, as of December 31, 2020 212,363,343 $ 0.266 Warrants Outstanding Warrants Weighted Average July 1, 2020 Warrants 67,445,674 $ 0.29 5 years August 27, 2020 Warrants 53,580,020 $ 0.27 5 years November 3, 2020 Warrants 65,337,649 $ 0.281 5 years December 23, 2020 Warrants 26,000,000 $ 0.155 5 years |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 12. Commitments and CONTINGENCIES Purchase commitments The Company has entered into two agreements for leasehold improvements on the office premises. As of December 31, 2020, the Company’s commitment under these agreements amounted to $7 million. There is no commitment as of December 31, 2019 and 2018. Variable interest entity structure In the opinion of management, (i) the corporate structure of the Company is in compliance with existing PRC laws and regulations; (ii) the Contractual Arrangements are valid and binding, and do not result in any violation of PRC laws or regulations currently in effect; and (iii) the business operations of Blue Hat WFOE and the VIEs are in compliance with existing PRC laws and regulations in all material respects. However, there are substantial uncertainties regarding the interpretation and application of current and future PRC laws and regulations. Accordingly, the Company cannot be assured that PRC regulatory authorities will not ultimately take a contrary view to the foregoing opinion of its management. If the current corporate structure of the Company or the Contractual Arrangements is found to be in violation of any existing or future PRC laws and regulations, the Company may be required to restructure its corporate structure and operations in the PRC to comply with changing and new PRC laws and regulations. In the opinion of management, the likelihood of loss in respect of the Company’s current corporate structure or the Contractual Arrangements is remote based on current facts and circumstances. In addition, due to restrictions on the distribution of share capital from the Group’s PRC subsidiaries and also as a result of these entities’ unreserved accumulated losses, total restrictions placed on the distribution of the Group’s PRC subsidiaries’ net liabilities were $(0.1) million, or 100% of total net liabilities as of December 31,2018. Net assets were $ 1.3 million, or 100% of total net assets as of December 2019. Net assets were $ 60.1 million, or 99% of total net assets. Litigation Federal Class Action Securities Litigation (Beltran v. SOS Ltd., et al., No. 1:21-cv-07454 (D.N.J.)) On March 30, 2021, Kimberly Beltran, suing on behalf of a class of purchasers of American depository shares of SOS Ltd., filed a complaint in the U.S. District Court for the District of New Jersey for alleged violations of the federal securities laws. The complaint generally claims that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by making false or misleading statements or omissions regarding: (1) the nature, location, and/or existence of the Company’s offices; (2) the Company’s transactions with cryptocurrency mining and technology firms; and (3) the type and/or existence of the cryptocurrency mining rigs the Company claimed to have purchased. The complaint claims that the Company’s statements regarding these issues were shown to be false and misleading based on reports and commentary issued by certain short sellers. The named defendants include the Company, Mr. Yandai Wang, and Mr. Eric H. Yan. The complaint seeks unspecified damages, pre-judgment and post-judgment interest, and attorneys’ fees, expert fees, and other costs. The case is in its preliminary stages and a lead plaintiff has not yet been appointed. Defendants intend to defend the case vigorously. |
Segment Information and Revenue
Segment Information and Revenue Analysis | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION AND REVENUE ANALYSIS | 13. Segment information and revenue analysis The Company follows ASC 280, Segment Reporting, which requires that companies to disclose segment data based on how management makes decision about allocating resources to each segment and evaluating their performances. The Company has three reporting segments. The Company’s chief operating decision maker has been identified as the Chief Executive Officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Company. The Company considers itself to be operating within one reportable segment. The Company’s revenue and net income are substantially derived from Insurance marketing. Disaggregated information of revenues by business lines are as follows: Year ended Year ended Year ended December 31, December 31, December 31, 2020 2019 2018 Insurance marketing $ 49,232 $ 11,577 $ 24,930 10086 hotline 922 - - Bank card call center 77 - - SaaS services 58 - - Total revenues $ 50,289 $ 11,577 $ 24,930 The Company’s operations are all based in the PRC, hence, management do not prepare disaggregated information of revenues by geographic locations. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 14. SUBSEQUENT EVENTS On Jan. 21, 2021, the “Company” or “SOS” has entered into a purchase agreement to procure 14238 BTC mining rigs with BTC Hash Power of approximately 527P, as well as 1408 ETH mining rigs with Hash Power of approximately 1056G as part of SOS’ plan to execute its strategic plan of cloud cryptocurrency mining in pursuit of the rising cryptocurrency prices. Pursuant to the purchase agreement, SOS is expected to pay approximately US$20 million to purchase 14238 PCS built with parts including the Momentum T2T 37T Double Speed, 1408 Momentum A10 Pro 780M, from HY International Group New York Inc. a seller of cryptocurrency mining rigs. The pool of prospective mining rigs will generate BTC Hash Power 527P and ETH Hash Power 1056G, once all of these mining rigs are set up in place and in operation, the pool of harsh power is projected to create roughly 3.5 BTC and 63 ETH every day, making about $206,551 per day, based on the current cryptocurrency prices. The shipment is expected to be delivered over three time installments: (1) February 14, 2021, 5000 PCS; (2) March 14, 2021, 5000 PCS; and (3) April 15, 2021, 5646 PCS. As of date of the report, all mining rigs had been delivered. On April 20, 2021, the “Company has entered into an agreement to purchase 575 cryptocurrency ETH mining rigs. The mining rigs are expected to be delivered on or about April 30, 2021. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for information pursuant to the rules and regulations of the SEC. |
Principles of Consolidation | Principles of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries, which include the wholly- foreign owned enterprise (“WFOE”) and variable interest entities (“VIEs”) over which the Company exercises control and, when applicable, entities for which the Company has a controlling financial interest or is the primary beneficiary. All transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation. |
Variable Interest Entity Agreements | Variable Interest Entity Agreements On May 14, 2020, Weibao Enterprise Management Consulting (Shijiazhuang) Co., Ltd. (“Weibao Enterprise”), Guian New Area Zhongyuan Technology Co., Ltd. (“Zhongyuan Technology”), and Messrs. Yilin Wang, Weidong Feng, and Xianlong Wu, citizens of China and shareholders of Zhongyuan Technology, entered into the following agreements, or collectively, the “Variable Interest Entity Agreements” or “VIE Agreements,” pursuant to which Weibao Enterprise has contractual rights to control and operate the business of Zhongyuan Technology (the “VIE”). Therefore, pursuant to ASC 810, Zhongyuan Technology has been included in the Company’s consolidated financial statements since then. The VIE Agreements are as follows: 1) Technical Consulting and Service Agreement by and between Weibao Enterprise and Zhongyuan Technology. Pursuant to the Exclusive Technical Consulting and Service Agreement, Weibao Enterprise agreed to act as the exclusive consultant of Zhongyuan Technology and provide technical consulting and services to Zhongyuan Technology. In exchange, Zhongyuan Technology agreed to pay Weibao Enterprise a technical consulting and service fee, the amount of which is to be equivalent to the amount of net profit before tax of Zhongyuan Technology, payable on a quarterly basis after making up losses of previous years (if necessary) and deducting necessary costs, expenses and taxes related to the business operations of Zhongyuan Technology. Without the prior written consent of Weibao Enterprise, Zhongyuan Technology may not accept the same or similar technical consulting and services provided by any third party during the term of the agreement. All the benefits and interests generated from the agreement, including but not limited to intellectual property rights, know-how and trade secrets, will be Weibao Enterprise’s sole and exclusive property. This agreement has a term of 20 years and may be extended unilaterally by Weibao Enterprise with Weibao Enterprise’s written confirmation prior to the expiration date. Zhongyuan Technology cannot terminate the agreement early unless Weibao Enterprise commits fraud, gross negligence or illegal acts, or becomes bankrupt or winds up. 2) Equity Interest Purchase Option Agreement by and among Weibao Enterprise, Zhongyuan Technology, and Messrs. Yilin Wang, Weidong Feng and Xianlong Wu. Pursuant to the Exclusive Purchase Option Agreement, Messrs. Yilin Wang, Weidong Feng and Xianlong Wu granted to Weibao Enterprise and any party designated by Weibao Enterprise the exclusive right to purchase, at any time during the term of this agreement, all or part of the equity interests in Zhongyuan Technology, or the “Equity Interests,” at a purchase price equal to the registered capital paid by Messrs. Yilin Wang, Weidong Feng and Xianlong Wu for the Equity Interests, or, in the event that applicable law requires an appraisal of the Equity Interests, the lowest price permitted under applicable law. Pursuant to powers of attorney executed by Messrs. Yilin Wang, Weidong Feng and Xianlong Wu, they irrevocably authorized any person appointed by Weibao Enterprise to exercise all shareholder rights, including but not limited to voting on their behalf on all matters requiring approval of Zhongyuan Technology’s shareholders, disposing of all or part of the shareholders’ equity interest in Zhongyuan Technology, and electing, appointing or removing directors and executive officers. The person designated by Weibao Enterprise is entitled to dispose of dividends and profits on the equity interest without reliance on any oral or written instructions of Messrs. Yilin Wang, Weidong Feng and Xianlong Wu. The powers of attorney will remain in force for so long as Messrs. Yilin Wang, Weidong Feng and Xianlong Wu remain the shareholders of Zhongyuan Technology. Messrs. Yilin Wang, Weidong Feng and Xianlong Wu have waived all the rights which have been authorized to Weibao Enterprise’s designated person under the powers of attorney. 3) Equity Pledge Agreement by and among Weibao Enterprise, Zhongyuan Technology, and Messrs. Yilin Wang, Weidong Feng and Xianlong Wu. Pursuant to the Equity Pledge Agreement, Mr. Messrs. Yilin Wang, Weidong Feng and Xianlong Wu pledged all of the Equity Interests to Weibao Enterprise to secure the full and complete performance of the obligations and liabilities on the part of Zhongyuan Technology and them under this and the above contractual arrangements. If Zhongyuan Technology, Messrs. Yilin Wang, Weidong Feng or Xianlong Wu breaches their contractual obligations under these agreements, then Weibao Enterprise, as pledgee, will have the right to dispose of the pledged equity interests. Messrs. Yilin Wang, Weidong Feng and Xianlong Wu agree that, during the term of the Equity Pledge Agreements, they will not dispose of the pledged equity interests or create or allow any encumbrance on the pledged equity interests, and they also agree that Weibao Enterprise’s rights relating to the equity pledge should not be interfered with or impaired by the legal actions of the shareholders of Zhongyuan Technology, their successors or designees. During the term of the equity pledge, Weibao Enterprise has the right to receive all of the dividends and profits distributed on the pledged equity. The Equity Pledge Agreement will terminate as soon as reasonably practical when Zhongyuan Technology, Messrs. Yilin Wang, Weidong Feng and Xianlong Wu have completed all their obligations under the contractual agreements described above. 4) Voting Rights Proxy and Financial Support Agreement by and among Weibao Enterprise, Zhongyuan Technology, and Messrs. Yilin Wang, Weidong Feng and Xianlong Wu. Pursuant to the Voting Rights Proxy and Financial Support Agreement, Messrs. Yilin Wang, Weidong Feng and Xianlong Wu entrusts Weibao Enterprise or Weibao Enterprise’s designee to vote on their behalf at the shareholder meetings of Zhongyuan Technology. As consideration for the entrustment of the voting rights of Messrs. Yilin Wang, Weidong Feng and Xianlong Wu at Zhongyuan Technology’s shareholder meetings to Weibao Enterprise, Weibao Enterprise agreed to arrange for funds to be provided as necessary in connection with the business operations of Zhongyuan Technology. Weibao Enterprise further agreed that if the business were to fail in the ordinary course of business, none of Messrs. Yilin Wang, Weidong Feng and Xianlong Wu shall have any obligation to repay the financial support provided by Weibao Enterprise. |
Reverse Acquisitions of China Rapid Finance by SOS | Reverse Acquisitions of China Rapid Finance by SOS On May 18, 2020, the Company completed the reverse acquisition with Yong Bao Two Ltd. (“YBT”), the parent company of SOS Information Technology Co., Ltd. (“SOS”), acquiring 37,985,203 Class A ordinary shares, and 3,465,574 Class B ordinary shares, par value $0.193 per ordinary share, for its SOS’s asset injection and private placement transactions. Following the completion of the acquisition, the operations of the Company were primarily comprised of the operations of SOS. SOS was determined to be the accounting acquirer of the Company. As such, the historical financial statements are those of SOS, and SOS’s equity has been re-cast to reflect the equity structure of the Company and the shares of common stock received. The reverse acquisition was accounted for as asset acquisitions. The purchase price for China Rapid Finance (“CRF”) was $9.7 million. The transaction price of CRF includes 100% of all outstanding stock valued at net $9.7 million. The stock exchanged equal to the 72,636,230 shares of CRF outstanding prior to the issuance of additional shares in the acquisition, at the market price of $0.133 per share. The total purchase price has been allocated based on an estimate of the fair value of CRF’s assets acquired and liabilities assumed with the remainder recorded as an expense. On May 18, 2020, the fair value of the following assets and liabilities were acquired resulting in the total loss of approximately $5.7 million: Dollars in thousands Total Purchase Price $ 9,660 Net Assets (Liabilities) Acquired: Assets Cash and cash equivalents 13,664 Restricted cash 26,524 Accounts receivable 7,426 Inventories 8 Prepaid expenses and other current assets 110 Intangible assets 2,969 Other assets 2,682 Total Assets 53,419 Liabilities Warrant derivative liability - Accounts payable & accrued liabilities (49,437 ) Total Liabilities (49,437 ) Net Assets (Liabilities) Acquired 3,982 Loss on Acquisitions $ 5,679 On August 3, 2020, SOS Limited (the “Company,” previously known as China Rapid Finance Limited) and Hantu (Hangzhou) Asset Management Co., Ltd. (the “Purchaser”) entered into certain share purchase agreement (the “Disposition SPA”). Pursuant to the Disposition SPA, the Purchaser agreed to purchase CRF China Holding Co. Limited, a Hong Kong limited company (“CRF China”), China Capital Financial LLC, a Delaware limited liability company (“China Capital”), CRF China Limited, a British Virgin Islands company (“CRF BVI”), CRF Technology LLC, a California limited liability company (“CRF Technology”), and HML China LLC, a Delaware limited liability company (“HML”) (collectively, the “Subsidiaries”) in exchange for cash consideration of $3.5 million (the “Purchase Price”). Upon the closing of the transaction (the “Disposition”) contemplated by the Disposition SPA, the Purchaser will become the sole shareholder of the Subsidiaries and as a result, assume all assets and liabilities of all the subsidiaries and variable interest owned or controlled by the Subsidiaries. On August 3, 2020, the fair value of the following assets and liabilities were disposed of resulting in the total gain of approximately $0.063 million: Dollars in thousands Total Selling Price $ 3,500 Net Assets (Liabilities) Disposed: Total Assets 53,654 Total Liabilities (50,217 ) Net Assets (Liabilities) Acquired 3,437 Income from disposal of discontinued operations $ 63 Loss on discontinued operations for the year ended December 31, 2020 was as follows: Dollars in thousands Revenue $ 453 Expenses (998 ) Loss on discontinued operations $ (545 ) |
Use of estimates and assumptions | Use of estimates and assumptions The preparation of 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 disclosures of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Significant accounting estimates reflected in the Company’s consolidated financial statements include the useful lives of plant and equipment and intangible assets, capitalized development costs, impairment of long-lived assets, allowance for doubtful accounts, revenue recognition, allowance for deferred tax assets and uncertain tax position, and inventory allowance. Actual results could differ from these estimates. |
Foreign currency translation and transaction | Foreign currency translation and transaction The reporting currency of the Company is the U.S. dollar. The Company in China conducts its businesses in the local currency, Renminbi (RMB), as its functional currency. Assets and liabilities are translated at the unified exchange rate as quoted by the People’s Bank of China at the end of the period. The statement of income accounts is translated at the average translation rates and the equity accounts are translated at historical rates. Translation adjustments resulting from this process are included in accumulated other comprehensive income. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. Translation adjustments included in accumulated other comprehensive income (loss) amounted to $738,038, ($16,358) and $4,875 as of December 31, 2020, 2019 and 2018, respectively. The balance sheet amounts, with the exception of shareholders’ equity at December 31, 2020, 2019 and 2018 were translated at 6.8632 RMB, 6.9762 RMB and 6.5249 RMB, respectively. The shareholders’ equity accounts were stated at their historical rate. The average translation rates applied to statement of income accounts for the years ended December 31, 2020, 2019 and 2018 were 6.6174 RMB, 6.8985 RMB and 6.8976 RMB to $1.00, respectively. Cash flows are also translated at average translation rates for the periods, therefore, amounts reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheet. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents consist of cash on hand; demand deposits and time deposits placed with banks or other financial institutions and have original maturities of less than three months. |
Accounts receivable, net | Accounts receivable, net Accounts receivable include trade accounts due from customers. Accounts are considered overdue after 30 days. In establishing the required allowance for doubtful accounts, management considers historical collection experience, aging of the receivables, the economic environment, industry trend analysis, and the credit history and financial conditions of the customers. Management reviews its receivables on a regular basis to determine if the bad debt allowance is adequate, and adjusts the allowance when necessary. Delinquent account balances are written-off against allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. |
Other receivables, net | Other receivables, net Other receivables primarily include deposits for business acquisitions, setup of research center, advances to employees, and others. Management regularly reviews the aging of receivables and changes in payment trends and records allowances when management believes collection of amounts due are at risk. Accounts considered uncollectable are written off against allowances after exhaustive efforts at collection are made. |
Property and equipment, net | Property and equipment, net Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The estimated useful lives are as follows: Category Depreciation method Estimated useful lives Office equipment, fixtures and furniture Straight-line 5 years The cost and accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the consolidated statements of income and comprehensive income. Expenditures for maintenance and repairs are charged to earnings as incurred, while additions, renewals and betterments, which are expected to extend the useful life of assets, are capitalized. The Company also re-evaluates the periods of depreciation to determine whether subsequent events and circumstances warrant revised estimates of useful lives. |
Intangible assets Goodwill | Intangible assets Goodwill Goodwill of $71,977 was recognized as of December 31, 2020 in connection with the SOS IT Acquisition. In future years, the Company will complete an annual impairment test for goodwill that includes an assessment of qualitative factors including, but not limited to, macroeconomic conditions, industry and market conditions, and entity specific factors such as strategies and financial performance. The Company will perform annual impairment tests as of December 31, 2020 or earlier if indicators of impairment exist. There were no indicators of goodwill impairment as of December 31, 2020. |
Impairment for long-lived assets | Impairment for long-lived assets Long-lived assets, including property and equipment and intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be recoverable. The Company assesses the recoverability of the assets based on the undiscounted future cash flows the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. If an impairment is identified, the Company would reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. As of December 31, 2020, 2019 and 2018, no impairment of long-lived assets was recognized. |
Long-term investments | Long-term investments Long-term investments include cost method investment and equity method investments. Entities in which the Company has the ability to exercise significant influence, but does not have a controlling interest, are accounted for using the equity method. Significant influence is generally considered to exist when the Company has voting shares between 20% and 50%, and other factors, such as representation on the Board of Directors, voting rights and the impact of commercial arrangements, are considered in determining whether the equity method of accounting is appropriate. Under this method of accounting, the Company records its proportionate share of the net earnings or losses of equity method investees and a corresponding increase or decrease to the investment balances. Dividends received from the equity method investments are recorded as reductions in the cost of such investments. The Company accounts for investments with less than 20% of the voting shares and does not have the ability to exercise significant influence over operating and financial policies of the investee using the cost method. The Company records cost method investments at the historical cost in its consolidated financial statements and subsequently records any dividends received from the net accumulated earrings of the investee as income. Dividends received in excess of earnings are considered a return of investment and are recorded as reduction in the cost of the investments. Long-term investments are evaluated for impairment when facts or circumstances indicate that the fair value of the long-term investments is less than its carrying value. Impairment is recognized when a decline in fair value is determined to be other-than-temporary. The Company reviews several factors to determine whether a loss is other-than-temporary. These factors include, but are not limited to, the: (i) nature of the investment; (ii) cause and duration of the impairment; (iii) extent to which fair value is less than cost; financial condition and near term prospects of the investments; and (v) ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. No event had occurred and indicated that other-than-temporary impairment existed and therefore the Company did not record any impairment charges for its investments for the years ended December 31, 2020, 2019 and 2018. |
Fair value measurement | Fair value measurement The accounting standard regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company. The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures. The three levels are defined as follow: Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. |
Revenue recognition | Revenue recognition The Company adopted Accounting Standards Update (“ASU”) 2014-09 Revenue from Contracts with Customers (ASC 606). The ASU requires the use of a new five-step model to recognize revenue from customer contracts. The five-step model requires that the Company (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation. The Company recognizes services revenue for all kind of services provided according to monthly statements with customers, depending on the terms, provided that: there will be acknowledgment by customer as services provided; persuasive evidence of an agreement exists documenting the specific terms of the transaction; the sales price is fixed or determinable; and collectability is reasonably assured. Management assesses the business environment, the customer’s financial condition, historical collection experience, accounts receivable aging, and customer disputes to determine whether collectability is reasonably assured. The products sold in the PRC are subject to a Chinese value-added tax (“VAT”). VAT taxes are presented as a reduction of revenue. |
Operating leases | Operating leases A lease for which substantially all the benefits and risks incidental to ownership remain with the lessor is classified by the lessee as an operating lease. All leases of the Company are currently classified as operating leases. The Company records the total expenses on a straight-line basis over the lease term, and the accounting of operating lease in this report has been updated to reflect the adoption of FASB’s new guidance on the recognition and measurement of leases. |
Value added taxes | Value added taxes Revenue represents the invoiced value of service, net of VAT. The VAT is based on gross sales price and VAT rates range up to 6%, depending on the type of service provided. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded in tax payable. All of the VAT returns filed by the Company’s subsidiaries in China have been and remain subject to examination by the tax authorities for five years from the date of filing. |
Income taxes | Income taxes The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. The charge for taxation is based on the results for the fiscal year as adjusted for items, which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred taxes are accounted for using the asset and liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the consolidated financial statements and the corresponding tax basis used in the computation of assessable tax profit. In principle, deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which deductible temporary differences can be utilized. Deferred tax is calculated using tax rates that are expected to apply to the period when the asset is realized or the liability is settled. Deferred tax is charged or credited in the income statement, except when it is related to items credited or charged directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities. |
Comprehensive income | Comprehensive income Comprehensive income consists of two components, net income and other comprehensive (loss) income. Other comprehensive (loss) income refers to revenue, expenses, gains and losses that under U.S. GAAP are recorded as an element of shareholders’ equity but are excluded from net income. Other comprehensive (loss) income consists of a foreign currency translation adjustment resulting from the Company not using the U.S. dollar as its functional currencies. |
Earnings per share | Earnings per share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share”. ASC 260 requires companies to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average ordinary share outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of the potential ordinary shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential ordinary shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. For the years ended December 31, 2020, there are 162,963,343 dilutive share. For the years ended December 31, 2019 and 2018, there were no dilutive shares. |
Share-based compensation | Share-based compensation The Company recognizes compensation expense for all share–based payments in accordance with FASB ASC Topic 718, Compensation – Stock Compensation. The Company follows the fair value method of accounting for awards granted to employees, directors, officers and consultants. Share-based awards are measured at their estimated fair value on each respective grant date. The Company recognizes share-based payment expenses over the vesting period. The Company’s share-based compensation awards are subject only to service based vesting conditions. Forfeitures are accounted for as they occur. The fair value of an option award is estimated on the date of grant using the Black–Scholes option valuation model. The Black–Scholes option valuation model requires the development of assumptions that are inputs into the model. These assumptions are the expected stock volatility, the risk–free interest rate, the expected life of the option and the expected dividend yield which is based on the historical dividends issued by the Company. The Company has never paid cash dividends and does not expect to pay any cash dividends in the foreseeable future. Expected volatility is calculated based on the analysis of other public companies. Risk–free interest rates are calculated based on risk–free rates for the appropriate term. The expected life is calculated as (i) the mid-point between the average vested date and the contractual expiration of the option for executives and directors and (ii) three years from the average vesting date for all others due to limited exercise history. Determining the appropriate fair value model and calculating the fair value of equity–based payment awards requires the input of the subjective assumptions described above. The assumptions used in calculating the fair value of equity–based payment awards represent management’s best estimates, which involve inherent uncertainties and the application of management’s judgment. |
Employee benefits | Employee benefits The full-time employees of the Company are entitled to staff welfare benefits including medical care, housing fund, pension benefits, unemployment insurance and other welfare, which are government mandated defined contribution plans by law. The Company is required to accrue for these benefits based on certain percentages of the employees’ respective salaries, subject to certain ceilings, in accordance with the relevant PRC regulations, and make cash contributions to the state-sponsored plans out of the amounts accrued. |
Recently issued accounting pronouncements | Recently issued accounting pronouncements In January 2020, the FASB issued ASU No. 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815)—Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (a consensus of the FASB Emerging Issues Task Force) (“ASU 2020-01”), which clarifies the interactions of the accounting for certain equity securities under ASC 321, investments accounted for under the equity method of accounting in ASC 323, and the accounting for certain forward contracts and purchased options accounted for under ASC 815. ASU 2020-01 could change how an entity accounts for (i) an equity security under the measurement alternative and (ii) a forward contract or purchased option to purchase securities that, upon settlement of the forward contract or exercise of the purchased option, would be accounted for under the equity method of accounting or the fair value option in accordance with ASC 825. These amendments improve current U.S. GAAP by reducing diversity in practice and increasing comparability of the accounting for these interactions. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 31, 2020. Early adoption is permitted. The Company is currently in the process of evaluating the of adopting ASU 2020-01 on its consolidated financial statements and related disclosure. In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), which focuses on amending the legacy guidance on convertible instruments and the derivatives scope exception for contracts in an entity’s own equity. ASU 2020-06 simplifies an issuer’s accounting for convertible instruments by reducing the number of accounting models that require separate accounting for embedded conversion features. ASU 2020-06 also simplifies the settlement assessment that entities are required to perform to determine whether a contract qualifies for equity classification. Further, ASU 2020-06 enhances information transparency by making targeted improvements to the disclosures for convertible instruments and earnings-per-share (EPS) guidance, i.e., aligning the diluted EPS calculation for convertible instruments by requiring that an entity use the if-converted method and that the effect of potential share settlement be included in the diluted EPS calculation when an instrument may be settled in cash or shares, adding information about events or conditions that occur during the reporting period that cause conversion contingencies to be met or conversion terms to be significantly changed. This update will be effective for the Company’s fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Entities can elect to adopt the new guidance through either a modified retrospective method of transition or a fully retrospective method of transition. The Company is currently in the process of evaluating the impact of adopting ASU 2020-06 on its consolidated financial statements and related disclosure. |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of consolidated financial statements reflect the activities of SOS Limited | Name Background SOS Information Technology New York Inc. A New York company Incorporated on July 15, 2020 A holding company SOS NY Yong Bao Two Ltd. A British Virgin Island company Incorporated on February 29, 2020 A holding company YBT China SOS Ltd. A Hong Kong limited liability company Incorporated on June 19, 2019 A holding company China SOS Qingdao SOS Investment Management Co., Ltd. A PRC limited liability company and deemed a Incorporated on July 5, 2020 WFOE Qingdao SOS Investment LLP A PRC limited liability company Incorporated on December 21, 2020 A investment holding company Qingdao SOS SOS Industrial Holding Co., Ltd. A PRC limited liability company Incorporated on June 12, 2019 VIE SOS Information Technology Co., Ltd. A PRC limited liability company Incorporated on March 2, 2016 Operates insurance marketing business, 10086 hot -line, SOS IT Inner Mongolia SOS Insurance Agency Co., Ltd. A PRC limited liability company Incorporated on June 18, 2020 Operates insurance brokerage business within Inner Mongolia region Mongolia SOS SOS International Trading Co., Ltd. A PRC limited liability company Incorporated on September 4, 2020 Engaged in commodity trading SOS trading |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Practices (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of assets and liabilities disposed | Dollars in thousands Total Purchase Price $ 9,660 Net Assets (Liabilities) Acquired: Assets Cash and cash equivalents 13,664 Restricted cash 26,524 Accounts receivable 7,426 Inventories 8 Prepaid expenses and other current assets 110 Intangible assets 2,969 Other assets 2,682 Total Assets 53,419 Liabilities Warrant derivative liability - Accounts payable & accrued liabilities (49,437 ) Total Liabilities (49,437 ) Net Assets (Liabilities) Acquired 3,982 Loss on Acquisitions $ 5,679 |
Schedule of assets and liabilities disposed | Dollars in thousands Total Selling Price $ 3,500 Net Assets (Liabilities) Disposed: Total Assets 53,654 Total Liabilities (50,217 ) Net Assets (Liabilities) Acquired 3,437 Income from disposal of discontinued operations $ 63 |
Schedule of loss on discontinued operations | Dollars in thousands Revenue $ 453 Expenses (998 ) Loss on discontinued operations $ (545 ) |
Schedule of estimated useful lives | Category Depreciation method Estimated useful lives Office equipment, fixtures and furniture Straight-line 5 years |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Credit Loss, Additional Improvements [Abstract] | |
Schedule of accounts receivable, net | December 31, December 31, December 31, Accounts receivable $ 10,242 $ 8,177 $ 2,722 Allowance for doubtful accounts (7 ) (6 ) (1 ) Total accounts receivable, net $ 10,235 $ 8,171 $ 2,721 Movements of allowance for doubtful accounts are as follows: Beginning balance $ 6 $ 1 $ - Addition 1 5 1 Ending balance $ 7 $ 6 $ 1 |
Other Receivables, Net (Tables)
Other Receivables, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Schedule of other receivable | December 31, December 31, December 31, Deposit to non-trade suppliers $ 43,591 $ 11,127 $ 7,932 Other receivables from disposal of subsidiaries 3,500 - - Advance to employees 667 612 2,309 Allowance for doubtful accounts (385 ) (227 ) (81 ) Total other receivables, net $ 47,373 $ 11,512 $ 10,160 Movements of allowance for doubtful accounts are as follows: Beginning balance $ 227 $ 81 $ - Addition 158 146 81 Ending balance $ 385 $ 227 $ 81 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of supplemental balance sheet information related to leases | Location on Face of December 31, Operating leases: Operating lease right of use assets Operating lease, right-of-use assets $ 4,158 Current operating lease liabilities Operating lease liabilities - current $ 834 Noncurrent operating lease liabilities Operating lease liabilities 2,749 Total operating lease liabilities $ 3,583 Weighted average remaining lease term (in years): Operating leases 4.0 Weighted discount rate: Operating leases 4.75 % |
Schedule of maturities of lease liabilities | For the year ended December 31, Operating lease 2021 $ 985 2022 985 2023 985 2024 985 Total 3,941 Less: amount representing interest 358 Present value of future minimum lease payments 3,583 Less: Current obligations 834 Long-term obligations $ 2,749 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | December 31, December 31, December 31, Office equipment, fixtures and furniture $ 514 $ 9 $ 8 Less: accumulated depreciation and amortization (5 ) (3 ) (1 ) Total $ 509 $ 6 $ 7 |
Other Payables (Tables)
Other Payables (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Schedule of other payables and accrued liabilities | December 31, December 31, December 31, Payables to non-trade vendors and service providers $ 1,513 $ 177 $ 371 Accrued salary 2 2 2 Others 166 18 41 $ 1,681 $ 197 $ 414 |
Related Party Balances and Tr_2
Related Party Balances and Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of amount due from related parties | Name of Related Party Relationship Nature December 31, December 31, December 31, Yongbao Insurance agency Co., Ltd. and subsidiaries Common shareholder Inter-transaction $ 3,525 $ - $ 3,457 Wang Yaxian Shareholder of the Company Other receivables - 613 643 Kong Deyu Senior management of the Company Other receivables 160 151 - Li Xingliang CFO of the Company Other receivables 7 - - Wang Yilin Director of China SOS Other receivables 1 58 $ 3,693 $ 822 $ 4,100 Name of Related Party Relationship Nature December 31, December 31, December 31, Yongbao Insurance agency Co., Ltd. Common shareholder Inter-transaction $ 1,831 $ 4,811 $ 7,507 Wang Yilin Director of China SOS Other payables 70 4 2 Wang Yaxian Shareholder of the Company Other payables 5 760 - Bian Jingxue Senior management of the Company Other payables 3 - - $ 1,909 $ 5,575 $ 7,509 |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of provision for income taxes | December 31, 2020 December 31, December 31, Current $ 147 $ 324 $ 15 Deferred - - - Income tax expenses $ 147 $ 324 $ 15 |
Schedule of reconciliation of effective tax rate | Year ended Year ended Year ended 2020 2019 2018 China statutory income tax rate 25.0 % 25.0 % 25.0 % Preferential tax rate reduction (10 )% - - Permanent difference 2 % 7 % (26 )% Effective tax rate 17 % 32.0 % (-1 )% |
Schedule of tax payable | December 31, December 31, December 31, VAT taxes payable $ 197 $ 39 $ (5 ) Other taxes payable 468 335 15 Totals $ 665 $ 374 $ 10 |
Shareholders_ Equity (Tables)
Shareholders’ Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule of warrants outstanding and exercisable | Warrants Weighted Warrants outstanding, as of December 31, 2019 - $ - Issued 212,363,343 0.266 Exercised - - Expired - - Warrants outstanding, as of December 31, 2020 212,363,343 $ 0.266 |
Schedule of warrants outstanding | Warrants Outstanding Warrants Weighted Average July 1, 2020 Warrants 67,445,674 $ 0.29 5 years August 27, 2020 Warrants 53,580,020 $ 0.27 5 years November 3, 2020 Warrants 65,337,649 $ 0.281 5 years December 23, 2020 Warrants 26,000,000 $ 0.155 5 years |
Segment Information and Reven_2
Segment Information and Revenue Analysis (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of disaggregated information of revenues by business lines | Year ended Year ended Year ended December 31, December 31, December 31, 2020 2019 2018 Insurance marketing $ 49,232 $ 11,577 $ 24,930 10086 hotline 922 - - Bank card call center 77 - - SaaS services 58 - - Total revenues $ 50,289 $ 11,577 $ 24,930 |
Organization and Principal Ac_3
Organization and Principal Activities (Details) - USD ($) $ in Millions | Aug. 03, 2020 | May 05, 2020 | May 31, 2017 |
Organization and Principal Activities (Details) [Line Items] | |||
Variable interest entity | 100.00% | ||
XRF Subsidiaries [Member] | |||
Organization and Principal Activities (Details) [Line Items] | |||
Exchange for cash consideration | $ 3.5 | ||
IPO [Member] | American Depository Shares [Member] | |||
Organization and Principal Activities (Details) [Line Items] | |||
Sold of ADS shares | 11,500,000 |
Organization and Principal Ac_4
Organization and Principal Activities (Details) - Schedule of consolidated financial statements reflect the activities of SOS Limited | 12 Months Ended |
Dec. 31, 2020 | |
SOS Information Technology New York Inc. [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Background | A New York company Incorporated on July 15, 2020 A holding company |
Activities | SOS NY |
Yong Bao Two Ltd. [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Background | A British Virgin Island company Incorporated on February 29, 2020 A holding company |
Activities | YBT |
China SOS Ltd. [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Background | A Hong Kong limited liability company Incorporated on June 19, 2019 A holding company |
Activities | China SOS |
Qingdao SOS Investment Management Co., Ltd. [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Background | A PRC limited liability company and deemed a wholly foreign owned enterprise (“WFOE”) Incorporated on July 5, 2020 |
Activities | WFOE |
Qingdao SOS Investment LLP [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Background | A PRC limited liability company Incorporated on December 21, 2020 A investment holding company |
Activities | Qingdao SOS |
SOS Industrial Holding Co., Ltd. [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Background | A PRC limited liability company Incorporated on June 12, 2019 |
Activities | VIE |
SOS Information Technology Co., Ltd. [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Background | A PRC limited liability company Incorporated on March 2, 2016 Operates insurance marketing business, 10086 hot -line, bankcard promotional center and SaaS service |
Activities | SOS IT |
Inner Mongolia SOS Insurance Agency Co., Ltd. [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Background | A PRC limited liability company Incorporated on June 18, 2020 Operates insurance brokerage business within Inner Mongolia region |
Activities | Mongolia SOS |
SOS International Trading Co., Ltd. [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Background | A PRC limited liability company Incorporated on September 4, 2020 Engaged in commodity trading |
Activities | SOS trading |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and Practices (Details) - USD ($) | Aug. 03, 2020 | May 18, 2020 | Dec. 31, 2020 |
Summary of Significant Accounting Policies and Practices (Details) [Line Items] | |||
Ordinary share par value | $ 0.193 | ||
Reverse acquisition, description | The purchase price for China Rapid Finance (“CRF”) was $9.7 million. The transaction price of CRF includes 100% of all outstanding stock valued at net $9.7 million. The stock exchanged equal to the 72,636,230 shares of CRF outstanding prior to the issuance of additional shares in the acquisition, at the market price of $0.133 per share. | ||
Total loss | $ 5,700,000 | ||
Cash consideration | $ 3,500,000 | ||
Total gain | $ 63,000 | ||
Description of translation adjustments | Translation adjustments included in accumulated other comprehensive income (loss) amounted to $738,038, ($16,358) and $4,875 as of December 31, 2020, 2019 and 2018, respectively. The balance sheet amounts, with the exception of shareholders’ equity at December 31, 2020, 2019 and 2018 were translated at 6.8632 RMB, 6.9762 RMB and 6.5249 RMB, respectively. The shareholders’ equity accounts were stated at their historical rate. The average translation rates applied to statement of income accounts for the years ended December 31, 2020, 2019 and 2018 were 6.6174 RMB, 6.8985 RMB and 6.8976 RMB to $1.00, respectively. | ||
Goodwill | $ 71,977 | ||
Voting share percentage | 20.00% | ||
Factors Percentage | 50.00% | ||
Investments less percentage | 20.00% | ||
Value added taxes percentage | 6.00% | ||
Remaining lease term | 5 years | ||
Dilutive share | 162,963,343 | ||
Class A ordinary shares [Member] | |||
Summary of Significant Accounting Policies and Practices (Details) [Line Items] | |||
Private placement transactions share | 37,985,203 | ||
Class B ordinary shares [Member] | |||
Summary of Significant Accounting Policies and Practices (Details) [Line Items] | |||
Private placement transactions share | 3,465,574 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies and Practices (Details) - Schedule of assets and liabilities acquired $ in Thousands | Dec. 31, 2020USD ($) |
Schedule of assets and liabilities acquired [Abstract] | |
Total Purchase Price | $ 9,660 |
Assets | |
Cash and cash equivalents | 13,664 |
Restricted cash | 26,524 |
Accounts receivable | 7,426 |
Inventories | 8 |
Prepaid expenses and other current assets | 110 |
Intangible assets | 2,969 |
Other assets | 2,682 |
Total Assets | 53,419 |
Liabilities | |
Warrant derivative liability | |
Accounts payable & accrued liabilities | (49,437) |
Total Liabilities | (49,437) |
Net Assets (Liabilities) Acquired | 3,982 |
Loss on Acquisitions | $ 5,679 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies and Practices (Details) - Schedule of assets and liabilities disposed - Disposal [Member] $ in Thousands | Aug. 03, 2020USD ($) |
Summary of Significant Accounting Policies and Practices (Details) - Schedule of assets and liabilities disposed [Line Items] | |
Total Selling Price | $ 3,500 |
Net Assets (Liabilities) Disposed: | |
Total Assets | 53,654 |
Total Liabilities | (50,217) |
Net Assets (Liabilities) Acquired | 3,437 |
Income from disposal of discontinued operations | $ 63 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies and Practices (Details) - Schedule of loss on discontinued operations - Discontinued Operations [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Revenue | $ 453 |
Expenses | (998) |
Loss on discontinued operations | $ (545) |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies and Practices (Details) - Schedule of estimated useful lives - Office equipment, fixtures and furniture [Member] | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Significant Accounting Policies and Practices (Details) - Schedule of estimated useful lives [Line Items] | |
Depreciation method | Straight-line |
Estimated useful lives | 5 years |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - Schedule of accounts receivable, net - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of accounts receivable, net [Abstract] | |||
Accounts receivable | $ 10,242 | $ 8,177 | $ 2,722 |
Allowance for doubtful accounts | (7) | (6) | (1) |
Total accounts receivable, net | 10,235 | 8,171 | 2,721 |
Movements of allowance for doubtful accounts are as follows: | |||
Beginning balance | 6 | 1 | |
Addition | 1 | 5 | 1 |
Ending balance | $ 7 | $ 6 | $ 1 |
Other Receivables, Net (Details
Other Receivables, Net (Details) - Schedule of other receivable - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of other receivable [Abstract] | |||
Deposit to non-trade suppliers | $ 43,591 | $ 11,127 | $ 7,932 |
Other receivables from disposal of subsidiaries | 3,500 | ||
Advance to employees | 667 | 612 | 2,309 |
Allowance for doubtful accounts | (385) | (227) | (81) |
Total other receivables, net | 47,373 | 11,512 | 10,160 |
Movements of allowance for doubtful accounts are as follows: | |||
Beginning balance | 227 | 81 | |
Addition | 158 | 146 | 81 |
Ending balance | $ 385 | $ 227 | $ 81 |
Leases (Details)
Leases (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Operating lease expense | $ 338,381 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of supplemental balance sheet information related to leases $ in Thousands | Dec. 31, 2020USD ($) |
Operating leases: | |
Operating lease right of use assets | $ 4,158 |
Current operating lease liabilities | 834 |
Noncurrent operating lease liabilities | 2,749 |
Total operating lease liabilities | $ 3,583 |
Weighted average remaining lease term (in years): | |
Operating leases | 4 years |
Weighted discount rate: | |
Operating leases | 4.75% |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of maturities of lease liabilities $ in Thousands | Dec. 31, 2020USD ($) |
Schedule of maturities of lease liabilities [Abstract] | |
2021 | $ 985 |
2022 | 985 |
2023 | 985 |
2024 | 985 |
Total | 3,941 |
Less: amount representing interest | 358 |
Present value of future minimum lease payments | 3,583 |
Less: Current obligations | 834 |
Long-term obligations | $ 2,749 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Abstract] | |||
Depreciation expenses | $ 2,577 | $ 1,547 | $ 1,196 |
Property and Equipment, Net (_2
Property and Equipment, Net (Details) - Schedule of property and equipment - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of property and equipment [Abstract] | |||
Office equipment, fixtures and furniture | $ 514 | $ 9 | $ 8 |
Less: accumulated depreciation and amortization | (5) | (3) | (1) |
Total | $ 509 | $ 6 | $ 7 |
Other Payables (Details) - Sche
Other Payables (Details) - Schedule of other payables and accrued liabilities - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of other payables and accrued liabilities [Abstract] | |||
Payables to non-trade vendors and service providers | $ 1,513 | $ 177 | $ 371 |
Accrued salary | 2 | 2 | 2 |
Others | 166 | 18 | 41 |
Total other payables and accrued liabilities | $ 1,681 | $ 197 | $ 414 |
Related Party Balances and Tr_3
Related Party Balances and Transactions (Details) - Schedule of amount due from related parties - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||
Accounts and other receivable – related party | $ 3,693 | $ 822 | $ 4,100 |
Accounts and other payables – related party | 1,909 | 5,575 | 7,509 |
Yongbao Insurance agency Co., Ltd. [Member] | |||
Related Party Transaction [Line Items] | |||
Accounts receivable, Inter-transaction | $ 3,525 | 3,457 | |
Accounts receivable, Relationship | Common shareholder | ||
Accounts payables, Inter-transaction | $ 1,831 | 4,811 | 7,507 |
Accounts payables, Relationship | Common shareholder | ||
Wang Yaxian [Member] | |||
Related Party Transaction [Line Items] | |||
Other receivables | 613 | 643 | |
Accounts receivable, Relationship | Shareholder of the Company | ||
Other payables | $ 5 | 760 | |
Accounts payables, Relationship | Shareholder of the Company | ||
Kong Deyu [Member] | |||
Related Party Transaction [Line Items] | |||
Other receivables | $ 160 | 151 | |
Accounts receivable, Relationship | Senior management of the Company | ||
Li Xingliang [Member] | |||
Related Party Transaction [Line Items] | |||
Other receivables | $ 7 | ||
Accounts receivable, Relationship | CFO of the Company | ||
Wang Yilin [Member] | |||
Related Party Transaction [Line Items] | |||
Other receivables | $ 1 | 58 | |
Accounts receivable, Relationship | Director of China SOS | ||
Other payables | $ 70 | $ 4 | $ 2 |
Accounts payables, Relationship | Director of China SOS | ||
Bian Jingxue [Member] | |||
Related Party Transaction [Line Items] | |||
Other payables | $ 3 | ||
Accounts payables, Relationship | Senior management of the Company |
Taxes (Details)
Taxes (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Taxes (Details) [Line Items] | |
Stattutory income tax rate reduced | 15.00% |
Hong Kong [Member] | |
Taxes (Details) [Line Items] | |
Income tax rate | 16.50% |
Foreign Investment Enterprises [Member] | |
Taxes (Details) [Line Items] | |
Income tax rate | 25.00% |
Chinese [Member] | |
Taxes (Details) [Line Items] | |
VAT | 6.00% |
Taxes (Details) - Schedule of c
Taxes (Details) - Schedule of components of provision for income taxes - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of components of provision for income taxes [Abstract] | |||
Current | $ 147 | $ 324 | $ 15 |
Deferred | |||
Income tax expenses | $ 147 | $ 324 | $ 15 |
Taxes (Details) - Schedule of r
Taxes (Details) - Schedule of reconciliation of effective tax rate | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of reconciliation of effective tax rate [Abstract] | |||
China statutory income tax rate | 25.00% | 25.00% | 25.00% |
Preferential tax rate reduction | (10.00%) | ||
Permanent difference | 2.00% | 7.00% | (26.00%) |
Effective tax rate | 17.00% | 32.00% |
Taxes (Details) - Schedule of t
Taxes (Details) - Schedule of tax payable - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of tax payable [Abstract] | |||
VAT taxes payable | $ 197 | $ 39 | $ (5) |
Other taxes payable | 468 | 335 | 15 |
Totals | $ 665 | $ 374 | $ 10 |
Concentration of Risk (Details)
Concentration of Risk (Details) | 12 Months Ended |
Dec. 31, 2020 | |
One Customer [Member] | Revenue [Member] | |
Concentration of Risk (Details) [Line Items] | |
Number of customer | 10 |
Shareholders_ Equity (Details)
Shareholders’ Equity (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 11, 2021 | Feb. 09, 2021 | Jan. 15, 2021 | Jan. 07, 2021 | Mar. 29, 2021 | Feb. 24, 2021 | Feb. 18, 2021 | Dec. 22, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Shareholders’ Equity (Details) [Line Items] | |||||||||||
Ordinary shares, shares authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | ||||||||
Ordinary shares, par value (in Dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||
SOS Limited [Member] | |||||||||||
Shareholders’ Equity (Details) [Line Items] | |||||||||||
Ordinary shares, shares authorized | 1,000,000,000 | ||||||||||
Ordinary shares, par value (in Dollars per share) | $ 0.0001 | ||||||||||
Registered Direct Offering in December 2020 [Member] | |||||||||||
Shareholders’ Equity (Details) [Line Items] | |||||||||||
Exercise price (in Dollars per share) | $ 4.65 | ||||||||||
Registered Direct Offering in December 2020 [Member] | Securities Purchase Agreement [Member] | |||||||||||
Shareholders’ Equity (Details) [Line Items] | |||||||||||
Sale of stock number of shares | 2,600,000 | ||||||||||
Purchase warrant shares | 2,600,000 | ||||||||||
Gross proceeds from warrants (in Dollars) | $ 4 | ||||||||||
Issuance for period term | 5 years | ||||||||||
Exercise price (in Dollars per share) | $ 1.55 | ||||||||||
Purchase per share price (in Dollars per share) | $ 1.55 | ||||||||||
Registered Direct Offering in January 2021 [Member] | Subsequent Event [Member] | |||||||||||
Shareholders’ Equity (Details) [Line Items] | |||||||||||
Exercise price (in Dollars per share) | $ 5.55 | ||||||||||
Registered Direct Offering in January 2021 [Member] | Subsequent Event [Member] | Securities Purchase Agreement [Member] | |||||||||||
Shareholders’ Equity (Details) [Line Items] | |||||||||||
Sale of stock number of shares | 13,525,000 | ||||||||||
Purchase warrant shares | 13,525,000 | ||||||||||
Gross proceeds from warrants (in Dollars) | $ 25 | ||||||||||
Issuance for period term | 5 years | ||||||||||
Exercise price (in Dollars per share) | $ 1.85 | ||||||||||
Purchase per share price (in Dollars per share) | $ 1.85 | ||||||||||
January 2021 Warrant Solicitation [Member] | Subsequent Event [Member] | |||||||||||
Shareholders’ Equity (Details) [Line Items] | |||||||||||
Warrant description | (i) provisions customary for an unregistered warrant, including a restrictive legend, (ii) registration rights whereby the Company agreed to register the ADSs underlying the January Inducement Warrants within fifteen (15) days of closing, (iii) being exercisable immediately upon issuance, (iv) having a term of five (5) years from the date of issuance, and (v) having an exercise price of $2.00 per ADS. | ||||||||||
January 2021 Warrant Solicitation [Member] | Subsequent Event [Member] | Securities Purchase Agreement [Member] | |||||||||||
Shareholders’ Equity (Details) [Line Items] | |||||||||||
Purchase warrant shares | 14,925,000 | ||||||||||
Exchange for exercise warrant | 23,880,000 | ||||||||||
Unexercised existing warrants (in Dollars) | $ 27.1 | ||||||||||
February 2021 Warrant Solicitations [Member] | |||||||||||
Shareholders’ Equity (Details) [Line Items] | |||||||||||
Warrant description | (i) registration rights whereby the Company agrees to register the ADSs underlying the Second February Inducement Warrants within eight (8) days of closing, and (ii) an exercise price $7.00 per ADS. | ||||||||||
February 2021 Warrant Solicitations [Member] | Subsequent Event [Member] | |||||||||||
Shareholders’ Equity (Details) [Line Items] | |||||||||||
Warrant description | (i) registration rights whereby the Company agreed to register the ADSs underlying the February Inducement Warrants within twenty-one (21) days of closing, and (ii) an exercise price of $4.05 per ADS. | ||||||||||
February 2021 Warrant Solicitations [Member] | Subsequent Event [Member] | Securities Purchase Agreement [Member] | |||||||||||
Shareholders’ Equity (Details) [Line Items] | |||||||||||
Purchase warrant shares | 23,880,000 | 23,880,000 | |||||||||
Gross proceeds from warrants (in Dollars) | $ 48 | $ 96.7 | |||||||||
Exchange for exercise warrant | 23,880,000 | 23,880,000 | |||||||||
Registered Direct Offerings in February 2021 [Member] | Subsequent Event [Member] | |||||||||||
Shareholders’ Equity (Details) [Line Items] | |||||||||||
Purchase warrant shares | 25,000,000 | ||||||||||
Exercise price (in Dollars per share) | $ 15 | $ 30 | |||||||||
Registered Direct Offerings in February 2021 [Member] | Subsequent Event [Member] | Securities Purchase Agreement [Member] | |||||||||||
Shareholders’ Equity (Details) [Line Items] | |||||||||||
Sale of stock number of shares | 22,000,000 | 25,000,000 | 8,600,000 | ||||||||
Purchase warrant shares | 16,500,000 | 4,300,000 | |||||||||
Gross proceeds from warrants (in Dollars) | $ 110 | $ 86 | |||||||||
Issuance for period term | 5 years | 5 years | |||||||||
Exercise price (in Dollars per share) | $ 5 | $ 10 | |||||||||
Purchase per share price (in Dollars per share) | $ 5 | $ 10 | |||||||||
Class A Ordinary Shares [Member] | Securities Purchase Agreement [Member] | |||||||||||
Shareholders’ Equity (Details) [Line Items] | |||||||||||
Ordinary Shares | 250,000,000 | ||||||||||
Class A Ordinary Shares [Member] | Registered Direct Offerings in February 2021 [Member] | |||||||||||
Shareholders’ Equity (Details) [Line Items] | |||||||||||
Purchase per share price (in Dollars per share) | $ 250,000,000 |
Shareholders_ Equity (Details)
Shareholders’ Equity (Details) - Schedule of warrants outstanding and exercisable - Warrant [Member] | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Class of Warrant or Right [Line Items] | |
Warrants, outstanding at beginning balance | shares | |
Weighted Average Exercise Price, outstanding at beginning balance | $ / shares | |
Warrants, Issued | shares | 212,363,343 |
Weighted Average Exercise Price, Issued | $ / shares | $ 0.266 |
Warrants, Exercised | shares | |
Weighted Average Exercise Price, Exercised | $ / shares | |
Warrants, Expired | shares | |
Weighted Average Exercise Price, Expired | $ / shares | |
Warrants outstanding, outstanding at ending balance | shares | 212,363,343 |
Weighted Average Exercise Price, outstanding at ending balance | $ / shares | $ 0.266 |
Shareholders_ Equity (Details_2
Shareholders’ Equity (Details) - Schedule of warrants outstanding | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
July 1, 2020 Warrants [Member] | |
Shareholders’ Equity (Details) - Schedule of warrants outstanding [Line Items] | |
Warrants Exercisable | shares | 67,445,674 |
Weighted Average Exercise Price | $ / shares | $ 0.29 |
Average Remaining Contractual Life | 5 years |
August 27, 2020 Warrants [Member] | |
Shareholders’ Equity (Details) - Schedule of warrants outstanding [Line Items] | |
Warrants Exercisable | shares | 53,580,020 |
Weighted Average Exercise Price | $ / shares | $ 0.27 |
Average Remaining Contractual Life | 5 years |
November 3, 2020 Warrants [Member] | |
Shareholders’ Equity (Details) - Schedule of warrants outstanding [Line Items] | |
Warrants Exercisable | shares | 65,337,649 |
Weighted Average Exercise Price | $ / shares | $ 0.281 |
Average Remaining Contractual Life | 5 years |
December 23, 2020 Warrants [Member] | |
Shareholders’ Equity (Details) - Schedule of warrants outstanding [Line Items] | |
Warrants Exercisable | shares | 26,000,000 |
Weighted Average Exercise Price | $ / shares | $ 0.155 |
Average Remaining Contractual Life | 5 years |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Commitments and Contingencies (Details) [Line Items] | |||
Purchase commitments, description | The Company has entered into two agreements for leasehold improvements on the office premises. As of December 31, 2020, the Company’s commitment under these agreements amounted to $7 million. There is no commitment as of December 31, 2019 and 2018. | ||
Percentage of net assets | 99.00% | 100.00% | 100.00% |
PRC Subsidiaries [Member] | |||
Commitments and Contingencies (Details) [Line Items] | |||
Net assets | $ 60.1 | $ 1.3 | $ (0.1) |
Segment Information and Reven_3
Segment Information and Revenue Analysis (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Number of reporting segments | 3 |
Number of reportable segment | 1 |
Segment Information and Reven_4
Segment Information and Revenue Analysis (Details) - Schedule of disaggregated information of revenues by business lines - Segments [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Total revenues | $ 50,289 | $ 11,577 | $ 24,930 |
Insurance Marketing [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 49,232 | 11,577 | 24,930 |
10086 Hotline [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 922 | ||
Bank Card Call Center [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 77 | ||
SaaS services [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | $ 58 |
Subsequent Events (Details)
Subsequent Events (Details) | 1 Months Ended | |
Apr. 20, 2021 | Jan. 21, 2021 | |
Purchase agreement [Member] | Subsequent Event [Member] | ||
Subsequent Events (Details) [Line Items] | ||
Subsequent event, description | the “Company has entered into an agreement to purchase 575 cryptocurrency ETH mining rigs. The mining rigs are expected to be delivered on or about April 30, 2021.As of date of the report, the mining rigs remained undelivered. | the “Company” or “SOS” has entered into a purchase agreement to procure 14238 BTC mining rigs with BTC Hash Power of approximately 527P, as well as 1408 ETH mining rigs with Hash Power of approximately 1056G as part of SOS’ plan to execute its strategic plan of cloud cryptocurrency mining in pursuit of the rising cryptocurrency prices. Pursuant to the purchase agreement, SOS is expected to pay approximately US$20 million to purchase 14238 PCS built with parts including the Momentum T2T 37T Double Speed, 1408 Momentum A10 Pro 780M, from HY International Group New York Inc. a seller of cryptocurrency mining rigs. The pool of prospective mining rigs will generate BTC Hash Power 527P and ETH Hash Power 1056G, once all of these mining rigs are set up in place and in operation, the pool of harsh power is projected to create roughly 3.5 BTC and 63 ETH every day, making about $206,551 per day, based on the current cryptocurrency prices. The shipment is expected to be delivered over three time installments: (1) February 14, 2021, 5000 PCS; (2) March 14, 2021, 5000 PCS; and (3) April 15, 2021, 5646 PCS. As of date of the report, all mining rigs had been delivered. |