Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document and Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2019 |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | ReneSola Ltd |
Entity Central Index Key | 0001417892 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Interactive Data Current | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 480,818,902 |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS € in Millions | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Current assets: | ||
Cash and cash equivalents | $ 24,292,113 | $ 6,750,178 |
Restricted cash | 405,040 | 2,275,866 |
Accounts receivable, net of allowances for doubtful accounts | 13,835,019 | 34,483,462 |
Advances to suppliers | 248,130 | 379,568 |
Value added tax receivable | 7,508,251 | 12,808,144 |
Project assets current | 32,125,312 | 64,257,766 |
Prepaid expenses and other current assets, net | 6,070,654 | 14,318,076 |
Assets held for sale | 18,578,626 | 0 |
Total current assets | 103,063,145 | 135,273,060 |
Property, plant and equipment, net | 143,301,385 | 190,787,262 |
Deferred tax assets, net | 837,864 | 1,111,472 |
Project assets non-current | 6,522,539 | 44,081,599 |
Operating lease right-of-use assets | 23,990,913 | 0 |
Finance lease right-of-use assets | 24,991,789 | 0 |
Other non-current assets | 17,236,558 | 6,458,949 |
Total assets | 319,944,193 | 377,712,342 |
Current liabilities: | ||
Accounts payable | 20,431,093 | 12,050,201 |
Advances from customers | 86,316 | 102,510 |
Amounts due to related parties | 2,747,632 | 23,238,984 |
Short-term borrowings | 35,756,951 | 44,464,515 |
Bonds payable | 2,503,621 | 0 |
Income tax payable | 1,077,923 | 706,744 |
Salary payable | 438,288 | 425,207 |
Operating lease liabilities current | 452,740 | |
Failed sale-lease back and finance lease liabilities current | 9,579,203 | |
Other current liabilities | 27,163,335 | 52,748,907 |
Liabilities held for sale | 9,168,366 | |
Total current liabilities | 109,405,468 | 133,737,068 |
Long-term borrowings | 3,367,061 | 41,435,099 |
Operating lease liabilities non-current | 22,887,949 | |
Failed sale-lease back and finance lease liabilities non-current | 46,736,540 | 77,874,770 |
Total liabilities | 182,397,018 | 253,046,937 |
Commitments and contingencies (see Note 20) | ||
Shareholders' equity | ||
Common shares (500,000,000 shares; no par value, shares authorized at December 31, 2018 and 2019; 381,027,002 shares issued and 380,818,902 shares outstanding at December 31, 2018; 481,027,002 shares issued and 480,818,902 shares outstanding at December 31, 2019) | 530,208,240 | 519,313,350 |
Additional paid-in capital | 9,712,935 | 9,364,019 |
Accumulated deficit | (442,345,657) | (433,514,434) |
Accumulated other comprehensive loss | (2,858,746) | (4,493,312) |
ReneSola Ltd shareholders' equity | 94,716,772 | 90,669,623 |
Noncontrolling interest | 42,830,403 | 33,995,782 |
Total shareholders' equity | 137,547,175 | 124,665,405 |
Total liabilities and shareholders' equity | $ 319,944,193 | $ 377,712,342 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
CONSOLIDATED BALANCE SHEETS | ||
Common shares, par value (in dollars per share) | $ 0 | $ 0 |
Common shares, shares authorized | 500,000,000 | 500,000,000 |
Common shares, shares issued | 481,027,002 | 381,027,002 |
Common shares, shares outstanding | 480,818,902 | 380,818,902 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Net revenues: | ||||
Total net revenues | $ 119,117,024 | $ 96,906,335 | $ 102,973,999 | |
Cost of revenues | (84,890,976) | (68,836,588) | (88,842,244) | |
Gross profit | 34,226,048 | 28,069,747 | 14,131,755 | |
Operating (expenses)/income: | ||||
Sales and marketing | (750,461) | (885,803) | (1,710,024) | |
General and administrative | (15,757,147) | (10,199,524) | (6,179,274) | |
Other operating income/(expenses) | (11,802,629) | (1,452,532) | 313,153 | |
Impairment loss of assets | (6,880,115) | 0 | 0 | |
Total operating expenses | (35,190,352) | (12,537,859) | (7,576,145) | |
Income/(loss) from operations | (964,304) | 15,531,888 | 6,555,610 | |
Non-operating (expenses)/income: | ||||
Interest income | 822,915 | 193,552 | 51,403 | |
Interest expense | (9,159,818) | (8,703,904) | (3,936,302) | |
Foreign exchange gains/(losses) | (1,273,899) | (2,460,812) | 894,704 | |
Other (loss)/income | 0 | 346,965 | (43,516) | |
Total non-operating expenses | (9,610,802) | (10,624,199) | (3,033,711) | |
Income/(loss) before income tax | (10,575,106) | 4,907,689 | 3,521,899 | |
Income tax (expense)/benefit | (1,105,049) | 188,791 | (322,068) | |
Income/(loss) from continuing operations, net of tax | (11,680,155) | 5,096,480 | 3,199,831 | |
Discontinued operations | ||||
Gain on disposal of discontinued operations before income taxes | 0 | 0 | 106,292,213 | |
Loss from disposal of discontinued operations before income taxes | 0 | 0 | (79,782,830) | |
Income tax benefit | 0 | 0 | 4,748,324 | |
Income from discontinued operations, net of tax | 0 | 0 | 31,257,707 | |
Net income/(loss) | (11,680,155) | 5,096,480 | 34,457,538 | |
Less: Net income/(loss) attributed to non-controlling interests | (2,848,932) | 3,336,769 | 0 | |
Net income/(loss) attributed to ReneSola Ltd | $ (8,831,223) | $ 1,759,711 | $ 34,457,538 | |
Income/(loss) attributed to ReneSola Ltd per ADS from continuing operations | ||||
Basic | $ (0.22) | $ 0.05 | $ 0.13 | |
Diluted | (0.22) | 0.05 | 0.13 | |
Income attributed to ReneSola Ltd per ADS from discontinued operations | ||||
Basic | 0 | 0 | 1.27 | |
Diluted | $ 0 | $ 0 | $ 1.27 | |
Weighted average number of ADS used in computing income/(loss) per ADS | ||||
Basic (in ADS) | [1] | 40,595,551 | 38,075,293 | 24,689,929 |
Diluted (in ADS) | [1] | 40,595,551 | 38,075,293 | 24,690,529 |
Solar power project development | ||||
Net revenues: | ||||
Net revenues | $ 90,096,551 | $ 48,784,766 | $ 64,837,042 | |
Electricity generation revenue | ||||
Net revenues: | ||||
Net revenues | 28,712,942 | 29,257,928 | 12,247,320 | |
EPC services | ||||
Net revenues: | ||||
Net revenues | 69,751 | 18,544,164 | 25,853,288 | |
Other | ||||
Net revenues: | ||||
Net revenues | $ 237,780 | $ 319,477 | $ 36,349 | |
[1] | Each American depositary shares (ADS) represents 10 common shares |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) | |||
Net income/(loss) | $ (11,680,155) | $ 5,096,480 | $ 34,457,538 |
Other comprehensive income/(loss), net of tax of nil: | |||
Foreign currency translation adjustment | 226,014 | (2,541,550) | 11,513,216 |
Release of translation difference due to disposal of discontinued operation | 0 | 0 | (64,984,682) |
Other comprehensive income/(loss) | 226,014 | (2,541,550) | (53,471,466) |
Comprehensive income/(loss) | (11,454,141) | 2,554,930 | (19,013,928) |
Less: Comprehensive income/(loss) attributed to noncontrolling interests | (4,257,484) | 3,050,313 | 0 |
Comprehensive loss attributed to ReneSola Ltd | $ (7,196,657) | $ (495,383) | $ (19,013,928) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) | Common shares [Member] | Treasury stock [Member] | Additional paid-in Capital [Member] | Accumulated deficit [Member] | AOCI Attributable to Parent [Member] | Parent [Member] | Noncontrolling Interest [Member] | Total |
Balance at Dec. 31, 2016 | $ 477,171,487 | $ (513,137) | $ 8,229,330 | $ (469,975,148) | $ 51,233,248 | $ 66,145,780 | $ 0 | $ 66,145,780 |
Balance (in shares) at Dec. 31, 2016 | 202,478,702 | 1,451,700 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income/(loss) | $ 0 | $ 0 | 0 | 34,457,538 | 0 | 34,457,538 | 0 | 34,457,538 |
Release of translation difference due to disposal of discontinued operation | 0 | 0 | 0 | 0 | (64,984,682) | (64,984,682) | 0 | (64,984,682) |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 0 | 11,513,216 | 11,513,216 | 0 | (53,471,466) |
Issuance of common shares | $ 42,480,000 | $ 0 | 0 | 0 | 0 | 42,480,000 | 0 | 42,480,000 |
Issuance of common shares (in shares) | 180,000,000 | 0 | ||||||
Share-based compensation | $ 0 | $ 0 | 870,618 | 0 | 0 | 870,618 | 0 | 870,618 |
Share exercised by employee | $ 87,500 | $ 0 | (87,500) | 0 | 0 | 0 | 0 | $ 0 |
Share exercised by employee (in shares) | 0 | 0 | 0 | |||||
Cancellation of shares | $ (513,137) | $ 513,137 | 0 | 0 | 0 | 0 | 0 | $ 0 |
Cancellation of shares (in shares) | (1,451,700) | (1,451,700) | ||||||
Balance at Dec. 31, 2017 | $ 519,225,850 | $ 0 | 9,012,448 | (435,517,610) | (2,238,218) | 90,482,470 | 0 | 90,482,470 |
Balance (in shares) at Dec. 31, 2017 | 381,027,002 | 0 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income/(loss) | $ 0 | $ 0 | 0 | 1,759,711 | 0 | 1,759,711 | 3,336,769 | 5,096,480 |
Capital injection from non-controlling interests | 0 | 0 | 0 | (626,520) | 0 | (626,520) | 30,945,469 | 30,318,949 |
Release of translation difference due to disposal of discontinued operation | 0 | |||||||
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 0 | (2,255,094) | (2,255,094) | (286,456) | (2,541,550) |
Share-based compensation | 0 | 0 | 439,071 | 0 | 0 | 439,071 | 0 | 439,071 |
Share exercised by employee | $ 87,500 | $ 0 | (87,500) | 0 | 0 | 0 | 0 | $ 0 |
Share exercised by employee (in shares) | 0 | 0 | 0 | |||||
Cumulative-effect adjustment for the adoption of Accounting Standards Codification ("ASC") Topic 606 | $ 0 | $ 0 | 0 | 869,985 | 0 | 869,985 | 0 | $ 869,985 |
Balance at Dec. 31, 2018 | $ 519,313,350 | $ 0 | 9,364,019 | (433,514,434) | (4,493,312) | 90,669,623 | 33,995,782 | 124,665,405 |
Balance (in shares) at Dec. 31, 2018 | 381,027,002 | 0 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income/(loss) | $ 0 | $ 0 | 0 | (8,831,223) | 0 | (8,831,223) | (2,848,932) | (11,680,155) |
Capital injection from non-controlling interests | 0 | 0 | 0 | 0 | 0 | 0 | 13,092,105 | 13,092,105 |
Release of translation difference due to disposal of discontinued operation | 0 | |||||||
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 0 | 1,634,566 | 1,634,566 | (1,408,552) | 226,014 |
Issuance of common shares | $ 10,894,890 | 0 | 0 | 0 | 0 | 10,894,890 | 0 | 10,894,890 |
Issuance of common shares (in shares) | 100,000,000 | |||||||
Share-based compensation | $ 0 | $ 0 | 348,916 | 0 | 0 | 348,916 | 0 | $ 348,916 |
Share exercised by employee (in shares) | 0 | 0 | 0 | |||||
Balance at Dec. 31, 2019 | $ 530,208,240 | $ 0 | $ 9,712,935 | $ (442,345,657) | $ (2,858,746) | $ 94,716,772 | $ 42,830,403 | $ 137,547,175 |
Balance (in shares) at Dec. 31, 2019 | 481,027,002 | 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS € in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Operating activities: | |||
Net income/(loss) | $ (11,680,155) | $ 5,096,480 | $ 34,457,538 |
Less: (Income)/loss from discontinued operations, net of tax | 0 | 0 | (31,257,707) |
Net income/(loss) from continuing operations | (11,680,155) | 5,096,480 | 3,199,831 |
Adjustments to reconcile net income/(loss) from continuing operations to net cash provided by/(used in) operating activities: | |||
Depreciation | 7,796,003 | 8,402,169 | 4,475,823 |
Allowances for doubtful accounts | 6,981,682 | 0 | 0 |
Share-based compensation | 348,916 | 439,071 | 870,618 |
Deferred tax provision | 255,538 | (1,094,385) | 88,048 |
Cancellation of project assets | 6,434,935 | 0 | 0 |
Impairment loss of assets | 6,880,115 | 0 | 0 |
Loss on disposal of property, plant and equipment | 3,908,208 | 0 | 0 |
Gains on disposal of property, plant and equipment | (302,359) | (290,729) | 0 |
Changes in working capital, excluding impact of dispositions: | |||
Accounts receivable | 12,522,431 | (5,607,302) | (22,371,300) |
Advances to suppliers | 102,869 | (19,647) | 3,864,146 |
Value added tax recoverable | 3,225,883 | 1,673,423 | (9,052,607) |
Prepaid expenses and other current assets | 8,585,326 | (4,157,231) | (8,625,177) |
Project assets | 24,325,633 | (9,737,172) | (30,731,709) |
Contract costs | 0 | 6,638,389 | (12,192,302) |
Other non-current assets | (11,316,279) | (3,138,597) | 103,535 |
Accounts payable | 8,244,250 | (12,755,646) | 24,452,548 |
Advances from customers | (13,962) | (126,851) | (282,019) |
Amounts due to related parties | (12,101,847) | (16,606,095) | 14,353,175 |
Other current liabilities | 1,324,293 | 460,750 | (1,802,578) |
Income tax payable | 379,140 | 408,382 | 284,182 |
Salary payable | 13,081 | (135,209) | 560,416 |
Deferred project revenue | 0 | (20,536,065) | (13,878,685) |
Net cash provided by/(used in) operating activities from continuing operations | 55,913,701 | (51,086,265) | (46,684,055) |
Net cash provided by operating activities from discontinued operation | 0 | 0 | 65,114,169 |
Net cash provided by/(used in) operating activities | 55,913,701 | (51,086,265) | 18,430,114 |
Investing activities: | |||
Purchase of property, plant and equipment | (13,693,749) | (40,399,769) | (80,314,313) |
Proceeds from disposal of property, plant and equipment | 12,096,869 | 0 | 0 |
Lending to related parties | 0 | 0 | (1,624,261) |
Repayment of lending by related parties | 0 | 0 | 2,000,000 |
Net cash used in investing activities from continued operations | (1,596,880) | (40,399,769) | (79,938,574) |
Net cash used in investing activities from discontinued operations | 0 | 0 | (76,415,127) |
Net cash used in investing activities | (1,596,880) | (40,399,769) | (156,353,701) |
Financing activities: | |||
Proceeds from banks and other third party borrowings | 17,922,511 | 59,977,400 | 6,101,351 |
Repayment of banks and other third party borrowings | (65,491,414) | (9,693,015) | 0 |
Contribution from non-controlling interest holders of subsidiaries | 13,092,105 | 30,318,948 | 0 |
Proceeds from issuance of ordinary shares | 11,000,000 | 0 | 0 |
Share issuance costs | (105,110) | 0 | 0 |
Proceeds from bonds | 12,913,675 | 0 | 0 |
Repayment of bonds | (10,417,360) | 0 | 0 |
Borrowings from related parties | 793,269 | 17,273,194 | 11,343,739 |
Repayment of borrowings from related parties | (8,380,994) | (20,478,081) | (2,041,201) |
Repayment of finance lease obligation | (6,100,711) | (4,960,478) | (976,966) |
Proceeds from failed sale-lease back agreements | 2,793,810 | 24,876,650 | 38,722,123 |
Repayment of failed sale-lease back financing | (7,325,456) | (11,490,104) | (251,213) |
Net cash provided by/(used in) financing activities from continued operations | (39,305,675) | 85,824,514 | 52,897,833 |
Net cash provided by financing activities from discontinued operations | 0 | 0 | 49,505,882 |
Net cash provided by/(used in) financing activities | (39,305,675) | 85,824,514 | 102,403,715 |
Effect of exchange rate changes | 1,087,262 | 1,258,263 | 11,612,791 |
Net increase/(decrease) in cash and cash equivalents and restricted cash | 16,098,408 | (4,403,257) | (23,907,081) |
Cash and cash equivalents and restricted cash, beginning of year | 9,026,044 | 13,429,301 | 37,336,382 |
Less: Cash and cash equivalents and restricted cash reclassified as assets held for sale | 427,299 | 0 | 0 |
Cash and cash equivalents and restricted cash, end of year | 24,697,153 | 9,026,044 | 13,429,301 |
Supplemental disclosure of cash flow information | |||
Interest paid, net of capitalized interest | 9,038,779 | 8,274,634 | 3,936,302 |
Income tax paid | (338,103) | (637,527) | (42,877) |
Non-cash investing and financing transactions | |||
Payables for purchase of property, plant and equipment | (22,810,701) | (36,680,431) | (25,562,367) |
Payable for finance lease | $ (20,766,512) | $ (34,130,495) | $ (28,783,346) |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 12 Months Ended |
Dec. 31, 2019 | |
ORGANIZATION AND NATURE OF OPERATIONS | |
ORGANIZATION AND NATURE OF OPERATIONS | 1. ORGANIZATION AND NATURE OF OPERATIONS ReneSola Ltd was incorporated in the British Virgin Island on March 17, 2006. On January 29, 2008, the ReneSola Ltd and its subsidiaries (collectively, the “Company”) became listed on the New York Stock Exchange (“NYSE”) in the United States. The Company was principally engaged in the manufacture and sale of solar power products including virgin polysilicon, monocrystalline and multi crystalline solar wafers and photovoltaic (“PV”) cells and modules. From 2012, the Company began entering into arrangements to develop commercial solar power projects, or project assets, which consists primarily of solar power project development, and Engineering, Procurement and Construction (“EPC”) services. On September 29, 2017, the Company announced that it completed restructuring to dispose of its manufacturing business (including polysilicon, solar wafer, solar cell and solar module manufacturing) and LED distribution business (collectively, the “discontinued business”) to a related party to help the Company transform its business model to focus on its solar power project business (Note 3). |
SUMMARY OF PRINCIPAL ACCOUNTING
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (a) Basis of presentation The consolidated financial statements have been prepared and presented in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The realization of assets and the satisfaction of liabilities in the normal course of business are dependent on, among other things, the Company’s ability to generate cash flows from operations, and the Company’s ability to arrange adequate financing arrangements, to support its working capital requirements. The Company has performed a review of its cash flow forecast for at least the twelve months following the issuance date of these financial statements. The Company expects the solar power project business to generate positive cash inflow in the forecasted period. As of December 31, 2019, the Company has certain material short-term obligations that will require material financing cash outflows, such as financing lease payments and the current portion of its long-term loans. The Company has developed a plan to continue meeting its financing arrangement, which includes refinancing loans which are set to mature within one year, entering into new bank borrowings and financing leases, repaying loans with proceeds from the sale of solar power projects and disposal of certain solar power stations, reducing investment in the purchase of property, plant and equipment, and raising additional capital through equity offerings. In addition, the Company believes that the continuing efforts to stream-line the Company’s operations will enable the Company to control operating costs to be better aligned with its operations, market demand and projected sales levels. Based on the above factors, management believes that adequate sources of liquidity exist to fund the Company’s working capital and capital expenditures requirements, and to meet its short term debt obligations, other liabilities and commitments as they become due for at least twelve months from the issuance date of these financial statements. Disposal of manufacturing business and LED distribution business On September 25, 2017 (the “Disposal Date”), the Company transferred all of the Company’s assets and liabilities related to its manufacturing business (including polysilicon, solar wafer, solar cell and solar module manufacturing) and LED distribution business to Mr. Xianshou Li, Chairman and Chief Executive Officer of the Company, through a transfer of all the share capital in ReneSola Singapore Pte. Ltd. (“ReneSola Singapore”), a wholly-owned subsidiary of ReneSola prior to the Disposal Date. The financial results of ReneSola Singapore, together with its subsidiaries, for the nine months ended September 30, 2017 have been classified as discontinued operations within the accompanying consolidated financial statements. As the disposal date was just prior to the end of the quarter, there were no material transactions during the five days between September 25 and September 30, 2017; therefore, the disposal transaction was measured as of September 30, 2017. Unless otherwise indicated, amounts provided in these Notes pertain to continuing operations only (see Note 3 for information on discontinued operations). (b) Basis of consolidation The consolidated financial statements include the financial statements of ReneSola Ltd and its subsidiaries. All inter-company transactions, balances and unrealized profits and losses have been eliminated on consolidation. A non-controlling interest is recognized to reflect the portion of a subsidiary’s equity which is not attributable, directly or indirectly, to the Company. Consolidated net income (loss) on the consolidated statements of operations and comprehensive income (loss) includes the net income (loss) attributable to non-controlling interests when applicable. The cumulative results of operations attributable to non-controlling interests are also recorded as non-controlling interests in the Company’s consolidated balance sheets. Cash flows related to transactions with non-controlling interests are presented under financing activities in the consolidated statements of cash flows, when applicable. (c) Discontinued operations A component of a reporting entity or a group of components of a reporting entity that are disposed or meet the criteria to be classified as held for sale, such as the management, having the authority to approve the action, commits to a plan to sell the disposal group, is reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on the Company’s operations and financial results. Discontinued operations are reported when a component of the Company comprising operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the Company is classified as held for disposal or has been disposed of, if the component either (1) represents a strategic shift or (2) have a major impact on the Company’s financial results and operations. Examples include a disposal of a major geographical location, line of business, or other significant part of the Company or disposal of a major equity method investment. In the consolidated statement of operations, results from discontinued operations are reported separately from the income and expenses from continuing operations and prior periods are presented on a comparative basis. In order to present the financial effects of the continuing operations and discontinued operations, revenues and expenses arising from intra-group transactions are eliminated except for those revenues and expenses that are considered to continue after the disposal of the discontinued operations. (d) Fair value measurement The Company estimates fair value of financial assets and liabilities as the price that would be received from the sales of an asset or paid to transfer a liability (an exit price) on the measurement date in an orderly transaction between market participants. When available, the Company measures the fair value of financial instruments based on quoted market prices in active markets, valuation techniques that use observable market-based inputs or unobservable inputs that are corroborated by market data. When observable market prices are not readily available, the Company generally estimates the fair value using valuation techniques that rely on alternate market data or inputs that are generally less readily observable from objective sources and are estimated based on pertinent information available at the time of the applicable reporting periods. See Note 9, “Fair Value Measurements,” for further details. (e) Use of estimates The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses for the reporting periods presented. Actual results could materially differ from these estimates. Significant accounting estimates are susceptible to changes with the acquisition of the information, which include revenue recognition for sales of solar power projects, inputs used to recognize revenue over time, EPC warranties, allowances for doubtful accounts, valuation of deferred tax assets, and recoverability of the carrying value of long-lived assets and project assets. (f) Cash and cash equivalents Cash and cash equivalents represent cash on hand and held with banks, including demand deposits, which are unrestricted as to withdrawal and use, and which have original maturities of three months or less when purchased. (g) Restricted Cash Restricted cash consists of cash and cash equivalents held by various banks to secure certain of our letters of credit and other deposits designated for the payment of amounts related to loan interest. Restricted cash also includes cash and cash equivalents held in frozen bank accounts due to judicial property preservations. The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within our consolidated balance sheets as of December 31, 2018 and 2019 to the total of such amounts as presented in the consolidated statements of cash flows: At December 31, 2018 2019 Cash and cash equivalents $ 6,750,178 $ 24,292,113 Restricted cash 2,275,866 405,040 Total cash, cash equivalents, and restricted cash $ 9,026,044 $ 24,697,153 (h) Project assets and deferred project costs In 2012, the Company began entering into arrangements to develop commercial solar power projects (“project assets”) for sale upon their completion. Project assets consist primarily of costs relating to solar power projects in various stages of development that are capitalized prior to entering into a definitive sales agreement for the solar power project. These costs include certain acquisition costs, land costs and costs for developing and constructing a solar power project. Development costs can include legal, consulting, permitting, and other similar costs. Construction costs can include execution of field construction, installation of solar equipment, and solar modules and related equipment. Interest costs incurred on debt during the construction phase are also capitalized within project assets. The Company does not depreciate the project assets when they are considered held for sale. Any revenue generated from a solar power project connected to the grid would be considered incidental revenue and accounted for as a reduction of the capitalized project costs for development. In addition, the Company presents all expenditures related to the development and construction of project assets as a component of cash flows from operating activities. During the development phase, these project assets are accounted for in accordance with the recognition, initial measurement and subsequent measurement subtopics of ASC 970-360, as they are considered in substance real estate. While the solar power projects are in the development phase, they are generally classified as non-current assets, unless it is anticipated that construction will be completed, and sale will occur within one year. The Company capitalizes the costs related to solar power projects in various stages of development prior to entering into a definitive sales agreement for the solar power project and classifies these costs as project assets on the consolidated balance sheets when the criteria in ASC 360-10-45-9 are met. If not met, the Company reclassifies them to property, plant and equipment, unless the delay in the period required to complete the sale is caused by events or circumstances beyond the Company’s control. Deferred project costs represent costs that are capitalized as deferred project assets for arrangements that are accounted for as real estate transactions after the Company has entered into a definitive sales arrangement, but before the sale is completed or before all criteria to recognize the sale as revenue are met. The Company classifies deferred project costs as noncurrent if satisfaction of all revenue recognition criteria is not expected within the next 12 months. The Company reviews project assets and deferred project costs for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company considers a project commercially viable or recoverable if it is anticipated to be sold for a profit once it is either fully developed or fully constructed. The Company considers a partially developed or partially constructed project commercially viable or recoverable if the anticipated selling price is higher than the carrying value of the related project assets and the estimated costs to complete. The Company examines a number of factors to determine if the project will be recoverable, the most notable of which include whether there are any changes in environmental, ecological, permitting, market pricing or regulatory conditions that impact the project. Such changes could cause the costs of the project to increase or the selling price of the project to decrease. If a project is not considered recoverable, the Company impairs the respective project assets and adjusts the carrying value to the estimated recoverable amount, with the resulting impairment recorded within operations. (i) Contract costs The Company provides EPC services including engineering design, construction contracting and management, procurement of PV modules, balance-of-system components and other components. Contract costs generally include all direct costs, such as materials, direct labor, and subcontracts, and indirect costs identifiable with or allocable to the contracts. Contract costs also include the costs related to the design, engineering, and costs of all PV modules and materials needed for the projects for the cooperation arrangements with third party to jointly construct the power projects for sale. Contract costs are accumulated and are charged to operations as the related revenue from contracts is recognized. Refer to note 2 (s) EPC services for the corresponding revenue streams. (j) Advances to suppliers and advances for purchases of property, plant and equipment In order to secure a stable supply of construction materials, the Company makes advance payments to suppliers for raw material supplies and advances for purchases of long-lived assets which are offset against future deliveries. Advances to suppliers for purchases expected within twelve months as of each balance sheet date are recorded as advances to suppliers in current assets and those associated with purchases expected over longer periods of time are recorded in non-current advances to suppliers. As of December 31, 2018 and 2019, advances to suppliers in current assets were $379,568 and $248,130, respectively, and non-current advances to suppliers for construction materials supplies were nil. Advances for property, plant and equipment are recorded in non-current assets and were nil as of December 31, 2018 and 2019. The Company does not require collateral or other security against its advances to suppliers. As a result, the Company’s claims for such prepayments are unsecured, which exposes the Company to the suppliers’ credit risk. The Company performs ongoing credit evaluations of the financial condition of its material suppliers. (k) Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation and impairment. Depreciation is computed on a straight-line basis over the following estimated useful lives: Plant and machinery 3‑5 years Motor vehicles 4‑5 years Office equipment 3‑5 years Power stations 25 years Estimated useful life of land is infinite and no depreciation is provided. Construction in progress represents mainly the construction of solar power projects the Company will own and operate for electricity generation. Costs incurred in the construction are capitalized and transferred to property, plant and equipment upon completion, at which time depreciation commences. Expenditures for repairs and maintenance are expensed as incurred. The gain or loss on disposal of property, plant and equipment, if any, is the difference between the net sales proceeds and the carrying amount of the disposed assets, and is recognized in the consolidated statement of operations upon disposal. (l) Assets and liabilities held-for-sale Assets and asset disposal groups are classified as held-for-sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when management has committed to a plan of sale and the sale is highly probable, the assets are available for immediate sale in their present condition and they are expected to qualify for recognition as a completed sale within one year from the date of classification. Assets and liabilities classified as held for sale are measured at lower of their carrying amount or fair value less costs to sell. Long-lived assets to be sold are classified as held for sale considering the recognition criteria in ASC 360‑10‑45‑9 in which all of the following criteria are met: · Management, having the authority to approve the action, commits to a plan to sell the asset, · The asset is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets; · An active program to locate a buyer and other actions required to complete the plan to sell the asset have been initiated; · The sale of the asset is probable, and transfer of the asset is expected to qualify for recognition as a completed sale, within one year; · The asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and · Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. (m) Interest capitalization The Company capitalizes interest costs as part of the costs of constructing certain assets during the period of time required to get the assets ready for their intended use. The Company capitalizes interest to the extent that expenditures to construct an asset have occurred and interest costs have been incurred. The interest capitalized for project assets forms part of the cost of revenues when such project assets are sold, and all revenue recognition criteria are met. Interest is capitalized for solar power projects that are classified as property, plant and equipment and built for the Company to own and operate for electricity generation before the projects are completed and put into operation. Interest capitalization ceases once a project is substantially complete or no longer undergoing construction activities to prepare it for its intended use. (n) Impairment of long-lived assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable or that the useful life is shorter than originally estimated. The Company assesses recoverability of the long-lived assets by comparing the carrying amount of the assets to the estimated future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. The Company recognizes an impairment loss in the event the carrying amount exceeds the estimated future undiscounted cash flows attributable to such assets, measured as the difference between the carrying amount of the assets and the fair value of the impaired assets. The impairment losses of long-lived assets were nil for the years ended December 31, 2017, 2018. For the year ended December 31, 2019, the amount was $6,880,115, of which $5,532,489 represented impairment losses from property, plant and equipment which were subsequently disposed in 2019 and $1,347,626 represented impairment losses from asset and liabilities held for sale. The impairment losses of these assets represented the difference between the carrying amount and fair value less cost to sell as a result of committed sale plans of solar power plants originally owned and operated by the Company for electricity generation. (o) Leases Leases are classified as finance or operating leases. A lease that transfers to the lessee substantially all the benefits and risks incidental to ownership is classified as a finance lease. At inception, a finance lease is recorded at the lower of the present value of minimum lease payments or the fair value of the asset. Assets under finance leases are amortized on a basis consistent with that of similar useful life of fixed assets or the end of lease term, whichever is earlier. If the lease transfers ownership or contains an option to purchase the asset that the lessee is reasonably certain to exercise, the finance leases should be amortized over the useful life of the asset. At the inception of each lease arrangement, the Company determines if the arrangement is a lease or contains an embedded lease and reviews the facts and circumstances of the arrangement to classify lease assets as operating or finance leases under ASU 2016-02, Leases (Topic 842). The Company has elected not to record any leases with terms of 12 months or less on the consolidated balance sheets. Balances related to operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities current and operating lease liabilities non-current on the consolidated balance sheets. Finance leases represent a small portion of the active lease agreements and are included in finance lease ROU assets, finance lease liabilities current and non-current on the consolidated balance sheets. The ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the obligation of the Company to make minimum lease payments arising from the lease for the duration of the lease term. Operating lease costs are recognized on a straight-line basis over the lease term. From time to time, the Company’s subsidiaries are asked to prepay the lease costs for over one year. As of December 31, 2018, the prepaid rental fees of $430,608 were recorded in other non-current assets and $954,969 were recorded in prepaid expenses and other current assets. As of December 31, 2019, the prepaid rental fees of $688,324 were recorded in operating lease right-of-use assets. To determine the present value of future minimum lease payments, the Company use the implicit rate when readily determinable. Presently, because many of the leases do not provide an implicit rate, the Company applies its incremental borrowings rate based on the information available at the lease commencement date to determine the present value of minimum lease payment. The operating and finance lease ROU assets include any lease payment made and exclude lease incentives. For a sale-leaseback transaction, when the transaction involves real estate or integral equipment, sale-leaseback accounting shall be used by a seller-lessee only if the transaction includes all of the following a) normal leaseback; b) payment terms and provisions that adequately demonstrate the buyer-lessor’s initial and continuing investment in the property; and c) payment terms and provisions that transfer all of the other risks and rewards of ownership as demonstrated by the absence of any other continuing involvement by the seller-lessee. Equipment is determined to be integral when the cost to remove the equipment from its existing location, ship and reinstall at a new site, including any diminution in fair value, exceeds 10% of the fair value of the equipment at the time of original installation. If a sale-leaseback of real estate qualifies for sale-leaseback accounting, an analysis is performed to determine if the Company can record a sale and remove the assets from the balance sheet and recognize the lease; and if so, to determine whether to record the lease as either an operating or finance lease. If a sale-leaseback transaction does not qualify for sale-leaseback accounting because of any form of continuing involvement by the seller-lessee other than a normal leaseback, it is accounted for as a financing arrangement. (p) Deferred convertible notes issuance costs Debt issuance costs are deferred and amortized using effective interest method through the earliest redemption date. The amortization, recorded in interest expense was nil for the years ended December 31, 2017, 2018 and 2019. (q) Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. If a potential material loss contingency is not probable but is reasonably possible, or is probable but the amount cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. Legal costs incurred in connection with loss contingencies are expensed as incurred. (r) Income taxes Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, net of operating loss carry forwards and credits by applying enacted statutory tax rates applicable to future years. 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. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. Deferred tax assets and liabilities are all classified as non-current in the consolidated balance sheets. (s) Revenue recognition Under ASC 606 (effective from January 1, 2018) Solar power project development a) Sale of project assets constructed by a third-party EPC contractor The Company recognizes revenue for sales of project assets constructed by a third-party EPC contractor over time as the Company’s performance creates an energy generation asset that is owned by the customer as it is being constructed and the customer can direct all activities related to the work in progress. Furthermore, the sale of a project asset when combined with EPC services represents a single performance obligation for the development and construction of a single generation asset. The Company recognizes revenue over time for construction contracts which recognize revenue and gross profit as work is performed based on the relationship between actual costs incurred compared to the total estimated costs of the contract. Under this business model, the EPC services are provided by a third-party service provider. In accordance with the terms and conditions of the EPC contract, the Company has the ability to direct a third party to ensure that the EPC services to the customer are performed therefore the Company acts as the principal in this arrangement and both the revenue and cost amounts paid to the EPC contractor are recognized on a gross basis. b) Sale of project assets constructed by the Company’s own EPC team Under this business model, the Company sells power projects after they have been completed or are near completion. The Company conducts the construction of the power plant and completes or nearly completes the project before it identifies a customer. When a customer is identified, the Company enters into two agreements through signing: Sale and Purchase Agreement (“SPA”) and Operations and Maintenance (“O&M”) Services Contract, which are generally signed on the same date. Such arrangements consist of two performance obligations: sale of solar project and O&M services. For sale of a solar project, the Company recognizes revenue at a point in time once control of project company is transferred to the customer as the Company has no remaining performance obligation once the control is transferred upon closing of the sale. For O&M services, the Company recognizes revenue over time, ratably over the service period, as this performance enhances an energy generation asset controlled by the customer. For sales agreements that have energy generation performance guarantees covering a certain timeframe or the availability guarantee in the O&M contract, if there is an underperformance event, the Company may incur liquidated damages as a percentage of the EPC contract price or as a percentage of O&M fees. Such performance guarantees represent a form of variable consideration and are estimated at contract inception at their most likely amount and updated at the end of each reporting period as additional performance data becomes available and only to the extent that it is probable that a significant reversal of any incremental revenue will not occur. All EPC contracts had been completed by December 31, 2018, thus there were no active EPC contracts in 2019. c) Sale of project asset rights The Company sells the project rights to customers through the disposal of project companies holding the relevant permits. For these transactions, the project companies could either own the land or lease the land under the lease term that could cover the entire power plant’s life. In these transactions, the Company is also responsible for locating the electricity end subscribers on the customer’s behalf for a certain percentage of the entire contact consideration. Such arrangements consist of two performance obligations: sale of project rights and sourcing of end subscribers. The Company recognizes revenue for sale of project rights at a point in time once control of project rights is transferred to customer as the Company has no further obligations related to the project rights. The Company recognizes revenue for sourcing of end subscribers over time as the Company has an ongoing obligation during a certain period to source end subscribers. A portion of the sales price consideration is variable on the percentage of end subscribers sourced for the project. The Company estimates the amount that most likely overcomes the constraint on variable consideration to include in the transaction price based on the historical subscription rates achieved. EPC Services The Company provides EPC services under the EPC contracts, under which the Company provides one distinct performance obligation – design and build the power plant on customer’s site per customer’s request. The Company recognizes revenue for EPC services over time as the Company’s performance creates or enhances an energy generation asset controlled by the customer. In recognizing revenue over time, the Company follows the costs incurred method and uses the actual costs incurred relative to the total estimated costs (including module costs) in order to determine the progress towards completion and calculate the corresponding amount of revenue and profit to recognize. Costs incurred include direct materials, solar modules, labor, subcontractor costs, and those indirect costs related to contract performance, such as indirect labor and supplies. The over time revenue recognition requires the Company to make estimates of net contract revenues and costs to complete the projects. In making such estimates, significant judgment is required to evaluate assumptions related to the amount of net contract revenues, including the impact of any performance incentives, liquidated damages, and other payments to customers. Significant judgment is also required to evaluate assumptions related to the costs to complete the projects, including materials, labor, contingencies, and other system costs. Although the EPC contract usually clearly states a fixed unit price and the estimated total contract amount, the total contract amount is subject to variable consideration due to the difference between actual grid-connection capacity and estimated grid-connection capacity. The Company makes a reasonable estimation of grid-connection capacity, which represents a form of variable consideration. The variable consideration is estimated at the contact inception at the best estimate based on relevant experience and historical data and updated at the end of each reporting period as additional performance data becomes available and only to the extent that it is probably that a significant reversal of any revenue will not occur. If estimated total costs on any contract are greater than the net contract revenues, the Company recognizes the entire estimated loss in the period the loss becomes known. The cumulative effect of the revisions to estimates related to net contract revenues and costs to complete contracts, including penalties, claims, change orders, performance incentives, anticipated losses, and others are recorded in the period in which the revisions to estimates are identified and the amounts can be reasonably estimated. The effect of the changes on future per |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Dec. 31, 2019 | |
DISCONTINUED OPERATIONS | |
DISCONTINUED OPERATIONS | 3. DISCONTINUED OPERATIONS On September 25, 2017, the Company completed a share repurchase and subscription agreement (the “SPA”) with Mr. Xianshou Li, the Company’s Chairman and Chief Executive Officer (the “Buyer”) for the sale of the Company’s manufacturing (including polysilicon, solar wafer, solar cell and solar module manufacturing) and LED distribution businesses. The transaction also transferred substantially all of the pre-restructured ReneSola Ltd and its subsidiaries (collectively, the “Group”)’s related indebtedness to Li. The transaction resulted in: 1) The Company was no longer liable for the bank borrowings approximating RMB3 billion ($461 million) which was assumed by the Buyer as part of the net assets of discontinued operations as of the disposal date; 2) The Buyer forgave approximately $217.4 million of intercompany payables owed to it by the Company; and 3) The Company issued 180 million common shares (“18 million ADS”) with a fair value of approximately $42.5 million to ReneSola Singapore Pte. Ltd., an entity to be fully owned by the Buyer upon completion. Results of operations related to the discontinued businesses, including comparatives, were reported as loss from discontinued operations. A reconciliation of disposal gain is presented as follows. Reconciliation of disposal gain: Item Amount in US$ million Waiver of the Company’s payable to the Buyer of the discontinued operations 217.4 Fair value of shares issued to the Buyer (42.5) Net assets of discontinued operations as of the disposal date (133.6) Release of currency translation difference due to discontinued operations 65.0 Disposal gain 106.3 Results of the discontinued operations January 1 – September 30 2017 Revenues $ 472,568,586 Cost of revenues (457,058,538) Gross profit 15,510,048 Operating (expenses)/income: Selling and marketing (24,259,869) General and administrative (32,341,022) Research and development (14,715,027) Other income 8,776,633 Impairment loss of assets — Total operating expenses (62,539,285) Loss from operations (47,029,237) Interest income 1,144,135 Interest expenses (25,518,288) Exchange gain (7,095,061) Loss on derivatives (1,284,379) Loss from discontinued operations before income taxes (79,782,830) Income tax benefit, net 4,748,324 Loss from discontinued operations, net of tax $ (75,034,506) |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 12 Months Ended |
Dec. 31, 2019 | |
ACCOUNTS RECEIVABLE, NET | |
ACCOUNTS RECEIVABLE, NET | 4. ACCOUNTS RECEIVABLE, NET At December 31, 2018 2019 Accounts receivable – from EPC services (billed) $ 9,078,144 $ 2,753,277 – from EPC services (unbilled) 526,848 456,900 – from solar power project assets (1) 7,045,546 8,971,464 – from electricity generation revenue (2) 17,832,924 3,562,181 Total accounts receivable 34,483,462 15,743,822 Allowance for doubtful accounts — (1,908,803) Accounts receivable, net $ 34,483,462 $ 13,835,019 (1) As of December 31, 2019, receivables by post-dated checks were $813,652 and dates of acceptance were from May 31, 2020 to November 30, 2021. Of which, $406,826 were classified as current and recorded in accounts receivable from solar power project assets, and $406,826 were classified as non-current and recorded in other non-current assets. (2) Accounts receivable from electricity generation revenue were mainly due from the state grid companies. The amounts included the portion of feed-in tariff(s) (FIT) for the electricity sold to the state grid companies in the PRC in which the relevant on-grid solar power stations are still pending for registration to the Renewable Energy Subsidy Catalog, which the Company has submitted the application for its solar power stations started operation before July 2017 to be registered on the Catalog in early 2020. The Company expects that a certain part of the feed-in tariff(s) (FIT) receivables will be recovered after twelve months from the reporting date, which are discounted at an effective interest rate. As of December 31, 2019, there are $1,317,137 of feed-in tariff(s) (FIT) receivables classified as current and $16,800,636 classified as non-current. ALLOWANCES FOR DOUBTFUL ACCOUNTS The Company establishes an allowance for doubtful accounts primarily based upon the collectability of the receivables in light of historical trends and adverse situations that may affect customers’ ability to pay. After appropriate collection efforts are exhausted, specific accounts receivable deemed to be uncollectible would be charged against the allowance in the period they are deemed uncollectible. As of December 31, 2018, the Company did not provide an allowance for doubtful accounts on the account balances. As of December 31, 2019, the Company had an allowance for doubtful accounts of $1,908,803 from EPC services receivable. As of December 31, 2018, receivables from an EPC services customer amounted to $6,036,988 (17%), which was greater than 10% of the account balance. As of December 31, 2019, receivables from a solar power customer amounted to $4,252,381 (31%), which was greater than 10% of the account balance. For the years ended December 31, 2019 and 2018, a solar power customer accounted for 47% and nil of the Company’s net revenues, respectively. |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 5. PREPAID EXPENSES AND OTHER CURRENT ASSETS At December 31, 2018 2019 Refundable deposits (1) $ 12,082,372 $ 4,124,928 Prepaid rental fees (2) 954,969 — EPC Warranty reimbursement receivables 186,553 183,941 Others 1,094,182 2,491,414 Total prepaid expenses and other current assets 14,318,076 6,800,283 Allowance for doubtful accounts (3) — (729,629) Total prepaid expenses and other current assets $ 14,318,076 $ 6,070,654 (1) As of December 31, 2019, refundable deposits mainly represented refundable deposits for the bidding of project asset construction rights and rooftop leases. (2) As of January 1, 2019, prepaid rental fees represented rental payments for solar power projects due within one year which was disclosed as ROU in accordance with ASC 842 as of December 31, 2019. (3) Allowances for doubtful accounts mainly represented compensation sum receivable from Canada authority on closure of certain Canada project which the Company deemed the compensation sum would not be recoverable in full. |
PROJECT ASSETS
PROJECT ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
PROJECT ASSETS | |
PROJECT ASSETS | 6. PROJECT ASSETS Project assets consisted of the following at December 31, 2018 and 2019, respectively: At December 31, 2018 2019 Project assets - Module cost $ 29,612,819 $ 4,616,399 Project assets - Development and construction cost 71,316,605 32,112,215 Project assets - Others 7,409,941 1,919,237 Total project assets 108,339,365 38,647,851 Current portion 64,257,766 32,125,312 Non-current portion 44,081,599 6,522,539 |
ASSETS HELD FOR SALE AND LIABIL
ASSETS HELD FOR SALE AND LIABILITIES HELD FOR SALE | 12 Months Ended |
Dec. 31, 2019 | |
ASSETS HELD FOR SALE AND LIABILITIES HELD FOR SALE | |
ASSETS HELD FOR SALE AND LIABILITIES HELD FOR SALE | 7. ASSETS HELD FOR SALE AND LIABILITIES HELD FOR SALE On December 25, 2019, a subsidiary of the Company has entered into a proposed acquisition agreement with Jiangxi Tongli Risheng New Energy Technology Co., Ltd (the “Buyer”) for sale of the Company’s solar power plant subsidiaries in China under electricity generation revenue segment. The associated assets and liabilities of the solar power plant subsidiaries were consequently presented as held for sale in the consolidated balance sheet. This transaction is expected to be consummated within one year from the Company’s consolidated balance sheet date. At December 31, 2019 Assets classified as held for sale Cash and cash equivalents $ 427,299 Accounts receivable, net 2,636,581 Value added tax recoverable 747,646 Prepaid expenses and other current assets 1,593,391 Property, plant and equipment, net 13,290,761 Operating lease right-of-use asset 1,230,574 Impairment of assets (1) (1,347,626) Total assets classified as held for sale 18,578,626 Liabilities classified as held for sale Accounts payable 58,525 Operating lease liabilities 1,229,918 Failed sales leased back and finance lease liability 7,879,923 Total liabilities classified as held for sale $ 9,168,366 (1) As a result of the acquisition agreement, the Company reassessed the net assets on the solar power plant to the lower of carrying amount or fair value less cost to sell. As of December 31, 2019, the impairment loss of $1,347,626 has been applied to reduce the carrying amount of assets classified as held for sale. |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2019 | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
PROPERTY, PLANT AND EQUIPMENT, NET | 8. PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net: At December 31, 2018 2019 Land $ 282,000 $ 282,000 Plant and machinery 789,931 776,752 Motor vehicles 183,664 181,387 Office equipment 102,326 136,857 Power stations 194,931,540 159,257,486 Less: Accumulated depreciation (16,215,671) (17,333,097) 180,073,790 143,301,385 Construction in progress 10,713,472 — Property, plant and equipment, net $ 190,787,262 $ 143,301,385 Construction in progress mainly represents new solar power projects for self-electricity generation in China. All power stations were self-constructed for electricity generation purpose. Depreciation expense for the years ended December 31, 2017, 2018 and 2019 was $4,475,823, $8,402,169 and $7,796,003 respectively. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2019 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 9. FAIR VALUE MEASUREMENTS The Company adopted ASC 820, “Fair Value Measurements and Disclosures”, which provides a framework for measuring fair value under U.S. GAAP, and expanded disclosure requirements about assets and liabilities measured at fair value. The Company utilizes a hierarchy for inputs used in measuring fair value that gives the highest priority to observable inputs and the lowest priority to unobservable inputs as follows: · Level 1‑Observable unadjusted quoted prices in active markets for identical assets or liabilities. · Level 2‑Observable inputs other than quoted prices in active markets for identical assets or liabilities, for which all significant inputs are observable, either directly or indirectly. · Level 3‑Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. Recurring basis As of December 31, 2018 and December 31, 2019, there are no assets and liabilities measured on the Company’s consolidated balance sheet at fair value on a recurring basis subsequent to initial recognition. Non-recurring basis The carrying amount of long-term borrowing and liabilities approximates their fair value as the related interest rates approximate rates currently offered by financial institutions for similar debt instruments of comparable maturities. The impairment loss of assets and cancellation loss of project assets for the year ended December 31, 2019 represented non-recurring fair value measurement which the carrying amount of the related assets were either reduced to zero or reduced to a realizable lower amount per a purchase offer. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
INCOME TAXES | |
INCOME TAXES | 10. INCOME TAXES The Company and its subsidiaries file separate income tax returns. British Virgin Islands Under the current laws of the British Virgin Islands (“BVI”), the Company’s subsidiary in BVI is not subject to tax on its income or capital gains. In addition, upon any payment of dividends by the Company, no British Virgin Islands withholding tax is imposed. People’s Republic of China On March 16, 2007, the National People’s Congress approved the Corporate Income Tax Law of the People’s Republic of China (the “CIT Law”) with effective on January 1, 2008. The CIT Law enacted a statutory income tax rate of 25%. Pursuant to PRC tax laws, certain PRC domiciled subsidiaries of the Company are solar power generation enterprises, which are entitled to a three-year tax exemption from Corporate Income Tax (“ CIT”) from first operation year and a 50% CIT reduction for the succeeding three years thereafter. United States of America ReneSola US is incorporated in California, United States. It is subject to a federal corporate income tax rate of 35% for 2017 and is subject to a federal corporate income tax rate of 21% for 2018 and 2019, effective from January 1, 2018 under the 2017 Tax Cuts and Jobs Act . In addition, ReneSola US is subject to California state income tax of 8.84% for 2018 and 2019, and Connecticut state income tax of 6.5% for 2018 and Connecticut state income tax rate of 7.5% for 2019, which is deductible for federal corporate income tax purpose. The tax expense from continuing operations comprises: Years ended December 31, 2017 2018 2019 Income (loss) before income tax PRC $ 2,938,038 $ 10,535,785 $ (10,273,181) Other jurisdictions 583,861 (5,628,096) (301,925) Total 3,521,899 4,907,689 (10,575,106) Current tax expense PRC (11,926) (553,859) (9,835) Other jurisdictions (222,094) (351,735) (839,676) Subtotal (234,020) (905,594) (849,511) Deferred tax benefit (expense) PRC 1,402 748,490 — Other jurisdictions (89,450) 345,895 (255,538) Subtotal (88,048) 1,094,385 (255,538) Total income tax benefit (expense) $ (322,068) $ 188,791 $ (1,105,049) There were no reversals or additions of unrecognized tax benefits during the year ended December 31, 2017, 2018 and 2019, respectively. The Company classifies interest and penalties related to income tax matters in income tax expense. As of December 31, 2017, 2018 and 2019, there were no interest and penalties related to uncertain tax positions. As of December 31, 2018 and 2019, there was no accrual of uncertain tax benefits recognized by the Company. The Company does not anticipate significant increases or decreases to its liabilities for unrecognized tax benefits within the next twelve months. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer. The statute of limitations will be extended to five years under special circumstances, which are not clearly defined, but an underpayment of taxes exceeding RMB100,000 (approximately $14,476) is specifically listed as a special circumstance. In the case of a transfer pricing related adjustment, the statute of limitations is ten years. There is no statute of limitations in the case of tax evasion. The principal components of deferred income tax assets and liabilities are as follows: At December 31, 2018 2019 Deferred tax assets: Accrued expenses $ 10,632 $ 16,304 Net operating losses 5,513,847 8,646,423 Unrealized internal profit 1,094,217 778,566 Allowances for doubtful accounts — 1,064,027 Cancellation of project assets — 1,351,336 Impairment loss of assets — 336,907 Other 27,990 161,033 Total gross deferred tax assets 6,646,686 12,354,596 Valuation allowance on deferred tax assets (5,535,214) (11,516,732) Net deferred tax assets $ 1,111,472 $ 837,864 As of December 31, 2019, the subsidiaries of the Company in PRC had net operating loss carry forwards of $9,195,842, of which $152,025, $873,056, $165,754 and $8,005,007 will expire in 2021, 2022, 2023 and 2024 respectively. The Company considers positive and negative evidence to determine whether some portion or all of the deferred tax assets will not be realized. This assessment considers, among other matters, the nature, frequency and severity of recent losses, forecasts of future profitability, the duration of statutory carry forward periods, the Company’s experience with tax attributes expiring unused and tax planning alternatives. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible for tax purposes. As a result, the Company has recognized a valuation allowance of $5,532,214 and $11,516,732 as at December 31, 2018 and 2019, respectively. Reconciliation between the applicable statutory income tax rate and the Company’s effective tax rate for the years ended December 31, 2017, 2018 and 2019 is as follows: Year ended December 31, 2017 2018 2019 PRC applicable income tax rate 25 % 25 % 25 % Change in deferred tax valuation allowance (3) % 47 % (57) % Preferential tax rate (1) (24) % (53) % 7 % Effect of different tax rate of subsidiaries (4) % (7) % 16 % Other 15 % (16) % (1) % Effective income tax rate 9 % (4) % (10) % The following table sets forth the effect of preferential tax on China operations for the years ended December 31, 2017, 2018 and 2019, respectively: Year ended December 31, 2017 2018 2019 Preferential tax effect (1) $ 845,010 $ 2,609,975 $ 720,847 (1) Certain solar power project entities are fully exempted from PRC CIT for three years starting from the year in which such project generates revenue from the sale of electricity and is 50% exempted from PRC CIT for another three years. Besides, certain solar power project entities enjoy the preferential tax policies in connection with the development of the western region of China and are subject to a preferential tax rate of 15%. |
BORROWINGS AND OTHER FINANCING
BORROWINGS AND OTHER FINANCING ARRANGEMENTS | 12 Months Ended |
Dec. 31, 2019 | |
BORROWINGS AND OTHER FINANCING ARRANGEMENTS | |
BORROWINGS AND OTHER FINANCING ARRANGEMENTS | 11. BORROWINGS AND OTHER FINANCING ARRANGEMENTS a) Borrowings from banks and other third parties The Company’s borrowings from banks and other third parties consist of the following: At December 31, 2018 2019 Short-term $ 3,368,272 $ 7,173,571 Long-term, current portion 41,096,243 28,583,380 Subtotal 44,464,515 35,756,951 Bond payable — 2,503,621 Long-term 41,435,099 3,367,061 Total borrowings from bank and other third parties $ 85,899,614 $ 41,627,633 As of December 31, 2018, short-term borrowings of $3,368,272 and long-term borrowings of $82,531,342, including current portion of $41,096,243 were jointly guaranteed by the Company and its subsidiaries. As of December 31, 2019, short-term borrowings of $7,173,571, bond payable of $2,503,621 and long-term borrowings of $31,950,441, including current portion of $28,583,380 were jointly guaranteed by the Company and its subsidiaries. The short-term borrowings of $7,173,571 and bond payable of $2,503,621 were also secured by all of the Company’s estate, rights, title and interest and pledged by the shares or ownership interests of the Company and its subsidiaries, accounts receivable and VAT account of the Company and its subsidiaries. The long-term borrowings of $31,950,441, including current portion of $28,583,380 were also secured and pledged by the shares or ownership interests of the Company and its subsidiaries, accounts receivable, VAT account and insurance of the Company. Long-term borrowings contain restrictive covenants, including requirements obliging the Company to (i) obtain lender’s prior approval before entering into any transaction over certain amount after the completion of the construction and commencement of operation of the relevant project assets, (ii) obtain lender’s prior consent before opening any bank account other than the existing bank account with the lender, (iii) ensure that at least one director designated by the lender be appointed as a director of the operating entity of the relevant project assets and/or the Company, (iv) comply with certain financial ratios, such as debt-service coverage ratio and loan life coverage ratio. As of December 31, 2019 and 2018, the Company was in compliance with all debt covenants under its outstanding long-term financings. i) Short-term borrowings Interest rates are fixed for the short-term borrowings as of December 31, 2018 and 2019. The weighted average interest rate of short term loans in the years ended December 31, 2018 and 2019 were 6.57% and 5.52%. The borrowings are repayable within one year. ii) Bond payable In January 2019, the Company's Luxembourg subsidiary issued a bond to an investor in France for the purpose of financing the Company's PV plant projects in Poland and Hungary totaling Euro 11.5 million ($12.9 million). The bond has a maturity date of March 2020. The balance of the bond as of December 31, 2019 was Euro 2.2 million ($2.5 million). Interest rates are fixed for the bond payable. The weighted average interest rate of bond payable in the year ended December 31, 2019 was 6.75%. iii) Long-term borrowings In March 2013, the Company’s Korean subsidiaries obtained two four-year term loans from a lender in Korea totaling Korean Won 35.7 billion ($30.9 million) to be repaid in March 2017. In 2017, the subsidiaries extended the maturity date by three years to March 2020. The proceeds from these loans were used to finance the Company’s PV plant projects in Romania. The balance of the loan as of December 31, 2019 was Korean Won 32.7 billion ($28.3 million). In March 2020, the subsidiaries have further extended the maturity date by one year to March 2021. In January 2019, the Company’s United Kingdom (“UK”) subsidiary obtained a long-term loan by a lender in the UK totalling £3 million ($3.9 million). As of December 31, 2019, the utilized amount was £2.8 million ($3.7 million) including the current portion of $0.3 million. The long-term loan has a maturity date of August 2025. The proceeds from this loan were used to refinance existing indebtedness and for general corporate purposes. Interest rates are fixed for the above long-term bank loans. The weighted average interest rate of long-term borrowings was 5.80%, 5.86% and 4.57% in the years ended December 31, 2017, 2018 and 2019, respectively. All principal of the long-term bank loans should be repaid by 2025 as illustrated in the table below: 2020 $ 2021 311,670 2022 326,073 2023 341,142 2024 356,596 2025 $ 2,031,580 b) Financing associated with failed sale-lease back transactions In 2018 and 2019, certain subsidiaries of the Company (the“seller-lessee”) sold self-built solar projects (“leased assets”) with carrying amount of $23,474,319 and $4,008,534 to different domestic financial leasing companies (the“buyer-lessors”) for cash consideration of $24,876,650 and $2,793,810 and simultaneously entered into the contracts to lease back the leased assets from the buyer-lessors for 5 to 10 years. These arrangements are guaranteed by other subsidiaries of the Company and also pledged by the shares and rights for the future power generation income of the seller-lessee. Pursuant to the terms of the agreements, the seller-lessee is required to make lease payments to the buyer-lessors over the lease period and is entitled to obtain ownership of the equipment at a nominal price upon the expiration of the lease. As the leased assets are considered integral with real estate under ASC 360, the sale-leaseback rules related to real estate are applied. The lease transactions do not qualify as a sale-leaseback transaction as these solar projects are initially invested and built up by the seller-lessee with expected useful life of 25 years, and are continuingly maintained by the seller-lessee. The seller-lessee has an obligation to repurchase the leased assets upon the expiry of the lease. In addition, after the lease period, the seller-lessee will keep using the assets and has no plans to sell or for early-disposal. Accordingly, these transactions are accounted for as financing transactions in accordance with ASC 840. Internal rate of return is used in the computation of interest cost. The assets remain in the property, plant and equipment (“PPE”) and continue to be depreciated. As of December 31, 2018 and 2019, the Company recorded $48,748,462 and $30,036,724 under failed sale and lease back liabilities as non-current portion and $7,275,464 and $5,512,507 as the current portion, which represents principal to be paid in the next year. The weighted average effective interest rate of the financing was 6.53% and 7.13% and interest costs incurred during the years ended December 31, 2018 and 2019 were $4,617,129 and $4,415,569, respectively. These failed sale-leaseback financings were collateralized by the underlying assets of the solar projects. c) Finance lease In 2018 and 2019, the Company leased module, inverter and other materials from different domestic financial leasing companies. Pursuant to the terms of the contracts, the Company is required to make lease payments to the finance lease companies and is entitled to obtain the ownership of this machinery and equipment at a nominal price upon the expiration of the lease. These arrangements are guaranteed by other subsidiaries of the Company and also pledged by the shares and rights for the future power generation income of the leased assets. The lease is classified as finance lease. As of December 31, 2018, the carrying amount of the assets related to these finance lease contracts is $46,411,683 and is included in PPE that is being depreciated over lives of 25 years . As of December 2019, the carrying amount of the assets related to these finance lease contract is $30,984,311 and is included in finance lease right-of-use assets that is being depreciated over lives of 25 years. The payable related to these contract is $34,130,495 and $20,766,512. As of December 31, 2018 and 2019, the net values of the leased assets are: As of December 31, 2018 2019 Modules, inverters, and other $ 46,411,683 $ 30,984,311 As of December 31, 2019, future minimum payments required under the finance lease are: USD Year ended December 31, 2020 $ 4,593,476 2021 5,752,259 2022 5,752,259 2023 5,447,345 2024 1,841,715 2025 and later 1,429,010 Total minimum lease payments 24,816,064 Less: Amount representing interest (4,049,552) Present value of net minimum lease payments 20,766,512 Current portion 4,066,696 Non-current portion $ 16,699,816 At December 31, 2018 2019 Current portion of finance lease (1) $ — $ 4,066,696 Current portion of failed sale and lease back (1) — 5,512,507 Total current portion of failed sale-lease back and finance lease — 9,579,203 Non-current portion for finance lease 29,126,308 16,699,816 Non-current portion for failed sale and lease back 48,748,462 30,036,724 Total non-current portion of failed sale-lease back and finance lease $ 77,874,770 $ 46,736,540 (1) d) Interest expense Interest expense incurred for the years ended December 31, 2017, 2018 and 2019 was $4,045,277, $11,578,848 and $12,329,336, of which $108,975, $2,874,944 and $3,169,518 has been capitalized in the carrying value of PPE and project assets. |
OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
OTHER CURRENT LIABILITIES | |
OTHER CURRENT LIABILITIES | 12. OTHER CURRENT LIABILITIES The Company’s other current liabilities are summarized below: At December 31, 2018 2019 Payables for purchase of property, plant and equipment $ 36,680,431 $ 22,810,701 Payables associated with finance lease–current portion, Note 11(c)(1) 5,004,187 — Payables associated with failed sale-lease back–current portion, Note 11(c)(1) 7,275,464 — Interest payable 1,626,010 1,009,090 Other tax payables 141,317 206,591 Accrued EPC warranty liabilities 186,553 183,941 Other (1) 1,834,945 2,953,012 $ 52,748,907 $ 27,163,335 (1) Other as of December 31, 2019 mainly includes the payables for the claims, audit fee and other professional service fees. |
COMMON SHARES
COMMON SHARES | 12 Months Ended |
Dec. 31, 2019 | |
COMMON SHARES | |
COMMON SHARES | 13. COMMON SHARES Upon inception, the Company is authorized to issue a maximum of 500,000,000 no par value shares of a single class. On September, 2017, The Company issued 180,000,000 common shares with a fair value of $42,480,000 to ReneSola Singapore Pte Ltd., as a result from the share repurchase and subscription agreement with Mr. Xianshou Li, for the sale of the Company’s manufacturing and LED distribution businesses. Total issued shares of the Company as of December 2017 was 381,027,002. On October, 2019, the Company issued and sold to Shah Capital Opportunity Fund LP 100,000,000 newly issued common shares at a market price of $0.11 per share, for a total consideration of $11,000,000. The newly issued shares are subject to a 180 days lockup period. Net proceed from the transaction are intended to be used to expand the Company global project development activities. Total issued shares of the Company as of December 2019 was 481,027,002. |
SHARE BASED COMPENSATION
SHARE BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2019 | |
SHARE BASED COMPENSATION | |
SHARE BASED COMPENSATION | 14. SHARE BASED COMPENSATION 2007 Share Incentive Plan On September 27, 2007, the Company adopted the ReneSola Ltd 2007 Share Incentive Plan (the “Plan”) that provides for grant of share options, restricted shares and restricted share units to employees in the Plan. A maximum of 7,500,000 authorized but unissued shares of the Company have been reserved and allocated to the Plan, whose shares were subsequently registered and are issuable upon exercise of outstanding options granted under the Plan. The Plan shall be administered by the Compensation Committee of the Board of Directors (the “Committee”). On July 27, 2010, the Company has amended the Plan so as to increase the number of authorized but unissued shares of the Company to 12,500,000 in accordance with the rules of the 2007 Share Incentive Plan. Except as otherwise noted in the award agreements with the employee or consultant, the options can be exercised within six years from the award date, except for participant’s termination of employment or service. The vesting schedule and the exercise price per share will be determined by the Committee and set forth in the individual award agreement. In the event of any distribution, share split, or recapitalization of the Company, the Committee shall make such proportionate and equitable adjustments, if any, to reflect such change with respect to (a) the aggregate number and type of shares that may be issued under the Plan and (b) the terms and conditions of any outstanding awards. Except as may otherwise be provided in any award agreement, if a change of control occurs and a participant’s awards are not converted, assumed, or replaced by a successor, such awards shall become fully exercisable and all forfeiture restrictions on such awards shall lapse. Options to Employees From January to December 2017, the Company granted 1,550,000 share options to certain employees with exercise prices of $0.64. From January to December 2018, the Company granted 830,000 share options to certain employees with exercise prices of $0.26. From January to December 2019, the Company granted 5,300,000 share options to certain employees with exercise prices of $0.11 and $0.15. Options Modification On August 8, 2012, the Board of Directors approved an option modification to reduce the exercise price of all the options granted before August 8, 2012 to the then fair market value of the Company’s ordinary shares underlying such options. All other terms of the share options granted remain unchanged. The modification resulted in incremental compensation cost of $774,932, of which $444,373 was recorded during the year ended December 31, 2012. The remaining $330,559 will be amortized over the remaining vesting period of the modified options, ranging from 2013 to 2017. On March 18, 2014, the Board of Directors approved another option modification to reduce the exercise price of certain options granted between August 8, 2012 and December 31, 2013 to the then fair market value of the Company’s ordinary shares underlying such options. All other terms of the share options granted remain unchanged. The incremental compensation cost resulted from modification was not material. On January 1, 2018, the Board of Directors approved an option modification to reduce the exercise price of certain options granted on January 1, 2014 to the then fair market value of the Company’s ordinary shares underlying such options. The number of shares, the expected terms were changed from 350,000 to 400,000, from 5 years to 3 years, respectively, other terms of the share option granted remain unchanged. The modification resulted in incremental compensation cost of $30,396, of which $10,132 and $10,132 were recorded during the years ended December 31, 2018 and 2019, respectively. The remaining $10,132 will be amortized in 2020, the remaining vesting period of the modified options. On April 1, 2018, the Board of Directors approved another option modification to reduce the exercise price of certain options granted on June 21, 2010, August 24, 2010, August 8, 2012, March 8, 2016 and August 24, 2016 to the then fair market value of the Company’s ordinary shares underlying such options. The expected term was changed from 5 years to 3 years, other terms of the share option granted remain unchanged. The modification resulted in incremental compensation cost of $233,996, of which $58,499 and $58,499 were recorded during the years ended December 31, 2018 and 2019, respectively. The remaining $116,998 will be amortized in 2020 and 2021, the remaining vesting period of the modified options. The fair value of each option grant, as well as the fair value of option immediately before and after the aforementioned modification, is estimated on the date of grant or modification using the Black-Scholes option pricing model using the assumptions noted below. Weighted average Average risk-free expected option Dividend rate of return life Volatility rate yield Granted in 2017 1.93‑2.00 % 3.2 years 103.04‑109.89 % 0 % Granted in 2018 2.04‑2.62 % 3.2 years 51.06‑56.88 % 0 % Granted in 2019 1.60-1.82 % 3.2 years 47.61-57.16 % 0 % Expected volatilities based on the average of the standard deviation of the daily stock prices of the Company and other selected comparable companies in the same industry. The expected term of options represents the period of time that options granted are expected to be outstanding. The risk-free rate of return is based on the US Treasury bond yield curve in effect at the time of grant for periods corresponding with the expected term of the option. A summary of the option activity is as follows: Weighted Weighted Average Aggregate Number of Average Remaining Intrinsic Options Exercise Prices Contractual Life Value Options Outstanding on January 1, 2017 6,085,000 0.74 1.75 — Granted 1,550,000 0.64 3.50 — Exercised — — — — Forfeited (1,470,000) 0.74 — — Outstanding on December 31, 2017 6,165,000 0.71 1.64 — Granted 830,000 0.26 3.50 — Exercised — — — — Forfeited (1,535,000) 0.74 — — Outstanding on December 31, 2018 5,460,000 0.36 1.96 — Granted 5,300,000 0.15 — Exercised — — — — Forfeited (2,185,000) 0.43 — — Outstanding on December 31, 2019 8,575,000 0.21 — Vested or expected to vest at December 31, 2019 8,460,632 0.21 — Exercisable at December 31, 2019 1,341,667 0.39 — The weighted average grant date fair value of options granted during the years ended December 31, 2017, 2018 and 2019 was $0.41, $0.10 and $0.07 respectively. Total intrinsic value of options exercised for the years ended December 31, 2018 and 2019 was nil and nil respectively. As no options were exercised, proceeds were nil and nil as of December 31, 2018 and 2019. Compensation cost of $783,118, $406,228 and $348,916 has been charged against income during the years ended December 31, 2017, 2018 and 2019, respectively. As of December 31, 2019, there was $640,233 in total unrecognized compensation expense related to unvested options granted under the Plan, which is expected to be recognized over a weighted-average period of 2.27 years. Restricted Share Units In May 2014, the Compensation Committee of the Board of Directors of the Company approved a Restricted Share Units (“RSUs”) award program pursuant to the Plan. A summary of the RSUs activity is as follows: Weighted Number of Average shares Grant Date Fair Value RSUs Unvested on January 1, 2017 280,000 0.63 Granted — — Vested (140,000) 0.63 Unvested on December 31, 2017 140,000 0.63 Granted — — Vested (140,000) 0.63 Unvested on December 31, 2018 — — Granted — — Vested — — Unvested on December 31, 2019 — — The RSUs are measured based on the fair market value of the underlying common stock on the dates of grant. The aggregate compensation cost for RSUs recorded under the Plan was $87,500, $32,842 and nil for the year ended of December 31, 2017, 2018 and 2019. As of December 31, 2018 and 2019, there was nil in total unrecognized compensation expense related to unvested RSUs following the forfeiture. The total fair value of shares vested during the years ended December 31, 2017, 2018 and 2019 was amounting to $39,760, $39,200 and nil, respectively. Share Awards to Employees of Disposed Business Upon the disposal in September 2017 (as described in note 3), the options previously granted to the employees who were in the discontinued operations under 2017 Share Incentive Plan continue to be vested and exercisable. Accordingly to ASC 718, the Company has immediately recognized all the unrecognized compensation expenses as of the disposal date related to the options previously granted to the employees in the discontinued operations under 2017 Share Incentive Plan as the employees became non-employee after the disposal. The options held by the employees in the discontinued operations from the disposal point forward would be measured at fair value according to ASC 815, Derivatives and Hedging. For the year ended December 31, 2018 and 2019, the fair value change was nil and nil as the exercise prices of the options granted were higher than the ordinary share fair value. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2019 | |
EMPLOYEE BENEFITS | |
EMPLOYEE BENEFITS | 15. EMPLOYEE BENEFITS In accordance with the relevant rules and regulations in the PRC, employees of the Company are covered by benefit plans established by the local government. These plans are defined contribution plans and Zhejiang ReneSola Investment Ltd. (“ReneSola Investment”), Sichuan Bo Bo Power Engineering Co., Ltd. (“Sichuan Bo Bo”) and ReneSola Shanghai Ltd (“ReneSola Shanghai”), have contributed 14%, 17% and 17% separately of the basic salaries of its employees to such plans. In addition, ReneSola Investment, Sichuan Bo Bo and ReneSola Shanghai are required by PRC law to contribute approximately 17%, 14.8% and 16.5% separately of the basic salaries of its employees for medical insurance benefits, housing funds, unemployment and other statutory benefits. Other than the contribution, there is no further obligation for payments to employees under these plans. Total contributions were $674,100, $765,379 and $1,257,335 for the years ended December 31, 2017, 2018 and 2019, respectively. |
DISTRIBUTION OF PROFIT AND REST
DISTRIBUTION OF PROFIT AND RESTRICTED NET ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
DISTRIBUTION OF PROFIT AND RESTRICTED NET ASSETS | |
DISTRIBUTION OF PROFIT AND RESTRICTED NET ASSETS | 16. DISTRIBUTION OF PROFIT AND RESTRICTED NET ASSETS In accordance with the laws applicable to the Foreign Investment Enterprises established in the PRC, the Company’s PRC subsidiaries registered as wholly owned foreign enterprise have to make appropriations from their after-tax profits as determined under Chinese Accounting Standards (“CAS”) to reserve funds including general reserve fund, enterprise expansion fund and staff bonus and welfare fund. The appropriation to the general reserve fund must be at least 10% of the after-tax profits calculated in accordance with CAS. Appropriation is not required if the general reserve fund has reached 50% of the registered capital of the respective Company. Appropriations to the enterprise expansion fund and staff bonus and welfare fund are made at the respective Company’s discretion. In addition, in accordance with the PRC Company Laws, the Company’s PRC subsidiaries registered as Chinese domestic Companies must make appropriations from their after-tax profits as determined under CAS to non-distributable reserve funds including statutory surplus fund and discretionary surplus fund. The appropriation to the statutory surplus fund must be 10% of the after-tax profits as determined under CAS. Appropriation is not required if the statutory surplus fund has reached 50% of the registered capital of the respective Company. Appropriation to the discretionary surplus fund is made at the discretion of the respective Company. The general reserve is used to offset future losses. The subsidiary may, upon a resolution passed by the shareholder, convert the general reserve into capital. These reserves represent appropriations of the retained earnings determined in accordance with the Chinese law. In addition to the general reserve, the Company’s PRC subsidiaries are required to obtain approval from the local PRC government prior to distributing any registered share capital. Accordingly, both the appropriations to general reserve and the registered share capital of the Company’s PRC subsidiaries are considered as restricted net assets amounting to $16,000,000 and $19,505,000 as of December 31, 2018 and 2019, representing 12.8% and 14.2% of the Company’s total consolidated net assets as of December 31, 2018 and 2019, respectively. |
EARNINGS_ (LOSS) PER ADS
EARNINGS/ (LOSS) PER ADS | 12 Months Ended |
Dec. 31, 2019 | |
EARNINGS/ (LOSS) PER ADS | |
EARNINGS/ (LOSS) PER ADS | 17. EARNINGS/ (LOSS) PER ADS Basic earnings/(loss) per ADS and diluted earnings/(loss) per ADS have been calculated as follows: For the years ended December 31, 2017 2018 2019 Numerator: Net income/(loss) from continuing operations $ 3,199,831 $ 5,096,480 $ (11,680,155) Net income from discontinued operations 31,257,707 — — Total net income/(loss) 34,457,538 5,096,480 (11,680,155) Less: Net income/(loss) attributed to noncontrolling interests — 3,336,769 (2,848,932) Total net income/(loss) attributed to ReneSola Ltd $ 34,457,538 $ 1,759,711 $ (8,831,223) Numerator for diluted income/(loss) per ADS for continuing operations 3,199,831 1,759,711 (8,831,223) Numerator for diluted income per ADS for discontinued operations 31,257,707 — — Denominator: Denominator for basic earnings/(loss) per ADS - weighted average number of ADS outstanding 24,689,929 38,075,293 40,595,551 Dilutive effects of share options, RSUs and warrants 600 — — Denominator for diluted calculation - weighted average number of ADS outstanding* 24,690,529 38,075,293 40,595,551 Continuing operations: Basic earnings/(loss) per ADS from continuing operations 0.13 0.05 (0.22) Diluted earnings/(loss) per ADS from continuing operations 0.13 0.05 (0.22) Discontinued operations: Basic earnings per ADS from discontinued operations 1.27 — — Diluted earnings per ADS from discontinued operations 1.27 — — *Each ADS represents 10 common shares The Company issues ordinary shares to its share depository bank which will be used to settle stock option awards upon their exercise. Any ordinary shares not used in the settlement of stock option awards will be returned to the Company. As of December 31, 2018 and 2019, there are 208,100 and 208,100 ordinary shares, respectively, are legally issued to the share depository bank but are treated as escrowed shares for accounting purposes and therefore, have been excluded from the computation of earnings /(loss) per share. As the Company reports discontinued operations in the periods presented, the Company uses income /(loss) from continuing operations as the control number in determining whether those potential common shares are dilutive or antidilutive. That is, the same number of potential common shares used in computing the diluted per-share amount for income /(loss) from continuing operations shall be used in computing all other reported diluted per-share amounts even if those amounts will be antidilutive to their respective basic per-share amounts. The following ordinary share equivalents were excluded from the computation of diluted net earnings/(loss) per share for the periods presented because including them would have been anti-dilutive: For the years ended December 31, 2017 2018 2019 Share options 3,491,575 5,460,000 8,575,000 |
NON-CONTROLLING INTEREST
NON-CONTROLLING INTEREST | 12 Months Ended |
Dec. 31, 2019 | |
NON-CONTROLLING INTEREST | |
NON-CONTROLLING INTEREST | 18. NON-CONTROLLING INTEREST On April 27, 2018, the Company subsidiary, ReneSola Investment entered into an investment agreement with Jiashan Yaozhuang Modern Service Industry Comprehensive Development Co., Ltd. (“Jiashan Development”) to increased its registered share capital by accepting investment of RMB200 million ($30.9 million). After the Capital Injection, Jiashan Development owns 40.13% of ReneSola Investment. Net proceeds are used for working capital and capital expenditures to develop and deliver solar energy project. On December 31, 2019, the Company subsidiary, RPNC Holdings, LLC received contribution from non-controlling interest holders of subsidiaries, Fayetteville RG Solar, LLC with a consideration of $13.1 million. Net proceeds are used for capital expenditures to construct solar energy projects. |
RELATED PARTY BALANCES AND TRAN
RELATED PARTY BALANCES AND TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
RELATED PARTY BALANCES AND TRANSACTIONS | |
RELATED PARTY BALANCES AND TRANSACTIONS | 19. RELATED PARTY BALANCES AND TRANSACTIONS (a) Related party balances At December 31, 2018 2019 Due from ReneSola Singapore (1) and its subsidiaries $ 20,779,022 $ 19,107,981 Allowance for doubtful accounts (2) — (4,308,679) Due from ReneSola Singapore (1) and its subsidiaries, net 20,779,022 14,799,302 Due to ReneSola Singapore (1) and its subsidiaries 44,018,006 17,546,934 Due to related party balances, net $ 23,238,984 $ 2,747,632 (b) Related party transactions During the years ended December 31, 2017, 2018 and 2019, related party transactions with ReneSola Singapore Pte., Ltd and its subsidiaries were as follows: Years ended December 31, 2017 2018 2019 Purchase of modules from $ 33,238,377 $ 12,466,413 $ 2,534,750 Rendering of service to 868,158 5,168,278 834,875 Borrowing from (3) 11,343,739 17,273,194 793,269 Lending to (4) 1,624,261 — — Acquire project companies from (5) $ — $ 11,286,840 $ — (1) After the disposal of the discontinued business in September 2017, ReneSola Singapore Pte., Ltd and its subsidiaries becomes the related party of the Company that both ReneSola Singapore and the Company are under common control of Mr. Li. The balances due from ReneSola Singapore and its subsidiaries were mainly rendering service to them. The balances due to ReneSola Singapore and its subsidiaries were mainly modules, raw materials that the Company purchased from them and borrowings from them. (2) Allowances for doubtful accounts represented long-aging receivable balances from ReneSola Singapore Pte., Ltd and its subsidiaries which the Company deemed there was a credit risk of such balances. (3) It represented the borrowings under a loan agreement between the Company (“borrower”) and ReneSola Singapore (the “lender”). The lender grants to the borrower a loan in the principal amount of up to US$200 million with annual interest rate of 1%. There is no fixed repayment schedule of this loan. For such loans during 2019, total principal additions were $0.79 million. (4) It represented the loan borrowed by ReneSola Singapore’s subsidiaries bearing no interest. There is no fixed repayment schedule of this loan. (5) In 2018, the Company acquired certain project companies from ReneSola Zhejiang Ltd. and ReneSola Jiangsu Ltd. for total cash consideration of $11.29 million for power generation purpose, which constituted an asset purchase. Total net assets of the companies acquired were $11.29 million. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 20. COMMITMENTS AND CONTINGENCIES (a) Operating lease accounting The Company leases rooftop, land, other property, and equipment under non-cancellable operating leases whose initial terms are typically 3 to 25 years, with some having a term of 35 years or more, along with options that permit renewals for additional periods. At the inception of each lease, the Company determines if the arrangement is a lease or contains an embedded lease and reviews the facts and circumstances of the arrangement to classify leased assets as operating or finance under Topic 842. The Company has elected not to record any leases with terms of 12 months or less on the balance sheet. As this time, a certain portion of active leases within the Company portfolio are classified as operating leases under the new standard. Operating leases are included in leases right-of-use (“ROU”) assets, operating lease current liabilities, and operating lease non-current liabilities in the consolidated balance sheet. The ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent our obligation to make minimum lease payment arising from the lease for the duration of the lease term. Most leases include one or more options to renew, with renewal terms that can extend the lease term from 1 year to 5 years or greater. The exercise of lease renewal option is typically at our discretion. Additionally, many leases contain early termination clauses, however early termination typically requires the agreement of both parties to the lease. At the lease inception, all renewal options reasonably certain to be exercised are considered when determining the lease term. At this time, the Company does not have operating leases that include options to purchase or automatically transfer ownership of the lease property to the Company. The depreciable life of leased assets is limited by the expected lease term. To determine the present value of future minimum lease payments, the Company use the implicit rate when readily determinable. At this time, many of the Company leases do not provide an implicit rate; therefore, to determine the present value of minimum lease payments, the Company use its incremental borrowing rate based on the information available at lease commencement date. The ROU assets also include any lease payments made and exclude lease incentives. The components of lease expenses consisted of the following: Year Ended December 31, Lease cost Classification 2019 Operating lease cost Amortization of leased assets Depreciation, amortization $ Interest on lease liabilities Interest expense Net lease cost $ Lease Term and Discount Rate December 31, 2019 Weighted-average remaining lease term (years) Operating leases 21 Weighted-average discount rate (%) Operating leases 7 % Year Ended December 31, Other information 2019 Cash paid for amount included in the measurement of lease liabilities Operating cash flows from operating leases $ (3,067,901) As of December 31, 2019, future minimum payments required under the operating lease are: USD Year ended December 31, 2020 $ 2,064,709 2021 2,621,560 2022 1,842,883 2023 2,222,844 2024 1,860,086 2025 and later 33,869,596 Total minimum lease payments 44,481,678 Less: Amount representing interest (21,140,989) Present value of net minimum lease payments $ 23,340,689 Current portion 452,740 Non-current portion (b) Legal matters The Company is a party to legal matters and claims in the normal course of its operations. While the Company believes that the ultimate outcome of these matters will not have a material adverse effect on its financial position, results of operations or cash flows, the outcome of these matters is not determinable with certainty and negative outcomes may adversely affect the Company. (c) Guarantee For the years ended December 31, 2018 and 2019, ReneSola Investment, a subsidiary of the Company, guaranteed failed sale-lease back for project companies within the Company with the amount of $18,256,841 and $1,766,035, respectively. In addition, the Company guaranteed rooftop lease for subsidiary of the related party of the Company. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2019 | |
SEGMENT REPORTING | |
SEGMENT REPORTING | 21 . SEGMENT REPORTING Prior to the disposal of discontinued business on September 29, 2017 (Note 3), which have been presented as discontinued operations for all the periods presented herein, the Company operated and managed three principal reportable segments, Wafer, Cell and module, and Solar power projects. The Wafer segment involved the manufacture and sales of monocrystalline and multicrystalline solar wafers and processing services. The Cell and module segment involved manufacture and sale of PV cells and modules, and service revenue from tolling arrangements. The solar power projects segment was formed in 2015, and involves solar power project development, EPC services and electricity generation revenue. Ancillary revenues and expenses and other unallocated costs and expenses are recorded in other. Pursuant to the disposal of the manufacturing business and LED distribution business on September 27, 2017 (Note 3) presented in discontinued operations for all the periods presented herein, the Company further separated the solar power project segment into three reportable segments, including solar power project development, EPC services and electricity generation revenue. Ancillary revenues and expenses and other unallocated costs and expenses are recorded in other. The chief operating decision maker is the chief executive officer of the Company. The Company only reports the segment information of net revenue and gross profit, to conform to the information the chief operating decision maker receives to assess the financial performance and allocate resources. There are no differences between the measurements of the Company’s reportable segment’s gross profit and the Company’s consolidated gross profit, as the Company uses the same profit measurement for all of the reportable segments and the consolidated entity. Furthermore, the Company’s chief operating decision maker is not provided with asset information by segment. As such, no asset information by segment is presented. The following table summarizes the Company’s revenues generated from each segment: Year ended December 31, 2017 Electricity Solar power project generation EPC development revenue services Other Total Net revenue $ 64,837,042 $ 12,247,320 $ 25,853,288 $ 36,349 $ 102,973,999 Gross profit $ 3,575,775 $ 7,031,670 $ 3,524,310 $ — $ 14,131,755 Year ended December 31, 2018 Electricity Solar power project generation EPC development revenue services Other Total Net revenue $ 48,784,766 $ 29,257,928 $ 18,544,164 $ 319,477 $ 96,906,335 Gross profit $ 7,052,170 $ 17,673,474 $ 3,329,402 $ 14,701 $ 28,069,747 Year ended December 31, 2019 Electricity Solar power project generation EPC development revenue services Other Total Net revenue $ 90,096,551 $ 28,712,942 $ 69,751 $ 237,780 $ 119,117,024 Gross profit/(loss) $ 17,571,303 $ 16,763,190 $ (178,414) $ 69,969 $ 34,226,048 The following table summarizes the Company’s revenues generated by the geographic location of customers: Years ended December 31, 2017 2018 2019 China $ 67,533,887 $ 45,395,811 $ 24,470,827 United States 18,323,947 15,445,744 9,277,514 Romania 4,844,238 1,824,411 3,193,215 UK 7,271,370 31,169,458 3,853,687 Turkey 4,995,648 2,129,085 — France 4,909 941,826 730,962 Poland — — 59,884,835 Hungary — — 17,705,984 Total $ 102,973,999 $ 96,906,335 $ 119,117,024 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2019 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 22. SUBSEQUENT EVENTS Subsequent to December 31, 2019, the Company’s Korean subsidiaries successfully rolled-over Korean Won 32.7 billion ($28.3 million) of long-term borrowings by one year to March 2021. On January 30, 2020, the World Health Organization declared the coronavirus outbreak a “Public Health Emergency of International Concern” and on March 11, 2020, declared it to be a pandemic. Actions taken around the world to help mitigate the spread of the coronavirus include restrictions on travel, and quarantines in certain areas, and forced closures for certain types of public places and business. The coronavirus outbreak and actions taken to mitigate it have had and are expected to continue to have an adverse impact on the economies and financial markets of many countries, including the geographical areas in which the Company operates. While thus far we have not incurred significant disruptions from the coronavirus outbreak, we are unable to accurately predict the impact that it will have due to numerous uncertainties, including the severity of the disease, the duration of the outbreak, actions that may be taken by government authorities, the impact to the business of our customers, and other factors. However, the Company’s consolidated results for the first quarter of 2020 were adversely affected due to the delay in closing on the sale of two projects in Hungary which was scheduled in late March 2020. The sale was closed in April 2020 and revenue from the sale will be recognized in the second quarter of 2020. Because of the delay, the Company now expects revenue for the first quarter of 2020 to be in range from $18 to $20 million, which has been revised from the original range from $30 to $33 million. Due to the uncertainty surrounding the coronavirus pandemic, the financial impact for the consolidated results for the full year 2020 cannot be reasonably estimated at this time. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (the “Cares Act”) became law in the United States to provide certain tax incentives with the aim of mitigate the related economic harm for businesses. The Company is currently evaluating the benefit these tax incentives might have on the consolidated financial statements. |
SUMMARY OF PRINCIPAL ACCOUNTI_2
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |
Basis of presentation | (a) Basis of presentation The consolidated financial statements have been prepared and presented in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The realization of assets and the satisfaction of liabilities in the normal course of business are dependent on, among other things, the Company’s ability to generate cash flows from operations, and the Company’s ability to arrange adequate financing arrangements, to support its working capital requirements. The Company has performed a review of its cash flow forecast for at least the twelve months following the issuance date of these financial statements. The Company expects the solar power project business to generate positive cash inflow in the forecasted period. As of December 31, 2019, the Company has certain material short-term obligations that will require material financing cash outflows, such as financing lease payments and the current portion of its long-term loans. The Company has developed a plan to continue meeting its financing arrangement, which includes refinancing loans which are set to mature within one year, entering into new bank borrowings and financing leases, repaying loans with proceeds from the sale of solar power projects and disposal of certain solar power stations, reducing investment in the purchase of property, plant and equipment, and raising additional capital through equity offerings. In addition, the Company believes that the continuing efforts to stream-line the Company’s operations will enable the Company to control operating costs to be better aligned with its operations, market demand and projected sales levels. Based on the above factors, management believes that adequate sources of liquidity exist to fund the Company’s working capital and capital expenditures requirements, and to meet its short term debt obligations, other liabilities and commitments as they become due for at least twelve months from the issuance date of these financial statements. Disposal of manufacturing business and LED distribution business On September 25, 2017 (the “Disposal Date”), the Company transferred all of the Company’s assets and liabilities related to its manufacturing business (including polysilicon, solar wafer, solar cell and solar module manufacturing) and LED distribution business to Mr. Xianshou Li, Chairman and Chief Executive Officer of the Company, through a transfer of all the share capital in ReneSola Singapore Pte. Ltd. (“ReneSola Singapore”), a wholly-owned subsidiary of ReneSola prior to the Disposal Date. The financial results of ReneSola Singapore, together with its subsidiaries, for the nine months ended September 30, 2017 have been classified as discontinued operations within the accompanying consolidated financial statements. As the disposal date was just prior to the end of the quarter, there were no material transactions during the five days between September 25 and September 30, 2017; therefore, the disposal transaction was measured as of September 30, 2017. Unless otherwise indicated, amounts provided in these Notes pertain to continuing operations only (see Note 3 for information on discontinued operations). |
Basis of consolidation | (b) Basis of consolidation The consolidated financial statements include the financial statements of ReneSola Ltd and its subsidiaries. All inter-company transactions, balances and unrealized profits and losses have been eliminated on consolidation. A non-controlling interest is recognized to reflect the portion of a subsidiary’s equity which is not attributable, directly or indirectly, to the Company. Consolidated net income (loss) on the consolidated statements of operations and comprehensive income (loss) includes the net income (loss) attributable to non-controlling interests when applicable. The cumulative results of operations attributable to non-controlling interests are also recorded as non-controlling interests in the Company’s consolidated balance sheets. Cash flows related to transactions with non-controlling interests are presented under financing activities in the consolidated statements of cash flows, when applicable. |
Discontinued operations | (c) Discontinued operations A component of a reporting entity or a group of components of a reporting entity that are disposed or meet the criteria to be classified as held for sale, such as the management, having the authority to approve the action, commits to a plan to sell the disposal group, is reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on the Company’s operations and financial results. Discontinued operations are reported when a component of the Company comprising operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the Company is classified as held for disposal or has been disposed of, if the component either (1) represents a strategic shift or (2) have a major impact on the Company’s financial results and operations. Examples include a disposal of a major geographical location, line of business, or other significant part of the Company or disposal of a major equity method investment. In the consolidated statement of operations, results from discontinued operations are reported separately from the income and expenses from continuing operations and prior periods are presented on a comparative basis. In order to present the financial effects of the continuing operations and discontinued operations, revenues and expenses arising from intra-group transactions are eliminated except for those revenues and expenses that are considered to continue after the disposal of the discontinued operations. |
Fair value measurement | (d) Fair value measurement The Company estimates fair value of financial assets and liabilities as the price that would be received from the sales of an asset or paid to transfer a liability (an exit price) on the measurement date in an orderly transaction between market participants. When available, the Company measures the fair value of financial instruments based on quoted market prices in active markets, valuation techniques that use observable market-based inputs or unobservable inputs that are corroborated by market data. When observable market prices are not readily available, the Company generally estimates the fair value using valuation techniques that rely on alternate market data or inputs that are generally less readily observable from objective sources and are estimated based on pertinent information available at the time of the applicable reporting periods. See Note 9, “Fair Value Measurements,” for further details. |
Use of estimates | (e) Use of estimates The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses for the reporting periods presented. Actual results could materially differ from these estimates. Significant accounting estimates are susceptible to changes with the acquisition of the information, which include revenue recognition for sales of solar power projects, inputs used to recognize revenue over time, EPC warranties, allowances for doubtful accounts, valuation of deferred tax assets, and recoverability of the carrying value of long-lived assets and project assets. |
Cash and cash equivalents | (f) Cash and cash equivalents Cash and cash equivalents represent cash on hand and held with banks, including demand deposits, which are unrestricted as to withdrawal and use, and which have original maturities of three months or less when purchased. |
Restricted Cash | (g) Restricted Cash Restricted cash consists of cash and cash equivalents held by various banks to secure certain of our letters of credit and other deposits designated for the payment of amounts related to loan interest. Restricted cash also includes cash and cash equivalents held in frozen bank accounts due to judicial property preservations. The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within our consolidated balance sheets as of December 31, 2018 and 2019 to the total of such amounts as presented in the consolidated statements of cash flows: At December 31, 2018 2019 Cash and cash equivalents $ 6,750,178 $ 24,292,113 Restricted cash 2,275,866 405,040 Total cash, cash equivalents, and restricted cash $ 9,026,044 $ 24,697,153 |
Project assets and deferred project costs | (h) Project assets and deferred project costs In 2012, the Company began entering into arrangements to develop commercial solar power projects (“project assets”) for sale upon their completion. Project assets consist primarily of costs relating to solar power projects in various stages of development that are capitalized prior to entering into a definitive sales agreement for the solar power project. These costs include certain acquisition costs, land costs and costs for developing and constructing a solar power project. Development costs can include legal, consulting, permitting, and other similar costs. Construction costs can include execution of field construction, installation of solar equipment, and solar modules and related equipment. Interest costs incurred on debt during the construction phase are also capitalized within project assets. The Company does not depreciate the project assets when they are considered held for sale. Any revenue generated from a solar power project connected to the grid would be considered incidental revenue and accounted for as a reduction of the capitalized project costs for development. In addition, the Company presents all expenditures related to the development and construction of project assets as a component of cash flows from operating activities. During the development phase, these project assets are accounted for in accordance with the recognition, initial measurement and subsequent measurement subtopics of ASC 970-360, as they are considered in substance real estate. While the solar power projects are in the development phase, they are generally classified as non-current assets, unless it is anticipated that construction will be completed, and sale will occur within one year. The Company capitalizes the costs related to solar power projects in various stages of development prior to entering into a definitive sales agreement for the solar power project and classifies these costs as project assets on the consolidated balance sheets when the criteria in ASC 360-10-45-9 are met. If not met, the Company reclassifies them to property, plant and equipment, unless the delay in the period required to complete the sale is caused by events or circumstances beyond the Company’s control. Deferred project costs represent costs that are capitalized as deferred project assets for arrangements that are accounted for as real estate transactions after the Company has entered into a definitive sales arrangement, but before the sale is completed or before all criteria to recognize the sale as revenue are met. The Company classifies deferred project costs as noncurrent if satisfaction of all revenue recognition criteria is not expected within the next 12 months. The Company reviews project assets and deferred project costs for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company considers a project commercially viable or recoverable if it is anticipated to be sold for a profit once it is either fully developed or fully constructed. The Company considers a partially developed or partially constructed project commercially viable or recoverable if the anticipated selling price is higher than the carrying value of the related project assets and the estimated costs to complete. The Company examines a number of factors to determine if the project will be recoverable, the most notable of which include whether there are any changes in environmental, ecological, permitting, market pricing or regulatory conditions that impact the project. Such changes could cause the costs of the project to increase or the selling price of the project to decrease. If a project is not considered recoverable, the Company impairs the respective project assets and adjusts the carrying value to the estimated recoverable amount, with the resulting impairment recorded within operations. |
Contract costs | (i) Contract costs The Company provides EPC services including engineering design, construction contracting and management, procurement of PV modules, balance-of-system components and other components. Contract costs generally include all direct costs, such as materials, direct labor, and subcontracts, and indirect costs identifiable with or allocable to the contracts. Contract costs also include the costs related to the design, engineering, and costs of all PV modules and materials needed for the projects for the cooperation arrangements with third party to jointly construct the power projects for sale. Contract costs are accumulated and are charged to operations as the related revenue from contracts is recognized. Refer to note 2 (s) EPC services for the corresponding revenue streams. |
Advances to suppliers and advances for purchases of property, plant and equipment | (j) Advances to suppliers and advances for purchases of property, plant and equipment In order to secure a stable supply of construction materials, the Company makes advance payments to suppliers for raw material supplies and advances for purchases of long-lived assets which are offset against future deliveries. Advances to suppliers for purchases expected within twelve months as of each balance sheet date are recorded as advances to suppliers in current assets and those associated with purchases expected over longer periods of time are recorded in non-current advances to suppliers. As of December 31, 2018 and 2019, advances to suppliers in current assets were $379,568 and $248,130, respectively, and non-current advances to suppliers for construction materials supplies were nil. Advances for property, plant and equipment are recorded in non-current assets and were nil as of December 31, 2018 and 2019. The Company does not require collateral or other security against its advances to suppliers. As a result, the Company’s claims for such prepayments are unsecured, which exposes the Company to the suppliers’ credit risk. The Company performs ongoing credit evaluations of the financial condition of its material suppliers. |
Property, plant and equipment | (k) Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation and impairment. Depreciation is computed on a straight-line basis over the following estimated useful lives: Plant and machinery 3‑5 years Motor vehicles 4‑5 years Office equipment 3‑5 years Power stations 25 years Estimated useful life of land is infinite and no depreciation is provided. Construction in progress represents mainly the construction of solar power projects the Company will own and operate for electricity generation. Costs incurred in the construction are capitalized and transferred to property, plant and equipment upon completion, at which time depreciation commences. Expenditures for repairs and maintenance are expensed as incurred. The gain or loss on disposal of property, plant and equipment, if any, is the difference between the net sales proceeds and the carrying amount of the disposed assets, and is recognized in the consolidated statement of operations upon disposal. |
Assets and liabilities held-for-sale | (l) Assets and liabilities held-for-sale Assets and asset disposal groups are classified as held-for-sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when management has committed to a plan of sale and the sale is highly probable, the assets are available for immediate sale in their present condition and they are expected to qualify for recognition as a completed sale within one year from the date of classification. Assets and liabilities classified as held for sale are measured at lower of their carrying amount or fair value less costs to sell. Long-lived assets to be sold are classified as held for sale considering the recognition criteria in ASC 360‑10‑45‑9 in which all of the following criteria are met: · Management, having the authority to approve the action, commits to a plan to sell the asset, · The asset is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets; · An active program to locate a buyer and other actions required to complete the plan to sell the asset have been initiated; · The sale of the asset is probable, and transfer of the asset is expected to qualify for recognition as a completed sale, within one year; · The asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and · Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. |
Interest capitalization | (m) Interest capitalization The Company capitalizes interest costs as part of the costs of constructing certain assets during the period of time required to get the assets ready for their intended use. The Company capitalizes interest to the extent that expenditures to construct an asset have occurred and interest costs have been incurred. The interest capitalized for project assets forms part of the cost of revenues when such project assets are sold, and all revenue recognition criteria are met. Interest is capitalized for solar power projects that are classified as property, plant and equipment and built for the Company to own and operate for electricity generation before the projects are completed and put into operation. Interest capitalization ceases once a project is substantially complete or no longer undergoing construction activities to prepare it for its intended use. |
Impairment of long-lived assets | (n) Impairment of long-lived assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable or that the useful life is shorter than originally estimated. The Company assesses recoverability of the long-lived assets by comparing the carrying amount of the assets to the estimated future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. The Company recognizes an impairment loss in the event the carrying amount exceeds the estimated future undiscounted cash flows attributable to such assets, measured as the difference between the carrying amount of the assets and the fair value of the impaired assets. The impairment losses of long-lived assets were nil for the years ended December 31, 2017, 2018. For the year ended December 31, 2019, the amount was $6,880,115, of which $5,532,489 represented impairment losses from property, plant and equipment which were subsequently disposed in 2019 and $1,347,626 represented impairment losses from asset and liabilities held for sale. The impairment losses of these assets represented the difference between the carrying amount and fair value less cost to sell as a result of committed sale plans of solar power plants originally owned and operated by the Company for electricity generation. |
Leases | (o) Leases Leases are classified as finance or operating leases. A lease that transfers to the lessee substantially all the benefits and risks incidental to ownership is classified as a finance lease. At inception, a finance lease is recorded at the lower of the present value of minimum lease payments or the fair value of the asset. Assets under finance leases are amortized on a basis consistent with that of similar useful life of fixed assets or the end of lease term, whichever is earlier. If the lease transfers ownership or contains an option to purchase the asset that the lessee is reasonably certain to exercise, the finance leases should be amortized over the useful life of the asset. At the inception of each lease arrangement, the Company determines if the arrangement is a lease or contains an embedded lease and reviews the facts and circumstances of the arrangement to classify lease assets as operating or finance leases under ASU 2016-02, Leases (Topic 842). The Company has elected not to record any leases with terms of 12 months or less on the consolidated balance sheets. Balances related to operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities current and operating lease liabilities non-current on the consolidated balance sheets. Finance leases represent a small portion of the active lease agreements and are included in finance lease ROU assets, finance lease liabilities current and non-current on the consolidated balance sheets. The ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the obligation of the Company to make minimum lease payments arising from the lease for the duration of the lease term. Operating lease costs are recognized on a straight-line basis over the lease term. From time to time, the Company’s subsidiaries are asked to prepay the lease costs for over one year. As of December 31, 2018, the prepaid rental fees of $430,608 were recorded in other non-current assets and $954,969 were recorded in prepaid expenses and other current assets. As of December 31, 2019, the prepaid rental fees of $688,324 were recorded in operating lease right-of-use assets. To determine the present value of future minimum lease payments, the Company use the implicit rate when readily determinable. Presently, because many of the leases do not provide an implicit rate, the Company applies its incremental borrowings rate based on the information available at the lease commencement date to determine the present value of minimum lease payment. The operating and finance lease ROU assets include any lease payment made and exclude lease incentives. For a sale-leaseback transaction, when the transaction involves real estate or integral equipment, sale-leaseback accounting shall be used by a seller-lessee only if the transaction includes all of the following a) normal leaseback; b) payment terms and provisions that adequately demonstrate the buyer-lessor’s initial and continuing investment in the property; and c) payment terms and provisions that transfer all of the other risks and rewards of ownership as demonstrated by the absence of any other continuing involvement by the seller-lessee. Equipment is determined to be integral when the cost to remove the equipment from its existing location, ship and reinstall at a new site, including any diminution in fair value, exceeds 10% of the fair value of the equipment at the time of original installation. If a sale-leaseback of real estate qualifies for sale-leaseback accounting, an analysis is performed to determine if the Company can record a sale and remove the assets from the balance sheet and recognize the lease; and if so, to determine whether to record the lease as either an operating or finance lease. If a sale-leaseback transaction does not qualify for sale-leaseback accounting because of any form of continuing involvement by the seller-lessee other than a normal leaseback, it is accounted for as a financing arrangement. |
Deferred convertible notes issuance costs | (p) Deferred convertible notes issuance costs Debt issuance costs are deferred and amortized using effective interest method through the earliest redemption date. The amortization, recorded in interest expense was nil for the years ended December 31, 2017, 2018 and 2019. |
Contingencies | (q) Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. If a potential material loss contingency is not probable but is reasonably possible, or is probable but the amount cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. Legal costs incurred in connection with loss contingencies are expensed as incurred. |
Income taxes | (r) Income taxes Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, net of operating loss carry forwards and credits by applying enacted statutory tax rates applicable to future years. 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. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. Deferred tax assets and liabilities are all classified as non-current in the consolidated balance sheets. |
Revenue recognition | (s) Revenue recognition Under ASC 606 (effective from January 1, 2018) Solar power project development a) Sale of project assets constructed by a third-party EPC contractor The Company recognizes revenue for sales of project assets constructed by a third-party EPC contractor over time as the Company’s performance creates an energy generation asset that is owned by the customer as it is being constructed and the customer can direct all activities related to the work in progress. Furthermore, the sale of a project asset when combined with EPC services represents a single performance obligation for the development and construction of a single generation asset. The Company recognizes revenue over time for construction contracts which recognize revenue and gross profit as work is performed based on the relationship between actual costs incurred compared to the total estimated costs of the contract. Under this business model, the EPC services are provided by a third-party service provider. In accordance with the terms and conditions of the EPC contract, the Company has the ability to direct a third party to ensure that the EPC services to the customer are performed therefore the Company acts as the principal in this arrangement and both the revenue and cost amounts paid to the EPC contractor are recognized on a gross basis. b) Sale of project assets constructed by the Company’s own EPC team Under this business model, the Company sells power projects after they have been completed or are near completion. The Company conducts the construction of the power plant and completes or nearly completes the project before it identifies a customer. When a customer is identified, the Company enters into two agreements through signing: Sale and Purchase Agreement (“SPA”) and Operations and Maintenance (“O&M”) Services Contract, which are generally signed on the same date. Such arrangements consist of two performance obligations: sale of solar project and O&M services. For sale of a solar project, the Company recognizes revenue at a point in time once control of project company is transferred to the customer as the Company has no remaining performance obligation once the control is transferred upon closing of the sale. For O&M services, the Company recognizes revenue over time, ratably over the service period, as this performance enhances an energy generation asset controlled by the customer. For sales agreements that have energy generation performance guarantees covering a certain timeframe or the availability guarantee in the O&M contract, if there is an underperformance event, the Company may incur liquidated damages as a percentage of the EPC contract price or as a percentage of O&M fees. Such performance guarantees represent a form of variable consideration and are estimated at contract inception at their most likely amount and updated at the end of each reporting period as additional performance data becomes available and only to the extent that it is probable that a significant reversal of any incremental revenue will not occur. All EPC contracts had been completed by December 31, 2018, thus there were no active EPC contracts in 2019. c) Sale of project asset rights The Company sells the project rights to customers through the disposal of project companies holding the relevant permits. For these transactions, the project companies could either own the land or lease the land under the lease term that could cover the entire power plant’s life. In these transactions, the Company is also responsible for locating the electricity end subscribers on the customer’s behalf for a certain percentage of the entire contact consideration. Such arrangements consist of two performance obligations: sale of project rights and sourcing of end subscribers. The Company recognizes revenue for sale of project rights at a point in time once control of project rights is transferred to customer as the Company has no further obligations related to the project rights. The Company recognizes revenue for sourcing of end subscribers over time as the Company has an ongoing obligation during a certain period to source end subscribers. A portion of the sales price consideration is variable on the percentage of end subscribers sourced for the project. The Company estimates the amount that most likely overcomes the constraint on variable consideration to include in the transaction price based on the historical subscription rates achieved. EPC Services The Company provides EPC services under the EPC contracts, under which the Company provides one distinct performance obligation – design and build the power plant on customer’s site per customer’s request. The Company recognizes revenue for EPC services over time as the Company’s performance creates or enhances an energy generation asset controlled by the customer. In recognizing revenue over time, the Company follows the costs incurred method and uses the actual costs incurred relative to the total estimated costs (including module costs) in order to determine the progress towards completion and calculate the corresponding amount of revenue and profit to recognize. Costs incurred include direct materials, solar modules, labor, subcontractor costs, and those indirect costs related to contract performance, such as indirect labor and supplies. The over time revenue recognition requires the Company to make estimates of net contract revenues and costs to complete the projects. In making such estimates, significant judgment is required to evaluate assumptions related to the amount of net contract revenues, including the impact of any performance incentives, liquidated damages, and other payments to customers. Significant judgment is also required to evaluate assumptions related to the costs to complete the projects, including materials, labor, contingencies, and other system costs. Although the EPC contract usually clearly states a fixed unit price and the estimated total contract amount, the total contract amount is subject to variable consideration due to the difference between actual grid-connection capacity and estimated grid-connection capacity. The Company makes a reasonable estimation of grid-connection capacity, which represents a form of variable consideration. The variable consideration is estimated at the contact inception at the best estimate based on relevant experience and historical data and updated at the end of each reporting period as additional performance data becomes available and only to the extent that it is probably that a significant reversal of any revenue will not occur. If estimated total costs on any contract are greater than the net contract revenues, the Company recognizes the entire estimated loss in the period the loss becomes known. The cumulative effect of the revisions to estimates related to net contract revenues and costs to complete contracts, including penalties, claims, change orders, performance incentives, anticipated losses, and others are recorded in the period in which the revisions to estimates are identified and the amounts can be reasonably estimated. The effect of the changes on future periods are recognized as if the revised estimates had been used since revenue was initially recognized under the contract. Such revisions could occur in any reporting period, and the effects may be material depending on the size of the contracts or the changes in estimates. The Company bills the customer based on progress billing terms in the contract. Accounts receivable from EPC services (unbilled) represents revenue that has been recognized in advance of billing the customer, which is common for long-term construction contracts. The Company typically recognizes revenue from contracts for the construction and sale of PV solar power systems over time using cost based input methods, which recognizes revenue and gross profit as work is performed based on the relationship between actual costs incurred compared to the total estimated costs of the contract. Accordingly, revenue could be recognized in advance of billing the customer, resulting in an amount recorded to “Accounts receivable from EPC services (unbilled)” as disclosed in Note 4. Once the Company has an unconditional right to consideration under a construction contract, the Company typically bills the customer accordingly and reclassifies the “Accounts receivable from EPC services (unbilled)” to “Accounts receivable from EPC services (billed).” Billing requirements vary by contract but are generally structured around the completion of certain construction milestones. Certain of the EPC contracts for PV solar power systems contain retainage provisions. Retainage represents contract costs for the portion of the contract price earned for work performed but held for payment by the customer as a form of security until a certain defined timeframe has been reached. The Company considers whether collectability of such retainage is reasonably assured in connection with our overall assessment of the collectability of amounts due or that will become due under the EPC contracts. Retainage included within “Accounts receivable from EPC services (unbilled)” is expected to be billed and collected within the next 12 months. After the Company has satisfied the EPC contract requirements and has an unconditional right to consideration, the retainage is billed and reclassified to “Accounts receivable from EPC services (billed).” Refer to Note 4 for detail breakdown of the “Accounts receivable from EPC services (unbilled)” and “Accounts receivable from EPC services (billed)” amounts. For EPC services, the Company provides a limited assurance only warranty for the modules, materials and construction part of the power plants. Although the Company subcontracts the construction to third party developers and purchase the raw materials and modules from third party suppliers, the Company is the primary obligor for the limited warranties such as solar module product warranty for a period of five to ten years, warranties for defects in engineering design, installation, workmanship for a period of one to two years and recorded as a liability in the Consolidated Balance Sheets. Nevertheless, the Company has a legally enforceable right to recover these warranties from the subcontractor and suppliers as these parties have contracted with the Company to assume these warranty obligations, and that the Company will also record receivables in the Consolidated Balance Sheets for expected reimbursement in amounts that the Company believe are probable. The EPC warranty expenses and expected recovery amounts related to warranties are recorded net of expense in the Consolidated Statement of Operations on the basis that the amounts provided by the subcontractor and suppliers are a reimbursement of our costs. As of December 31, 2018 and 2019, the liabilities and the related receivables are not material. The related expenses for the three years ended December 31, 2017, 2018 and 2019 are not material. Electricity generation revenue The Company recognizes electricity generation revenue generated from power plants owned and operated by the Company over time as the customer receives and consumes the benefits as the Company performs. In recognizing revenue overtime, the Company follows the output method and uses the actual electricity supplied in order to determine the progress towards completion and calculate the corresponding amount of revenue and profit to recognize. The electricity generation records are reconciled with the power grid companies and the price of electricity is based on a fixed unit price according to the power purchase arrangement with the power grid companies. The Company is entitled to the feed-in tariff(s) (FIT) that the government guaranteed and subsidized electricity sale price at which solar power projects can produce green energy. The Company recognizes the feed-in tariff(s) (FIT) as part of the electricity generation revenue when the entitlement to receipt of such feed-in tariff(s) (FIT) is fulfilled. Accounts receivable from such feed-in-tariff(s) (FIT) is expected to be collected beyond 12 months, which are discounted at an effective interest rate and recorded as non-current asset. Revenue from green certificates The Company receives green energy certificates based on electricity generated from the power plants in a Romanian subsidiary. The Company sells these certificates to buyers who can then meet the mandatory government quota per year for green energy produced. The Company believes that these green certificates are a government incentive and the sale of green energy certificates does not fall into derivative and lease accounting scope. The Company recognizes revenue for the sale at a point in time once the control of green certificates has been transferred to the buyers according to the green certificate purchase arrangement. The consideration of selling green certificates sold is fixed as stated in the purchase arrangement. For the years ended December 31, 2017, 2018 and 2019, revenue from green certificates were $4,184,724, $883,741 and $1,957,109, respectively, and is included in electricity generation revenue. Value added tax (“VAT”) Value added tax (“VAT”) at differentiated rates on invoice amount is collected on behalf of the tax authorities in respect of the different types of revenues and is not recorded as revenue. VAT paid for purchases, net of VAT collected from customers, is recorded as an asset. Under ASC 605 (effective before January 1, 2018) Solar power project development a) Sale of project assets The Company recognized revenue from the sale of project assets in accordance with ASC 360-20, Real Estate Sales. For these transactions, the Company has determined that the project assets, which represented the costs of constructing solar power projects, represented “integral” equipment and as such, the entire transaction is in substance the sale of real estate and subject to the revenue recognition guidance under ASC 360-20 Real Estate. Under the provisions of real estate accounting, the Company recognized revenue under full accrual method when all of the following requirements are met: (a) the sales are consummated; (b) the buyer’s initial and continuing investments are adequate to demonstrated its commitment to pay; (c) the receivable is not subject to any future subordination; and (d) the Company has transferred the usual risk and rewards of ownership to the buyer. Specifically, the Company considered the following factors in determining whether the sales have been consummated: (a) the parties are bound by the terms of a contract; (b) all consideration has been exchanged; (c) permanent financing for which the seller is responsible has been arranged; and (d) all conditions precedent to closing have been performed, and the Company does not have any substantial continuing involvement with the project. For sales agreements that have energy generation performance guarantees covering a certain timeframe, if there is an underperformance event, the Company may incur liquidated damages as a percentage of the EPC contract price. The Revenue recognized is reduced by the maximum amount of the payable liquidated damage, which amount is deferred until the end of the guarantee period. For sales agreements that have conditional repurchase clauses if certain events occur, such as not achieving specified guaranteed performance level within a certain timeframe, the Company will defer and will not recognize revenue on such sales agreements until the conditional repurchase clauses are of no further force or effect and all other necessary revenue recognition criteria have been met. b) Sale of project asset rights The Company also sells the project rights to customers through the disposal of project companies holding the relevant permits. For these transactions, the project companies could either own the land or lease the land under the lease term that could cover the entire power plant’s life. For the transactions with the land owned, the Company accounts the entire transaction under the revenue recognition guidance of ASC 360‑20 Real Estate. Under the provisions of real estate accounting, the Company recognized revenue under full accrual method when all of the requirements mentioned in the sale of project assets above are met. For the transactions with the land leased, the Company recognized revenue when the revenue is realized or realizable and earned in accordance with ASC 605‑10‑S99‑1. In these transactions, the Company is also responsible for locating the electricity end subscribers for certain percentage of the entire contract consideration. A consideration reduction will occur if the located end subscribers don’t reach to a defined threshold per the contract terms. The portion of the revenue is not recognized until the contingency has been removed, that is when the relevant subscription agreements are effective. Costs incurred during the course of obtaining permits are capitalized and recorded in project assets before the sale of project rights is completed. c) Jointly arrangements of power projects for sale The Company also enters into cooperation arrangement to jointly construct power projects for sale. In the arrangement, the Company’s performance obligations generally including design, engineering, procurement of all PV modules, materials needed for the projects and locating end subscriptions, while the counterparty is the primary obligor for constructing the power projects under the joint cooperation agreement, holds the ownership of the land and power projects and sell the power projects. The Company and the counterparty each generally receive 50% of the total selling price of the power projects. The Company recognized revenue, representing 50% of the selling price of the power projects, from this arrangement when the revenue is realized or realizable and earned in accordance with ASC 605‑10‑S99‑1, which is normally when the power projects are sold to the external buyers, when all of the following requirements are met: (a) persuasive evidence of an arrangement exists; (b) delivery has occurred or services have been rendered; (c) the seller’s price to the buyer is fixed or determinable; and (d) collectability is reasonably assured. EPC Services The Company provides engineering, procurement and construction (“EPC”) services under the EPC contracts to design and build the power plant on customer’s site per customer’s request. The Company generally recognized revenue for EPC services over time using a percentage-of completion method as the Company’s performance creates or enhances an energy generation asset controlled by the customer per ASC 605‑35. In applying the percentage-of-completion method, the Company follows the cost-to-cost method and uses the actual costs incurred relative to the total estimated costs (including module costs) in order to determine the progress towards completion and calculate the corresponding amount of revenue and profit to recognize. Costs incurred include direct materials, solar modules, labor, subcontractor costs, and those indirect costs related to contract performance, such as indirect labor and supplies. When contracts specify that title to direct materials and solar modules transfers to the customer before installation has been performed, the Company will not recognize revenue or the associated costs until those materials are installed and have met all other revenue recognition requirements. The percentage-of-completion method of revenue recognition requires the Company to make estimates of net contract revenues and costs to complete our projects. In making such estimates, management judgments are required to evaluate significant assumptions including the amount of net contract revenues, the cost of materials and labor, subcontractor costs, the impact of potential variances in schedule completion, and the impact of any penalties, claims, change orders, or performance incentives. If estimated total costs on any contract are greater than the net contract revenues, the Company recognized the entire estimated loss in the period the loss becomes known. The cumulative effect of the revisions to estimates related to net contract revenues and costs to complete contracts, including penalties, claims, change orders, performance incentives, anticipated losses, and others are recorded in the period in which the revisions to estimates are identified and the amounts can be reasonably estimated. The effect of the changes on future periods are recognized as if the revised estimates had been used since revenue was initially recognized under the contract. Such revisions could occur in any reporting period, and the effects may be material depending on the size of the contracts or the changes in estimates. For the year ended December 31, 2017, no such revisions occur. The Company bills the customer based on progress billing terms in the contract. Accounts receivable from EPC services (unbilled) represents revenue that has been recognized in advance of billing the customer, which is common for long-term construction contracts. The Company typically recognized revenue from contracts for the construction and sale of PV solar power systems over time using cost based input methods, which recognized revenue and gross profit as work is performed based on the relationship between actual costs incurred compared to the total estimated costs of the contract. Accordingly, revenue could be recognized in advance of billing the customer, resulting in an amount recorded to “Accounts receivable from EPC services (unbilled)” as disclosed in Note 4. Once the Company has an unconditional right to consideration under a construction contract, the Company typically bills the customer accordingly and reclassifies the “Accounts receivable from EPC services (unbilled)” to “Accounts receivable from EPC services (billed).” Billing requirements vary by contract but are generally structured around the completion of certain construction milestones. Certain of the EPC contracts for PV solar power systems contain retainage provisions. Retainage represented contract costs for the portion of the contract price earned for work performed but held for payment by the customer as a form of security until certain defined timeframe has been reached. The Company considered whether collectability of such retainage is reasonably assured in connection with the Company’s overall assessment of the collectability of amounts due or that will become due under the EPC contracts. Retainage included within “Accounts receivable from EPC services (unbilled)” is expected to be billed and collected within the next 12 months. After the Company has satisfied the EPC contract requirements and have an unconditional right to consideration, the retainage is billed and reclassified to “Accounts receivable from EPC services (billed).” Refer to Note 4 for detail breakdown of the “Accounts receivable from EPC services (unbilled)” and “Accounts receivable from EPC services (billed)” amounts. For EPC services, the Company provides limited warranty for certain years for the modules, materials and construction part of the power plants. Although the Company subcontracts the construction to third party developers and purchase the raw materials and modules from third party suppliers, the Company is the primary obligor for the limited warranties such as solar module product warranty for a period of five to ten years, warranties for defects in engineering design, installation, workmanship for a period of one to two years and records a liability “Accrued EPC warranty liabilities” which is grouped under “Other current liabilities” in the Consolidated Balance Sheet and disclosed in Note 12. On another hand, the Company has a legally enforceable right to recover these warranties from the subcontractor and suppliers as these parties have contracted with the Company to assume these warranty obligations, and that the Company will also record receivables for expected reimbursement in amounts that the Company believes are probable as “EPC Warranty reimbursement receivables” which is grouped under “Prepaid expenses and other current assets” in the Consolidated Balance Sheet and disclosed in Note 5. The EPC warranty expenses and expected recovery amounts related to warranties are recorded net in expense in the Consolidated Statement of Operations on the basis that the amounts provided by the subcontractor and suppliers are a reimbursement of the Company’s costs. The related expenses for the year ended December 31, 2017 is also not material. Electricity generation revenue The Company recognized electricity generation revenue for company operated power plants when persuasive evidence of a power purchase arrangement with the power grid company exists, electricity has been generated and been transmitted to the grid and the electricity generation records are reconciled with the power grid companies, the price of electricity is fixed or determinable and the collectability of the resulting receivable is reasonably assured. Noted that the Company is entitled to the feed-in tariff(s) (FIT) that the government guaranteed and subsidized electricity sale price at which solar power projects can produce green energy. The Company recognizes the feed-in tariff(s) (FIT) as part of the electricity generation revenue when the entitlement to receipt of such feed-in tariff(s) (FIT) is fulfilled. Revenue from green certificates The Company received green energy certificates based on electricity generated from the power plants in a subsidiary. The Company sells these certificates to buyers who can then meet the mandatory government quota per year for green energy produced. The Company believes that these green certificates are government incentive and the sale of green energy certificates does not fall into derivative and lease accounting scope. The Company recognized revenue for the sale in accordance with ASC 605‑10‑S99‑1 when persuasive evidence of a green certificate purchase arrangement with the buyer exists, green certificates have been delivered to the buyer, the price of total green certificates sold is fixed or determinable and the collectability of the resulting receivable is reasonably assured. Value added tax VAT at differentiated rates on invoice amount is collected on behalf of tax authorities in respect of the different types of revenues and is not recorded as revenue. VAT paid for purchases, net of VAT collected from customers, is recorded as an asset. Changes in Accounting Principles In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, “Revenue - Revenue from Contracts with Customers,” as a new Topic, ASC 606. Further, in March 2016, the FASB issued ASU No. 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” which clarifies the implementation guidance on principal versus agent considerations. On January 1, 2018, the Company adopted the new accounting standard ASC 606, Revenue from Contracts with Customers and all the related amendments (“new revenue standard”) to all contracts using the modified retrospective method. The new standard requires the Company to recognize revenue when a customer obtains control rather than when it has transferred substantially all risks and rewards of a good or service and requires expanded disclosures. ASC 606 superseded the real estate sales guidance under ASC 360-20. The Company has completed a detailed review of revenue contracts representative of its business segments and its revenue streams as of the adoption date. As a result of the evaluation performed, the Company has determined that the timing and amount of revenue that it recognizes on certain contracts is affected by the adoption of the new standard. These adjustments are primarily related to the change in recognition of solar power projects development. Under the modified retrospective method, the Company recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The Company does not expect the adoption of the new revenue standard to have a material impact to its net income and material change in timing of recognition of revenue on an ongoing basis. The cumulative effect of the changes made to its January 1, 2018 consolidated balance sheet for the adoption of ASU 2016-08, “Revenue - Revenue from Contracts with Customers” was as follows: Balance at Adjustments Due to Balance at December 31, 2017 ASC 606 January 1, 2018 Assets Accounts receivable, net of allowances for doubtful accounts $ 23,312,086 $ 7,079,477 $ 30,391,563 Project assets current 76,556,400 (400,642) 76,155,758 Contract costs 12,668,709 (5,808,850) 6,859,859 Liabilities and Shareholders’ Equity Accumulated deficit $ (435,517,610) $ 869,985 $ (434,647,625) There is no cumulative effect of the changes made to its December 31, 2018 consolidated balance sheet for the adoption of ASU 2016-08, “Revenue - Revenue from Contracts with Customers”. In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on its consolidated statements of operation and comprehensive income was as follows: Year ended December 31, 2018 As Balances Without Effect of reported Adoption of ASC 606 Change Net revenue: Solar power projects development $ 48,784,766 $ 55,864,243 $ (7,079,477) Electricity generation revenue 29,257,928 29,257,928 — EPC services 18,544,164 18,544,164 — Others 319,477 319,477 — Cost of revenue $ (68,836,588) $ (75,046,080) $ 6,209,492 Gross profit 28,069,747 28,939,732 (869,985) Income from operations 15,531,888 16,401,873 (869,985) Net income 5,096,480 5,966,465 (869,985) Net income attributed to ReneSola Ltd 1,759,711 2,629,696 (869,985) Basic income attributed to ReneSola Ltd per share 0.00 0.01 (0.01) Diluted income attributed to ReneSola Ltd per share 0.00 0.01 (0.01) |
Deferred project revenue | (t) Deferred project revenue Deferred project revenue mainly represented customer payments received or customer billings made under the terms of solar power project related sales contracts for which revenue recognition for real estate transactions have not yet been met. The associated solar power project related costs are included as deferred project costs. The Company classifies such amounts as current or noncurrent depending on when all revenue recognition criteria are expected to be met, consistent with the classification of the associated deferred project costs. |
Other operating income (expenses) | (u) Other operating income (expenses) Other operating income (expenses) primarily consists of discount charges of long-term receivables, compensation income and expenses, cancellation loss of project assets, and disposal loss of property, plant and equipment. For the year ended December 31, 2019, the cancellation loss of project assets of $6,434,935 mainly represented cancellation of solar power projects in the United States which do not have future associated benefits to the Company, and the disposal loss of property, plant and equipment amounted to $3,605,849. |
Foreign currency | (v) Foreign currency The functional currency of ReneSola Ltd is the United States Dollar (“U.S. dollar”). The functional currency of ReneSola’s subsidiaries in the People's Republic of China ("PRC") is Renminbi (“RMB”). The functional currency of the overseas subsidiaries normally is the local currency in the country where the subsidiary is domiciled. Foreign currency transactions have been translated into the functional currency at the exchange rates prevailing on the date of transactions. Foreign currency denominated monetary assets and liabilities are remeasured into the functional currency at exchange rates prevailing on the balance sheet date. Exchange gains and losses have been included in the determination of net income. The Company has chosen the U.S. dollar as its reporting currency. Assets and liabilities have been translated using exchange rates prevailing on the balance sheet date. Income statement items have been translated using the weighted average exchange rate for the year. Translation adjustments have been reported as a component of other comprehensive income in the consolidated statement of comprehensive income/(loss). The RMB is not a freely convertible currency. The PRC State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into foreign currencies. The value of the RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China foreign exchange trading system market. The Company’s cash and cash equivalents and restricted cash denominated in RMB amounted to RMB27,969,872 ($4,068,050) and RMB31,047,475 ($4,459,690) on December 31, 2018 and 2019, respectively. |
Fair value of financial instruments | (w) Fair value of financial instruments Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (also referred to as an exit price). The Company utilizes a hierarchy for inputs used in measuring fair value that gives the highest priority to observable inputs and the lowest priority to unobservable inputs. Valuation techniques used to measure fair value maximize the use of observable inputs. When available, the Company measures the fair value of financial instruments based on quoted market prices in active markets, valuation techniques that use observable market-based inputs or unobservable inputs that are corroborated by market data. Pricing information the Company obtains from third parties is internally validated for reasonableness prior to use in the consolidated financial statements. When observable market prices are not readily available, the Company generally estimates the fair value using valuation techniques that rely on alternate market data or inputs that are generally less readily observable from objective sources and are estimated based on pertinent information available at the time of the applicable reporting periods. In certain cases, fair values are not subject to precise quantification or verification and may fluctuate as economic and market factors vary and the Company’s evaluation of those factors changes. Although the Company uses its best judgment in estimating the fair value of these financial instruments, there are inherent limitations in any estimation technique. In these cases, a minor change in an assumption could result in a significant change in its estimate of fair value, thereby increasing or decreasing the amounts of the Company’s consolidated assets, liabilities, equity and net income or loss. See Note 9, “Fair Value Measurements,” for further details. |
Earnings (loss) per ADS | (x) Earnings (loss) per ADS Basic earnings (loss) per ADS is computed by dividing income (loss) attributable to holders of ADS by the weighted average number of ADS outstanding during the year. Diluted earnings (loss) per ADS reflects the potential dilution that could occur if securities or other contracts to issue ADS were exercised or converted into ADS. |
Share-based compensation | (y) Share-based compensation The Company recognizes expenses for services received in exchange for awards of equity instruments based on the grant-date fair value of the award as determined by the Black-Scholes option pricing model, net of estimated forfeitures. The estimated compensation cost is recognized ratably over the period the grantee is required to provide services per the conditions of the award. For stock option modifications, the Company measures the incremental compensation cost which should be measured as the excess, if any, of the fair value of the modified award determined over the fair value of the original award immediately before its terms are modified, which is measured based on the share price and other pertinent factors at that date. On January 1, 2018 and April 1, 2018, the Board of Directors of the Company approved two option modifications to reduce the exercise price. Pursuant to the option agreement entered with the optionees, options totaling 3,220,000 were cancelled and options totaling 3,300,000 were granted. The cancellation and replacement of the options shall be considered as an option modification. Subject to ASC 718‑20‑35, total compensation cost measured at the date of a cancellation and replacement shall be the portion of the grant-date fair value of the original award for which the requisite service is expected to be rendered (or has already been rendered) at the date plus the incremental cost resulting from the cancellation and replacement. The incremental compensation cost should be recognized prospectively over the remaining service period in addition to unrecognized compensation cost for original option. See Note 14, “Share Based Compensation”, for further details. |
Comprehensive income (loss) | (z) Comprehensive income (loss) Comprehensive income (loss) is the change in equity during a period from transactions and other events and circumstances from non-shareholder sources and included net income (loss) and foreign currency translation adjustments. As of December 31, 2018 and 2019, accumulated other comprehensive loss is composed of foreign currency translation adjustments. |
Treasury Stock | (aa) Treasury stock On September 23, 2015, the Company’s Board of Directors authorized the Company to repurchase up to $20 million of its American Depository Share ("ADS"), each representing its ten ordinary shares (Note in February 2017, the Company changed the number of the Company’s shares represented by each ADS from two (2) shares to ten (10) shares) in aggregate value of its outstanding ordinary shares through open market or private transactions during the twelve months period ending in September, 2016, depending on market condition. In the year ended December 31, 2015, the Company repurchased an aggregate of 161,477 ADSs, representing 1,614,776 ordinary shares, on the open market for total cash consideration of $812,184 as treasury stock. As of December 31, 2015 the Company cancelled all the treasury stock. In September 2016, the Company’s Board of Directors decided to extend the share repurchase program for another 12 months ending September 2017. In the year ended December 31, 2016, the Company repurchased an aggregate of 280,429 ADSs, representing 2,804,286 ordinary shares, on the open market for total cash consideration of $1,493,352 as treasury stock. As of December 31, 2016, the Company had cancelled 1,352,586 of the treasury stock from the 2016 repurchase and in 2017 cancelled the remaining 1,451,700 shares of the treasury stock. There was no outstanding treasury stock as of December 31, 2018 and 2019. |
Concentrations of credit risk | (ab) Concentrations of credit risk Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents, accounts receivable, advances to suppliers and other receivables. The Company places its cash and cash equivalents with reputable financial institutions. The Company conducts credit evaluations of customers and generally does not require collateral or other security from its customers. The Company establishes an allowance for doubtful accounts mainly based on the age of receivables and factors surrounding the credit risk of specific customers. |
Recently adopted accounting pronouncements | (ac) Recently adopted accounting pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, Leases (Topic 842), to increase transparency and comparability among organizations by recognizing right-of-use assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months and disclosing key information about leasing transactions. Leases are classified either operating or finance, with such classification affecting the pattern of expense recognition in the income statement. The effective date of the new standard is for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842) , which provided a transition to change to not restate comparative periods for the effects of applying the new standard. This transition election permits entities to change the date of initial application to the beginning of the earliest comparative period presented, or retrospectively at the beginning of the period of adoption through a cumulative-effect adjustment. The Company adopted ASC 842 on January 1, 2019 and elected to apply the modified retrospective approach at the beginning of the period of adoption through a cumulative-effect adjustment which, among other things, allowed the Company not to reassess prior conclusions related to contracts containing leases or lease classification. Upon commencement of a lease, the Company recognizes a lease liability for the present value of the lease payments not yet paid, discounted using an interest rate that represents the Company’s ability to borrow on a collateralized basis over a period that approximates the lease term. The Company also recognizes a lease asset, which represents the Company right to control the use of the underlying property, plant and equipment, at an amount equal to the lease liability adjusted for prepayments and initial direct costs. The adoption primarily affected the Company’s consolidated balance sheet through the recognition of $37,086,249 of operating lease right-of-use assets, $38,041,898 of finance lease right-of-use assets, $35,700,672 of operating lease liabilities and $34,130,495 of finance lease liabilities as of January 1, 2019 and the de-recognition of historical prepaid and deferred rent balances. The adoption did not have a material impact on our results of operations or cash flows. The Company subsequently recognizes the cost of the lease on a straight-line basis over the lease term for operating leases. The Company subsequently recognizes amortization of the right-of-use asset and interest on the lease liability respectively for finance leases. Any variable lease costs, which represent amounts owed to the lessor that are not fixed per the terms of the contract, are recognized in the period in which they are incurred. Any costs included in the Company lease arrangements that are not directly related to the leased assets, such as maintenance charges, are included as part of the lease costs. Leases with an initial term of one year or less are considered short-term leases and are not recognized as leases assets and liabilities. The Company also recognize the cost of such short-term leases on a straight-line basis over the term of the underlying agreement. As of December 31, 2019, the Company recognized $23,990,913 of operating lease right-of-use assets, $24,991,789 of finance lease right-of-use assets, $23,340,689 of operating lease liabilities and $20,766,512 of finance lease liabilities. ASC 842 provides for certain practical expedients that companies can elect to apply for purposes of adoption and implementation of the new standard. The practical expedients utilized by the Company are as follows: 1) no reassessment of whether existing contracts contain a lease, 2) no reassessment of the classification of existing lease, 3) no reassessment of initial direct costs for existing leases, 4) exclusion of leases with terms of 12 months or less from evaluation, and 5) use of the portfolio approach to determine discount rates. The cumulative effect of the changes made to its January 1, 2019 consolidated balance sheet for the adoption of ASU 2016-02, “Leases” was as follows: Balance at Adjustments due to Balance at December 31, 2018 ASC 842 January 1, 2019 Assets Prepaid expense and other current assets $ 14,318,076 $ (954,969) $ 13,363,107 Other non-current assets 6,458,949 (430,608) 6,028,341 Property, plant and equipment, net 190,787,262 (38,041,898) 152,745,364 Operating lease right-of-use assets — 37,086,249 37,086,249 Finance lease right-of-use assets — 38,041,898 38,041,898 Liabilities Accounts Payable 12,050,201 (46,328) Operating lease-liabilities current — 131,456 Other current liabilities (12,279,651) Failed sale-lease back and finance lease liabilities current — 12,279,651 Operating lease-liabilities non-current — 35,615,544 (ad) Recently issued accounting pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) , to provide financial statement users with more useful information about expected credit losses. ASU 2016-13 also changes how entities measure credit losses on financial instruments and the timing of when such losses are recorded. ASU 2016-13 is effective for fiscal years and interim periods within those years beginning after December 15, 2019, and early adoption is permitted for periods beginning after December 15, 2018. We do not expect the adoption of ASU 2016-13 to have a significant impact on our consolidated financial statements and associated disclosures. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement . ASU 2018-13 removes the requirement to disclose: the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; the policy for timing of transfers between levels; and the valuation processes for Level 3 fair value measurements. ASU 2018-13 requires disclosure of changes in unrealized gains and losses for the period included in other comprehensive income (loss) for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. We do not expect the adoption of ASU 2018-13 to have a significant impact on our consolidated financial statements and associated disclosures. |
SUMMARY OF PRINCIPAL ACCOUNTI_3
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Schedule of the following table provides a reconciliation of cash, cash equivalents, and restricted cash | At December 31, 2018 2019 Cash and cash equivalents $ 6,750,178 $ 24,292,113 Restricted cash 2,275,866 405,040 Total cash, cash equivalents, and restricted cash $ 9,026,044 $ 24,697,153 |
Schedule of property, plant and equipment estimated useful lives | Plant and machinery 3‑5 years Motor vehicles 4‑5 years Office equipment 3‑5 years Power stations 25 years |
ASU 2016-08 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Schedule of cumulative effect of the changes made to consolidated balance sheet | Balance at Adjustments Due to Balance at December 31, 2017 ASC 606 January 1, 2018 Assets Accounts receivable, net of allowances for doubtful accounts $ 23,312,086 $ 7,079,477 $ 30,391,563 Project assets current 76,556,400 (400,642) 76,155,758 Contract costs 12,668,709 (5,808,850) 6,859,859 Liabilities and Shareholders’ Equity Accumulated deficit $ (435,517,610) $ 869,985 $ (434,647,625) There is no cumulative effect of the changes made to its December 31, 2018 consolidated balance sheet for the adoption of ASU 2016-08, “Revenue - Revenue from Contracts with Customers”. In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on its consolidated statements of operation and comprehensive income was as follows: Year ended December 31, 2018 As Balances Without Effect of reported Adoption of ASC 606 Change Net revenue: Solar power projects development $ 48,784,766 $ 55,864,243 $ (7,079,477) Electricity generation revenue 29,257,928 29,257,928 — EPC services 18,544,164 18,544,164 — Others 319,477 319,477 — Cost of revenue $ (68,836,588) $ (75,046,080) $ 6,209,492 Gross profit 28,069,747 28,939,732 (869,985) Income from operations 15,531,888 16,401,873 (869,985) Net income 5,096,480 5,966,465 (869,985) Net income attributed to ReneSola Ltd 1,759,711 2,629,696 (869,985) Basic income attributed to ReneSola Ltd per share 0.00 0.01 (0.01) Diluted income attributed to ReneSola Ltd per share 0.00 0.01 (0.01) |
ASU 2016-02 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Schedule of cumulative effect of the changes made to consolidated balance sheet | Balance at Adjustments due to Balance at December 31, 2018 ASC 842 January 1, 2019 Assets Prepaid expense and other current assets $ 14,318,076 $ (954,969) $ 13,363,107 Other non-current assets 6,458,949 (430,608) 6,028,341 Property, plant and equipment, net 190,787,262 (38,041,898) 152,745,364 Operating lease right-of-use assets — 37,086,249 37,086,249 Finance lease right-of-use assets — 38,041,898 38,041,898 Liabilities Accounts Payable 12,050,201 (46,328) Operating lease-liabilities current — 131,456 Other current liabilities (12,279,651) Failed sale-lease back and finance lease liabilities current — 12,279,651 Operating lease-liabilities non-current — 35,615,544 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
DISCONTINUED OPERATIONS | |
Disposal Groups, Including Discontinued Operations | A reconciliation of disposal gain is presented as follows. Reconciliation of disposal gain: Item Amount in US$ million Waiver of the Company’s payable to the Buyer of the discontinued operations 217.4 Fair value of shares issued to the Buyer (42.5) Net assets of discontinued operations as of the disposal date (133.6) Release of currency translation difference due to discontinued operations 65.0 Disposal gain 106.3 Results of the discontinued operations January 1 – September 30 2017 Revenues $ 472,568,586 Cost of revenues (457,058,538) Gross profit 15,510,048 Operating (expenses)/income: Selling and marketing (24,259,869) General and administrative (32,341,022) Research and development (14,715,027) Other income 8,776,633 Impairment loss of assets — Total operating expenses (62,539,285) Loss from operations (47,029,237) Interest income 1,144,135 Interest expenses (25,518,288) Exchange gain (7,095,061) Loss on derivatives (1,284,379) Loss from discontinued operations before income taxes (79,782,830) Income tax benefit, net 4,748,324 Loss from discontinued operations, net of tax $ (75,034,506) |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
ACCOUNTS RECEIVABLE, NET | |
Schedule of components of accounts receivable, net | At December 31, 2018 2019 Accounts receivable – from EPC services (billed) $ 9,078,144 $ 2,753,277 – from EPC services (unbilled) 526,848 456,900 – from solar power project assets (1) 7,045,546 8,971,464 – from electricity generation revenue (2) 17,832,924 3,562,181 Total accounts receivable 34,483,462 15,743,822 Allowance for doubtful accounts — (1,908,803) Accounts receivable, net $ 34,483,462 $ 13,835,019 (1) As of December 31, 2019, receivables by post-dated checks were $813,652 and dates of acceptance were from May 31, 2020 to November 30, 2021. Of which, $406,826 were classified as current and recorded in accounts receivable from solar power project assets, and $406,826 were classified as non-current and recorded in other non-current assets. (2) Accounts receivable from electricity generation revenue were mainly due from the state grid companies. The amounts included the portion of feed-in tariff(s) (FIT) for the electricity sold to the state grid companies in the PRC in which the relevant on-grid solar power stations are still pending for registration to the Renewable Energy Subsidy Catalog, which the Company has submitted the application for its solar power stations started operation before July 2017 to be registered on the Catalog in early 2020. The Company expects that a certain part of the feed-in tariff(s) (FIT) receivables will be recovered after twelve months from the reporting date, which are discounted at an effective interest rate. As of December 31, 2019, there are $1,317,137 of feed-in tariff(s) (FIT) receivables classified as current and $16,800,636 classified as non-current. |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure | At December 31, 2018 2019 Refundable deposits (1) $ 12,082,372 $ 4,124,928 Prepaid rental fees (2) 954,969 — EPC Warranty reimbursement receivables 186,553 183,941 Others 1,094,182 2,491,414 Total prepaid expenses and other current assets 14,318,076 6,800,283 Allowance for doubtful accounts (3) — (729,629) Total prepaid expenses and other current assets $ 14,318,076 $ 6,070,654 (1) As of December 31, 2019, refundable deposits mainly represented refundable deposits for the bidding of project asset construction rights and rooftop leases. (2) As of January 1, 2019, prepaid rental fees represented rental payments for solar power projects due within one year which was disclosed as ROU in accordance with ASC 842 as of December 31, 2019. (3) Allowances for doubtful accounts mainly represented compensation sum receivable from Canada authority on closure of certain Canada project which the Company deemed the compensation sum would not be recoverable in full. |
PROJECT ASSETS (Tables)
PROJECT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
PROJECT ASSETS | |
Schedule of Project Assets | At December 31, 2018 2019 Project assets - Module cost $ 29,612,819 $ 4,616,399 Project assets - Development and construction cost 71,316,605 32,112,215 Project assets - Others 7,409,941 1,919,237 Total project assets 108,339,365 38,647,851 Current portion 64,257,766 32,125,312 Non-current portion 44,081,599 6,522,539 |
ASSETS HELD FOR SALE AND LIAB_2
ASSETS HELD FOR SALE AND LIABILITIES HELD FOR SALE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | A reconciliation of disposal gain is presented as follows. Reconciliation of disposal gain: Item Amount in US$ million Waiver of the Company’s payable to the Buyer of the discontinued operations 217.4 Fair value of shares issued to the Buyer (42.5) Net assets of discontinued operations as of the disposal date (133.6) Release of currency translation difference due to discontinued operations 65.0 Disposal gain 106.3 Results of the discontinued operations January 1 – September 30 2017 Revenues $ 472,568,586 Cost of revenues (457,058,538) Gross profit 15,510,048 Operating (expenses)/income: Selling and marketing (24,259,869) General and administrative (32,341,022) Research and development (14,715,027) Other income 8,776,633 Impairment loss of assets — Total operating expenses (62,539,285) Loss from operations (47,029,237) Interest income 1,144,135 Interest expenses (25,518,288) Exchange gain (7,095,061) Loss on derivatives (1,284,379) Loss from discontinued operations before income taxes (79,782,830) Income tax benefit, net 4,748,324 Loss from discontinued operations, net of tax $ (75,034,506) |
Solar power plant subsidiaries | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | At December 31, 2019 Assets classified as held for sale Cash and cash equivalents $ 427,299 Accounts receivable, net 2,636,581 Value added tax recoverable 747,646 Prepaid expenses and other current assets 1,593,391 Property, plant and equipment, net 13,290,761 Operating lease right-of-use asset 1,230,574 Impairment of assets (1) (1,347,626) Total assets classified as held for sale 18,578,626 Liabilities classified as held for sale Accounts payable 58,525 Operating lease liabilities 1,229,918 Failed sales leased back and finance lease liability 7,879,923 Total liabilities classified as held for sale $ 9,168,366 (1) As a result of the acquisition agreement, the Company reassessed the net assets on the solar power plant to the lower of carrying amount or fair value less cost to sell. As of December 31, 2019, the impairment loss of $1,347,626 has been applied to reduce the carrying amount of assets classified as held for sale. |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
Schedule of property, plant and equipment. net | At December 31, 2018 2019 Land $ 282,000 $ 282,000 Plant and machinery 789,931 776,752 Motor vehicles 183,664 181,387 Office equipment 102,326 136,857 Power stations 194,931,540 159,257,486 Less: Accumulated depreciation (16,215,671) (17,333,097) 180,073,790 143,301,385 Construction in progress 10,713,472 — Property, plant and equipment, net $ 190,787,262 $ 143,301,385 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
INCOME TAXES | |
Schedule of Components of Tax Benefit (Expense) | Years ended December 31, 2017 2018 2019 Income (loss) before income tax PRC $ 2,938,038 $ 10,535,785 $ (10,273,181) Other jurisdictions 583,861 (5,628,096) (301,925) Total 3,521,899 4,907,689 (10,575,106) Current tax expense PRC (11,926) (553,859) (9,835) Other jurisdictions (222,094) (351,735) (839,676) Subtotal (234,020) (905,594) (849,511) Deferred tax benefit (expense) PRC 1,402 748,490 — Other jurisdictions (89,450) 345,895 (255,538) Subtotal (88,048) 1,094,385 (255,538) Total income tax benefit (expense) $ (322,068) $ 188,791 $ (1,105,049) |
Schedule of Principal Components of Deferred Income Tax Assets and Liabilities | At December 31, 2018 2019 Deferred tax assets: Accrued expenses $ 10,632 $ 16,304 Net operating losses 5,513,847 8,646,423 Unrealized internal profit 1,094,217 778,566 Allowances for doubtful accounts — 1,064,027 Cancellation of project assets — 1,351,336 Impairment loss of assets — 336,907 Other 27,990 161,033 Total gross deferred tax assets 6,646,686 12,354,596 Valuation allowance on deferred tax assets (5,535,214) (11,516,732) Net deferred tax assets $ 1,111,472 $ 837,864 |
Schedule of Reconciliation Between the Applicable Statutory Income Tax Rate and the Company's Effective Tax Rate | Year ended December 31, 2017 2018 2019 PRC applicable income tax rate 25 % 25 % 25 % Change in deferred tax valuation allowance (3) % 47 % (57) % Preferential tax rate (1) (24) % (53) % 7 % Effect of different tax rate of subsidiaries (4) % (7) % 16 % Other 15 % (16) % (1) % Effective income tax rate 9 % (4) % (10) % |
Schedule of Aggregate Amount and Per Share Effect of the Tax Holiday | The following table sets forth the effect of preferential tax on China operations for the years ended December 31, 2017, 2018 and 2019, respectively: Year ended December 31, 2017 2018 2019 Preferential tax effect (1) $ 845,010 $ 2,609,975 $ 720,847 (1) Certain solar power project entities are fully exempted from PRC CIT for three years starting from the year in which such project generates revenue from the sale of electricity and is 50% exempted from PRC CIT for another three years. Besides, certain solar power project entities enjoy the preferential tax policies in connection with the development of the western region of China and are subject to a preferential tax rate of 15%. |
BORROWINGS AND OTHER FINANCIN_2
BORROWINGS AND OTHER FINANCING ARRANGEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
BORROWINGS AND OTHER FINANCING ARRANGEMENTS | |
Schedule of bank borrowings | At December 31, 2018 2019 Short-term $ 3,368,272 $ 7,173,571 Long-term, current portion 41,096,243 28,583,380 Subtotal 44,464,515 35,756,951 Bond payable — 2,503,621 Long-term 41,435,099 3,367,061 Total borrowings from bank and other third parties $ 85,899,614 $ 41,627,633 |
Schedule of Maturities of Long-term Debt | 2020 $ 2021 311,670 2022 326,073 2023 341,142 2024 356,596 2025 $ 2,031,580 |
Schedule of net values of leased assets | As of December 31, 2018 2019 Modules, inverters, and other $ 46,411,683 $ 30,984,311 |
Schedule of future minimum payments required under the finance lease | USD Year ended December 31, 2020 $ 4,593,476 2021 5,752,259 2022 5,752,259 2023 5,447,345 2024 1,841,715 2025 and later 1,429,010 Total minimum lease payments 24,816,064 Less: Amount representing interest (4,049,552) Present value of net minimum lease payments 20,766,512 Current portion 4,066,696 Non-current portion $ 16,699,816 |
Schedule of components of failed sale-lease back and finance lease liabilities | At December 31, 2018 2019 Current portion of finance lease (1) $ — $ 4,066,696 Current portion of failed sale and lease back (1) — 5,512,507 Total current portion of failed sale-lease back and finance lease — 9,579,203 Non-current portion for finance lease 29,126,308 16,699,816 Non-current portion for failed sale and lease back 48,748,462 30,036,724 Total non-current portion of failed sale-lease back and finance lease $ 77,874,770 $ 46,736,540 (1) |
OTHER CURRENT LIABILITIES (Tabl
OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
OTHER CURRENT LIABILITIES | |
Schedule of Other Current Liabilities | At December 31, 2018 2019 Payables for purchase of property, plant and equipment $ 36,680,431 $ 22,810,701 Payables associated with finance lease–current portion, Note 11(c)(1) 5,004,187 — Payables associated with failed sale-lease back–current portion, Note 11(c)(1) 7,275,464 — Interest payable 1,626,010 1,009,090 Other tax payables 141,317 206,591 Accrued EPC warranty liabilities 186,553 183,941 Other (1) 1,834,945 2,953,012 $ 52,748,907 $ 27,163,335 (1) Other as of December 31, 2019 mainly includes the payables for the claims, audit fee and other professional service fees. |
SHARE BASED COMPENSATION (Table
SHARE BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SHARE BASED COMPENSATION | |
Schedule of assumptions used to estimate the fair value of the options | Weighted average Average risk-free expected option Dividend rate of return life Volatility rate yield Granted in 2017 1.93‑2.00 % 3.2 years 103.04‑109.89 % 0 % Granted in 2018 2.04‑2.62 % 3.2 years 51.06‑56.88 % 0 % Granted in 2019 1.60-1.82 % 3.2 years 47.61-57.16 % 0 % |
Summary of the option activity | Weighted Weighted Average Aggregate Number of Average Remaining Intrinsic Options Exercise Prices Contractual Life Value Options Outstanding on January 1, 2017 6,085,000 0.74 1.75 — Granted 1,550,000 0.64 3.50 — Exercised — — — — Forfeited (1,470,000) 0.74 — — Outstanding on December 31, 2017 6,165,000 0.71 1.64 — Granted 830,000 0.26 3.50 — Exercised — — — — Forfeited (1,535,000) 0.74 — — Outstanding on December 31, 2018 5,460,000 0.36 1.96 — Granted 5,300,000 0.15 — Exercised — — — — Forfeited (2,185,000) 0.43 — — Outstanding on December 31, 2019 8,575,000 0.21 — Vested or expected to vest at December 31, 2019 8,460,632 0.21 — Exercisable at December 31, 2019 1,341,667 0.39 — |
Schedule of summary of the RSUs | Weighted Number of Average shares Grant Date Fair Value RSUs Unvested on January 1, 2017 280,000 0.63 Granted — — Vested (140,000) 0.63 Unvested on December 31, 2017 140,000 0.63 Granted — — Vested (140,000) 0.63 Unvested on December 31, 2018 — — Granted — — Vested — — Unvested on December 31, 2019 — — |
EARNINGS_ (LOSS) PER ADS (Table
EARNINGS/ (LOSS) PER ADS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
EARNINGS/ (LOSS) PER ADS | |
Schedule of Basic earnings/(loss) per ADS and diluted earnings/(loss) per ADS | For the years ended December 31, 2017 2018 2019 Numerator: Net income/(loss) from continuing operations $ 3,199,831 $ 5,096,480 $ (11,680,155) Net income from discontinued operations 31,257,707 — — Total net income/(loss) 34,457,538 5,096,480 (11,680,155) Less: Net income/(loss) attributed to noncontrolling interests — 3,336,769 (2,848,932) Total net income/(loss) attributed to ReneSola Ltd $ 34,457,538 $ 1,759,711 $ (8,831,223) Numerator for diluted income/(loss) per ADS for continuing operations 3,199,831 1,759,711 (8,831,223) Numerator for diluted income per ADS for discontinued operations 31,257,707 — — Denominator: Denominator for basic earnings/(loss) per ADS - weighted average number of ADS outstanding 24,689,929 38,075,293 40,595,551 Dilutive effects of share options, RSUs and warrants 600 — — Denominator for diluted calculation - weighted average number of ADS outstanding* 24,690,529 38,075,293 40,595,551 Continuing operations: Basic earnings/(loss) per ADS from continuing operations 0.13 0.05 (0.22) Diluted earnings/(loss) per ADS from continuing operations 0.13 0.05 (0.22) Discontinued operations: Basic earnings per ADS from discontinued operations 1.27 — — Diluted earnings per ADS from discontinued operations 1.27 — — *Each ADS represents 10 common shares |
Schedule of the computation of diluted net earnings/(loss) per ADS for the periods presented because including them would have been anti-dilutive | For the years ended December 31, 2017 2018 2019 Share options 3,491,575 5,460,000 8,575,000 |
RELATED PARTY BALANCES AND TR_2
RELATED PARTY BALANCES AND TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
RELATED PARTY BALANCES AND TRANSACTIONS | |
Schedule of amounts due to related parties comprised of amounts payable to purchase of raw materials and others | At December 31, 2018 2019 Due from ReneSola Singapore (1) and its subsidiaries $ 20,779,022 $ 19,107,981 Allowance for doubtful accounts (2) — (4,308,679) Due from ReneSola Singapore (1) and its subsidiaries, net 20,779,022 14,799,302 Due to ReneSola Singapore (1) and its subsidiaries 44,018,006 17,546,934 Due to related party balances, net $ 23,238,984 $ 2,747,632 |
Schedule of related party transactions | Years ended December 31, 2017 2018 2019 Purchase of modules from $ 33,238,377 $ 12,466,413 $ 2,534,750 Rendering of service to 868,158 5,168,278 834,875 Borrowing from (3) 11,343,739 17,273,194 793,269 Lending to (4) 1,624,261 — — Acquire project companies from (5) $ — $ 11,286,840 $ — (1) After the disposal of the discontinued business in September 2017, ReneSola Singapore Pte., Ltd and its subsidiaries becomes the related party of the Company that both ReneSola Singapore and the Company are under common control of Mr. Li. The balances due from ReneSola Singapore and its subsidiaries were mainly rendering service to them. The balances due to ReneSola Singapore and its subsidiaries were mainly modules, raw materials that the Company purchased from them and borrowings from them. (2) Allowances for doubtful accounts represented long-aging receivable balances from ReneSola Singapore Pte., Ltd and its subsidiaries which the Company deemed there was a credit risk of such balances. (3) It represented the borrowings under a loan agreement between the Company (“borrower”) and ReneSola Singapore (the “lender”). The lender grants to the borrower a loan in the principal amount of up to US$200 million with annual interest rate of 1%. There is no fixed repayment schedule of this loan. For such loans during 2019, total principal additions were $0.79 million. (4) It represented the loan borrowed by ReneSola Singapore’s subsidiaries bearing no interest. There is no fixed repayment schedule of this loan. (5) In 2018, the Company acquired certain project companies from ReneSola Zhejiang Ltd. and ReneSola Jiangsu Ltd. for total cash consideration of $11.29 million for power generation purpose, which constituted an asset purchase. Total net assets of the companies acquired were $11.29 million. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of components of lease expenses | Year Ended December 31, Lease cost Classification 2019 Operating lease cost Amortization of leased assets Depreciation, amortization $ Interest on lease liabilities Interest expense Net lease cost $ Lease Term and Discount Rate December 31, 2019 Weighted-average remaining lease term (years) Operating leases 21 Weighted-average discount rate (%) Operating leases 7 % Year Ended December 31, Other information 2019 Cash paid for amount included in the measurement of lease liabilities Operating cash flows from operating leases $ (3,067,901) |
Schedule of future minimum payments required under the operating lease | USD Year ended December 31, 2020 $ 2,064,709 2021 2,621,560 2022 1,842,883 2023 2,222,844 2024 1,860,086 2025 and later 33,869,596 Total minimum lease payments 44,481,678 Less: Amount representing interest (21,140,989) Present value of net minimum lease payments $ 23,340,689 Current portion 452,740 Non-current portion |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SEGMENT REPORTING | |
Schedule of the Company's revenues generated from each segment | Year ended December 31, 2017 Electricity Solar power project generation EPC development revenue services Other Total Net revenue $ 64,837,042 $ 12,247,320 $ 25,853,288 $ 36,349 $ 102,973,999 Gross profit $ 3,575,775 $ 7,031,670 $ 3,524,310 $ — $ 14,131,755 Year ended December 31, 2018 Electricity Solar power project generation EPC development revenue services Other Total Net revenue $ 48,784,766 $ 29,257,928 $ 18,544,164 $ 319,477 $ 96,906,335 Gross profit $ 7,052,170 $ 17,673,474 $ 3,329,402 $ 14,701 $ 28,069,747 Year ended December 31, 2019 Electricity Solar power project generation EPC development revenue services Other Total Net revenue $ 90,096,551 $ 28,712,942 $ 69,751 $ 237,780 $ 119,117,024 Gross profit/(loss) $ 17,571,303 $ 16,763,190 $ (178,414) $ 69,969 $ 34,226,048 |
Schedule of the Company's revenues generated by geographic location of customers | Years ended December 31, 2017 2018 2019 China $ 67,533,887 $ 45,395,811 $ 24,470,827 United States 18,323,947 15,445,744 9,277,514 Romania 4,844,238 1,824,411 3,193,215 UK 7,271,370 31,169,458 3,853,687 Turkey 4,995,648 2,129,085 — France 4,909 941,826 730,962 Poland — — 59,884,835 Hungary — — 17,705,984 Total $ 102,973,999 $ 96,906,335 $ 119,117,024 |
SUMMARY OF PRINCIPAL ACCOUNTI_4
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Advances to Suppliers and Advances for Purchase of Property, Plant and Equipment and Intangible Assets) (Details) - USD ($) | Apr. 01, 2018 | Jan. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |||||
Advances to suppliers-current | $ 248,130 | $ 379,568 | |||
Advances to suppliers-Noncurrent | 0 | ||||
Prepayments for property, plant and equipment, recorded in non-current assets | $ 0 | $ 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | 3,220,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 3,300,000 | 5,300,000 | 830,000 | 1,550,000 | |
Prepaid Expense, Noncurrent | $ 688,324 | $ 430,608 | |||
Prepaid Expense and Other Assets, Noncurrent | $ 954,969 |
SUMMARY OF PRINCIPAL ACCOUNTI_5
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Schedule of Estimated Useful Lives of Property, Plant and Equipment Stated at Cost Less Accumulated Depreciation) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Plant and machinery [Member] | Minimum | |
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | |
Estimated useful lives | 3 years |
Plant and machinery [Member] | Maximum | |
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | |
Estimated useful lives | 5 years |
Motor vehicles [Member] | Minimum | |
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | |
Estimated useful lives | 4 years |
Motor vehicles [Member] | Maximum | |
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | |
Estimated useful lives | 5 years |
Office equipment [Member] | Minimum | |
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | |
Estimated useful lives | 3 years |
Office equipment [Member] | Maximum | |
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | |
Estimated useful lives | 5 years |
Power stations [Member] | |
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | |
Estimated useful lives | 25 years |
SUMMARY OF PRINCIPAL ACCOUNTI_6
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Convertible Senior Notes, Revenue Recognition, Deferred Project Revenue, Cost of Revenues, Warranty Costs and Government Grants) (Details) | 12 Months Ended | 36 Months Ended | ||
Dec. 31, 2019USD ($)agreement | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019USD ($) | |
Amortization of deferred convertible notes issuance costs and premium | $ 0 | |||
Number of Agreements | agreement | 2 | |||
Impairment losses of long-lived assets | $ 6,880,115 | $ 0 | $ 0 | |
Impairment losses from property, plant and equipment which were subsequently disposed | 5,532,489 | |||
Impairment losses from asset and liabilities held for sale | 1,347,626 | |||
Cancellation of project assets | 6,434,935 | 0 | 0 | |
Disposal loss of property, plant and equipment | $ (3,605,849) | |||
Minimum | ||||
Term of product warranty | 5 years | |||
Term of service warranty | 1 year | |||
Maximum | ||||
Term of product warranty | 10 years | |||
Term of service warranty | 2 years | |||
Green Certificates [Member] | ||||
Revenue from green certificates | $ 1,957,109 | $ 883,741 | $ 4,184,724 |
SUMMARY OF PRINCIPAL ACCOUNTI_7
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Foreign Currency and Derivative Financial Instruments) (Details) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | ||||
Cash and cash equivalents, functional currency equivalent of foreign currency denominated amount | ¥ 31,047,475 | $ 4,459,690 | ¥ 27,969,872 | $ 4,068,050 |
SUMMARY OF PRINCIPAL ACCOUNTI_8
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Earnings (Loss) Per Share and Treasury Stock) (Details) - USD ($) | Sep. 23, 2015 | Sep. 22, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2019 | Dec. 31, 2018 |
Treasury stock [Member] | |||||||
Treasury Stock | |||||||
Treasury Stock, Shares, Retired | 1,451,700 | 1,352,586 | |||||
Shares outstanding | 0 | 1,451,700 | 0 | 0 | |||
Total cash consideration of shares repurchased | $ (1,493,352) | $ (812,184) | |||||
American Depository Shares (ADS) [Member] | |||||||
Treasury Stock | |||||||
Maximum amount authorized to repurchase ADS | $ 20,000,000 | ||||||
Conversion of common shares | 10 | 2 | |||||
Treasury Stock, Shares, Retired | 2,804,286 | 1,614,776 | |||||
ADS repurchased | 280,429 | 161,477 |
SUMMARY OF PRINCIPAL ACCOUNTI_9
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Restricted cash (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | ||
Cash and cash equivalents | $ 24,292,113 | $ 6,750,178 |
Restricted cash | 405,040 | 2,275,866 |
Total cash, cash equivalents, and restricted cash | $ 24,697,153 | $ 9,026,044 |
SUMMARY OF PRINCIPAL ACCOUNT_10
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Adoption of ASU 2016-08 "Revenue - Revenue from Contracts with Customers" (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 02, 2018 | |
Assets | ||||
Accounts receivable, net of allowances for doubtful accounts | $ 13,835,019 | $ 34,483,462 | ||
Project assets current | 32,125,312 | 64,257,766 | ||
Liabilities and Shareholders' Equity | ||||
Accumulated deficit | (442,345,657) | (433,514,434) | ||
Net revenue: | ||||
Cost of revenue | (84,890,976) | (68,836,588) | $ (88,842,244) | |
Gross profit | 34,226,048 | 28,069,747 | 14,131,755 | |
Income from operations | (964,304) | 15,531,888 | 6,555,610 | |
Net income | (11,680,155) | 5,096,480 | 34,457,538 | |
Net income attributed to ReneSola Ltd | $ (8,831,223) | $ 1,759,711 | $ 34,457,538 | |
Basic income attributed to ReneSola Ltd per share | $ (0.22) | $ 0.05 | $ 0.13 | |
Diluted income attributed to ReneSola Ltd per share | $ (0.22) | $ 0.05 | $ 0.13 | |
Solar power project development | ||||
Net revenue: | ||||
Net revenues | $ 90,096,551 | $ 48,784,766 | $ 64,837,042 | |
Electricity generation revenue | ||||
Net revenue: | ||||
Net revenues | 28,712,942 | 29,257,928 | 12,247,320 | |
EPC services | ||||
Net revenue: | ||||
Net revenues | 69,751 | 18,544,164 | 25,853,288 | |
Other | ||||
Net revenue: | ||||
Net revenues | $ 237,780 | 319,477 | 36,349 | |
ASU 2016-08 | ||||
Assets | ||||
Accounts receivable, net of allowances for doubtful accounts | 23,312,086 | $ 30,391,563 | ||
Project assets current | 76,556,400 | 76,155,758 | ||
Contract costs | 12,668,709 | 6,859,859 | ||
Liabilities and Shareholders' Equity | ||||
Accumulated deficit | (435,517,610) | $ (434,647,625) | ||
Net revenue: | ||||
Cost of revenue | (68,836,588) | |||
Gross profit | 28,069,747 | |||
Income from operations | 15,531,888 | |||
Net income | 5,096,480 | |||
Net income attributed to ReneSola Ltd | $ 1,759,711 | |||
Basic income attributed to ReneSola Ltd per share | $ 0 | |||
Diluted income attributed to ReneSola Ltd per share | $ 0 | |||
ASU 2016-08 | Solar power project development | ||||
Net revenue: | ||||
Net revenues | $ 48,784,766 | |||
ASU 2016-08 | Electricity generation revenue | ||||
Net revenue: | ||||
Net revenues | 29,257,928 | |||
ASU 2016-08 | EPC services | ||||
Net revenue: | ||||
Net revenues | 18,544,164 | |||
ASU 2016-08 | Other | ||||
Net revenue: | ||||
Net revenues | 319,477 | |||
Balances Without Adoption of ASC 606 | ASU 2016-08 | ||||
Net revenue: | ||||
Cost of revenue | (75,046,080) | |||
Gross profit | 28,939,732 | |||
Income from operations | 16,401,873 | |||
Net income | 5,966,465 | |||
Net income attributed to ReneSola Ltd | $ 2,629,696 | |||
Basic income attributed to ReneSola Ltd per share | $ 0.01 | |||
Diluted income attributed to ReneSola Ltd per share | $ 0.01 | |||
Balances Without Adoption of ASC 606 | ASU 2016-08 | Solar power project development | ||||
Net revenue: | ||||
Net revenues | $ 55,864,243 | |||
Balances Without Adoption of ASC 606 | ASU 2016-08 | Electricity generation revenue | ||||
Net revenue: | ||||
Net revenues | 29,257,928 | |||
Balances Without Adoption of ASC 606 | ASU 2016-08 | EPC services | ||||
Net revenue: | ||||
Net revenues | 18,544,164 | |||
Balances Without Adoption of ASC 606 | ASU 2016-08 | Other | ||||
Net revenue: | ||||
Net revenues | 319,477 | |||
Adjustments Due to ASC 606 | ||||
Net revenue: | ||||
Cost of revenue | 6,209,492 | |||
Gross profit | (869,985) | |||
Income from operations | (869,985) | |||
Net income | (869,985) | |||
Net income attributed to ReneSola Ltd | $ (869,985) | |||
Basic income attributed to ReneSola Ltd per share | $ (0.01) | |||
Diluted income attributed to ReneSola Ltd per share | $ (0.01) | |||
Adjustments Due to ASC 606 | Solar power project development | ||||
Net revenue: | ||||
Net revenues | $ (7,079,477) | |||
Adjustments Due to ASC 606 | ASU 2016-08 | ||||
Assets | ||||
Accounts receivable, net of allowances for doubtful accounts | 7,079,477 | |||
Project assets current | (400,642) | |||
Contract costs | (5,808,850) | |||
Liabilities and Shareholders' Equity | ||||
Accumulated deficit | $ 869,985 |
SUMMARY OF PRINCIPAL ACCOUNT_11
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Adoption of ASU 2016-02 Leases (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Lease, Practical Expedients, Package [true false] | true | ||
Assets | |||
Prepaid expense and other current assets | $ 6,070,654 | $ 14,318,076 | |
Other non-current assets | 17,236,558 | 6,458,949 | |
Property, plant and equipment, net | 143,301,385 | 190,787,262 | |
Operating lease right-of-use assets | 23,990,913 | 0 | |
Finance lease right-of-use assets | 24,991,789 | 0 | |
Liabilities | |||
Operating lease liabilities | 23,340,689 | ||
Finance lease liabilities | 20,766,512 | ||
Accounts payable | 20,431,093 | 12,050,201 | |
Operating lease liabilities current | 452,740 | ||
Other current liabilities | 27,163,335 | 52,748,907 | |
Operating lease liabilities non-current | 22,887,949 | ||
ASU 2016-02 | |||
Assets | |||
Prepaid expense and other current assets | $ 13,363,107 | 14,318,076 | |
Other non-current assets | 6,028,341 | 6,458,949 | |
Property, plant and equipment, net | 152,745,364 | 190,787,262 | |
Operating lease right-of-use assets | 37,086,249 | 0 | |
Finance lease right-of-use assets | 38,041,898 | 0 | |
Liabilities | |||
Accounts payable | 12,003,873 | 12,050,201 | |
Operating lease liabilities current | 131,456 | 0 | |
Other current liabilities | 40,469,256 | 52,748,907 | |
Failed sale-lease back and finance lease liabilities current | 12,279,651 | 0 | |
Operating lease liabilities non-current | 35,615,544 | 0 | |
Restatement Adjustment [Member] | ASU 2016-02 | |||
Assets | |||
Prepaid expense and other current assets | (954,969) | ||
Other non-current assets | (430,608) | ||
Property, plant and equipment, net | (38,041,898) | ||
Operating lease right-of-use assets | 23,990,913 | 37,086,249 | 37,086,249 |
Finance lease right-of-use assets | 24,991,789 | 38,041,898 | 38,041,898 |
Liabilities | |||
Operating lease liabilities | 23,340,689 | 35,700,672 | |
Finance lease liabilities | $ 20,766,512 | $ 34,130,495 | |
Accounts payable | (46,328) | ||
Operating lease liabilities current | 131,456 | ||
Other current liabilities | (12,279,651) | ||
Failed sale-lease back and finance lease liabilities current | 12,279,651 | ||
Operating lease liabilities non-current | $ 35,615,544 |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details) ¥ in Billions | Sep. 25, 2017USD ($)shares | Oct. 31, 2019shares | Dec. 31, 2019USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Sep. 25, 2017CNY (¥) | Sep. 25, 2017USD ($) |
Debt, Long-term and Short-term, Combined Amount | $ 41,627,633 | $ 85,899,614 | |||||
Waive of Payable to Discontinued Operations | $ 217,400,000 | ||||||
Stock Issued During Period, Shares, New Issues | shares | 180,000,000 | 100,000,000 | |||||
Stock Issued During Period, Value, New Issues | $ 42,480,000 | $ 10,894,890 | $ 42,480,000 | ||||
Manufacturing and LED Distribution Businesses [Member] | |||||||
Debt, Long-term and Short-term, Combined Amount | ¥ 3 | $ 461,000,000 | |||||
American Depositary Shares [Member] | |||||||
Stock Issued During Period, Shares, New Issues | shares | 18,000,000 |
DISCONTINUED OPERATIONS - Recon
DISCONTINUED OPERATIONS - Reconciliation of disposal gain (Details) - USD ($) | Sep. 25, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
DISCONTINUED OPERATIONS | ||||
Waiver of the Company's payable to the Buyer of the discontinued operations | $ 217,400,000 | |||
Fair value of shares issued to the Buyer | (42,500,000) | |||
Net assets of discontinued operations as of the disposal date | (133,600,000) | |||
Release of currency translation difference due to discontinued operations | 65,000,000 | $ 0 | $ 0 | $ 64,984,682 |
Disposal Gain | $ 106,300,000 | $ 0 | $ 0 | $ 106,292,213 |
DISCONTINUED OPERATIONS - Resul
DISCONTINUED OPERATIONS - Results of the discontinued operations (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
DISCONTINUED OPERATIONS | ||||
Revenues | $ 472,568,586 | |||
Cost of revenues | (457,058,538) | |||
Gross Profit | 15,510,048 | |||
Operating (expenses)/income: | ||||
Selling and marketing | (24,259,869) | |||
General and administrative | (32,341,022) | |||
Research and development | (14,715,027) | |||
Other income | 8,776,633 | |||
Impairment loss of assets | 0 | $ (6,880,115) | $ 0 | $ 0 |
Total operating expenses | (62,539,285) | |||
Loss from operations | (47,029,237) | |||
Interest income | 1,144,135 | |||
Interest expenses | (25,518,288) | |||
Exchange gain | (7,095,061) | |||
Loss on derivatives | (1,284,379) | |||
Loss from discontinued operations before income taxes | (79,782,830) | 0 | 0 | (79,782,830) |
Income tax benefit, net | 4,748,324 | 0 | 0 | 4,748,324 |
Income from discontinued operations, net of tax | $ (75,034,506) | $ 0 | $ 0 | $ 31,257,707 |
ACCOUNTS RECEIVABLE, NET - Addi
ACCOUNTS RECEIVABLE, NET - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net | $ 13,835,019 | $ 34,483,462 |
Solar power project assets [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables by post-dated checks | 813,652 | |
Receivables by post-dated checks, current | 406,826 | |
Receivables by post-dated checks, noncurrent | $ 406,826 | |
Electricity Revenue Generation | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Feed-in tariff(s) (FIT) receivables, recovery period | 12 months | |
Feed-in tariff(s) (FIT) receivables, current | $ 1,317,137 | |
Feed-in tariff(s) (FIT) receivables, noncurrent | 16,800,636 | |
EPC services customer | Credit concentration | Accounts receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net | $ 6,036,988 | |
Concentration risk percentage | 17.00% | |
Number Of Customer With Greater Than 10 Of Accounts Receivable | 10 | |
Solar power customers | Credit concentration | Accounts receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net | $ 4,252,381 | |
Concentration risk percentage | 31.00% | |
Number Of Customer With Greater Than 10 Of Accounts Receivable | 10 | |
Solar power customers | Customer concentration | Net revenues | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk percentage | 47.00% | 0.00% |
ACCOUNTS RECEIVABLE, NET (Detai
ACCOUNTS RECEIVABLE, NET (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts Receivable, Net, Current [Abstract] | ||
Total accounts receivable | $ 15,743,822 | $ 34,483,462 |
Allowance for doubtful accounts | (1,908,803) | 0 |
Accounts receivable, net | 13,835,019 | 34,483,462 |
Trade Accounts Receivable One [Member] | ||
Accounts Receivable, Net, Current [Abstract] | ||
Total accounts receivable | 2,753,277 | 9,078,144 |
Trade Accounts Receivable Two [Member] | ||
Accounts Receivable, Net, Current [Abstract] | ||
Total accounts receivable | 456,900 | 526,848 |
Trade Accounts Receivable Three [Member] | ||
Accounts Receivable, Net, Current [Abstract] | ||
Total accounts receivable | 8,971,464 | 7,045,546 |
Trade Accounts Receivable Fourth [Member] | ||
Accounts Receivable, Net, Current [Abstract] | ||
Total accounts receivable | $ 3,562,181 | $ 17,832,924 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | ||
Refundable deposits | $ 4,124,928 | $ 12,082,372 |
Prepaid rental fees | 0 | 954,969 |
EPC Warranty reimbursement receivables | 183,941 | 186,553 |
Others | 2,491,414 | 1,094,182 |
Total prepaid expenses and other current assets | 6,800,283 | 14,318,076 |
Allowance for doubtful accounts | (729,629) | |
Total prepaid expenses and other current assets | $ 6,070,654 | $ 14,318,076 |
PROJECT ASSETS - Schedule of Pr
PROJECT ASSETS - Schedule of Project Assets (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
PROJECT ASSETS | ||
Project assets - Module cost | $ 4,616,399 | $ 29,612,819 |
Project assets - Development and construction cost | 32,112,215 | 71,316,605 |
Project assets - Others | 1,919,237 | 7,409,941 |
Total project assets | 38,647,851 | 108,339,365 |
Current portion | 32,125,312 | 64,257,766 |
Non-current portion | $ 6,522,539 | $ 44,081,599 |
ASSETS HELD FOR SALE AND LIAB_3
ASSETS HELD FOR SALE AND LIABILITIES HELD FOR SALE (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Assets classified as held for sale | ||
Impairment of assets(1) | $ 1,347,626 | |
Total assets classified as held for sale | 18,578,626 | $ 0 |
Liabilities classified as held for sale | ||
Total liabilities classified as held for sale | 9,168,366 | |
Disposal Group, Held-for-sale, Not Discontinued Operations | Solar power plant subsidiaries | ||
Assets classified as held for sale | ||
Cash and cash equivalents | 427,299 | |
Accounts receivable, net | 2,636,581 | |
Value added tax recoverable | 747,646 | |
Prepaid expenses and other current assets | 1,593,391 | |
Property, plant and equipment, net | 13,290,761 | |
Operating lease right-of-use asset | 1,230,574 | |
Impairment of assets(1) | (1,347,626) | |
Total assets classified as held for sale | 18,578,626 | |
Liabilities classified as held for sale | ||
Accounts payable | 58,525 | |
Operating lease liabilities | 1,229,918 | |
Failed sales leased back and finance lease liability | 7,879,923 | |
Total liabilities classified as held for sale | $ 9,168,366 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Depreciation expense | $ 7,796,003 | $ 8,402,169 | $ 4,475,823 |
PROPERTY, PLANT AND EQUIPMENT_4
PROPERTY, PLANT AND EQUIPMENT, NET - Schedule of Property, Plant and Equipment Net (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | ||
Less: Accumulated depreciation | $ (17,333,097) | $ (16,215,671) |
Property, plant and equipment Before Construction | 143,301,385 | 180,073,790 |
Property, plant and equipment, net | 143,301,385 | 190,787,262 |
Land [Member] | ||
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | ||
Property, plant and equipment, gross | 282,000 | 282,000 |
Plant and machinery [Member] | ||
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | ||
Property, plant and equipment, gross | 776,752 | 789,931 |
Motor vehicles [Member] | ||
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | ||
Property, plant and equipment, gross | 181,387 | 183,664 |
Office equipment [Member] | ||
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | ||
Property, plant and equipment, gross | 136,857 | 102,326 |
Power stations [Member] | ||
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | ||
Property, plant and equipment, gross | 159,257,486 | 194,931,540 |
Construction in progress [Member] | ||
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | ||
Property, plant and equipment, gross | $ 0 | $ 10,713,472 |
INCOME TAXES (Details)
INCOME TAXES (Details) | Jan. 01, 2018 | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($) |
INCOME TAXES | ||||||
Statutory income tax rate in PRC (as a percent) | 25.00% | 25.00% | 25.00% | |||
Interest and penalties | ¥ | ¥ 0 | ¥ 0 | ¥ 0 | |||
Accrual of uncertain tax benefits | ¥ | ¥ 0 | ¥ 0 | ¥ 0 | |||
Preferential tax rate | 7.00% | (53.00%) | (24.00%) | |||
CHINA | ||||||
INCOME TAXES | ||||||
Statutory income tax rate in PRC (as a percent) | 25.00% | |||||
Connecticut | ||||||
INCOME TAXES | ||||||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | 7.50% | 6.50% | ||||
California Franchise Tax Board [Member] | ||||||
INCOME TAXES | ||||||
Statutory income tax rate in PRC (as a percent) | 35.00% | 21.00% | ||||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | 8.84% | |||||
Minimum | ||||||
INCOME TAXES | ||||||
Amount of underpayment of tax considered for applicability of extended period of statute of limitations Period | ¥ 100,000 | ¥ 100,000 | $ 14,476 | |||
PRC [Member] | ||||||
INCOME TAXES | ||||||
Net operating loss carryforwards | 9,195,842 | |||||
Income Tax Holiday, Description | Pursuant to PRC tax laws, certain PRC domiciled subsidiaries of the Company are solar power generation enterprises, which are entitled to a three-year tax exemption from Corporate Income Tax (" CIT") from first operation year and a 50% CIT reduction for the succeeding three years thereafter. | |||||
PRC [Member] | 2021 [Member] | ||||||
INCOME TAXES | ||||||
Net operating loss carryforwards | 152,025 | |||||
PRC [Member] | 2022 [Member] | ||||||
INCOME TAXES | ||||||
Net operating loss carryforwards | 873,056 | |||||
PRC [Member] | 2023 [Member] | ||||||
INCOME TAXES | ||||||
Net operating loss carryforwards | 165,754 | |||||
PRC [Member] | 2024 | ||||||
INCOME TAXES | ||||||
Net operating loss carryforwards | $ 8,005,007 |
INCOME TAXES - Schedule of Comp
INCOME TAXES - Schedule of Components of Tax Benefit (Expense) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income (Loss) before income tax | |||
PRC | $ (10,273,181) | $ 10,535,785 | $ 2,938,038 |
Other jurisdictions | (301,925) | (5,628,096) | 583,861 |
Total | (10,575,106) | 4,907,689 | 3,521,899 |
Current tax expense | |||
PRC | (9,835) | (553,859) | (11,926) |
Other jurisdictions | (839,676) | (351,735) | (222,094) |
Subtotal | (849,511) | (905,594) | (234,020) |
Deferred tax benefit (expense) | |||
PRC | 0 | 748,490 | 1,402 |
Other jurisdictions | (255,538) | 345,895 | (89,450) |
Subtotal | (255,538) | 1,094,385 | (88,048) |
Total income tax benefit (expense) | $ (1,105,049) | $ 188,791 | $ (322,068) |
INCOME TAXES - Schedule of Prin
INCOME TAXES - Schedule of Principal Components of Deferred Income Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Accrued expenses | $ 16,304 | $ 10,632 |
Net operating losses | 8,646,423 | 5,513,847 |
Unrealized internal profit | 778,566 | 1,094,217 |
Allowances for doubtful accounts | 1,064,027 | |
Cancellation of project assets | 1,351,336 | |
Impairment loss of assets | 336,907 | |
Others | 161,033 | 27,990 |
Total gross deferred tax assets | 12,354,596 | 6,646,686 |
Valuation allowance on deferred tax assets | (11,516,732) | (5,535,214) |
Net deferred tax assets | $ 837,864 | $ 1,111,472 |
INCOME TAXES - Schedule of Reco
INCOME TAXES - Schedule of Reconciliation Between the Applicable Statutory Income Tax Rate and the Company's Effective Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation between the applicable statutory income tax rate and the Company's effective tax rate | |||
PRC applicable income tax rate | 25.00% | 25.00% | 25.00% |
Change in deferred tax valuation allowance | (57.00%) | 47.00% | (3.00%) |
Preferential tax rate | 7.00% | (53.00%) | (24.00%) |
Effect of different tax rate of subsidiaries | 16.00% | (7.00%) | (4.00%) |
Other | (1.00%) | (16.00%) | 15.00% |
Effective income tax rate | (10.00%) | (4.00%) | 9.00% |
INCOME TAXES - Schedule of Aggr
INCOME TAXES - Schedule of Aggregate Amount and Per Share Effect of the Tax Holiday (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CHINA | |||
Aggregate amount and per share effect of the Tax Holiday | |||
Preferential tax effect | $ 720,847 | $ 2,609,975 | $ 845,010 |
BORROWINGS AND OTHER FINANCIN_3
BORROWINGS AND OTHER FINANCING ARRANGEMENTS (Details) € in Millions, £ in Millions, ₩ in Billions | 1 Months Ended | 12 Months Ended | ||||||||||
Jan. 31, 2019GBP (£) | Jan. 31, 2019EUR (€) | Jan. 31, 2019USD ($) | Mar. 31, 2013KRW (₩)loan | Mar. 31, 2013USD ($)loan | Dec. 31, 2019GBP (£)director | Dec. 31, 2019USD ($)director | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019KRW (₩) | Dec. 31, 2019USD ($) | Jan. 31, 2019USD ($) | |
BORROWINGS [Line Items] | ||||||||||||
Short-term borrowings | $ 3,368,272 | $ 7,173,571 | ||||||||||
Proceeds from bonds | € 11.5 | $ 12,900,000 | $ 12,913,675 | 0 | $ 0 | |||||||
Bonds payable | € 2.2 | $ 0 | $ 2,503,621 | $ 2,500,000 | ||||||||
Number of director | director | 1 | 1 | ||||||||||
Long-term | ||||||||||||
Weighted average interest rate (as a percent) | 6.57% | 5.52% | 5.52% | |||||||||
Interest expense | ||||||||||||
Interest Costs Incurred | $ 12,329,336 | $ 11,578,848 | 4,045,277 | |||||||||
Interest Paid, Capitalized | 3,169,518 | 2,874,944 | $ 108,975 | |||||||||
Sale Leaseback Transaction, Net Book Value | 23,474,319 | $ 4,008,534 | ||||||||||
Cash consideration received in sale of self-built solar projects | $ 2,793,810 | 24,876,650 | ||||||||||
Solar Project, Useful Life | 25 years | 25 years | ||||||||||
Failed Sale Leaseback Transaction, Amount Due under Financing Arrangement, Noncurrent | 48,748,462 | 30,036,724 | ||||||||||
Failed Sale Leaseback Transaction, Amount Due under Financing Arrangement, Current | 7,275,464 | 0 | ||||||||||
Interest Expense, Debt | $ 4,415,569 | $ 4,617,129 | ||||||||||
Sale Leaseback Transaction, Lease Terms | 5 to 10 years | 5 to 10 years | ||||||||||
KOREA, REPUBLIC OF | ||||||||||||
Long-term | ||||||||||||
Number of four year term loans | loan | 2 | 2 | ||||||||||
Extended Maturity Term | 3 years | |||||||||||
Interest expense | ||||||||||||
Proceeds from Issuance of Long-term Debt | ₩ 35.7 | $ 30,900,000 | ||||||||||
Debt Instrument, Maturity Date | Mar. 1, 2020 | |||||||||||
Long-term Debt | ₩ 32.7 | 28,300,000 | ||||||||||
UK Lender | ||||||||||||
Interest expense | ||||||||||||
Long-term Debt, Current Maturities | $ 300,000 | |||||||||||
Proceeds from Issuance of Long-term Debt | £ 3 | $ 3,900,000 | £ 2.8 | $ 3,700,000 | ||||||||
Debt Instrument, Maturity Date | Aug. 1, 2025 | Aug. 1, 2025 | ||||||||||
Financings With Failed Sale Lease Back Transactions [Member] | ||||||||||||
BORROWINGS [Line Items] | ||||||||||||
Weighted average interest rate | 6.53% | 7.13% | 7.13% | |||||||||
Interest expense | ||||||||||||
Failed Sale Leaseback Transaction, Amount Due under Financing Arrangement, Current | $ 7,275,464 | $ 5,512,507 | ||||||||||
Long-term [Member] | ||||||||||||
Long-term | ||||||||||||
Weighted average interest rate (as a percent) | 5.86% | 5.80% | 4.57% | 4.57% | ||||||||
Bond payable | ||||||||||||
BORROWINGS [Line Items] | ||||||||||||
Weighted average interest rate | 6.75% | 6.75% | ||||||||||
Secured debt [Member] | ||||||||||||
BORROWINGS [Line Items] | ||||||||||||
Short-term borrowings | $ 3,368,272 | $ 7,173,571 | ||||||||||
Bonds payable | 2,503,621 | |||||||||||
Secured borrowings | 82,531,342 | 31,950,441 | ||||||||||
Interest expense | ||||||||||||
Long-term Debt, Current Maturities | $ 41,096,243 | $ 28,583,380 |
BORROWINGS AND OTHER FINANCIN_4
BORROWINGS AND OTHER FINANCING ARRANGEMENTS - Schedule of Bank Borrowings (Details) € in Millions | Dec. 31, 2019USD ($) | Jan. 31, 2019EUR (€) | Jan. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
BORROWINGS AND OTHER FINANCING ARRANGEMENTS | ||||
Short-term | $ 7,173,571 | $ 3,368,272 | ||
Long-term, current portion | 28,583,380 | 41,096,243 | ||
Subtotal | 35,756,951 | 44,464,515 | ||
Bonds payable | 2,503,621 | € 2.2 | $ 2,500,000 | 0 |
Long-term | 3,367,061 | 41,435,099 | ||
Total borrowings from bank and other third parties | $ 41,627,633 | $ 85,899,614 |
BORROWINGS AND OTHER FINANCIN_5
BORROWINGS AND OTHER FINANCING ARRANGEMENTS - Schedule of long-term bank loans should be repaid (Details) | Dec. 31, 2019USD ($) |
BORROWINGS AND OTHER FINANCING ARRANGEMENTS | |
2020 | $ 28,583,380 |
2021 | 311,670 |
2022 | 326,073 |
2023 | 341,142 |
2024 | 356,596 |
2025 | $ 2,031,580 |
BORROWINGS AND OTHER FINANCIN_6
BORROWINGS AND OTHER FINANCING ARRANGEMENTS - Finance lease (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Finance lease right-of-use assets | $ 24,991,789 | $ 0 |
Finance lease liabilities | 20,766,512 | |
Modules, inverters, and other | ||
Finance lease right-of-use assets | $ 30,984,311 | $ 46,411,683 |
Estimated useful lives | 25 years | 25 years |
Finance lease liabilities | $ 20,766,512 | $ 34,130,495 |
BORROWINGS AND OTHER FINANCIN_7
BORROWINGS AND OTHER FINANCING ARRANGEMENTS - Schedule Of Finance Lease Future Payments (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
BORROWINGS AND OTHER FINANCING ARRANGEMENTS | ||
2020 | $ 4,593,476 | |
2021 | 5,752,259 | |
2022 | 5,752,259 | |
2023 | 5,447,345 | |
2014 | 1,841,715 | |
2025 and later | 1,429,010 | |
Total minimum lease payments | 24,816,064 | |
Less: Amount representing interest | (4,049,552) | |
Present value of net minimum lease payments | 20,766,512 | |
Current portion | 4,066,696 | $ 0 |
Non-current portion | 16,699,816 | 29,126,308 |
Current portion of finance lease | 4,066,696 | 0 |
Current portion of failed sale and lease back | 5,512,507 | 0 |
Total current portion of failed sale-lease back and finance lease | 9,579,203 | 0 |
Non-current portion for finance lease | 16,699,816 | 29,126,308 |
Non-current portion for failed sale and lease back | 30,036,724 | 48,748,462 |
Total non-current portion of failed sale-lease back and finance lease | $ 46,736,540 | $ 77,874,770 |
OTHER CURRENT LIABILITIES - Sch
OTHER CURRENT LIABILITIES - Schedule of Other Current Liabilities (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
OTHER CURRENT LIABILITIES | ||
Payable for purchase of property, plant and equipment | $ 22,810,701 | $ 36,680,431 |
Payables associated with finance lease-current portion, Note 11(c) | 0 | 5,004,187 |
Payables associated with failed sale-lease back-current portion, Note 11(c) | 0 | 7,275,464 |
Interest Payable | 1,009,090 | 1,626,010 |
Other tax payables | 206,591 | 141,317 |
Accrued EPC warranty liabilities | 183,941 | 186,553 |
Others | 2,953,012 | 1,834,945 |
Other current liabilities | $ 27,163,335 | $ 52,748,907 |
COMMON SHARES (Details)
COMMON SHARES (Details) - USD ($) | Sep. 25, 2017 | Oct. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
COMMON SHARES | |||||
Common shares, shares authorized | 500,000,000 | 500,000,000 | |||
Common shares, par value | $ 0 | $ 0 | |||
Shares issued during period | 180,000,000 | 100,000,000 | |||
Issuance of common shares | $ 42,480,000 | $ 10,894,890 | $ 42,480,000 | ||
Common shares, total issued shares | 481,027,002 | 381,027,002 | 381,027,002 | ||
Market price | $ 0.11 | ||||
Total consideration | $ 11,000,000 | $ 11,000,000 | $ 0 | $ 0 | |
Lockup period for issuance of shares | 180 days |
SHARE BASED COMPENSATION (Detai
SHARE BASED COMPENSATION (Details) - USD ($) | Apr. 01, 2018 | Jan. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2012 | Jul. 27, 2010 | Sep. 27, 2007 |
Additional disclosures [Abstract] | ||||||||
Granted (in shares) | 3,300,000 | 5,300,000 | 830,000 | 1,550,000 | ||||
Granted (in dollars per share) | $ 0.15 | $ 0.26 | $ 0.64 | |||||
Change in fair value | $ 0 | $ 0 | ||||||
Proceeds received on exercise | 0 | 0 | ||||||
Additional disclosures [Abstract] | ||||||||
Unrecognized compensation expense related to unvested share-based compensation arrangements | 640,233 | |||||||
Previously Reported [Member] | ||||||||
Options modification [Abstract] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Period Increase (Decrease) | 350,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | 5 years | ||||||
Restatement Adjustment [Member] | ||||||||
Options modification [Abstract] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Period Increase (Decrease) | 400,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | 3 years | ||||||
Share options [Member] | ||||||||
Additional disclosures [Abstract] | ||||||||
Compensation cost | $ 348,916 | $ 406,228 | $ 783,118 | |||||
Granted (in shares) | 5,300,000 | 830,000 | 1,550,000 | |||||
Granted (in dollars per share) | $ 0.26 | $ 0.64 | ||||||
Options modification [Abstract] | ||||||||
Total incremental compensation cost | $ 233,996 | $ 30,396 | $ 774,932 | |||||
Incremental compensation cost | 58,499 | $ 10,132 | $ 10,132 | 444,373 | ||||
Unrecognized incremental compensation costs | $ 116,998 | $ 10,132 | $ 330,559 | |||||
Additional disclosures [Abstract] | ||||||||
Weighted average fair value of options granted (in dollars per share) | $ 0.07 | $ 0.10 | $ 0.41 | |||||
Period for recognition of unrecognized compensation costs | 2 years 3 months 7 days | |||||||
Share options [Member] | Previously Reported [Member] | ||||||||
Additional disclosures [Abstract] | ||||||||
Granted (in dollars per share) | $ 0.11 | |||||||
Share options [Member] | Restatement Adjustment [Member] | ||||||||
Additional disclosures [Abstract] | ||||||||
Granted (in dollars per share) | $ 0.15 | |||||||
Restricted Share Units [Member] | ||||||||
Additional disclosures [Abstract] | ||||||||
Total fair value of shares vested (in dollars) | $ 0 | $ 39,200 | $ 39,760 | |||||
2007 Share Incentive Plan [Member] | ||||||||
Additional disclosures [Abstract] | ||||||||
Number of authorized shares | 12,500,000 | 7,500,000 | ||||||
2007 Share Incentive Plan [Member] | Restricted Share Units [Member] | ||||||||
Additional disclosures [Abstract] | ||||||||
Compensation cost | 0 | $ 32,842 | $ 87,500 | |||||
Additional disclosures [Abstract] | ||||||||
Unrecognized compensation expense related to unvested share-based compensation arrangements | $ 0 |
SHARE BASED COMPENSATION - Sche
SHARE BASED COMPENSATION - Schedule of Assumptions Used to Estimate the Fair Value of the Options (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Assumptions used to estimate fair value of the options [Abstract] | |||
Average risk-free rate of return, minimum (as a percent) | 1.60% | 2.04% | 1.93% |
Average risk-free rate of return, maximum (as a percent) | 1.82% | 2.62% | 2.00% |
Weighted average expected option life | 3 years 2 months 12 days | 3 years 2 months 12 days | 3 years 2 months 12 days |
Volatility rate, minimum (as a percent) | 47.61% | 51.06% | 103.04% |
Volatility rate, maximum (as a percent) | 57.16% | 56.88% | 109.89% |
Dividend yield (as a percent) | 0.00% | 0.00% | 0.00% |
Maximum | |||
Assumptions used to estimate fair value of the options [Abstract] | |||
Weighted average expected option life | 6 years |
SHARE BASED COMPENSATION - Summ
SHARE BASED COMPENSATION - Summary of the Option Activity (Details) - USD ($) | Apr. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Number of Options [Roll Forward] | |||||
Options outstanding at the beginning of the period (in shares) | 5,460,000 | 6,165,000 | 6,085,000 | ||
Granted (in shares) | 3,300,000 | 5,300,000 | 830,000 | 1,550,000 | |
Exercised (in shares) | 0 | 0 | 0 | ||
Forfeited (in shares) | (2,185,000) | (1,535,000) | (1,470,000) | ||
Options outstanding at the end of the period (in shares) | 8,575,000 | 5,460,000 | 6,165,000 | 6,085,000 | |
Vested or expected to vest at the end of the period (in shares) | 8,460,632 | ||||
Exercisable at the end of the period (in shares) | 1,341,667 | ||||
Weighted Average Exercise Prices [Abstract] | |||||
Options outstanding at the beginning of the period (in dollars per share) | $ 0.36 | $ 0.71 | $ 0.74 | ||
Granted (in dollars per share) | 0.15 | 0.26 | 0.64 | ||
Exercised (in dollars per share) | 0 | 0 | 0 | ||
Forfeited (in dollars per share) | 0.43 | 0.74 | 0.74 | ||
Options outstanding at the end of the period (in dollars per share) | 0.21 | $ 0.36 | $ 0.71 | $ 0.74 | |
Vested or expected to vest at the end of the period (in dollars per share) | 0.21 | ||||
Exercised at the end of the period (in dollars per share) | $ 0.39 | ||||
Weighted Average Remaining Contractual Life [Abstract] | |||||
Outstanding at the beginning of the period | 2 years 2 months 19 days | 1 year 11 months 16 days | 1 year 7 months 21 days | 1 year 9 months | |
Granted | 2 years 10 months 28 days | 3 years 6 months | 3 years 6 months | ||
Outstanding at the end of the period | 2 years 2 months 19 days | 1 year 11 months 16 days | 1 year 7 months 21 days | 1 year 9 months | |
Vested or expected to vest at the end of the period | 2 years 2 months 23 days | ||||
Exercisable at the end of the period | 10 months 21 days | ||||
Aggregate Intrinsic Value [Abstract] | |||||
Outstanding at the beginning of the period (in dollars) | $ 0 | $ 0 | $ 0 | ||
Granted (in dollars) | 0 | 0 | 0 | ||
Exercised (in dollars) | 0 | 0 | 0 | ||
Forfeited (in dollars) | 0 | 0 | 0 | ||
Outstanding at the end of the period (in dollars) | 0 | $ 0 | $ 0 | $ 0 | |
Vested or expected to vest at the end of the period (in dollars) | 0 | ||||
Exercisable at the end of the period (in dollars) | $ 0 |
SHARE BASED COMPENSATION - Su_2
SHARE BASED COMPENSATION - Summary of the RSUs (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of shares | |||
Outstanding at the beginning of the period (in shares) | 0 | 140,000 | 280,000 |
Granted (in shares) | 0 | 0 | 0 |
Vested (in shares) | 0 | (140,000) | (140,000) |
Outstanding at the end of the period (in shares) | 0 | 0 | 140,000 |
Weighted Average Grant Date Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 0 | $ 0.63 | $ 0.63 |
Granted (in dollars per share) | 0 | 0 | 0 |
Vested (in dollars per share) | 0 | 0.63 | 0.63 |
Outstanding at the end of the period (in dollars per share) | $ 0 | $ 0 | $ 0.63 |
EMPLOYEE BENEFITS (Details)
EMPLOYEE BENEFITS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
EMPLOYEE BENEFITS [Line Items] | |||
Total contribution | $ 1,257,335 | $ 765,379 | $ 674,100 |
ReneSola Investment | |||
EMPLOYEE BENEFITS [Line Items] | |||
Percentage of employer matching contribution of basic salaries | 14.00% | ||
Percentage of employer's contribution required by PRC law | 17.00% | ||
Sichuan Bo Bo | |||
EMPLOYEE BENEFITS [Line Items] | |||
Percentage of employer matching contribution of basic salaries | 17.00% | ||
Percentage of employer's contribution required by PRC law | 14.80% | ||
ReneSola Shanghai | |||
EMPLOYEE BENEFITS [Line Items] | |||
Percentage of employer matching contribution of basic salaries | 17.00% | ||
Percentage of employer's contribution required by PRC law | 16.50% |
DISTRIBUTION OF PROFIT AND RE_2
DISTRIBUTION OF PROFIT AND RESTRICTED NET ASSETS (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
DISTRIBUTION OF PROFIT AND RESTRICTED NET ASSETS | ||
Appropriations to general reserve as a percentage of profit after tax, minimum | 10.00% | |
Percentage of general reserve fund if appropriation is not required | 50.00% | |
Percentage of appropriation to statutory surplus fund | 10.00% | |
Percentage of registered capital when appropriation is not required | 50.00% | |
Restricted net assets of PRC subsidiaries | $ 19,505,000 | $ 16,000,000 |
Restricted Net Assets, Percent Of Net Assets | 14.20% | 12.80% |
EARNINGS_ (LOSS) PER ADS - Sche
EARNINGS/ (LOSS) PER ADS - Schedule of Basic and Diluted Earnings Per ADS (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Numerator: | |||||
Net income/(loss) from continuing operations | $ (11,680,155) | $ 5,096,480 | $ 3,199,831 | ||
Net income from discontinued operations | $ (75,034,506) | 0 | 0 | 31,257,707 | |
Total net income/(loss) | (11,680,155) | 5,096,480 | 34,457,538 | ||
Less: Net income/(loss) attributed to noncontrolling interests | (2,848,932) | 3,336,769 | 0 | ||
Total net income/(loss) attributed to ReneSola Ltd | (8,831,223) | 1,759,711 | 34,457,538 | ||
Numerator for diluted income/(loss) per ADS for continuing operations | (8,831,223) | 1,759,711 | 3,199,831 | ||
Numerator for diluted income/(loss) per ADS for discontinued operations | $ 0 | $ 0 | $ 31,257,707 | ||
Denominator: | |||||
Denominator for basic earnings/(loss) per ADS - weighted average number of ADS outstanding | [1] | 40,595,551 | 38,075,293 | 24,689,929 | |
Dilutive effects of share options, RSUs and warrants | 0 | 0 | 600 | ||
Denominator for diluted calculation - weighted average number of ADS outstanding | [1] | 40,595,551 | 38,075,293 | 24,690,529 | |
Continuing operations: | |||||
Basic earnings/(loss) per ADS from continuing operations | $ (0.22) | $ 0.05 | $ 0.13 | ||
Diluted earnings/(loss) per ADS from continuing operations | (0.22) | 0.05 | 0.13 | ||
Discontinued operations | |||||
Basic earnings per ADS from discontinued operations | 0 | 0 | 1.27 | ||
Diluted earnings per ADS from discontinued operations | $ 0 | $ 0 | $ 1.27 | ||
[1] | Each American depositary shares (ADS) represents 10 common shares |
EARNINGS_ (LOSS) PER ADS - Sc_2
EARNINGS/ (LOSS) PER ADS - Schedules of Computation of Diluted Net Earnings/(Loss) Per ADS (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share options [Member] | |||
Antidilutive Securities Excluded from Computation of Diluted Net Earnings/(loss) Per Share | 8,575,000 | 5,460,000 | 3,491,575 |
EARNINGS_ (LOSS) PER ADS - Addi
EARNINGS/ (LOSS) PER ADS - Additional Information (Details) - shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
EARNINGS/ (LOSS) PER ADS | ||
Number of shares issued to the share depository bank but are treated as escrowed shares | 208,100 | 208,100 |
Number of shares per ADS | 10 |
NON-CONTROLLING INTEREST (Detai
NON-CONTROLLING INTEREST (Details) ¥ in Millions | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Apr. 27, 2018CNY (¥) | Apr. 27, 2018USD ($) |
NON-CONTROLLING INTEREST [Line Items] | ||||
Registered share capital | $ 42,830,403 | $ 33,995,782 | ||
ReneSola Investment | ||||
NON-CONTROLLING INTEREST [Line Items] | ||||
Ownership interest | 40.13% | 40.13% | ||
Jiashan Development | ReneSola Investment | ||||
NON-CONTROLLING INTEREST [Line Items] | ||||
Registered share capital | ¥ 200 | $ 30,900,000 | ||
RPNC Holdings | ||||
NON-CONTROLLING INTEREST [Line Items] | ||||
Contribution from non-controlling interest | $ 13,100,000 |
RELATED PARTY BALANCES AND TR_3
RELATED PARTY BALANCES AND TRANSACTIONS - Schedule of Related Party Transactions (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
RELATED PARTY BALANCES AND TRANSACTIONS [Line Items] | |||
Lending to | $ 0 | $ 0 | $ 1,624,261 |
Rene Sola Singapore Pte Ltd [Member] | |||
RELATED PARTY BALANCES AND TRANSACTIONS [Line Items] | |||
Due from related parties, gross | 19,107,981 | 20,779,022 | |
Allowance for doubtful accounts (2) | (4,308,679) | 0 | |
Due from related parties, net | 14,799,302 | 20,779,022 | |
Due to related parties | 17,546,934 | 44,018,006 | |
Due to related party balances, net | 2,747,632 | 23,238,984 | |
Purchase of modules from | 2,534,750 | 12,466,413 | 33,238,377 |
Rendering of service to | 834,875 | 5,168,278 | 868,158 |
Borrowing from | 793,269 | 17,273,194 | 11,343,739 |
Lending to | 0 | 0 | 1,624,261 |
Acquire project companies from | $ 0 | $ 11,286,840 | $ 0 |
RELATED PARTY BALANCES AND TR_4
RELATED PARTY BALANCES AND TRANSACTIONS - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
ReneSola Zhejiang Ltd and ReneSola Jiangsu Ltd [Member] | |||
RELATED PARTY BALANCES AND TRANSACTIONS [Line Items] | |||
Payments to Acquire Businesses, Gross | $ 11,290,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 11,290,000 | ||
Rene Sola Singapore Pte Ltd [Member] | |||
RELATED PARTY BALANCES AND TRANSACTIONS [Line Items] | |||
Debt Instrument, Face Amount | $ 200,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | ||
Debt Instrument, Increase (Decrease), Net | $ 790,000 | ||
Interest Expense, Borrowings | 0 | ||
Payments to Acquire Businesses, Gross | $ 0 | $ 11,286,840 | $ 0 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Operating lease accounting (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Existence of Option to Extend [true false] | true |
Operating lease cost | |
Amortization of leased assets | $ 1,368,941 |
Interest on lease liabilities | 2,387,985 |
Net lease cost | $ 3,756,926 |
Lease Term and Discount Rate | |
Weighted-average remaining lease term (years) - Operating leases | 21 years |
Weighted-average discount rate (%) - Operating leases | 7.00% |
Other information | |
Cash paid for amount included in the measurement of lease liabilities: Operating cash flows from operating leases | $ (3,067,901) |
Future minimum payments required under the operating lease | |
2020 | 2,064,709 |
2021 | 2,621,560 |
2022 | 1,842,883 |
2023 | 2,222,844 |
2024 | 1,860,086 |
2025 and later | 33,869,596 |
Total minimum lease payments | 44,481,678 |
Less: Amount representing interest | (21,140,989) |
Present value of net minimum lease payments | 23,340,689 |
Current portion | 452,740 |
Non-current portion | $ 22,887,949 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Initial term of the lease | 3 years |
Initial term of some leases | 35 years |
Renewal term of the lease | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Initial term of the lease | 25 years |
Renewal term of the lease | 5 years |
COMMITMENTS AND CONTINGENCIE -
COMMITMENTS AND CONTINGENCIE - Additional Information (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Financings With Failed Sale Lease Back Transactions [Member] | Zhejiang Yuhui Investment Co., Ltd | ||
COMMITMENTS AND CONTINGENCIES [Line Items] | ||
Guarantor Obligations, Current Carrying Value | $ 1,766,035 | $ 18,256,841 |
SEGMENT REPORTING - Schedule of
SEGMENT REPORTING - Schedule of the Company's Revenues Generated from Each Segment (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Company's revenues generated from each segment [Line Items] | |||
Number of reportable segments | segment | 3 | ||
Net revenue | $ 119,117,024 | $ 96,906,335 | $ 102,973,999 |
Gross profit | 34,226,048 | 28,069,747 | 14,131,755 |
Operating segment [Member] | |||
Company's revenues generated from each segment [Line Items] | |||
Net revenue | 119,117,024 | 96,906,335 | 102,973,999 |
Gross profit | 34,226,048 | 28,069,747 | 14,131,755 |
Solar power project development | Operating segment [Member] | |||
Company's revenues generated from each segment [Line Items] | |||
Net revenue | 90,096,551 | 48,784,766 | 64,837,042 |
Gross profit | 17,571,303 | 7,052,170 | 3,575,775 |
Electricity generation revenue | Operating segment [Member] | |||
Company's revenues generated from each segment [Line Items] | |||
Net revenue | 28,712,942 | 29,257,928 | 12,247,320 |
Gross profit | 16,763,190 | 17,673,474 | 7,031,670 |
EPC services | Operating segment [Member] | |||
Company's revenues generated from each segment [Line Items] | |||
Net revenue | 69,751 | 18,544,164 | 25,853,288 |
Gross profit | (178,414) | 3,329,402 | 3,524,310 |
Other | Operating segment [Member] | |||
Company's revenues generated from each segment [Line Items] | |||
Net revenue | 237,780 | 319,477 | 36,349 |
Gross profit | $ 69,969 | $ 14,701 | $ 0 |
SEGMENT REPORTING - Schedule _2
SEGMENT REPORTING - Schedule of the Company's Revenues Generated by Geographic Location of Customers (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | $ 119,117,024 | $ 96,906,335 | $ 102,973,999 |
CHINA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | 24,470,827 | 45,395,811 | 67,533,887 |
UNITED STATES | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | 9,277,514 | 15,445,744 | 18,323,947 |
ROMANIA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | 3,193,215 | 1,824,411 | 4,844,238 |
UK | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | 3,853,687 | 31,169,458 | 7,271,370 |
TURKEY | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | 0 | 2,129,085 | 4,995,648 |
FRANCE | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | 730,962 | 941,826 | 4,909 |
Poland | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | 59,884,835 | 0 | 0 |
Hungary | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | $ 17,705,984 | $ 0 | $ 0 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) ₩ in Billions | Jan. 01, 2020KRW (₩) | Apr. 30, 2020project | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2020USD ($) |
Subsequent Event | |||||||
Revenues due to unertainity of coronavirus pandemic | $ 119,117,024 | $ 96,906,335 | $ 102,973,999 | ||||
Subsequent Event | |||||||
Subsequent Event | |||||||
Number of projects sold and closed | project | 2 | ||||||
Subsequent Event | Minimum | |||||||
Subsequent Event | |||||||
Revenues due to unertainity of coronavirus pandemic | $ 30,000,000 | ||||||
Subsequent Event | Maximum | |||||||
Subsequent Event | |||||||
Revenues due to unertainity of coronavirus pandemic | 33,000,000 | ||||||
Subsequent Event | Expected | Minimum | |||||||
Subsequent Event | |||||||
Revenues due to unertainity of coronavirus pandemic | 18,000,000 | ||||||
Subsequent Event | Expected | Maximum | |||||||
Subsequent Event | |||||||
Revenues due to unertainity of coronavirus pandemic | $ 20,000,000 | ||||||
Korean Lender | Subsequent Event | |||||||
Subsequent Event | |||||||
Long-term borrowings rolled over | ₩ 32.7 | $ 28,300,000 | |||||
Long-term borrowings roll over period | 1 year |