Cover
Cover - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Entity Addresses [Line Items] | ||
Document Type | 20-F | |
Amendment Flag | false | |
Document Registration Statement | false | |
Document Annual Report | true | |
Document Transition Report | false | |
Document Shell Company Report | false | |
Document Period End Date | Dec. 31, 2021 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-35722 | |
Entity Registrant Name | TAOPING INC. | |
Entity Central Index Key | 0001552670 | |
Entity Incorporation, State or Country Code | D8 | |
Entity Address, Address Line One | Unit 3102 | |
Entity Address, Address Line Two | 31/F | |
Entity Address, Address Line Three | 18 Whitefield Road | |
Entity Address, City or Town | Citicorp Centre | |
Entity Address, Country | HK | |
Title of 12(b) Security | Ordinary Shares, no par value | |
Trading Symbol | TAOP | |
Security Exchange Name | NASDAQ | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Document Accounting Standard | U.S. GAAP | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 15,513,605 | |
ICFR Auditor Attestation Flag | false | |
Auditor Firm ID | 2814 | 1195 |
Auditor Name | PKF Littlejohn LLP | UHY LLP |
Auditor Location | London, UK | New York, New York |
Business Contact [Member] | ||
Entity Addresses [Line Items] | ||
Entity Address, Address Line One | Unit 3102 | |
Entity Address, Address Line Two | 31/F | |
Entity Address, Address Line Three | 18 Whitefield Road | |
Entity Address, City or Town | Citicorp Centre | |
Entity Address, Country | HK | |
City Area Code | +852 | |
Local Phone Number | 36117837 | |
Contact Personnel Name | Mr. Jianghuai Lin, Chief Executive Officer | |
Contact Personnel Fax Number | +852-36166449 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | |
CURRENT ASSETS | |||
Cash and cash equivalents | $ 4,531,266 | $ 882,770 | |
Restricted cash | 214,144 | ||
Accounts receivable, net | 6,758,162 | 4,264,257 | |
Accounts receivable-related parties, net | 351,472 | 2,919,215 | |
Advances to suppliers | 6,541,323 | 3,202,313 | |
Prepaid expenses | 296,494 | ||
Inventories, net | 542,384 | 254,678 | |
Loan receivable - related party | 519,331 | ||
Cryptocurrencies, net | 829,165 | ||
Other current assets | 1,218,148 | 173,026 | |
TOTAL CURRENT ASSETS | 21,068,414 | 12,429,734 | |
Non-current accounts receivable, net | 1,839,230 | ||
Non-current accounts receivable-related parties, net | 1,323,196 | ||
Property, equipment and software, net | 21,562,084 | 10,851,899 | |
Right-of-use assets | 896,505 | ||
Long-term investments | 679,807 | 30,592 | |
Other assets, non-current net | 2,948,681 | 4,302,000 | |
TOTAL ASSETS | 47,155,491 | 30,776,651 | |
CURRENT LIABILITIES | |||
Short-term bank loans | 7,792,125 | 6,210,176 | |
Accounts payable | 9,872,924 | 14,857,436 | |
Accounts payable-related parties | 69,585 | ||
Advances from customers | 458,158 | 315,924 | |
Advances from customers-related parties | 121,059 | 161,063 | |
Amounts due to related parties | 3,145,260 | 137,664 | |
Accrued payroll and benefits | 252,827 | 231,598 | |
Other payables and accrued expenses | 4,893,499 | 6,636,097 | |
Other taxes payable | 379,925 | ||
Convertible note payable, net of debt discounts | 1,180,908 | ||
Lease liability-current | 427,372 | ||
TOTAL CURRENT LIABILITIES | 27,343,149 | 29,800,451 | |
Lease liability | 561,843 | ||
TOTAL LIABILITIES | 27,904,992 | 29,800,451 | |
EQUITY | |||
Ordinary shares, 2021 and 2020: par $0; authorized capital 100,000,000 shares; shares issued and outstanding, 2021: 15,513,605 shares; 2020: 8,486,956 shares; | [1] | 161,098,010 | 131,247,787 |
Additional paid-in capital | 22,447,083 | 15,643,404 | |
Reserve | 14,044,269 | 14,044,269 | |
Accumulated deficit | (202,137,403) | (192,212,544) | |
Accumulated other comprehensive income | 23,800,299 | 23,612,413 | |
Total equity (deficit) of the Company | 19,252,258 | (7,664,671) | |
Non-controlling interest | (1,759) | 8,640,871 | |
TOTAL EQUITY | 19,250,499 | 976,200 | |
TOTAL LIABILITIES AND EQUITY | $ 47,155,491 | $ 30,776,651 | |
[1] | On July 30, 2020, the Company implemented a one-for-six reverse stock split of the Company’s issued and outstanding ordinary shares. Except shares authorized, all references to number of shares, and to per share information in the consolidated financial statements have been retroactively adjusted. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common Stock, No Par Value | $ 0 | $ 0 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 15,513,605 | 8,486,956 |
Common Stock, Shares, Outstanding | 15,513,605 | 8,486,956 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
TOTAL REVENUE | [1] | $ 24,845,924 | $ 11,062,775 | $ 13,791,303 | |
TOTAL COST | 15,503,311 | 7,119,125 | 7,189,092 | ||
GROSS PROFIT | 9,342,613 | 3,943,650 | 6,602,211 | ||
Administrative expenses | 12,882,936 | 16,707,106 | 6,657,972 | ||
Research and development expenses | 4,479,045 | 3,889,126 | 3,592,843 | ||
Selling expenses | 694,474 | 714,147 | 523,557 | ||
LOSS FROM OPERATIONS | (8,713,842) | (17,366,729) | (4,172,161) | ||
Subsidy income | 181,620 | 556,186 | 431,555 | ||
Loss from equity method investment | (814,440) | ||||
Other income (loss), net | 350,836 | (578,766) | 238,200 | ||
Interest income | 4,640 | 4,798 | 133,517 | ||
Interest expense and debt discounts expense, net of interest income | (928,352) | (1,018,013) | (499,852) | ||
Loss before income taxes | (9,919,538) | (18,402,524) | (3,868,741) | ||
Income tax (expense) benefit | (5,321) | 71,316 | 274,480 | ||
NET LOSS | (9,924,859) | (18,331,208) | (3,594,261) | ||
Less: net loss attributable to the non-controlling interest | 636,433 | 11,929 | |||
NET LOSS ATTRIBUTABLE TO THE COMPANY | $ (9,924,859) | $ (17,694,775) | $ (3,582,332) | [2] | |
Loss per share - Basic and Diluted* | |||||
Basic | [3] | $ (0.77) | $ (2.49) | $ (0.54) | |
Diluted | [3] | (0.77) | (2.49) | (0.54) | |
LOSS PER SHARE ATTRIBUTABLE TO THE COMPANY | |||||
Basic | (0.77) | (2.40) | (0.54) | [2] | |
Diluted | $ (0.77) | $ (2.40) | $ (0.54) | [2] | |
Product [Member] | |||||
TOTAL REVENUE | $ 10,651,928 | $ 6,591,132 | $ 3,116,145 | ||
TOTAL COST | 9,890,346 | 6,211,647 | 6,448,965 | ||
Products Related Parties [Member] | |||||
TOTAL REVENUE | 72,779 | 375,736 | 7,352,236 | ||
Advertising [Member] | |||||
TOTAL REVENUE | 2,577,712 | ||||
TOTAL COST | 2,193,945 | ||||
Software [Member] | |||||
TOTAL REVENUE | 5,174,422 | 3,080,152 | 2,246,497 | ||
TOTAL COST | 582,490 | 572,054 | 525,473 | ||
Cryptocurrency Mining [Member] | |||||
TOTAL REVENUE | 5,455,345 | ||||
TOTAL COST | 2,767,186 | ||||
Other [Member] | |||||
TOTAL REVENUE | 837,660 | 869,635 | 969,751 | ||
TOTAL COST | 28,469 | 335,424 | 156,743 | ||
Other Related Parties [Member] | |||||
TOTAL REVENUE | 76,078 | 146,120 | 106,674 | ||
System Integration [Member] | |||||
TOTAL COST | $ 40,875 | $ 57,911 | |||
[1] | Revenues by operating segments exclude intercompany transactions. | ||||
[2] | On July 30, 2020, the Company implemented a one-for-six reverse stock split of the Company’s issued and outstanding ordinary shares. Except shares authorized, all share and per share information has been retroactively adjusted to give effect to the reverse stock split for all periods presented, unless otherwise indicated. | ||||
[3] | On July 30, 2020, the Company implemented a one-for-six reverse stock split of the Company’s issued and outstanding ordinary shares. Except shares authorized, all references to number of shares, and to per share information in the consolidated financial statements have been retroactively adjusted. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Net loss | $ (9,924,859) | $ (18,331,208) | $ (3,594,261) |
Other comprehensive (loss) income: | |||
Foreign currency translation (loss) gain | 150,109 | 526,321 | (189,873) |
Comprehensive loss | (9,774,750) | (17,804,887) | (3,784,134) |
Comprehensive loss attributable to the non- controlling interest | 37,776 | 699,680 | 6,485 |
Comprehensive loss attributable to the Company | $ (9,736,974) | $ (17,105,207) | $ (3,777,649) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) | Ordinary Shares [Member] | Additional Paid-in Capital [Member] | Reserve [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interest [Member] | Total | ||
BALANCE at Dec. 31, 2018 | $ 126,146,996 | [1] | $ 15,782,904 | $ 14,044,269 | $ (170,935,437) | $ 23,218,159 | $ 9,347,036 | $ 17,603,927 | |
Balance, shares at Dec. 31, 2018 | [1] | 6,960,027 | |||||||
Shares issued for service | $ 110,160 | [1] | 110,160 | ||||||
Shares issued for services, shares | [1] | 40,000 | |||||||
Non-employee Stock options and warrants issued for service | [1] | 59,462 | 59,462 | ||||||
Beneficial conversion feature on convertible note (Note 13) | [1] | 113,526 | 113,526 | ||||||
Issuance of detachable warrant along with convertible note (Note 13) | [1] | 11,126 | 11,126 | ||||||
Net loss for the year | [1] | (3,582,332) | (11,929) | (3,594,261) | |||||
Foreign currency translation gain | [1] | (195,314) | 5,444 | (189,870) | |||||
Employee Stock Incentive- stock option (Note 16) | [1] | 494,315 | 494,315 | ||||||
BALANCE at Dec. 31, 2019 | $ 126,257,156 | [1] | 16,461,333 | 14,044,269 | (174,517,769) | 23,022,845 | 9,340,551 | $ 14,608,385 | |
Balance, shares at Dec. 31, 2019 | [1] | 7,000,027 | |||||||
Shares issued for services, shares | 32,887 | ||||||||
Net loss for the year | [1] | (17,694,775) | (636,433) | $ (18,331,208) | |||||
Foreign currency translation gain | [1] | 589,568 | (63,247) | 526,321 | |||||
Stock-based payment for consulting fee (Note 19) | $ 327,674 | [1] | 84,586 | 412,260 | |||||
Stock-based payment for consulting fee (Note 19), shares | [1] | 104,887 | |||||||
Exercise of non-employee warrants | $ 74,539 | [1] | (74,539) | ||||||
Exercise of non-employee warrants, shares | [1] | 18,144 | |||||||
Exercise of Employee Stock Options (Note 16) | $ 1,305,577 | [1] | (1,305,577) | ||||||
Exercise of Employee Stock Options (Note 16), shares | [1] | 72,414 | |||||||
Conversion of convertible notes (Note 16) | $ 2,065,693 | [1] | (217,360) | 1,848,333 | |||||
Conversion of convertible notes (Note 16), shares | [1] | 767,527 | |||||||
Insurance of ordinary shares for financing (Note 19) | $ 1,151,738 | [1] | 1,151,738 | ||||||
Insurance of ordinary shares for financing (Note 19), shares | [1] | 507,936 | |||||||
Detachable warrant and beneficial conversion feature in connection with Convertible note (Note 13) | [1] | 462,280 | 462,280 | ||||||
Round-up of fractional shares in connection with 6-for-1 reverse stock split | [1] | ||||||||
Round-up of fractional shares in connection with 6-for-1 reverse stock split, shares | [1] | 2,911 | |||||||
Employee stock incentive (Note 19) | $ 65,410 | [1] | 232,681 | 298,091 | |||||
Employee stock incentive (Note 19), shares | [1] | 13,110 | |||||||
BALANCE at Dec. 31, 2020 | $ 131,247,787 | [1] | 15,643,404 | 14,044,269 | (192,212,544) | 23,612,413 | 8,640,871 | 976,200 | |
Balance, shares at Dec. 31, 2020 | [1] | 8,486,956 | |||||||
Net loss for the year | [1] | (9,924,859) | (9,924,859) | ||||||
Foreign currency translation gain | [1] | 187,886 | (37,777) | 150,109 | |||||
Stock-based payment for consulting fee (Note 19) | $ 187,390 | [1] | 72,706 | 260,096 | |||||
Stock-based payment for consulting fee (Note 19), shares | [1] | 62,000 | |||||||
Conversion of convertible notes (Note 16) | $ 1,739,768 | [1] | (205,810) | 1,533,958 | |||||
Conversion of convertible notes (Note 16), shares | [1] | 598,034 | |||||||
Insurance of ordinary shares for financing (Note 19) | $ 17,894,609 | [1] | 17,894,609 | ||||||
Insurance of ordinary shares for financing (Note 19), shares | [1] | 4,340,740 | |||||||
Employee stock incentive (Note 19) | $ 2,792,000 | [1] | 2,792,000 | ||||||
Employee stock incentive (Note 19), shares | [1] | 200,000 | |||||||
Stock-based Compensation (Note 19) | [1] | 158,070 | 158,070 | ||||||
Dissolve of variable interest entity and ordinary shares issued for acquisition of a wholly owned subsidiary | $ 1,800,000 | [1] | 6,778,713 | (8,603,094) | (24,381) | ||||
Dissolve of variable interest entity and common stock issued for acquisition of a wholly owned subsidiary, shares | [1] | 612,245 | |||||||
Ordinary shares issued for business acquisition | $ 5,436,456 | [1] | 5,436,456 | ||||||
Ordinary shares issued for business acquisition, shares | [1] | 1,213,630 | |||||||
Minority shareholders’ contribution | [1] | (1,759) | (1,759) | ||||||
BALANCE at Dec. 31, 2021 | $ 161,098,010 | [1] | $ 22,447,083 | $ 14,044,269 | $ (202,137,403) | $ 23,800,299 | $ (1,759) | $ 19,250,499 | |
Balance, shares at Dec. 31, 2021 | [1] | 15,513,605 | |||||||
[1] | On July 30, 2020, the Company implemented a one-for-six reverse stock split of the Company’s issued and outstanding ordinary shares. Except shares authorized, all references to number of shares, and to per share information in the consolidated financial statements have been retroactively adjusted. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
OPERATING ACTIVITIES | |||
Net loss | $ (9,924,859) | $ (18,331,208) | $ (3,594,261) |
Adjustments to reconcile net (loss) to net cash (used in) provided by operating activities: | |||
Provision for losses on accounts receivable and other current assets | 5,541,717 | 13,521,182 | 3,628,544 |
Provision for obsolete inventories | (82,255) | 5,629 | 115,191 |
Depreciation | 3,704,818 | 3,206,568 | 2,842,787 |
Amortization of intangible assets and other asset | 273,076 | 58,164 | |
Amortization of convertible note discount | 558,690 | 46,165 | |
Loss (gain) on sale of property and equipment | (655,907) | 435,767 | |
Loss from disposal of inventories | 128,983 | 62,732 | |
Stock-based payments for consulting services | 187,390 | 445,749 | 86,326 |
Stock-based compensation to employees | 2,950,070 | 298,091 | 494,316 |
Impairment on cryptocurrencies | 493,617 | ||
(Gain) on sales of cryptocurrencies | (410,979) | ||
Loss on equity method investment | 814,440 | ||
Changes in operating assets and liabilities: | |||
Increase in accounts receivable | (907,826) | (3,033,406) | 923,873 |
Decrease (increase) in accounts receivable from related parties | 515,334 | (292,230) | (5,262,357) |
Decrease in accounts payable from related party | (70,525) | ||
Decrease in inventories | 165,566 | 59,002 | 207,233 |
Cryptocurrencies – mining | (5,455,345) | ||
Decrease (increase) in other non-current assets | 1,885,104 | (4,343,311) | |
Decrease in other receivables and prepaid expenses | 2,054,954 | 4,385,133 | |
Increase in advances to suppliers | (6,719,399) | (2,643,860) | (598,082) |
Increase in amounts due to/from related parties | (827,901) | (870,859) | |
(Decrease) increase in other payables and accrued expenses | (2,263,237) | 691,846 | 663,584 |
Increase (decrease) in advances from customers | 48,301 | (126,515) | 122,720 |
(Decrease) increase in advances from customers from related parties | (22,705) | 10,247 | 91,233 |
Increase in payroll payable | 231,673 | ||
Increase in lease liability | 91,586 | ||
(Decrease) increase in accounts payable | (5,812,529) | 1,025,912 | (503,267) |
Increase (decrease) in income tax payable | 374,353 | (71,316) | (237,968) |
Net cash (used in) provided by operating activities | (16,149,498) | (1,782,839) | (1,682,104) |
INVESTING ACTIVITIES | |||
Proceeds from sales of cryptocurrencies | 4,543,543 | ||
Proceeds from sales of property and equipment | 25,697 | 133 | |
Purchases of property, equipment and software | (11,293,962) | (1,668,363) | (1,619,325) |
Acquisition of cash in connection with a business acquisition | 7,545 | ||
Consideration paid for acquisition | (7,257,394) | ||
Disbursement of loan receivable - related party | (90,977) | (400,608) | |
Proceeds from loan receivable | 2,171,655 | ||
Net cash (used in) provided by investing activities | (14,000,268) | (1,733,643) | 151,855 |
FINANCING ACTIVITIES | |||
Proceeds from borrowings under short-term loans | 11,937,002 | 6,285,837 | 7,817,959 |
Borrowings from related parties | 3,100,520 | ||
Repayment of short-term loans | (10,332,736) | (7,052,014) | (7,231,612) |
Proceeds from issuance of convertible note, net of debt issuance costs | 2,687,387 | 1,000,000 | |
Proceeds from issuance of ordinary shares in connection with Private placement net of offering costs | 28,323,371 | 1,151,738 | |
Net cash provided by financing activities | 33,028,157 | 3,072,948 | 1,586,347 |
Effect of exchange rate changes on cash and cash equivalents | 555,961 | 20,782 | (189,692) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 3,434,352 | (422,752) | (133,594) |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING | 1,096,914 | 1,519,666 | 1,653,260 |
CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH, ENDING | 4,531,266 | 1,096,914 | 1,519,666 |
Cash paid during the year | |||
Interest | 454,261 | 357,092 | $ 445,582 |
Reconciliation to amounts on consolidated balance sheets | |||
Cash and cash equivalents | 4,531,266 | 882,770 | |
Restricted cash | 214,144 | ||
Total cash, cash equivalents, and restricted cash | $ 4,531,266 | $ 1,096,914 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Oct. 31, 2020 | Sep. 30, 2020 | Feb. 28, 2021 | Sep. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Apr. 30, 2021 | Mar. 31, 2020 | |
Warrants to purchase common stock | 16,667 | 53,333 | 53,333 | 16,667 | 26,667 | |||||||
Convertible promissory note | $ 1,480,000 | $ 1,480,000 | $ 767,500 | $ 1,040,000 | ||||||||
Purchase of software and equipment | 6,300,000 | 1,600,000 | ||||||||||
Stock issued during the period new issued | 32,887 | |||||||||||
Fair value of warrants | $ 18,040 | $ 18,040 | ||||||||||
Number of shares issued for services, value | $ 110,160 | |||||||||||
Right of use assets operating lease liabilities | 896,505 | $ 1,000,000 | ||||||||||
Shares issued for acquisition, value | 5,436,456 | |||||||||||
Increase in accounts payable and other payable | 1,400,000 | |||||||||||
Noncash transactions, value | 830,000 | |||||||||||
Taoping New Media Co., Ltd [Member] | ||||||||||||
Shares issued for acquisition | 1,213,630 | |||||||||||
Shares issued for acquisition, value | $ 5,436,000 | |||||||||||
iASPEC Technology Group Co., Ltd. (iASPEC) [Member] | ||||||||||||
Shares issued for acquisition | 612,245 | |||||||||||
Shares issued for acquisition, value | $ 1,800,000 | |||||||||||
Consultants [Member] | ||||||||||||
Number of ordinary shares issued | 40,000 | |||||||||||
Number of ordinary shares issued, value | $ 300,000 | $ 110,000 | ||||||||||
Warrants to purchase common stock | 15,000 | |||||||||||
Fair value of warrants | $ 73,000 | |||||||||||
Number of shares issued for services, value | $ 29,200 | |||||||||||
Consultants [Member] | Warrant [Member] | ||||||||||||
Number of ordinary shares issued | 25,000 | |||||||||||
Non Restricted [Member] | ||||||||||||
Stock issued during the period new issued | 72,000 | |||||||||||
Two Individual Investor [Member] | ||||||||||||
Warrants to purchase common stock | 26,667 | |||||||||||
Convertible promissory note | $ 1,480,000 | |||||||||||
Fair value of warrants | $ 11,580 | |||||||||||
Employee [Member] | ||||||||||||
Stock issued during the period new issued | 13,110 | |||||||||||
Option to purchsae shares | 0 | 333,348 | 0 | |||||||||
Number of shares issued for services, value | $ 65,000 | |||||||||||
Employee [Member] | 2016 Equity Incentive Plan [Member] | ||||||||||||
Option to purchsae shares | 13,110 | |||||||||||
Holders [Member] | Convertible Promissory Note [Member] | ||||||||||||
Debt instrument principal amount | $ 1,089,833 | $ 1,089,833 | ||||||||||
Debt instrument price per share | $ 2.40 | $ 2.40 | $ 2.40 | |||||||||
Number of shares issued for debt connversion | 454,097 | 454,097 | ||||||||||
Each of Two Holders [Member] | Convertible Promissory Note [Member] | ||||||||||||
Debt instrument principal amount | $ 383,875 | $ 379,250 | ||||||||||
Debt instrument price per share | $ 2.565 | $ 2.42 | $ 2.42 | $ 2.565 | ||||||||
Number of shares issued for debt connversion | 149,659 | 156,715 | ||||||||||
Other payable | $ 767,750 | $ 767,750 | ||||||||||
Two Holders [Member] | Convertible Promissory Note [Member] | ||||||||||||
Number of shares issued for debt connversion | 299,318 |
ORGANIZATION, PRINCIPAL ACTIVIT
ORGANIZATION, PRINCIPAL ACTIVITIES AND MANAGEMENT’S PLANS | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION, PRINCIPAL ACTIVITIES AND MANAGEMENT’S PLANS | 1. ORGANIZATION, PRINCIPAL ACTIVITIES AND MANAGEMENT’S PLANS Taoping Inc. (f/k/a China Information Technology, Inc.), together with its subsidiaries (the “Company” or “TAOP”), is a leading cloud-based ads display terminal and service provider of digital advertising distribution network and new media resource sharing platform in the Out-of-Home advertising market in China. The Company provides the integrated end-to-end digital advertising solutions enabling customers to distribute and manage ads on the ads display terminals. In May 2018, we changed our corporate name from “China Information Technology Inc.” to “Taoping Inc.”, to reflect our current business operations in the new media and IoT industries. In 2021, Information Security Tech. International Co. Ltd. (“IST HK”), one of the Company’s Hong Kong subsidiaries, changed its corporate name to Taoping Group (China) Ltd. to reflect the Company’s current corporate structure to be in line with the new business strategies. As listed in the table below, these services are provided through the Company’s wholly-owned People’s Republic of China (PRC) subsidiaries, and Company’s Variable interest entity (“VIE”) and VIE subsidiaries. On June 9, 2021, the Company consummated an acquisition of 100 26.9 51% In 2021, the Company also launched blockchain related new business in cryptocurrency mining operations and newly established subsidiaries in Hong Kong to supplement its diminished Traditional Information Technology (TIT) business segment as a part of new business transformation. With multiple cloud data centers deployed overseas, currently in Hong Kong, the Company continues to improve computing power and create value for the encrypted digital currency industry. In September 2021, the Company and the Company’s wholly owned subsidiary, Information Security Technology (China) Co., Ltd. (“IST”) entered into an equity transfer agreement with Mr. Jianghuai Lin, the sole shareholder of iASPEC. Upon closing of the equity transfer, the Company’s existing variable interest entity structure was dissolved and iASPEC became a wholly owned indirect subsidiary of the Company. In September 2021, the Company also strategically relocated its global corporate headquarters to Hong Kong to better implement cryptocurrency mining operations and blockchain related new businesses and streamline its international business development, client communication, and service delivery. The office located in Shenzhen, China becomes the TAOP’s regional headquarters in Mainland China. SCHEDULE OF SUBSIDIARIES AND VARIABLE INTEREST ENTITY December 31, December 31, December 31, 2021 2020 2019 Entities Subsidiaries % owned % owned % owned Location Taoping Inc British Virgin Islands Taoping Holdings Limited (THL) Subsidiary 100 % 100 % 100 % British Virgin Islands Taoping Group (China) Ltd. (IST HK) Subsidiary 100 % 100 % 100 % Hong Kong, China Taoping Digital Assets (Asia) Limited (TDAL) Subsidiary 100 % - - Hong Kong, China Taoping Digital Assets (Hong Kong) Limited (TDL) Subsidiary 100 % - - Hong Kong, China Taoping Capital Limited (TCL) Subsidiary 100 % - - Hong Kong, China Alpha Digital Group Ltd. (ADG) Subsidiary 100 % - - Cayman, Island Kazakh Taoping Operation Management Co. Ltd. (KTO) Subsidiary 100 % - - Kazakhstan Kazakh Taoping Data Center Co. Ltd. (KTD) Subsidiary 100 % - - Kazakhstan Information Security Tech. (China) Co., Ltd. (IST) Subsidiary 100 % 100 % 100 % Shenzhen, China TopCloud Software (China) Co., Ltd. (TopCloud) Subsidiary 100 % 100 % 100 % Shenzhen, China Information Security IoT Tech. Co., Ltd. (ISIOT) Subsidiary 100 % 100 % 100 % Shenzhen, China iASPEC Technology Group Co., Ltd. (iASPEC) Subsidiary 100 % VIE VIE Shenzhen, China Biznest Internet Tech. Co., Ltd. (Biznest) Subsidiary 100 % VIE VIE Shenzhen, China iASPEC Bocom IoT Tech. Co., Ltd. (Bocom) Subsidiary 100 % VIE VIE Shenzhen, China Taoping New Media Co., Ltd. (TNM) Subsidiary 100 % - - Shenzhen, China Shenzhen Taoping Education Technology Co., Ltd. (SZTET) Subsidiary 51 % - - Shenzhen, China Wuhu Taoping Education Technology Co., Ltd. (WHTET) Subsidiary 51 % - - Wuhu, China Taoping Digital Tech. (Dongguan) Co., Ltd. (TDTDG) Subsidiary 100 % - - Dongguan, China TopCloud Tech. (Chenzhou) Co., Ltd. (TCTCZ) Subsidiary 100 % - - Chenzhou, China Taoping Digital Tech. (Jiangsu) Co., Ltd. (TDTJS) Subsidiary 100 % - - Jiangsu, China In January 2022, Alpha Digital Group Ltd. was dissolved as a result of the business realignment of the Company. TAOPING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Management Service Agreement iASPEC was a VIE of the Company. To comply with PRC laws and regulations that restrict foreign ownership of companies that provide public security information technology and Geographic Information Systems software operating services to certain government and other customers, the Company operates the restricted aspect of its business through iASPEC. In September 2021, the Company and the Company’s wholly owned subsidiary, Information Security Technology (China) Co., Ltd. (“IST”) entered into an equity transfer agreement with Mr. Jianghuai Lin, the sole shareholder of iASPEC. Upon closing of the equity transfer, the Company’s existing variable interest entity structure was dissolved and iASPEC became a wholly owned indirect subsidiary of the Company. Pursuant to the terms of a management service agreement by and among IST, iASPEC and its shareholders, dated July 1, 2007 (“MSA”), iASPEC granted IST a ten-year, exclusive, royalty-free, transferable worldwide license to use and install certain iASPEC software, along with copies of source and object codes relating to such software. In addition, IST licensed back to iASPEC a royalty-free, limited, non-exclusive license to the software, without right of sub-license, for the sole purpose of permitting iASPEC to carry out its business as presently conducted. IST has the right to designate two Chinese citizens to serve as senior managers of iASPEC, to serve as a majority on iASPEC’s Board of Directors, and to assist managing the business and operations of iASPEC. In addition, both iASPEC and IST will require the affirmative vote of a majority of the Company’s Board of Directors, including at least one non-insider director, for certain material actions, as defined, with respect to iASPEC. Option Agreement In connection with the MSA, on July 1, 2007, IST also entered into an immediately exercisable purchase option agreement (the “Option Agreement”) with iASPEC and its shareholders. Pursuant to the Option Agreement, the iASPEC shareholder granted IST or its designee(s) an exclusive, irrevocable option to purchase, from time to time, all or a part of iASPEC’s shares or iASPEC’s assets from the iASPEC shareholder for $ 1,800,000 TAOPING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Amended and Restated MSA The Amended and Restated MSA was entered into on December 13, 2009, by and among IST, iASPEC and iASPEC’s sole shareholder, Mr. Jianghuai Lin (“Mr. Lin”). Pursuant to the Amended and Restated MSA, IST will provide management and consulting services to iASPEC, under the following terms: ● iASPEC agreed that IST will be entitled to receive ninety five percent ( 95 ● Mr. Lin confirmed his status as the sole iASPEC shareholder and his assumption of all of the obligations of the iASPEC shareholder under the agreement, including a confirmation of his continuing obligation under a written guaranty, executed by the then iASPEC shareholders. ● Based on iASPEC’s needs for its development and operation, IST has the right, from time to time, at its sole discretion, to provide iASPEC with capital support. ● IST agreed that it will not interfere with any business of iASPEC covered by iASPEC’s PRC State Secret related Computer Information System Integration Certificate, including but not limited to, seeking access to relevant documents regarding such business. However, iASPEC agreed that it will cooperate with the requests of the Company as necessary to comply with the Company’s reporting obligations to the Securities and Exchange Commission. (“SEC”). The Amended and Restated MSA amended certain terms of the original Management Service Agreement which became effective on July 1, 2007 and has a term of 30 years unless otherwise early termination by the parties by one of the following means: ● Either iASPEC or IST may terminate the Amended and Restated MSA immediately (a) upon the material breach by a party of its obligations and the failure of such party to cure such breach within 30 working days after written notice from the non-breaching party; or (b) upon the filing of a voluntary or involuntary petition in bankruptcy by a party, or of which the party is the subject to insolvency, or the commencement of any proceedings placing the party in a receivership, or of any assignment by a party for the benefit of creditors; or ● The Amended and Restated MSA may be terminated at any time by IST upon 90 calendar days’ written notice delivered to all other parties. Upon any effective date of any termination of the Amended and Restated MSA: (a) IST will cease providing management services to iASPEC; (ii) IST will deliver to iASPEC all chops and seals of iASPEC; (iii) IST will deliver to iASPEC all of the financial and other books and records of iASPEC, including any and all permits, licenses, certificates and other proprietary and operational documents and instruments; (iv) the senior managers who are recommended by IST and elected as directors of iASPEC will resign from the Board of Directors of iASPEC in a lawful way; and (v) the software license that iASPEC granted to IST according to the Amended and Restated MSA will terminate unless otherwise agreed by the parties. In addition, any amounts owing from any party to any other party on the effective date of any termination under the terms of the Amended and Restated MSA will continue to be due and owing despite such termination. TAOPING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS The Amended and Restated MSA does not have renewal provisions. We expect that the parties to the Amended and Restated MSA will negotiate to extend the term of the agreement before its expiration. The substance of the Amended and Restated MSA and the Option Agreement is to: ● Allow the Company to utilize the business licenses, contacts, permits, and other resources of iASPEC in order for the Company to be able to expand its operations and business model; ● Provide the Company with effective control over all of iASPEC’s operations; and provide the shareholders of iASPEC an opportunity to monetize a portion of their investment through the $ 1.8 Dissolution of the Variable Interest Entity Structure In September 2021, we dissolved the variable interest entity structure by exercising the purchase option under the Option Agreement to purchase all of the equity interests in iASPEC at an aggregate exercise price of $ 1,800,000 612,245 1,800,000 Upon the closing of the equity transfer, the Company’s variable interest entity structure was dissolved and iASPEC became a wholly owned indirect subsidiary of the Company. The amended and restated MSA was automatically terminated. Going Concern and Management’s Plans Although the COVID-19 pandemic has largely been contained in China, regional outbreaks of infections persist in various localities. The negative impact from the pandemic to the out-of-home advertising business continued throughout 2021. However, our revenue achieved 124.6% year-over-year increase as a result of the additions of cryptocurrency mining operations and the acquisition of TNM for the year 2021. The Company has significantly improved profitability by $ 8.4 million by reducing net loss to $ 9.9 million for the year ended December 31, 2021 from $ 18.3 million a year ago. Cash and cash equivalents held by the Company at Dec 31, 2021 was $ 4.5 million, compared to cash and cash equivalents of $ 1.1 million a year ago. The Company incurred a net loss of approximately $ 9.9 18.3 6.3 17.4 In the first quarter of 2021, the Company completed three financing transactions issuing 3,140,740 13.1 1,200,000 4.73 TAOPING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS In June 2021, the Company completed an acquisition of 100 5.5 2.7 If the Company’s execution of business strategies is not successful in addressing its current financial concerns, additional capital raise from issuing equity security or debt instrument or additional loan facility may occur to support required cash flows. However, the Company can make no assurances that financing will be available for the amounts we need, or on terms commercially acceptable to us, if at all. If one or all of these events do not occur or subsequent capital raise was insufficient to bridge financial and liquidity shortfall, substantial doubt exists about the Company’s ability to continue as a going concern. The consolidated financial statements have been prepared assuming that the Company will continue as a going concern and, accordingly, do not include any adjustments that might result from the outcome of this uncertainty. To overcome the going concern issue, the Company will actively seek opportunities to achieve revenue growth through strategic acquisitions on digital advertising, new revenue streams development, and significant expansion of computing power for cryptocurrency mining operations. In addition to cash generating from business, the Company has secured at least $ 8 million revolving bank facility line which provides important capital support for its operation. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Presentation and Principles of Consolidation The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). In the opinion of management, all adjustments (consisting of normal recurring adjustments) have been made that are necessary to present fairly the financial position, the results of its operations and cash flows. The consolidated financial statements include the accounts of the Company, its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Reverse Stock Split: A one (1)-for-six (6) reverse stock split of the Company’s issued and outstanding ordinary shares was effective on July 30, 2020 (the “Reverse Stock Split”) (b) Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. The Company’s significant estimates include its accounts receivable, assessment of credit losses, fair value of stock options and warrants, valuation allowance of deferred tax assets, useful lives of property and equipment, the recoverability of long-lived assets, revenue recognition, valuation of prepayments and other assets and other intangible assets, inventories, cryptocurrencies, purchase price allocation of business combination, right-of-use assets, and lease liabilities. Management makes these estimates using the best information available at the time the estimates are made; however actual results could differ from those estimates. TAOPING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (c) Economic, Pandemic, Political, and Currency Exchange Risks All the Company’s revenue-generating operations are conducted in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic, public health, and legal environments in the PRC, and by the general state of the PRC economy. The Company’s operations in the PRC are subject to special considerations and significant risks that are not typically pertaining to the companies in North America and Western Europe. These include risks associated with, among others, the political, economic, public health concerns with persistent outbreaks of COVID-19 infections in various regional localities, and legal environments, geopolitical influences, and foreign currency exchange, notably in recent events, where the government’s sudden interventions or modifications of the laws and regulations currently in effective could negatively impact the Company’s operations and financial results. In September 2021, ten Chinese regulatory authorities collectively promulgated a guidance to further control and monitor cryptocurrency related trading, exchanges, transaction, banking and financial service, initial coin offering, and other intermediary and derivatives transactions, which are considered illegal in accordance with effectuated laws and regulations and may be subject to penalty criminally. The new guidance also bars foreign cryptocurrency trading platforms and related businesses to provide services to China domestic individuals and business entities, and expands the application of laws and regulations to Chinese employees or contractors of foreign operatives that provide related services to individuals or business entities domiciled in China. The legality of cryptocurrency mining activity may be subject to challenge by Chinese authorities. As a result, the Company has relocated its global headquarters to Hong Kong where cryptocurrency mining, trading, exchange, transaction, and related business activities are lawful. The functional currency of the Company is Chinese Renminbi Yuan (“RMB”), which is not freely convertible into foreign currencies. The Company cannot guarantee that the current exchange rate will remain steady. Therefore, there is a possibility that the Company could post the same amount of profit for two comparable periods and yet, because of fluctuating exchange rates, record higher or lower profit depending on exchange rate of RMB. RMB converted to U.S. dollars on the relevant dates. The exchange rate could fluctuate depending on changes in the political and economic environment without notice. (d) Cash and Cash Equivalents The Company considers all highly liquid investments purchased and cash deposits with financial institutions with original maturities of three months or less to be cash equivalents. The Company had no The Company maintains its cash accounts at credit worthy financial institutions and closely monitors the movements of its cash positions. As of December 31, 2021 and 2020, approximately $ 4.5 million and $ 0.9 million of cash, respectively, was held in bank accounts in the PRC and Hong Kong. (e) Restricted Cash The Company held restricted cash of $ 0.2 no (f) Accounts Receivable, Accounts Receivable –related parties, and Concentration of Risk In January 2020, the Company adopted ASU 2016-13, Topics 326-Credit Loss, Measurement of Credit Losses on Financial Instruments, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (CECL) methodology, as its accounting standard for its trade accounts receivable. The adoption of the credit loss accounting standard has no material impact on the Company’s consolidated financial statements as of January 1, 2020. Accounts receivable are recognized and carried at carrying amount less an allowance for credit loss, if any. The Company maintains an allowance for credit losses resulting from the inability of its customers to make required payments based on contractual terms. The Company reviews the collectability of its receivables on a regular and ongoing basis according to historical trend, and estimates its provision for expected credit losses on receivables aging analysis. The Company has further adjusted allowance for credit losses for the anticipation of future economic condition and credit risk indicators of customers, including the potential impact of the COVID-19 pandemic on its customers’ businesses. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. In the event the Company recovers amounts previously reserved for, the Company will reduce the specific allowance for credit losses. The balance of allowance for credit losses for the year ended December 31, 2021 has increased approximately $ 5.5 TAOPING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Accounts receivable as at December 31, 2021 and 2020 are as follows: SCHEDULE OF ACCOUNTS RECEIVABLE December 31, 2021 December 31, 2020 Accounts Receivable $ 18,340,348 $ 12,359,619 Allowance for credit losses (11,582,186 ) (8,095,362 ) Accounts Receivable, net $ 6,758,162 $ 4,264,257 Accounts Receivable - related parties $ 16,032,134 $ 12,017,651 Allowance for credit losses (15,680,662 ) (9,098,436 ) Accounts Receivable - related parties, net $ 351,472 $ 2,919,215 Non-current Accounts Receivable $ - $ 3,013,532 Non-current credit losses - (1,174,302 ) Non-current Accounts Receivable, net $ - $ 1,839,230 Non-current Accounts Receivable - related parties $ - $ 4,172,502 Non-current Allowance for credit losses - related parties - (2,849,306 ) Non-current Accounts Receivable - related parties, net $ - $ 1,323,196 The normal credit term ranges from 1 month to 3 months after the customers’ acceptance of hardware or software, and completion of services. However, because of various factors of business cycle, the actual collection of outstanding accounts receivable may be beyond the normal credit terms. In accordance with ASC 210-10-45, the non-current accounts receivable and non-current accounts receivable-related parties represent the amounts that the Company does not reasonably expect to be realized during the normal operating cycle of the Company. The Company uses one-year time period as the basis for the separation of current and non-current assets. The allowance for credit losses at December 31, 2021 and 2020, totaled approximately $ 27.3 21.2 SCHEDULE OF ALLOWANCE FOR CREDIT LOSSES Balance at January 1, 2020 $ 7,212,644 Increase in allowance for credit losses 13,528,638 Foreign exchange difference 476,124 Balance at December 31, 2020 $ 21,217,406 Addition from acquisition of subsidiaries under common control 314,214 Increase in allowance for credit losses 5,134,350 Foreign exchange difference 596,878 Balance at December 31, 2021 $ 27,262,848 (g) Advances to Suppliers Advances to suppliers include but are not limited to cash deposits for the purchase of inventory items and super-computing server machines from suppliers. (h) Advances from Customers and Related Parties Advances from customers and related parties represent cash received from customers and related parties as advance payments for the purchases of the Company’s products and services. TAOPING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (i) Fair Value and Fair Value Measurement of Financial Instruments Management has estimated that carrying amounts reported in the consolidated balance sheets for cash, accounts receivable, accounts receivable – related party, advances to suppliers, loan receivable - related party, other current assets, accounts payable, other payables and accrued expenses, income taxes payable, convertible note payable, net, and due to related parties approximate their fair market value based on the short-term maturity of these instruments. (j) Fair Value Accounting Financial Accounting Standards Board (FASB) Accounting Standards Codifications (ASC) 820-10 “Fair Value Measurements and Disclosures”, establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). As required by FASB ASC 820-10, assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The three levels of the fair value hierarchy under FASB ASC 820-10 are described below: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). On January 1, 2020, the Company adopted ASU 2018-13,” Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement.” The adoption of the disclosure requirements for Fair Value Accounting has no material impact on the Company’s consolidated financial statements. TAOPING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (k) Inventories, net Inventories are valued at the lower of cost (weighted average basis) and net realizable value. Net realizable value is the expected selling price in the ordinary course of business minus any costs of completion, disposal, and transportation to make the sale. The Company performs an analysis of slow-moving or obsolete inventory periodically and any necessary valuation reserves, which could potentially be significant, are included in the period in which the evaluations are completed. Any inventory impairment results in a new cost basis for accounting purposes. (l) Property, equipment and software Property, equipment and software are stated at cost less accumulated amortization and depreciation. Amortization and depreciation is provided over the assets’ estimated useful lives, using the straight-line method. Estimated useful lives of property, equipment and software are as follows: SCHEDULE OF PROPERTY, EQUIPMENT AND SOFTWARE ESTIMATED USEFUL LIVES Office buildings 20 50 Lease improvement Shorter of lease term or assets lives Electronics equipment, furniture and fixtures 3 5 Motor vehicles 5 Purchased software 5 Media display equipment 5 Cryptocurrency mining machine 3 Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss are included in the Company’s results of operations. (m) Intangible assets, net Intangible assets represent technology, software development costs and trademarks acquired by the Company through business acquisition. Intangible assets are stated at acquisition fair value or cost less accumulated amortization, and amortized using the straight-line method over the following estimated useful lives: SCHEDULE OF INTANGIBLE ASSETS ESTIMATED USEFUL LIVES Software development costs 3 5 Trademarks 5 (n) Cryptocurrencies Cryptocurrencies held, including Bitcoin and Ethereum, are accounted for as intangible assets with indefinite useful lives. An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived asset is impaired. Impairment exists when the carrying amount exceeds its fair value, which is measured using the quoted price of the cryptocurrency at the time its fair value is being measured. In testing for impairment, the Company has the option to first perform a qualitative assessment to determine whether it is more likely than not that an impairment exists. If it is determined that it is not more likely than not that an impairment exists, a quantitative impairment test is not necessary. If the Company concludes otherwise, it is required to perform a quantitative impairment test. To the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset. Subsequent reversal of impairment losses is not permitted. Cryptocurrencies awarded to the Company through its mining activities are included within operating activities in the consolidated statements of cash flows. The sales of cryptocurrencies are included within investing activities in the consolidated statements of cash flows and any realized gains or losses from such sales are included in other income (expense) in the consolidated statements of operations. The Company accounts for its gains or losses in accordance with the first in first out (FIFO) method of accounting. (o) Business combination In accordance with ASC 805, the Company applies acquisition method to account for business combination. The acquisition method requires that the fair value of the underlying exchange transaction is used to establish a new accounting basis of the acquired entity upon the acquirer taking control over the acquiree. Furthermore, because of obtaining control the acquirer is responsible and accountable for all of the acquiree’s assets, liabilities and operations, the acquirer recognizes and measures the assets acquired and liabilities assumed at their full fair values as of the date control is obtained, which may result in goodwill, when purchase consideration exceeds the net of fair value of the assets acquired and liabilities assumed, or a bargain purchase gain, when the net of fair value of the assets acquired and liabilities assumed exceeds the purchase consideration, regardless of the percentage ownership in the acquiree or how the acquisition was achieved. TAOPING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (p) Long-term investment The Company’s long-term investment consists of investments accounted for under the equity method and equity investments without readily determinable fair value. Pursuant to ASC 321, equity investments, except for those accounted for under the equity method, those that result in consolidation of the investee and certain other investments, are measured at fair value, and any changes in fair value are recognized in earnings. For equity securities without readily determinable fair value and do not qualify for the existing practical expedient in ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”) to estimate fair value using the net asset value per share (or its equivalent) of the investment, the Company elected to measure those investments at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer, if any. For equity investments that the Company elects to measure at cost, less any impairment, plus or minus changes resulting from observable price changes, the Company makes a qualitative assessment considering impairment indicators to evaluate whether investments are impaired at each reporting date. Impairment indicators considered include, but are not limited to, a significant deterioration in the earnings performance or business prospects of the investee, including factors that raise significant concerns about the investee’s ability to continue as a going concern, a significant adverse change in the regulatory, economic, or technologic environment of the investee and a significant adverse change in the general market condition of either the geographical area or the industry in which the investee operates. If a qualitative assessment indicates that the investment is impaired, the entity has to estimate the investment’s fair value in accordance with the principles of ASC 820. For equity investments without readily determinable fair value, the Company uses Level 3 inputs of fair value accounting in accordance with ASC 820-10 and recognizes impairment loss other than temporary in the statement of operations equal to the difference between its initial investment and its proportional share of the net book value of the investee’s net assets which approximates its fair value. For impairment on equity investments without readily determinable fair value, the Company uses Level 3 inputs of fair value accounting in accordance with ASC 820-10 and recognizes impairment loss in the statement of operations equal to the difference between its initial investment and its proportional share of the net book value of investee’s net assets which approximates its fair value if those are determined to be other than temporary. (q) Convertible promissory note The Company determines the appropriate accounting treatment of its convertible debts in accordance with the terms in relation to conversion features. After considering the impact of such features, the Company may account for such instrument as a liability in its entirety, or separate the instrument into debt and equity components following the guidance described under ASC 815 Derivatives and Hedging and ASC 470 Debt. The debt discount, if any, together with related issuance cost are subsequently amortized as interest expense over the period from the issuance date to the earliest conversion date or stated redemption date. The Company presented the issuance cost of debt in the balance sheet as a direct deduction from the related debt. (r) Impairment of Long-Lived Assets Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. It is reasonably possible that these assets could become impaired as a result of technology or other industry changes. Recoverability of assets to be held and used is determined by comparing their carrying amount with their expected future net undiscounted future cash flows from the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by how much the carrying amount exceeds the fair value of the assets. There were no (s) Operating leases - Right-of-use assets and lease liabilities The Company accounts for lease under ASC 842 “Leases”, and also elects practical expedient not to separate non-lease component from lease components in accordance with ASC 842-10-15-37 and instead to account for each separate lease component and the non-lease components associated with that lease component as a single lease component. The Company also elects the practical expedient not to recognize lease assets and lease liabilities for leases with a term of 12 months or less. The Company recognized a lease liability and corresponding right-to-use asset based on the present value of minimum lease payments discounted at the Company’s incremental borrowing rate. The Company records amortization and interest expense on a straight-line basis based on lease terms and reduces lease liabilities upon making lease payments. (t) Revenue Recognition In accordance with the ASC 606, the Company recognizes revenues net of applicable taxes, when goods or services are transferred to customers in an amount that reflects the consideration to which the Company expects to receive in exchange for those goods or services. The Company generates its revenues primarily from five sources: (1) product sales, (2) software sales, (3) advertising, (4) crypto-currency mining, and (5) other sales. Revenue is recognized when obligations under the terms of a contract with our customers are satisfied, generally, upon delivery of the goods and services and receipts of cryptocurrencies from cryptocurrency mining pools. TAOPING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Revenue - Products Product revenues are generated primarily from the sale of Cloud-Application-Terminal based digital ads display terminals with integrated software essential to the functionality of the hardware to our customers (inclusive of related parties) and high-end data storage servers. Although manufacturing of the products has been outsourced to the Company’s Original Equipment Manufacturer (OEM) suppliers, the Company has acted as the principal of the contract. The Company recognized the product sales at the point of delivery. The Company may from time to time provide future unspecified software upgrades to the hardware products’ essential software, which is expected to be infrequent and, free of charge. Non-software service is mainly the one-time training session provided to the customer to familiarize them with the software operation upon the customer’s initial introduction to the software platform. The costs of providing infrequent software upgrade and training are de minimis. As a result, the Company does not allocate transaction price to software upgrade and customer training. Product sales are classified as “Revenue-Products” on the Company’s consolidated statements of operations. Revenue - Software Customers in the private sector contract the Company to design and develop software products specifically customized for their needs for a fixed price. Software development projects usually include developing software, integrating various isolated software systems into one, and testing the system. The design and build services, together with the integration of the various elements, are generally determined to be essential to the functionality of the delivered software. The contracted price is usually paid in installments based on progression of the project or at the delivery of the software. The Company usually provides non-software services including after-sale support, technical training. The technical training only occurs at the introduction of the software. The software is highly specialized and stable, after-sale support and subsequent upgrade or enhancement are infrequent. The Company has estimated the costs associated with the non-software performance obligations and concludes that these obligations are de minimis to the overall contract. Therefore, the Company does not further allocate transaction price. The Company usually completes the customized software contracts less than 12 months and recognizes the revenue at the point of delivery because the Company does not have an enforceable right to payment for performance completed to date. Revenues from software development contracts are classified as “Revenue-Software” on the Company’s consolidated statements of operations. Revenue - Advertising The Company generates revenues primarily from providing advertising slots to customers to promote their businesses by broadcasting advertisements on identifiable digital ads display terminals and vehicular ads display terminals in different geographic regions and locations through a cloud-based new media sharing platform. The Company also contracts individuals to promote special events or for various occasions. The Company is only obligated to broadcast the advertisements to the contracted digital ads display terminals, and therefore allocates 100% of the transaction price to advertisement broadcasting. The transaction price for advertisement broadcasting is fixed based on the numbers of advertisement delivery and duration of the contract, and has no variable consideration, or significant financing component, or subsequent price change, and is not refundable. The Company recognizes the revenues, net of applicable taxes, from advertisement broadcasting contracts with customers over the contracted advertising duration. TAOPING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Revenue - Cryptocurrency mining The Company has entered into digital asset mining pools by executing contracts with the mining pool operators to provide computing power to the mining pool. The contracts are terminable under certain circumstances. In exchange for providing computing power, the Company is entitled to a fractional share of the fixed cryptocurrency awards the mining pool operator receives (less digital asset transaction fees to the mining pool operator, if any.) for successfully adding a block to the blockchain. The Company’s fractional share is based on the proportion of computing power the Company contributed to the mining pool operator to the total computing power contributed by all mining pool participants in solving the current algorithm. Providing computing power in digital asset transaction verification services is an output of the Company’s ordinary activities. The provision of providing such computing power is the only performance obligation in the Company’s contract with mining pool operator. The transaction consideration the Company receives, if any, is noncash consideration, which the Company measures at fair value using the quoted price of the related cryptocurrency on the date received, which is not materially different than the fair value at the contract inception or at the time the Company has earned the award from the pools. The consideration is variable. Because it is not probable that a significant reversal of cumulative revenue will not occur (ASC 606-10-32-11), the consideration is constrained until the mining pool operator successfully places a block (by being the first to solve an algorithm), and the Company receives confirmation of the consideration it will receive, at which time revenue is recognized. There is no financing component, nor allocation of transaction price in these transactions. Revenue - Other The Company also reports other revenue which comprises revenue generates from System upgrade and technical support services, platform service fee, and rental income. System upgrade and technical support revenue is recognized when performance obligations are satisfied upon completion of the services. Platform service fee is charged based on number of the display terminals used by the customers or a percentage of advertising revenue generated by the display terminals. Platform service revenue is recognized on a monthly basis over the contract period. The Company follows ASC 842 – Leases that requires lessor to identify the underlying assets and allocate rental income among considerations in lease and non-lease components. The Company owns two units of office space renting out to a third party and TNM under non-cancelable operating lease agreements with lease terms of six years starting from May 1, 2016 and three years starting from July 1, 2019, respectively. The lease agreements have fixed monthly rental payments, and no non-lease component or option for lessees to purchase the underlying assets. The Company collects monthly rental payments from the lessees, and has generated approximately $ 340,000 405,000 After completion of the business acquisition on June 9, 2021, TNM became a subsidiary of the Company, and is no longer a related party. The rental income from TNM has become an intercompany revenue and been eliminated since June 9, 2021. TAOPING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Annual minimum rental income to be received in 2022 is $ 126,850 none Contract balances The Company records advances from customers when cash payments are received or due in advance of our performance. For the year ended December 31, 2021, 2020 and 2019, the Company recognized revenue of $ 141,000 , $ 256,000 and $ 335,000 , respectively, that was included in the advances from customers balance at the beginning of each reporting period. Practical expedients and exemptions The Company generally expenses sales commissions if any incurred because the amortization period would have been one year or less. In many cases, the Company is approached by customers for customizing software products for their specific needs without incurring significant selling expenses. The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. (u) Cost of Sales - advertising and cost of cryptocurrencies The cost of sales for advertising revenue mainly comprises of direct costs of generating advertising revenue including lease expense for the wall space, to where the ads display terminal to be installed, installation costs of ads display terminals, depreciation of display termination, labor, and other related expenses. The cost of sales for cryptocurrencies revenue consists primarily of direct costs of earning Bitcoin and Ethereum related to mining operations, including mining platform fees, mining pool fees, mining facility rental fees, electric power costs, other utilities, depreciation of mining machines, labor, insurance, and among other ancillary costs. (v) Stock-based compensation The Company applies ASC No. 718, “Compensation-Stock Compensation”, which requires that share-based payment transactions with employees, such as share options, be measured based on the grant date fair value of the equity instrument and recognized as compensation expense over the requisite service period, with a corresponding addition to equity. Under this method, compensation cost related to employee share options or similar equity instruments is measured at the grant date based on the fair value of the award and is recognized over the period during which an employee is required to provide service in exchange for the award, which generally is the vesting period. The Company adopted ASU 2018-07, Compensation-Stock Compensation (Topic: 718): Improvements to Nonemployee Share-Based Payment Accounting on January 1, 2019, to account for stock-based compensation to goods and services provided by the third parties. The fair value of the equity awards to nonemployee are measured on the grant day. Under this guidance, compensation cost related to nonemployee share options or similar equity instruments is recognized in the same period and in the same manner (i.e. capitalize or expense) the entity would if it paid cash for the goods or services. The Company’s adoption of ASU 2018-07 has no material impact to the Company’s consolidated financial statements, nor requirement for cumulative adjustment in retained earnings or other components of equity or net assets. During the year ended December 31, 2021, 2020, and 2019, the Company recognized approximately $ 3,137,000 744,000 5 |
BUSINESS ACQUISITION
BUSINESS ACQUISITION | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
BUSINESS ACQUISITION | 3. BUSINESS ACQUISITION On June 9, 2021, the Company and Biznest Internet Technology Co., Ltd. (“Biznest”), a subsidiary of the Company consummated an acquisition of 100% 26.9% 51% Pursuant to the share purchase agreement, as a consideration of the purchase, the Company issued to the shareholders of TNM a total of 1,213,630 5.4 The Company uses Level 3 inputs of fair value accounting for the identifiable assets and liabilities of TNM. The allocation of the purchase consideration is final, which was determined after the completion of a detailed analysis of the fair value for all assets acquired. The following table summarizes the purchase price allocation for TNM, and the amounts of the assets acquired, and liabilities assumed which were based on their estimated fair values at the acquisition date: SCHEDULE OF BUSINESS ACQUISITION ASSETS ACQUIRED, AND LIABILITIES ASSUMED Cash $ 7,644 Accounts receivable, net 1,252,601 Advances to suppliers 75,971 Other receivables and other current assets, net 2,345,332 Long-term investments 1,386,191 Property and equipment 1,550,113 Right of use assets 74,812 Accounts payable (339,198 ) Advances from customers (10,943 ) Accrued payroll and benefits (32,840 ) Amount due to related parties (619,571 ) Other payables and accrued expenses (87,373 ) Lease liabilities (153,938 ) Total net assets acquired 5,448,801 Bargain purchase gain (12,345 ) Total purchase price $ 5,436,456 Due to the negative impact from COVID-19 pandemic and slowdown of the out-of-home advertising industry in China, the total consideration paid by the Company was less than the net amount of identifiable assets acquired and liabilities assumed of TNM, which resulted in a bargain purchase gain of approximately $ 12,000 The Company’s consolidated statement of operations for the year ended December 31, 2021 included revenue of $ 1.78 0.55 The following unaudited pro forma information shows the combined operations for the periods presented, as if the acquisition of TNM had occurred on January 1, 2020. The unaudited pro forma financial information has been presented for illustrative purposes only and is not necessarily indicative of results of operations that would have been achieved had the acquisition taken place on the date indicated, or the future consolidated results of operations of the Company. The pro forma financial information presented below has been derived from the historical condensed consolidated financial statements of the Company and from the historical accounting records of TNM. SCHEDULE OF BUSINESS ACQUISITION PRO-FORMA December 31, 2021 December 31, 2020 Revenue $ 25,266,911 $ 13,678,873 Net (loss) (10,529,374 ) (20,093,374 ) Net (loss) attributable to TAOP (10,529,374 ) (19,456,941 ) Weighted Average Number of Shares: Basic and Diluted 13,494,454 8,586,977 (Loss) per share – Basic and Diluted (0.78 ) (2.34 ) (Loss) per share attributable to TAOP - Basic and Diluted $ (0.78 ) $ (2.27 ) The unaudited pro forma results include certain pro forma adjustments to revenue and net loss that were directly attributable to the acquisition, assuming the acquisition had occurred on January 1, 2020, including the followings: 1. Transaction costs of approximately $ 350,000 2. Elimination of intercompany sales and purchases, rental income and rent expense. 3. Bargain purchase gain resulted from the transaction is recognized as if it occurred on January 1, 2021. TAOPING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
VARIABLE INTEREST ENTITY
VARIABLE INTEREST ENTITY | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITY | 4. VARIABLE INTEREST ENTITY The Company was the primary beneficiary of iASPEC, pursuant to the Amended and Restated MSA. iASPEC was qualified as a variable interest entity of the Company and was subject to consolidation. Accordingly, the assets and liabilities and revenues and expenses of iASPEC have been included in the accompanying consolidated financial statements. In 2021, Taoping New Media Co., Ltd and its subsidiary, Shenzhen Taoping Education Technology Co., Ltd. and Wuhu Taoping Education Technology Co., Ltd. were newly added VIE subsidiaries or joint ventures. In the opinion of management, (i) the ownership structure of the Company, and the VIEs were in compliance with existing PRC laws and regulations; (ii) the contractual arrangements with the VIEs and its shareholder were valid and binding, and do not result in any violation of PRC laws or regulations currently in effect; and (iii) the Company’s business operations were in compliance with existing PRC laws and regulations in all material respects. In July 2021, PRC government agencies jointly proposed revisions to laws and regulations to strengthen approval and supervision of VIE corporate structure. Since the proposed new regulatory requirements for VIE has not yet been finalized, the Company is unable to estimate the impact to its corporate structure, business operations, and consolidated financial performance. For the years ended December 31, 2021, 2020 and 2019, net loss of $- 0 636,433 11,929 Government licenses, permits and certificates represent substantially all of the unrecognized revenue-producing assets held by the VIE and its subsidiaries. Recognized revenue-producing assets held by the VIEs consist of property, equipment and software. On September 18, 2021, the Company and the Company’s wholly owned subsidiary, Information Security Technology (China) Co., Ltd. (“IST”) entered into an equity transfer agreement with Mr. Jianghuai Lin, the sole shareholder of iASPEC. Upon closing of the equity transfer, the Company’s existing variable interest entity structure was dissolved and iASPEC became a wholly owned indirect subsidiary of the Company. As a result, all assets and liabilities of the VIE were incorporated into the Company’s balance sheet as of December 31, 2021. The VIE’s assets and liabilities were as follows as of December 31, 2020: SCHEDULE OF VARIABLE INTEREST ENTITY OF ASSETS AND LIABILITIES December 31, 2020 Total current assets $ 9,261,921 Other assets, non-current 4,302,000 Non-current accounts receivable, net 2,101,276 Property, plant and software 3,713,860 Total assets 19,379,057 Intercompany payable to the WFOE 20,449,508 Total current liabilities 41,717,595 Total liabilities 41,717,595 Total equity $ (22,338,538 ) TAOPING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
LOSS PER SHARE
LOSS PER SHARE | 12 Months Ended |
Dec. 31, 2021 | |
Loss per share - Basic and Diluted* | |
LOSS PER SHARE | 5. LOSS PER SHARE Basic loss per share is computed by dividing loss available to common shareholders by the weighted-average number of ordinary shares outstanding during the period. Diluted loss per share reflects the potential dilution that could occur, if securities or other contracts to issue ordinary shares were exercised or converted into ordinary shares, or resulted in the issuance of ordinary shares that shared in the earnings of the entity. Components of basic and diluted loss per share were as follows for the year ended December 31, 2021, 2020, and 2019: SCHEDULE OF COMPONENTS OF BASIC AND DILUTED EARNINGS PER SHARE 2021 2020 2019 * Net loss attributable to the Company $ (9,924,859 ) $ (17,694,775 ) $ (3,582,332 ) Weighted average outstanding ordinary shares-Basic 12,962,452 7,373,347 6,964,740 -dilutive effect of stock options- employees - - - -dilutive effect of stock options- nonemployees - - - Weighted average outstanding ordinary shares- Diluted 12,962,452 7,373,347 6,964,740 Loss per share: Basic $ (0.77 ) $ (2.40 ) $ (0.54 ) Diluted $ (0.77 ) $ (2.40 ) $ (0.54 ) For the years ended December 31, 2021, 2020, and 2019, there was no shares included in the diluted earnings per share calculation, these incremental shares were added to denominator for the period that stock options were outstanding due to the average market price of the Company’s stock in the period exceeded the exercise prices of the stock options granted to the Company’s employees and various consultants. The incremental shares were computed under the treasury stock method. The EPS calculation excluded the if-converted shares from the convertible promissory note or exercised shares from detachable warrant associated with the convertible promissory note based on the Company’s recent stock prices, which were significantly below the stated convertible price and among other conversion prices of alternative conversions or exercise price of the warrant. Because the effect would be anti-dilutive, there were 290,000 stock options for employees, 57,366 stock options and 375,000 warrants for nonemployees outstanding that were not included in the computation of dilutive weighted average shares outstanding for the year ended December 31, 2021. And, there were warrants associated with the convertible promissory notes for purchase of 106,667 shares that were not included in the computation of dilutive weighted average shares outstanding for the year ended December 31, 2020. Also, 296,900 stock options and warrants for the purchase of 51,667 shares were not included in the calculations for the year ended December 31, 2019, as their effect would have been anti-dilutive. * On July 30, 2020, the Company implemented a one-for-six reverse stock split of the Company’s issued and outstanding ordinary shares. Except shares authorized, all share and per share information has been retroactively adjusted to give effect to the reverse stock split for all periods presented, unless otherwise indicated. TAOPING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 6. RELATED PARTY TRANSACTIONS (a) Revenue – related party Since May 2017, the Company has entered into a series of contracts with Taoping New Media Co., Ltd. (TNM) and its affiliates for the sale of the Company’s Cloud-Application-Terminal based digital ads display terminals, software and technical services. Taoping New Media was a related party company controlled by Mr. Lin, the Company’s Chairman and Chief Executive Officer, until the Company’s completion of the acquisition on June 9, 2021, after which date the related party transactions were eliminated in the Company’s consolidated financial statements. For the years ended December 31, 2021, 2020 and 2019, revenues from related parties for sales of products were approximately $ 0.1 million, $ 0.4 million and $ 7.4 million, respectively. Accounts receivable from related parties, net of allowance for credit losses, as of December 31, 2021, 2020 and 2019 were approximately $ 0.4 million, $ 4.2 million and $ 12.5 million, respectively. Advances received from related parties were approximately $ 0.1 million, $ 0.2 million and $ 0.1 million as of December 31, 2021, 2020 and 2019, respectively. (b) Other revenue – related parties On July 1, 2017, the Company entered into a lease agreement with TNM for leasing the Company’s office space located at 18th Floor, Education and Technology Building, Zhuzilin, Futian District, Shenzhen City which has been renewed on July 1, 2019 and expires on June 30, 2022. Upon completion of the Company’s acquisition of TNM on June 9, 2021, the related party rental income was eliminated in the Company’s consolidated financial statements thereafter. For the years ended December 31, 2021, 2020 and 2019, the Company’s rental income from related party were approximately $ 27,000 61,000 61,000 48,949 85,289 44,621 (c) Accounts payable – related party iASPEC and Bocom had a balance of $ 69,585 (d) Loan receivable – related party As of December 31, 2020, the Company recorded a loan receivable of $ 0.5 0.17 0.33 (e) Amount due to related parties As of December 31, 2020, the amount due to related party was $ 0.14 3.15 3,145,000 20 100 12 5.85 May 17, 2022 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 7. INVENTORIES As of December 31, 2021 and 2020, inventories consist of: SCHEDULE OF INVENTORIES December 31, 2021 December 31, 2020 Raw materials $ 3,767 $ 3,663 Finished goods 559,659 427,942 Cost of projects 82,898 34,792 Inventories, gross $ 646,324 $ 466,397 Allowance for slow-moving or obsolete inventories (103,940 ) (211,719 ) Inventories, net $ 542,384 $ 254,678 For the year ended December 31, 2021, there was a reversal of impairments for obsolete inventories in the amount of approximately $ 214,000 6,000 115,000 TAOPING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
PROPERTY, EQUIPMENT AND SOFTWAR
PROPERTY, EQUIPMENT AND SOFTWARE | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, EQUIPMENT AND SOFTWARE | 8. PROPERTY, EQUIPMENT AND SOFTWARE As of December 31, 2021 and 2020, property, equipment and software consist of: SCHEDULE OF PROPERTY, EQUIPMENT AND SOFTWARE December 31, 2021 2020 Office buildings $ 4,398,414 $ 5,140,635 Electronic equipment, furniture and fixtures 6,013,676 5,470,985 Motor vehicles 155,697 201,509 Cryptocurrency mining machine 8,147,574 - Media display equipment 1,197,273 - Leasehold improvement 529,885 - Purchased software 19,840,491 17,465,168 Property, equipment and software, gross 40,283,010 28,278,297 Less: accumulated depreciation (18,720,926 ) (17,426,398 ) Property, equipment and software, net $ 21,562,084 $ 10,851,899 Depreciation expense for the year ended December 31, 2021, 2020, and 2019 were approximately $ 3.7 3.2 2.8 Management regularly evaluates property, equipment and software for impairment, if an event occurs or circumstances change that would potentially indicate that the carrying amount of the property, equipment and software exceeded its fair value. Management utilizes the discounted cash flow method to estimate the fair value of the property, equipment and software. Company’s office buildings, with net carry value of approximately $ 3.0 |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | 9. INTANGIBLE ASSETS, NET As of December 31, 2021 and 2020, intangible assets consist of: SCHEDULE OF INTANGIBLE ASSETS Software and software development costs Trademarks Total Gross carrying amounts Balance as of January 1, 2020 $ 4,030,482 881,245 4,911,727 Foreign currency translation 266,062 58,173 324,235 Balance as of December 31, 2020 4,296,545 939,419 5,235,964 Intangible assets, gross, beginning 4,296,545 939,419 5,235,964 Foreign currency translation 120,868 26,427 147,295 Balance as of December 31, 2021 4,417,413 965,846 5,383,259 Intangible assets, gross, ending 4,417,413 965,846 5,383,259 Accumulated amortization Balance as of January 1, 2020 4,030,482 879,749 4,910,231 Amortization expense - 1,510 1,510 Foreign currency translation 266,062 58,160 324,221 Balance as of December 31, 2020 4,296,545 939,419 5,235,964 Intangible assets, accumulated amortization, beginning 4,296,545 939,419 5,235,964 Amortization expense - - - Foreign currency translation 120,868 26,427 147,295 Balance as of December 31, 2021 4,417,413 965,846 5,383,259 Intangible assets, accumulated amortization, ending 4,417,413 965,846 5,383,259 Intangible assets, net $ - $ - $ - Amortization expense for the year ended December 31, 2021, 2020 and 2019 was $ nil 1,510 58,164 |
CRYPTOCURRENCIES
CRYPTOCURRENCIES | 12 Months Ended |
Dec. 31, 2021 | |
Investment Company [Abstract] | |
CRYPTOCURRENCIES | 10. CRYPTOCURRENCIES As of December 31, 2021, cryptocurrencies included Bitcoin and Ethereum the Company held which were received from mining activities. Cryptocurrencies are classified as current asset as they are expected to be realized in cash by the Company within one year. The following table presents the movements of cryptocurrencies for the year ended December 31, 2021: SCHEDULE OF MOVEMENTS OF CRYPTOCURRENCIES Amounts Balance at January 1, 2021 - Cryptocurrencies, net, beginning - Receipt of cryptocurrencies from mining activities $ 5,455,345 Sales of cryptocurrencies (4,543,543 ) Realized gain on sale of cryptocurrencies 410,979 Impairment loss on cryptocurrencies (493,617 ) Balance at December 31, 2021 $ 829,165 Cryptocurrencies, net, ending $ 829,165 |
BANK LOANS
BANK LOANS | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
BANK LOANS | 11. BANK LOANS SCHEDULE OF SHORT-TERM BANK DEBT December 31, 2021 December 31, 2020 Secured short-term loans $ 7,792,125 $ 6,210,176 Total short-term bank loans $ 7,792,125 $ 6,210,176 TAOPING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Detailed information of secured short-term loan balances as of December 31, 2021 and 2020 were as follows: SCHEDULE OF SECURED SHORT-TERM BANK DEBT December 31, 2021 December 31, 2020 Collateralized by office buildings of IST and guaranteed by Mr. Lin and Biznest $ - $ 3,976,960 Guaranteed by IST and Mr. Lin and Collateralized by the real property of ISIOT and equity investment of ISTIL 7,792,125 2,019,072 Guaranteed by a $ 0.2 - 214,144 Total $ 7,792,125 $ 6,210,176 As of December 31, 2021 the Company had short-term bank loans of approximately $ 7.8 mature on various dates from July 9, 2022 to December 17, 2022 4.95 5.40 5.38 5.59 6.56 0.4 0.4 0.5 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 12. INCOME TAXES Pre-tax income (loss) from continuing operations for the year ended December 31, 2021, 2020, and 2019 were taxable in the following jurisdictions: SCHEDULE OF INCOME BEFORE INCOME TAXES 2021 2020 2019 PRC $ (8,287,495 ) $ (15,810,350 ) $ (2,342,102 ) Hong Kong (876,289 ) (12,072 ) (38,574 ) BVI (755,754 ) (2,580,102 ) (1,488,065 ) Total (loss) before income taxes $ (9,919,538 ) $ (18,402,524 ) $ (3,868,741 ) United States Because of the domestication transaction in 2012 by which CNIT BVI became the parent of our group, under Section 7874 of the Internal Revenue Code of 1986, as amended, the Company is treated for U.S. federal tax purposes as a U.S. corporation and, among other consequences, is subject to U.S. federal income tax on its worldwide income. It is management’s intention to reinvest all the income attributable to the Company earned by its operations outside the United States. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Act”). The Act makes broad and complex changes to the U.S. tax code, including, but not limited to, (1) reducing the U.S. federal corporate tax rate from 35 21 The SEC staff issued Staff Accounting Bulletin 118, which provides guidance on accounting for the tax effects of the Act for which the accounting under ASC 740, Income Taxes (“ASC 740”) is incomplete. To the extent that a company’s accounting for certain income tax effects of the Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before enactment of the Act. TAOPING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS The Company from time to time evaluates the tax effect of GILTI, and determined that there was no impact of GILTI tax to the Company’s consolidated financial statements as of December 31, 2021. BVI Under the current laws of the BVI, dividends and capital gains arising from the Company’s investments in the BVI and ordinary income, if any, are not subject to income taxes. Hong Kong Under the current laws of Hong Kong, IST HK is subject to a profit tax rate of 16.5 PRC Income tax (benefit) expense from continuing operations consists of the following: SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (BENEFIT) 2021 2020 2019 Current taxes $ 5,321 $ (71,316 ) $ (274,480 ) Deferred taxes - - - Income tax (benefit) $ 5,321 $ (71,316 ) $ (274,480 ) Current income tax (benefit) expense was recorded in 2021, 2020 and 2019 and was related to differences between the book and corporate income tax returns. SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION 2021 2020 2019 PRC statutory tax rate 25 % 25 % 25 % Computed expected income tax (benefit) expense $ (2,479,885 ) $ (4,600,631 ) $ (967,185 ) Tax rate differential benefit from tax holiday 950,843 1,805,951 180,996 Permanent differences 288,914 248,636 (203,842 ) Tax effect of deductible temporary differences not recognized 837,438 1,826,684 333,891 Non-deductible tax loss 408,011 648,004 381,660 Income tax (benefit) $ 5,321 $ (71,316 ) $ (274,480 ) The significant components of deferred tax assets and deferred tax liabilities were as follows as of December 31, 2021 and 2020: SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS AND LIABILITIES December 31, 2021 December 31, 2020 Deferred Deferred Deferred Deferred Tax Tax Tax Tax Assets Liabilities Assets Liabilities Allowance for credit losses $ 4,537,564 $ - $ 3,640,083 $ - Loss carry-forwards 5,080,165 - 3,714,825 - Fixed assets 25,406 (272,344 ) 80,456 (258,451 ) Inventory valuation 329,915 - 369,064 - Cryptocurrency valuation 81,447 - - - Accrued liabilities 15,038 - - - Long-term investments 5,897 - 5,736 - Intangible assets - 137,973 - 134,197 Gross deferred tax assets and (liabilities) 10,075,432 (134,371 ) 7,810,164 (124,254 ) Valuation allowance (9,941,061 ) - (7,685,910 ) - Total deferred tax assets and (liabilities) $ 134,371 $ (134,371 ) $ 124,254 $ (124,254 ) TAOPING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS The Company has net operating loss carry forwards totaling RMB 177.2 27.9 December 31, 2025 3.3 IST is approved as being high-technology enterprises and subject to PRC enterprise income tax rate (“EIT”) at 15 12.5 The Company recognizes that virtually all tax positions in the PRC are not free of some degree of uncertainty due to tax law and policy changes by the State. However, the Company cannot reasonably quantify political risk factors and thus must depend on guidance issued by current State officials. Based on all known facts, circumstances, and current tax law, the Company has recorded nil unrecognized tax benefits from year 2018 to 2020. The Company believes that there are no tax positions for which it is reasonably possible, based on current Chinese tax laws and policies, that the unrecognized tax benefits will significantly increase or decrease over the next 12 months, individually or in the aggregate, and have a material effect on the Company’s results of operations, financial condition or cash flows. The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. Any accrued interest or penalties associated with any unrecognized tax benefits were not significant for the year ended December 31, 2021, 2020, and 2019. Since the Company intends to reinvest its earnings to further expand its businesses in the PRC, the PRC subsidiaries do not intend to declare dividends to their parent companies in the foreseeable future. The Company’s foreign subsidiaries are in a cumulative deficit position. Accordingly, the Company has not recorded any deferred taxes on the cumulative amount of any undistributed deficit. It is impractical to calculate the tax effect of the deficit at this time. |
OTHER CURRENT AND NON-CURRENT A
OTHER CURRENT AND NON-CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER CURRENT AND NON-CURRENT ASSETS | 13. OTHER CURRENT AND NON-CURRENT ASSETS (a) As of December 31, 2021 and 2020, other current assets consist of: SCHEDULE OF OTHER CURRENT ASSETS December 31, 2021 December 31, 2020 Advances to unrelated-parties (i) (i) $ 937,235 $ 8,305 Advances to employees 49,218 45,396 Other current assets 231,695 119,325 Total $ 1,218,148 $ 173,026 (i) The advances to unrelated parties for business development are non-interest bearing and are due on demand. As of December 31, 2021, the balance included the amount due from a third-party vendor of approximately $ 747,000 Based on the amendment of the contract, the Company agrees to make advances to the vendor specifically for its market development purposes, and the total commitment of funding was RMB 6 929,532 12 If the Company’s revenue facilitated by the vendor does not reach certain threshold during specified periods, the contract could be terminated by the Company, and all funding with applicable interest, less any commissions and subcontractor fees payable to the vendor, shall be repaid to the Company within one month after the termination of the contract. If the two parties terminate the cooperation on the condition that the vendor meet the target, all funding without interest, shall be repaid. The first period as specified is from January 1, 2021 to December 31, 2021 with a threshold revenue of RMB 15 2,294,400 15.2 2,386,360 TAOPING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (b) As of December 31, 2021 and 2020, Other assets, non-current consist of: SCHEDULE OF OTHER NON-CURRENT ASSETS December 31, 2021 December 31, 2020 Other assets, non-current, net $ 2,948,681 $ 4,302,000 Total $ 2,948,681 $ 4,302,000 During 2019 and 2020, the Company advanced RMB 30 4.3 30 4.3 Based on the amendment of the contract, if the Company’s new media advertising revenue generated from IOV software does not reach certain threshold during specified period, the contract could be terminated by the Company, and all funding with applicable interest, and less the revenue generated from the IOV software shall be repaid to the Company within one half year after the termination of the contract. Before the full repayment of the funding, the Company owns 100% Starting in October 2020, IOV software revenue will be divided into eight periods. The first period as specified was from October 1, 2020 to April 30, 2021 with a threshold advertising revenue from IOV software of RMB 3 462,000 The revenue is to increase incrementally by 15% in every six months going forward until the contract expires four years after the commencing date of the operation. 3 462,000 3.3 510,000 The development of IOV software was completed by September 30, 2020. Since Company has the right to use the IOV software in the contract term, software was capitalized as “other assets, non-current, net” and started to amortize from October 1, 2020 over the four -year contract term. As of December 31, 2021 and December 31, 2020, the balance of “other assets, non-current, net” was $ 2,948,681 and $ 4,302,000 , Respectively. The reduction of the amount receivable was approximately $ 1.4 million for the year ended December 31, 2021. If full repayment is achieved within the contract term, the Company might be charged to continue using the software and related equipment, depending on both parties’ future agreement. TAOPING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
OPERATING LEASES
OPERATING LEASES | 12 Months Ended |
Dec. 31, 2021 | |
Operating Leases | |
OPERATING LEASES | 14. OPERATING LEASES In addition to the lease with a related party for computing server room in Dongguan City, in April 2021, the Company leased an office space, two server rooms, and a dormitory in Hong Kong for executing the Blockchain business strategy. The fixed monthly lease payment for the office space is $ 21,972 (HKD 170,775 ) (all inclusive of rental, property management fee, utility, and applicable tax) with a lease term of three years ending April 18, 2024 . The fixed monthly lease payment for the server rooms is $ 7,462 (HKD 58,000 ) (all inclusive of rental, management fee, utility, and applicable tax) with a lease term of three years ending May 16, 2024 . The fixed monthly lease payment for the dormitory is $ 4,374 (HKD 34,000 ) including rental and management fee with a lease term of two years ending April 19, 2023 . All lease agreements have no variable lease payment nor option to purchase the underlying assets. There was no initial direct cost associated with the office space lease agreement. The initial direct costs associated with the lease for server rooms and dormitory are $ 7,462 (HKD 58,000 ), and $ 2,187 (HKD 17,000 ), respectively. The Company has also leased specific and identifiable wall spaces with a certain dimension in commercial and residential building lobbies, inside elevators, elevator waiting areas, and various places to install the new media advertising display terminals without substitution for purpose of broadcasting advertisements paid by the customers to promote their businesses or special events. The lease terms with negotiated payment terms range from one year to three years , and the rental costs vary depending on the number of spots where the display terminals are installed and the duration of the leases. The Company incurred rent expenses of approximately $ 335,000 whereas rent expenses for short-term lease were approximately $ 1,100 for the year ended December 31, 2021. As of December 31, 2021, lease liabilities also included unpaid rent for expired long-term leases of approximately $ 78,000 . The Company has elected to apply the short-term lease exception to all leases with a term of one year or less. The future short-term lease costs are $nil for the year subsequent to December 31, 2021. Weighted-average remaining lease term as of December 31, 2021, and discount rate for its operating leases are as follows: SCHEDULE OF OPERATING LEASE Weighted-average remaining lease term 27.4 Weighted-average discount rate 4.75 % The weighted-average discount rate was based on the three-year interest rate of People’s Bank of China. The following table outlines maturities of operating lease liabilities as of December, 2021: SCHEDULE OF MATURITIES OF OPERATING LEASE LIABILITIES Year ending December 31 Leases for office/ server rooms/ Dormitory Wall Space 2022 $ 424,348 $ 3,024 2023 385,236 - 2024 170,903 - Total lease payments 980,487 3,024 Less: Imputed interest (87,006 ) - Present value of lease liabilities $ 893,481 $ 3,024 |
LONG-TERM INVESTMENTS
LONG-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Investments, All Other Investments [Abstract] | |
LONG-TERM INVESTMENTS | 15. LONG-TERM INVESTMENTS As of December 31, 2021, the carrying value of the Company’s equity investments were $ 679,807 (1) Equity method investments: As of December 31, 2021, the Company’s equity method investments had a carrying value of $ 285,137 SCHEDULE OF EQUITY METHOD INVESTMENTS Investees Abbreviation % of Ownership Carrying value Qingdao Taoping IoT Co., Ltd. QD Taoping, or QD 47 % $ - Yunnan Taoping IoT Co., Ltd. YN Taoping, or YN 40 % 147,257 Jiangsu Taoping IoT Technology Co., Ltd. JS Taoping, or JS 25 % 128,333 Jiangsu Taoping New Media Co., Ltd JS New Media, or JN 21 % 9,547 $ 285,137 The Company’s initial investments in the above equity method investments were approximately $ 1.9 million. The Company recognized losses from equity method investments of approximately $ 0.8 million and no impairment on equity method investments from the acquisition date June 9, 2021 to December 31, 2021. (2) Equity investments without readily determinable fair value that is not accounted for under equity method accounting: In accordance with ASC 321, the Company elected to use the measurement alternative to measure such investments at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer, if any. As of December 31, 2021, the carrying value for the equity investments without readily determinable fair value was $ 394,670 710,786 0.09 TAOPING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
CONVERTIBLE NOTE PAYABLE
CONVERTIBLE NOTE PAYABLE | 12 Months Ended |
Dec. 31, 2021 | |
Convertible Note Payable | |
CONVERTIBLE NOTE PAYABLE | 16. CONVERTIBLE NOTE PAYABLE In October 2019, March 2020, and September 2020, the Company issued Convertible Promissory Notes with principal amount of $ 1.04 1,48 1.48 All three Notes mature in 12 months from the issue dates of the Notes 5 454,097 2.4 612,748 2.42 2.57 2.6 no 1,180,908 299,695 no In conjunction with issuance of the Notes, the Company also issued the holders of the Notes warrants to purchase 26,667 53,334 53,334 9 In June 2021, the investor of Note-3 converted $ 740,000 26,208 298,716 2.565 777,000 740,000 37,000 nil The Company recognized interest expense of approximately $ 160,216 244,871 119,648 37,000 124,000 46,000 199,000 19,000 101,000 The Company recognized interest expense of approximately $ 354,000 for Note-3 including interest relating to contractual interest obligation of $ 55,000 and amortization of debt discount of $ 299,000 for the year ended December 31, 2021. |
OTHER PAYABLES AND ACCRUED EXPE
OTHER PAYABLES AND ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
OTHER PAYABLES AND ACCRUED EXPENSES | 17. OTHER PAYABLES AND ACCRUED EXPENSES As of December 31, 2021 and 2020, other payables and accrued expenses consist of: SCHEDULE OF OTHER PAYABLE AND ACCRUED EXPENSES December 31, 2021 December 31, 2020 Advances from unrelated third-parties (i) (i) $ 770,612 $ 469,418 Other taxes payable (ii) (ii) 3,665,976 4,089,013 Unrecognized tax benefits (iii) (iii) - 433,000 Accrued professional fees 9,279 404,025 Amount due to employees (iv) (iv) 87,889 65,785 Other current liabilities (v) (v) 359,743 1,174,856 Other Payables and Accrued Expenses $ 4,893,499 $ 6,636,097 (i) The advances from unrelated parties are non-interest bearing and due on demand. (ii) The other taxes payable were the amounts due to the value added tax, business tax, city maintenance and construction tax, and individual income tax. (iii) The Unrecognized tax benefits refer to the land value added tax due to the sale of property, equipment, and land use rights in September 2015. As of December 31, 2021, the unrecognized tax liability passed the 5-year statute of limitation and recognized as other income in the consolidated statement of operations. (iv) The amounts due to employees were pertaining to employees’ out-of-pocket expenses for travel and meal allowance, etc. (v) The other current liabilities as of December 31, 2021 included the security and deposit of approximate $ 264,000 203,000 767,500 TAOPING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
RESERVE AND DISTRIBUTION OF PRO
RESERVE AND DISTRIBUTION OF PROFIT | 12 Months Ended |
Dec. 31, 2021 | |
Reserve And Distribution Of Profit | |
RESERVE AND DISTRIBUTION OF PROFIT | 18. RESERVE AND DISTRIBUTION OF PROFIT In accordance with relevant PRC regulations and the Articles of Association of our PRC subsidiaries, our PRC subsidiaries are required to allocate at least 10 50 14.0 Under the applicable PRC regulations, the Company may pay dividends only out of the accumulated profits, if any, determined in accordance with the PRC accounting standards and regulations. As the statutory reserve funds can only be used for specific purposes under the PRC laws and regulations. The general reserves are not distributable as cash dividends. Our after-tax profits or losses with respect to the payment of dividends out of accumulated profits and the annual appropriation of after-tax profits as calculated pursuant to the PRC accounting standards and regulations do not result in significant differences as compared to after-tax earnings as presented in our consolidated financial statements. However, there are certain differences between the PRC accounting standards and regulations and the U.S. generally accepted accounting principles, arising from different treatment of items such as amortization of intangible assets and change in fair value of contingent consideration arising from business combinations. |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
EQUITY | 19. EQUITY (a) Ordinary shares The Company is authorized to issue 100,000,000 In March 2020, the Company issued a total of 285,714 2.1 576,000 In the first half of 2020, the Company issued a total of 30,000 144,000 In April 2020, the Company issued 16,667 16,185 In July 2020, the Company issued 42,000 101,000 In July and September 2020, the Company issued an aggregate of 13,110 65,000 In September 2020, the Company issued 16,220 41,000 In September, October, and December 2020, the holders of the convertible notes issued in September 2019, and March 2020 converted all principal balance of the notes and accrued interests to the Company’s ordinary shares in an aggregate of 1,066,845 ordinary shares of which 299,318 shares converted on December 30, 2020 were not issued until February 2021 (see Note 16). The total amount of principal and accrued interest converted was approximately $ 2.6 million, of which $ 1.8 million was converted into the ordinary shares as of December 31, 2020, and $ 0.8 million was converted into the ordinary shares in the first half of 2021. In January 2021, the Company issued a total of 740,740 2.7 1.99 In January 2021, the Company issued 7,000 21,840 In February 2021, the Company issued a total of 1.9 million ordinary shares to certain institutional and individual investors at $ 4.08 per share, resulting in approximately $ 7.74 million mill net proceeds for the Company. In March 2021, the Company issued 200,000 2,792,000 In March 2021, the Company issued 500,000 6.70 3.34 In June 2021, the Company issued 1,213,630 5.27 5.4 100 In June 2021, the holder of the convertible note issued in September 2020 converted 50 % principal balance of the note and accrued interests to the Company’s ordinary shares in an aggregate of 298,716 ordinary shares (see Note 16). In July 2021, the Company issued a total of 1,200,000 4.15 4.7 In September 2021, the Company issued 612,245 2.6 100 In November 2021, the Company issued 45,000 restricted shares with a fair value of $ 136,350 to a financial intermediary service organization as a compensation for the intermediary service. In December 2021, the Company issued 10,000 29,200 TAOPING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (b) Stock-based compensation The following table provides the details of the share-based payments expense during the year ended December 31, 2021, 2020, and 2019: SCHEDULE OF SHARE BASED PAYMENTS EXPENSE December 31, 2021 December 31, 2020 December 31, 2019 For the Year Ended December 31, 2021 December 31, 2020 December 31, 2019 Employees and directors share-based payments $ 2,950,000 (a)(c) $ 298,000 (a)(c) $ 494,000 (c) Stock options issued for services $ - $ 89,000 (d) $ 67,000 (d) Shares issued for services $ 187,000 (a) $ 357,000 (a) $ 19,000 (a) Total share based payments expenses $ 3,137,000 $ 744,000 $ 580,000 (c) Stock options to employees and directors On May 9, 2016, the Board of Directors of the Company adopted the 2016 Equity Incentive Plan, or the 2016 Plan. Pursuant to the 2016 Plan, the Company may offer up to 833,334 On May 27, 2016, the Company granted options to purchase an aggregate of 452,000 1.6 365,000 On May 17, 2017, the Company granted options to employees and directors to purchase an aggregate of 160,000 0.5 92,000 129,000 On July 24, 2020, the Company granted options to employees and directors to purchase an aggregate of 333,348 ordinary shares under the 2016 Plan. The fair value of these options was approximately $ 0.3 million at the date of the grant, of which approximately $ 160,000 140,000 was recorded as compensation and included in administrative expenses in the consolidated statements of operations for the services provided for the year ended December 31, 2021, and 2020 respectively. On July 31, 2020, the stock options granted to employees and directors in 2016 and 2017 were fully exercised on a cashless method, and 72,414 Stock option activity for the year ended December 31, 2021, 2020 and 2019 is summarized as follows: SUMMARY OF STOCK OPTION ACTIVITY Weighted Average Remaining Weighted Contractual Aggregated Options Average Life Intrinsic Outstanding * Exercise Price* (Year) Value Outstanding at January 1, 2019 333,700 $ 6.66 2.40 $ 188,790 Exercised - - - - Canceled (36,800 ) $ 6.90 - $ - Outstanding at December 31, 2019 296,900 $ 6.66 1.4 $ - Granted 333,348 2.4 - - Exercised (294,733 ) 6.66 - - Canceled (9,167 ) $ 3.48 - $ - Outstanding at December 31, 2020 326,348 2.4 2.6 143,587 Granted - - - Exercised - - - Canceled (28,667 ) $ 2.4 - $ - Outstanding at December 31, 2021 297,681 2.4 1.6 714,400 Vested and expected to be vested as of December 31, 2021 297,681 2.4 1.6 714,600 Options exercisable as of December 31, 2021 (vested) - - - - TAOPING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS There were no 333,348 No no 637,000 no no The following table summarizes the status of options which contain vesting provisions: SCHEDULE OF NON-VESTED SHARE ACTIVITY Weighted Average Grant Date Options* Fair Value* Non-vested at January 1, 2021 326,348 $ 1.01 Granted - $ Vested (297,681 ) $ 1.01 Canceled (28,667 ) $ 1.01 Non-vested at December 31, 2021 - $ - As of December 31, 2021 and 2020, approximately $ 0.2 0.2 0 0.3 0.2 0.1 0.6 * On July 30, 2020, the Company implemented a one-for-six reverse stock split of the Company’s issued and outstanding ordinary shares. Except shares authorized, all share and per share information has been retroactively adjusted to give effect to the reverse stock split for all periods presented, unless otherwise indicated. (d) Stock options and warrants to non-employees Pursuant to the Company’s 2016 Equity Incentive Plan, for the year ended December 31, 2018, the Company issued 33,333 stock options to consultants with 20,833 options vested in 2018 and 12,500 options vested in 2019. The stock options issued to non-employees would be forfeited either three months after the expiration of the service agreement or upon the expiry of contractual life of the options. On February 20, 2019, the Company issued warrants to the Consultant to purchase 25,000 of the Company’s ordinary shares with exercise price at $ 6.60 per share, which was fully exercised in cashless for 6,250 ordinary shares on July 31, 2020. On April 2, 2020, the Company issued warrants to the Consultant to purchase 16,667 of the Company’s ordinary shares, no par value with an exercise price at $ 2.52 per share, which was fully exercised in cashless for 11,894 ordinary shares on July 31, 2020. In July 2020, the Company granted options to certain consultants to purchase an aggregate of 57,366 ordinary shares of the Company with an exercise price at $ 2.64 per share. The options were fully vested at the grant date as a rewarding for the past service of the consultants. Before the adoption of ASU2018-07, the fair value of the options and warrants issued to consultants was estimated on the measurement date using the Black-Scholes Merton valuation model, after the adoption on January 1, 2019, the fair value of the equity awards to consultants was measured on the grant date. In February, 2021 and April, 2021, the Company issued 1,915,000 warrants to the consultants. The Company expensed to administrative expense approximately $ 77,000, 89,000 , and $ 67,000 for the years ended December 31, 2021, 2020 and 2019, respectively. The issuance of warrants to purchase up to 1,000,000 The issuance of warrants to purchase up to 900,000 ordinary shares to certain consultants in April 2021 has been cancelled as of December 31, 2021. As of December 31, 2021, the exercise price for the stock options issued to non-employee for service was $ 3.40 and remaining life was 1.26 years. The stock options granted to non-employees were expired in three years after the grant date. The following table outlines the options outstanding and exercisable as of December 31, 2021: SCHEDULE OF WARRANT OUTSTANDING AND EXERCISABLE 2021 Number of Options Outstanding Exercise Expiration and Exercisable Price Date July 2020 stock options to consultants 57,366 $ 2.64 07/09/2023 April 2021 warrants to consultant 15,000 $ 6.30 04/15/2022 Total 72,366 TAOPING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
CONSOLIDATED SEGMENT DATA
CONSOLIDATED SEGMENT DATA | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
CONSOLIDATED SEGMENT DATA | 20. CONSOLIDATED SEGMENT DATA Segment information is consistent with how management reviews the businesses, makes investing and resource allocation decisions and assesses operating performance. Transfers and sales between reportable segments, if any, are recorded at cost. The Company reports financial and operating information in the following three segments: (1) Cloud-based Technology (CBT) segment — It includes the Company’s cloud-based products, high-end data storage servers and related services sold to private sectors including new media, healthcare, education and residential community management, and among other industries and applications. In this segment, the Company generates revenues from the sales of hardware and software total solutions with proprietary software and content as well as from designing and developing software products specifically customized for private sector customers’ needs for a fixed price. The Company includes the revenue and cost of revenue of high-end data storage servers in the CBT segment. Advertising services is included in the CBT segment, after the Company consummated the acquisition of TNM. Advertisements are delivered to the ads display terminals and vehicular ads display terminals through the Company’s cloud-based new media sharing platform. Incorporation of advertising services complements the Company’s out-of-home advertising business strategy. (2) Blockchain Technology (BT) segment — The BT segment is the Company’s newly formed business sector. Cryptocurrency mining is the first initiative implemented in the BT segment. (3) Traditional Information Technology (TIT) segment — The TIT segment includes the Company’s project-based technology products and services sold to the public sector. The solutions the Company has sold primarily include Geographic Information Systems (GIS), Digital Public Security Technology (DPST), and Digital Hospital Information Systems (DHIS). In this segment, the Company generates revenues from sales of hardware and system integration services. As a result of the business transformation, the TIT segment is gradually being phased out in 2021. Selected information by segment is presented in the following tables for the year ended December 31, 2021, 2020, and 2019. SCHEDULE OF SEGMENT REPORTING 2021 2020 2019 Revenues (1) TIT Segment $ 636,743 $ 377,499 $ 241,132 CBT Segment 18,753,836 10,685,276 13,550,171 BT Segment 5,455,345 - - $ 24,845,924 $ 11,062,775 $ 13,791,303 (1) Revenues by operating segments exclude intercompany transactions. 2021 2020 2019 (Loss) income from operations TIT Segment $ 570,220 $ (166,727 ) $ (662,556 ) CBT Segment (7,668,616 ) (15,268,750 ) (2,037,151 ) BT Segment (1,615,446 ) - - Corporate and others (2) - (1,931,252 ) (1,472,454 ) ( Loss) income from operations (8,713,842 ) (17,366,729 ) (4,172,161 ) Corporate other income, net (281,984 ) (22,580 ) 669,755 Corporate interest income 4,640 4,798 133,517 Corporate interest expense (928,352 ) (1,018,013 ) (499,852 ) (Loss) before income taxes (9,919,538 ) (18,402,524 ) (3,868,741 ) Income tax benefit (5,321 ) 71,316 274,480 Net (loss) (9,924,859 ) (18,331,208 ) (3,594,261 ) Less: Loss (income) attributable to the non-controlling interest - 636,433 11,929 Net (loss) income attributable to the Company $ (9,924,859 ) $ (17,694,775 ) $ (3,582,332 ) (2) Includes non-cash compensation, professional fees and consultancy fees for the Company. Non-cash employee compensation by segment for the year ended December 31, 2021, 2020, and 2019 are as follows: 2021 2020 2019 Non-cash employee compensation: Corporate and others 2,950,070 298,091 494,316 $ 2,950,070 $ 298,091 $ 494,316 Depreciation and amortization by segment for the year ended December 31, 2021, 2020, and 2019 are as follows: 2021 2020 2019 Depreciation and amortization: TIT Segment $ 13,173 $ 19,783 $ 17,278 CBT Segment 2,293,030 3,459,861 2,883,674 BT Segment 1,398,615 - - $ 3,704,818 $ 3,479,644 $ 2,900,952 TAOPING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2021 2020 2019 Provisions for allowance for credit losses on accounts receivable, other receivable and advances to suppliers: TIT Segment $ (658,035 ) $ 36,895 $ 344,550 CBT Segment 6,192,425 13,484,287 3,283,994 BT Segment 7,327 - - $ 5,541,717 $ 13,521,182 $ 3,628,544 2021 2020 2019 Inventory obsolescence provision: TIT Segment $ - $ 10,943 $ 2,366 CBT Segment (82,255 ) (5,318 ) 112,824 $ (82,255 ) $ 5,625 $ 115,190 Total assets by segment as at December 31, 2021 and 2020 are as follows: 2021 2020 Total assets TIT Segment $ 6,462,162 $ 213,329 CBT Segment 30,981,079 30,488,753 BT Segment 9,712,250 Corporate and others - 74,569 $ 47,155,491 $ 30,776,651 TAOPING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 21. COMMITMENTS AND CONTINGENCIES The Company may from time to time be subject to legal proceedings, investigations, and claims incidental to conduct of our business. The Company is currently subject to a legal proceeding with the bankruptcy receiver (the Receiver) for Shenzhen Kejian Information Technology Co., Ltd. (Kejian). The Receiver was appointed by the bankruptcy court to liquidate Kejian that filed bankruptcy on December 6, 2016. On July 28, 2016, the Company received a payment in the amount of RMB 550,000 89,000 89,000 Although the COVID-19 pandemic has largely been contained in China, regional outbreaks of the infections persist in various localities. The negative impact from the pandemic to the out-of-home advertising business sector continues throughout 2021. The China government continues asserted efforts to vaccinate general population, social distancing, mandate mask wearing in the public places and public transportation, prohibit large gatherings, control travels to and from high-risk infectious areas, and track the source of infections. The COVID-19 pandemic may continue to adversely affect the Company’s business and results of operations. |
CONCENTRATIONS
CONCENTRATIONS | 12 Months Ended |
Dec. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS | 22. CONCENTRATIONS For the year ended December 31, 2021, 2020 and 2019, no customer accounted for greater than 10% of revenue. For the year ended December 31, 2021, 2020, and 2019, the Company’s top five customers accounted for 19 %, 25 % and 24 % of the Company’s revenues, respectively. The Company’s top five accounts receivable accounted for 19 25 For the year ended December 31, 2021, 2020 and 2019, approximately 69 62 97 TAOPING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 23. SUBSEQUENT EVENTS On January 11, 2022, the Company entered into a strategic cooperation agreement with Shenzhen Zhicheng Chuangtou New Energy Co., Ltd. (“Zhicheng Chuangtou”) to expand its smart charging pile market. Pursuant to the agreement, which has a term of three years, the Company is responsible for the market development and installation of the smart charging piles produced by Zhicheng Chuangtou. Zhicheng Chuangtou is responsible for providing charging piles and other ancillary products, as well as for the operation and management of smart charging piles after installation. The Company has planned to use its channels like Taoping Alliance network to expand the market across the country and reach out to potential property management companies. The Company expects to expand coverage to 50 cities by the end of 2022 and complete pilot projects in these cities. On January 19, 2022, the Company entered into a share purchase agreement to acquire 95.56 % equity interest in Zhenjiang Taoping IoT Technology Limited (“Zhenjiang Taoping”), aiming to accelerate the Company’s smart charging pile and digital new media businesses in East China. Pursuant to the share purchase agreement, the Company has agreed to issue to the shareholders of Zhenjiang Taoping a total of 201,552 restricted ordinary shares, calculated as $391,011 being divided by the average closing price of the Company’s ordinary shares over the 20 trading days prior to the execution of the share purchase agreement, which was $ 1.94 per share. According to the share purchase agreement, the shares are expected to be issued in three phases. The first phase will issue 67,184 shares within 20 days after closing of the transaction; the second phase will issue 67,184 shares before May 31, 2023; the third phase will issue 67,184 shares before May 31, 2024. Issuance of shares during the second and third phases will be conditioned upon the satisfaction of certain performance targets of Zhenjiang Taoping as set forth in the share purchase agreement. Specifically, the second phase issuance of restricted ordinary shares requires from the closing date to December 31, 2022, Zhenjiang Taoping have at least 2.5 million RMB of audited revenue and 0.5 million RMB of audited net income that may be consolidated into the Company’s consolidated financial statements; and to be eligible for the third phase issuance, Zhenjiang Taoping shall have at least 2.6 million RMB of revenue and 0.55 million RMB of net income that may be consolidated into the Company’s consolidated financial statements during the fiscal year 2023. Mr. Huan Li, the Chief Marketing Officer of the Company, is one of the shareholders of Zhenjiang Taoping and has agreed to transfer all of his 46 % equity interest in Zhenjiang Taoping to the Company. The acquisition was closed on February 24, 2022. Upon the completion of the acquisition, the Company currently owns 100% On January 27, 2022, the Company entered into a strategic cooperation agreement with three other companies (BOE Yiyun Technology Co., Ltd.; Sichuan Lvfa Environmental Technology Co., Ltd.; and Wuxi Centennial Ronghua Technology Development Co., Ltd.) to cooperate on naked-eye 3D iGallery and “Smart Station” projects. Pursuant to the agreement, which has a term of five years, the Company is responsible for the market development of naked-eye 3D iGallery and “Smart Station” projects through its Taoping Alliance network and the overall operation of the new media advertising of Smart Station. The three partners are responsible to integrate and leverage their respective resources in brand, technology, channel, content, and operation to promote the development of naked-eye 3D iGallery and “Smart Station” projects in the market. The innovative iGallery digital art display offers a new way to show and share art. It provides a full range of solutions for different environments such as museums, schools, hotels and restaurants, office buildings, and homes. With the newly released naked-eye 3D iGallery, the audience can enjoy the cool visual impact without wearing 3D glasses. “Smart Station” is a modular smart portable public toilet. Based on the Internet of Things and biotechnology, the Smart Station does not need to connect with the sewage pipeline and can stay clean and stinky-free. The Smart Station also includes billboards, iGallery, shared power banks, and vending machines that help make the project sustainable. The booth-like Smart Station can be established in populated areas such as thoroughfares, parks, and tourist attractions. At present, the Smart Station project has been deployed and put into operation in Chengdu, Changsha, Chongqing, Shenzhen, and several other cities in China. On February 17, 2022, the Company entered into a letter of intent (the “LOI”) with the shareholders of Fujian Taoping IoT Technology Limited (“Fujian Taoping”) to acquire at least 51 On March 2, 2022, the Company entered into a strategic cooperation agreement (“Agreement”) with Shenzhen Zhihui Yunti IoT Co., Ltd. (“Zhihui Yunti”) to jointly address the market needs of the elevator modernization and maintenance. Pursuant to the Agreement, which has a term of three years, the Company is responsible for the market development of the elevator modernization and maintenance project through its Taoping Alliance network. Zhihui Yunti is responsible for providing elevator cloud, elevator IoT and elevator ecosystem products and technical support, as well as for the operation and management after product installation. According to Research, the total number of elevators in operation in China reached nearly six million by the end of 2021. The market size of elevator modernization and maintenance is expected to reach $ 8.2 billion |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | (a) Basis of Presentation and Principles of Consolidation The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). In the opinion of management, all adjustments (consisting of normal recurring adjustments) have been made that are necessary to present fairly the financial position, the results of its operations and cash flows. The consolidated financial statements include the accounts of the Company, its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Reverse Stock Split: A one (1)-for-six (6) reverse stock split of the Company’s issued and outstanding ordinary shares was effective on July 30, 2020 (the “Reverse Stock Split”) |
Use of Estimates | (b) Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. The Company’s significant estimates include its accounts receivable, assessment of credit losses, fair value of stock options and warrants, valuation allowance of deferred tax assets, useful lives of property and equipment, the recoverability of long-lived assets, revenue recognition, valuation of prepayments and other assets and other intangible assets, inventories, cryptocurrencies, purchase price allocation of business combination, right-of-use assets, and lease liabilities. Management makes these estimates using the best information available at the time the estimates are made; however actual results could differ from those estimates. TAOPING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
Economic, Pandemic, Political, and Currency Exchange Risks | (c) Economic, Pandemic, Political, and Currency Exchange Risks All the Company’s revenue-generating operations are conducted in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic, public health, and legal environments in the PRC, and by the general state of the PRC economy. The Company’s operations in the PRC are subject to special considerations and significant risks that are not typically pertaining to the companies in North America and Western Europe. These include risks associated with, among others, the political, economic, public health concerns with persistent outbreaks of COVID-19 infections in various regional localities, and legal environments, geopolitical influences, and foreign currency exchange, notably in recent events, where the government’s sudden interventions or modifications of the laws and regulations currently in effective could negatively impact the Company’s operations and financial results. In September 2021, ten Chinese regulatory authorities collectively promulgated a guidance to further control and monitor cryptocurrency related trading, exchanges, transaction, banking and financial service, initial coin offering, and other intermediary and derivatives transactions, which are considered illegal in accordance with effectuated laws and regulations and may be subject to penalty criminally. The new guidance also bars foreign cryptocurrency trading platforms and related businesses to provide services to China domestic individuals and business entities, and expands the application of laws and regulations to Chinese employees or contractors of foreign operatives that provide related services to individuals or business entities domiciled in China. The legality of cryptocurrency mining activity may be subject to challenge by Chinese authorities. As a result, the Company has relocated its global headquarters to Hong Kong where cryptocurrency mining, trading, exchange, transaction, and related business activities are lawful. The functional currency of the Company is Chinese Renminbi Yuan (“RMB”), which is not freely convertible into foreign currencies. The Company cannot guarantee that the current exchange rate will remain steady. Therefore, there is a possibility that the Company could post the same amount of profit for two comparable periods and yet, because of fluctuating exchange rates, record higher or lower profit depending on exchange rate of RMB. RMB converted to U.S. dollars on the relevant dates. The exchange rate could fluctuate depending on changes in the political and economic environment without notice. |
Cash and Cash Equivalents | (d) Cash and Cash Equivalents The Company considers all highly liquid investments purchased and cash deposits with financial institutions with original maturities of three months or less to be cash equivalents. The Company had no The Company maintains its cash accounts at credit worthy financial institutions and closely monitors the movements of its cash positions. As of December 31, 2021 and 2020, approximately $ 4.5 million and $ 0.9 million of cash, respectively, was held in bank accounts in the PRC and Hong Kong. |
Restricted Cash | (e) Restricted Cash The Company held restricted cash of $ 0.2 no |
Accounts Receivable, Accounts Receivable –related parties, and Concentration of Risk | (f) Accounts Receivable, Accounts Receivable –related parties, and Concentration of Risk In January 2020, the Company adopted ASU 2016-13, Topics 326-Credit Loss, Measurement of Credit Losses on Financial Instruments, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (CECL) methodology, as its accounting standard for its trade accounts receivable. The adoption of the credit loss accounting standard has no material impact on the Company’s consolidated financial statements as of January 1, 2020. Accounts receivable are recognized and carried at carrying amount less an allowance for credit loss, if any. The Company maintains an allowance for credit losses resulting from the inability of its customers to make required payments based on contractual terms. The Company reviews the collectability of its receivables on a regular and ongoing basis according to historical trend, and estimates its provision for expected credit losses on receivables aging analysis. The Company has further adjusted allowance for credit losses for the anticipation of future economic condition and credit risk indicators of customers, including the potential impact of the COVID-19 pandemic on its customers’ businesses. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. In the event the Company recovers amounts previously reserved for, the Company will reduce the specific allowance for credit losses. The balance of allowance for credit losses for the year ended December 31, 2021 has increased approximately $ 5.5 TAOPING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Accounts receivable as at December 31, 2021 and 2020 are as follows: SCHEDULE OF ACCOUNTS RECEIVABLE December 31, 2021 December 31, 2020 Accounts Receivable $ 18,340,348 $ 12,359,619 Allowance for credit losses (11,582,186 ) (8,095,362 ) Accounts Receivable, net $ 6,758,162 $ 4,264,257 Accounts Receivable - related parties $ 16,032,134 $ 12,017,651 Allowance for credit losses (15,680,662 ) (9,098,436 ) Accounts Receivable - related parties, net $ 351,472 $ 2,919,215 Non-current Accounts Receivable $ - $ 3,013,532 Non-current credit losses - (1,174,302 ) Non-current Accounts Receivable, net $ - $ 1,839,230 Non-current Accounts Receivable - related parties $ - $ 4,172,502 Non-current Allowance for credit losses - related parties - (2,849,306 ) Non-current Accounts Receivable - related parties, net $ - $ 1,323,196 The normal credit term ranges from 1 month to 3 months after the customers’ acceptance of hardware or software, and completion of services. However, because of various factors of business cycle, the actual collection of outstanding accounts receivable may be beyond the normal credit terms. In accordance with ASC 210-10-45, the non-current accounts receivable and non-current accounts receivable-related parties represent the amounts that the Company does not reasonably expect to be realized during the normal operating cycle of the Company. The Company uses one-year time period as the basis for the separation of current and non-current assets. The allowance for credit losses at December 31, 2021 and 2020, totaled approximately $ 27.3 21.2 SCHEDULE OF ALLOWANCE FOR CREDIT LOSSES Balance at January 1, 2020 $ 7,212,644 Increase in allowance for credit losses 13,528,638 Foreign exchange difference 476,124 Balance at December 31, 2020 $ 21,217,406 Addition from acquisition of subsidiaries under common control 314,214 Increase in allowance for credit losses 5,134,350 Foreign exchange difference 596,878 Balance at December 31, 2021 $ 27,262,848 |
Advances to Suppliers | (g) Advances to Suppliers Advances to suppliers include but are not limited to cash deposits for the purchase of inventory items and super-computing server machines from suppliers. |
Advances from Customers and Related Parties | (h) Advances from Customers and Related Parties Advances from customers and related parties represent cash received from customers and related parties as advance payments for the purchases of the Company’s products and services. TAOPING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
Fair Value and Fair Value Measurement of Financial Instruments | (i) Fair Value and Fair Value Measurement of Financial Instruments Management has estimated that carrying amounts reported in the consolidated balance sheets for cash, accounts receivable, accounts receivable – related party, advances to suppliers, loan receivable - related party, other current assets, accounts payable, other payables and accrued expenses, income taxes payable, convertible note payable, net, and due to related parties approximate their fair market value based on the short-term maturity of these instruments. |
Fair Value Accounting | (j) Fair Value Accounting Financial Accounting Standards Board (FASB) Accounting Standards Codifications (ASC) 820-10 “Fair Value Measurements and Disclosures”, establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). As required by FASB ASC 820-10, assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The three levels of the fair value hierarchy under FASB ASC 820-10 are described below: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). On January 1, 2020, the Company adopted ASU 2018-13,” Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement.” The adoption of the disclosure requirements for Fair Value Accounting has no material impact on the Company’s consolidated financial statements. TAOPING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
Inventories, net | (k) Inventories, net Inventories are valued at the lower of cost (weighted average basis) and net realizable value. Net realizable value is the expected selling price in the ordinary course of business minus any costs of completion, disposal, and transportation to make the sale. The Company performs an analysis of slow-moving or obsolete inventory periodically and any necessary valuation reserves, which could potentially be significant, are included in the period in which the evaluations are completed. Any inventory impairment results in a new cost basis for accounting purposes. |
Property, equipment and software | (l) Property, equipment and software Property, equipment and software are stated at cost less accumulated amortization and depreciation. Amortization and depreciation is provided over the assets’ estimated useful lives, using the straight-line method. Estimated useful lives of property, equipment and software are as follows: SCHEDULE OF PROPERTY, EQUIPMENT AND SOFTWARE ESTIMATED USEFUL LIVES Office buildings 20 50 Lease improvement Shorter of lease term or assets lives Electronics equipment, furniture and fixtures 3 5 Motor vehicles 5 Purchased software 5 Media display equipment 5 Cryptocurrency mining machine 3 Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss are included in the Company’s results of operations. |
Intangible assets, net | (m) Intangible assets, net Intangible assets represent technology, software development costs and trademarks acquired by the Company through business acquisition. Intangible assets are stated at acquisition fair value or cost less accumulated amortization, and amortized using the straight-line method over the following estimated useful lives: SCHEDULE OF INTANGIBLE ASSETS ESTIMATED USEFUL LIVES Software development costs 3 5 Trademarks 5 |
Cryptocurrencies | (n) Cryptocurrencies Cryptocurrencies held, including Bitcoin and Ethereum, are accounted for as intangible assets with indefinite useful lives. An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived asset is impaired. Impairment exists when the carrying amount exceeds its fair value, which is measured using the quoted price of the cryptocurrency at the time its fair value is being measured. In testing for impairment, the Company has the option to first perform a qualitative assessment to determine whether it is more likely than not that an impairment exists. If it is determined that it is not more likely than not that an impairment exists, a quantitative impairment test is not necessary. If the Company concludes otherwise, it is required to perform a quantitative impairment test. To the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset. Subsequent reversal of impairment losses is not permitted. Cryptocurrencies awarded to the Company through its mining activities are included within operating activities in the consolidated statements of cash flows. The sales of cryptocurrencies are included within investing activities in the consolidated statements of cash flows and any realized gains or losses from such sales are included in other income (expense) in the consolidated statements of operations. The Company accounts for its gains or losses in accordance with the first in first out (FIFO) method of accounting. |
Business combination | (o) Business combination In accordance with ASC 805, the Company applies acquisition method to account for business combination. The acquisition method requires that the fair value of the underlying exchange transaction is used to establish a new accounting basis of the acquired entity upon the acquirer taking control over the acquiree. Furthermore, because of obtaining control the acquirer is responsible and accountable for all of the acquiree’s assets, liabilities and operations, the acquirer recognizes and measures the assets acquired and liabilities assumed at their full fair values as of the date control is obtained, which may result in goodwill, when purchase consideration exceeds the net of fair value of the assets acquired and liabilities assumed, or a bargain purchase gain, when the net of fair value of the assets acquired and liabilities assumed exceeds the purchase consideration, regardless of the percentage ownership in the acquiree or how the acquisition was achieved. TAOPING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
Long-term investment | (p) Long-term investment The Company’s long-term investment consists of investments accounted for under the equity method and equity investments without readily determinable fair value. Pursuant to ASC 321, equity investments, except for those accounted for under the equity method, those that result in consolidation of the investee and certain other investments, are measured at fair value, and any changes in fair value are recognized in earnings. For equity securities without readily determinable fair value and do not qualify for the existing practical expedient in ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”) to estimate fair value using the net asset value per share (or its equivalent) of the investment, the Company elected to measure those investments at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer, if any. For equity investments that the Company elects to measure at cost, less any impairment, plus or minus changes resulting from observable price changes, the Company makes a qualitative assessment considering impairment indicators to evaluate whether investments are impaired at each reporting date. Impairment indicators considered include, but are not limited to, a significant deterioration in the earnings performance or business prospects of the investee, including factors that raise significant concerns about the investee’s ability to continue as a going concern, a significant adverse change in the regulatory, economic, or technologic environment of the investee and a significant adverse change in the general market condition of either the geographical area or the industry in which the investee operates. If a qualitative assessment indicates that the investment is impaired, the entity has to estimate the investment’s fair value in accordance with the principles of ASC 820. For equity investments without readily determinable fair value, the Company uses Level 3 inputs of fair value accounting in accordance with ASC 820-10 and recognizes impairment loss other than temporary in the statement of operations equal to the difference between its initial investment and its proportional share of the net book value of the investee’s net assets which approximates its fair value. For impairment on equity investments without readily determinable fair value, the Company uses Level 3 inputs of fair value accounting in accordance with ASC 820-10 and recognizes impairment loss in the statement of operations equal to the difference between its initial investment and its proportional share of the net book value of investee’s net assets which approximates its fair value if those are determined to be other than temporary. |
Convertible promissory note | (q) Convertible promissory note The Company determines the appropriate accounting treatment of its convertible debts in accordance with the terms in relation to conversion features. After considering the impact of such features, the Company may account for such instrument as a liability in its entirety, or separate the instrument into debt and equity components following the guidance described under ASC 815 Derivatives and Hedging and ASC 470 Debt. The debt discount, if any, together with related issuance cost are subsequently amortized as interest expense over the period from the issuance date to the earliest conversion date or stated redemption date. The Company presented the issuance cost of debt in the balance sheet as a direct deduction from the related debt. |
Impairment of Long-Lived Assets | (r) Impairment of Long-Lived Assets Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. It is reasonably possible that these assets could become impaired as a result of technology or other industry changes. Recoverability of assets to be held and used is determined by comparing their carrying amount with their expected future net undiscounted future cash flows from the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by how much the carrying amount exceeds the fair value of the assets. There were no |
Operating leases - Right-of-use assets and lease liabilities | (s) Operating leases - Right-of-use assets and lease liabilities The Company accounts for lease under ASC 842 “Leases”, and also elects practical expedient not to separate non-lease component from lease components in accordance with ASC 842-10-15-37 and instead to account for each separate lease component and the non-lease components associated with that lease component as a single lease component. The Company also elects the practical expedient not to recognize lease assets and lease liabilities for leases with a term of 12 months or less. The Company recognized a lease liability and corresponding right-to-use asset based on the present value of minimum lease payments discounted at the Company’s incremental borrowing rate. The Company records amortization and interest expense on a straight-line basis based on lease terms and reduces lease liabilities upon making lease payments. |
Revenue Recognition | (t) Revenue Recognition In accordance with the ASC 606, the Company recognizes revenues net of applicable taxes, when goods or services are transferred to customers in an amount that reflects the consideration to which the Company expects to receive in exchange for those goods or services. The Company generates its revenues primarily from five sources: (1) product sales, (2) software sales, (3) advertising, (4) crypto-currency mining, and (5) other sales. Revenue is recognized when obligations under the terms of a contract with our customers are satisfied, generally, upon delivery of the goods and services and receipts of cryptocurrencies from cryptocurrency mining pools. TAOPING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Revenue - Products Product revenues are generated primarily from the sale of Cloud-Application-Terminal based digital ads display terminals with integrated software essential to the functionality of the hardware to our customers (inclusive of related parties) and high-end data storage servers. Although manufacturing of the products has been outsourced to the Company’s Original Equipment Manufacturer (OEM) suppliers, the Company has acted as the principal of the contract. The Company recognized the product sales at the point of delivery. The Company may from time to time provide future unspecified software upgrades to the hardware products’ essential software, which is expected to be infrequent and, free of charge. Non-software service is mainly the one-time training session provided to the customer to familiarize them with the software operation upon the customer’s initial introduction to the software platform. The costs of providing infrequent software upgrade and training are de minimis. As a result, the Company does not allocate transaction price to software upgrade and customer training. Product sales are classified as “Revenue-Products” on the Company’s consolidated statements of operations. Revenue - Software Customers in the private sector contract the Company to design and develop software products specifically customized for their needs for a fixed price. Software development projects usually include developing software, integrating various isolated software systems into one, and testing the system. The design and build services, together with the integration of the various elements, are generally determined to be essential to the functionality of the delivered software. The contracted price is usually paid in installments based on progression of the project or at the delivery of the software. The Company usually provides non-software services including after-sale support, technical training. The technical training only occurs at the introduction of the software. The software is highly specialized and stable, after-sale support and subsequent upgrade or enhancement are infrequent. The Company has estimated the costs associated with the non-software performance obligations and concludes that these obligations are de minimis to the overall contract. Therefore, the Company does not further allocate transaction price. The Company usually completes the customized software contracts less than 12 months and recognizes the revenue at the point of delivery because the Company does not have an enforceable right to payment for performance completed to date. Revenues from software development contracts are classified as “Revenue-Software” on the Company’s consolidated statements of operations. Revenue - Advertising The Company generates revenues primarily from providing advertising slots to customers to promote their businesses by broadcasting advertisements on identifiable digital ads display terminals and vehicular ads display terminals in different geographic regions and locations through a cloud-based new media sharing platform. The Company also contracts individuals to promote special events or for various occasions. The Company is only obligated to broadcast the advertisements to the contracted digital ads display terminals, and therefore allocates 100% of the transaction price to advertisement broadcasting. The transaction price for advertisement broadcasting is fixed based on the numbers of advertisement delivery and duration of the contract, and has no variable consideration, or significant financing component, or subsequent price change, and is not refundable. The Company recognizes the revenues, net of applicable taxes, from advertisement broadcasting contracts with customers over the contracted advertising duration. TAOPING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Revenue - Cryptocurrency mining The Company has entered into digital asset mining pools by executing contracts with the mining pool operators to provide computing power to the mining pool. The contracts are terminable under certain circumstances. In exchange for providing computing power, the Company is entitled to a fractional share of the fixed cryptocurrency awards the mining pool operator receives (less digital asset transaction fees to the mining pool operator, if any.) for successfully adding a block to the blockchain. The Company’s fractional share is based on the proportion of computing power the Company contributed to the mining pool operator to the total computing power contributed by all mining pool participants in solving the current algorithm. Providing computing power in digital asset transaction verification services is an output of the Company’s ordinary activities. The provision of providing such computing power is the only performance obligation in the Company’s contract with mining pool operator. The transaction consideration the Company receives, if any, is noncash consideration, which the Company measures at fair value using the quoted price of the related cryptocurrency on the date received, which is not materially different than the fair value at the contract inception or at the time the Company has earned the award from the pools. The consideration is variable. Because it is not probable that a significant reversal of cumulative revenue will not occur (ASC 606-10-32-11), the consideration is constrained until the mining pool operator successfully places a block (by being the first to solve an algorithm), and the Company receives confirmation of the consideration it will receive, at which time revenue is recognized. There is no financing component, nor allocation of transaction price in these transactions. Revenue - Other The Company also reports other revenue which comprises revenue generates from System upgrade and technical support services, platform service fee, and rental income. System upgrade and technical support revenue is recognized when performance obligations are satisfied upon completion of the services. Platform service fee is charged based on number of the display terminals used by the customers or a percentage of advertising revenue generated by the display terminals. Platform service revenue is recognized on a monthly basis over the contract period. The Company follows ASC 842 – Leases that requires lessor to identify the underlying assets and allocate rental income among considerations in lease and non-lease components. The Company owns two units of office space renting out to a third party and TNM under non-cancelable operating lease agreements with lease terms of six years starting from May 1, 2016 and three years starting from July 1, 2019, respectively. The lease agreements have fixed monthly rental payments, and no non-lease component or option for lessees to purchase the underlying assets. The Company collects monthly rental payments from the lessees, and has generated approximately $ 340,000 405,000 After completion of the business acquisition on June 9, 2021, TNM became a subsidiary of the Company, and is no longer a related party. The rental income from TNM has become an intercompany revenue and been eliminated since June 9, 2021. TAOPING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Annual minimum rental income to be received in 2022 is $ 126,850 none Contract balances The Company records advances from customers when cash payments are received or due in advance of our performance. For the year ended December 31, 2021, 2020 and 2019, the Company recognized revenue of $ 141,000 , $ 256,000 and $ 335,000 , respectively, that was included in the advances from customers balance at the beginning of each reporting period. Practical expedients and exemptions The Company generally expenses sales commissions if any incurred because the amortization period would have been one year or less. In many cases, the Company is approached by customers for customizing software products for their specific needs without incurring significant selling expenses. The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. |
Cost of Sales - advertising and cost of cryptocurrencies | (u) Cost of Sales - advertising and cost of cryptocurrencies The cost of sales for advertising revenue mainly comprises of direct costs of generating advertising revenue including lease expense for the wall space, to where the ads display terminal to be installed, installation costs of ads display terminals, depreciation of display termination, labor, and other related expenses. The cost of sales for cryptocurrencies revenue consists primarily of direct costs of earning Bitcoin and Ethereum related to mining operations, including mining platform fees, mining pool fees, mining facility rental fees, electric power costs, other utilities, depreciation of mining machines, labor, insurance, and among other ancillary costs. |
Stock-based compensation | (v) Stock-based compensation The Company applies ASC No. 718, “Compensation-Stock Compensation”, which requires that share-based payment transactions with employees, such as share options, be measured based on the grant date fair value of the equity instrument and recognized as compensation expense over the requisite service period, with a corresponding addition to equity. Under this method, compensation cost related to employee share options or similar equity instruments is measured at the grant date based on the fair value of the award and is recognized over the period during which an employee is required to provide service in exchange for the award, which generally is the vesting period. The Company adopted ASU 2018-07, Compensation-Stock Compensation (Topic: 718): Improvements to Nonemployee Share-Based Payment Accounting on January 1, 2019, to account for stock-based compensation to goods and services provided by the third parties. The fair value of the equity awards to nonemployee are measured on the grant day. Under this guidance, compensation cost related to nonemployee share options or similar equity instruments is recognized in the same period and in the same manner (i.e. capitalize or expense) the entity would if it paid cash for the goods or services. The Company’s adoption of ASU 2018-07 has no material impact to the Company’s consolidated financial statements, nor requirement for cumulative adjustment in retained earnings or other components of equity or net assets. During the year ended December 31, 2021, 2020, and 2019, the Company recognized approximately $ 3,137,000 744,000 580,000 TAOPING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
Foreign Currency Translation | (w) Foreign Currency Translation The functional currency of the US and BVI companies is the United States dollar. The functional currency of the Company’s Hong Kong subsidiaries is the Hong Kong dollar. The functional currency of the Company’s wholly-owned PRC subsidiaries is the Chinese Renminbi Yuan, (“RMB”). RMB is not freely convertible into foreign currencies. The Company’s PRC subsidiaries’ financial statements are maintained in the functional currency. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at rates of exchange prevailing at the balance sheet date. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transactions. Exchange gains or losses arising from foreign currency transactions are included in the determination of net loss for the respective periods. For financial reporting purposes, the financial statements of the Company have been translated into United States dollars. Assets and liabilities are translated at exchange rates at the balance sheet dates, revenue and expenses are translated at average exchange rates, and equity is translated at historical exchange rates. Any resulting translation adjustments are not included in determining net income but are included in other comprehensive loss, a component of equity. The exchange rates adopted are as follows: SCHEDULE OF FOREIGN CURRENCY TRANSLATION December 31, 2021 December 31, 2020 Year-end RMB to US$ exchange rate 6.3588 6.5377 Average yearly RMB to US$ exchange rate 6.4505 6.9044 Year-end HKD to US$ exchange rate 7.7971 - Average yearly HKD to US$ exchange rate 7.7724 - Foreign currency exchange rate, translation 7.7724 - The average yearly RMB to US$ exchange rate adopted for the year ended December 31, 2019 was 6.9072 No representation is made that the RMB amounts and HKD amounts could have been, or could be, converted into United States dollars at the rates used in translation. |
Research & Development Expenses | (x) Research & Development Expenses The Company follows the guidance in FASB ASC 985-20, Cost of Software to Be Sold, Leased or Marketed, regarding software development costs to be sold, leased, or otherwise marketed. FASB ASC 985-20-25 requires research and development costs for software development to be expensed as incurred until the software model is technologically feasible. Technological feasibility is established when the enterprise has completed all planning, designing, coding, testing, and identification of risks activities necessary to establish that the product can be produced to meet its design specifications, features, functions, technical performance requirements. A certain amount of judgment and estimation is required to assess when technological feasibility is established, as well as the ongoing assessment of the recoverability of capitalized costs. The Company’s products reach technological feasibility shortly before the products are released and sold to the public. Therefore research and development costs are generally expensed as incurred. |
Subsidy Income | (y) Subsidy Income Subsidy income mainly represents income received from various local governmental agencies in China for developing high technology products in the fields designated by the government as new and highly innovative. The Company has no continuing obligation under the subsidy provision. The Company recognizes subsidy income upon receipt of official grant notice from local government authorities. |
Sales, use, other value-added taxes, and income taxes | (z) Sales, use, other value-added taxes, and income taxes Revenue is recorded net of applicable sales, use, and value-added taxes. Income taxes are provided on an asset and liability approach for financial accounting and reporting of income taxes. Deferred income taxes are recognized for all significant temporary differences at enacted rates and classified as non-current in the financial statements. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion, or all of, the deferred tax assets will not be realized. The Company classifies interest and/or penalties related to unrecognized tax benefits, if any, as a component of income tax expense. TAOPING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS The Company applies the provisions of ASC No. 740 “Income Taxes” (“ASC 740”), which clarifies the accounting for uncertainty in income taxes recognized by prescribing a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides accounting guidance on de-recognition, classification, interest and penalties, and disclosure. |
Segment reporting | (aa) Segment reporting Segment information is consistent with how management reviews the businesses, makes investing and resource allocation decisions and assesses operating performance. Transfers and sales between reportable segments, if any, are recorded at cost. The Company reports financial and operating information in the following three (1) Cloud-based Technology (CBT) segment — It includes the Company’s cloud-based products, high-end data storage servers and related services sold to private sectors including new media, healthcare, education and residential community management, and among other industries and applications. In this segment, the Company generates revenues from the sales of hardware and software total solutions with proprietary software and content as well as from designing and developing software products specifically customized for private sector customers’ needs for a fixed price. The Company includes the revenue and cost of revenue of high-end data storage servers in the CBT segment. Advertising services is included in the CBT segment, after the Company consummated the acquisition of TNM. Advertisements are delivered to the ads display terminals and vehicular ads display terminals through the Company’s cloud-based new media sharing platform. Incorporation of advertising services complements the Company’s out-of-home advertising business strategy. (2) Blockchain Technology (BT) segment — The BT segment is the Company’s newly formed business sector. Cryptocurrency mining is the first initiative implemented in the BT segment. (3) Traditional Information Technology (TIT) segment — The TIT segment includes the Company’s project-based technology products and services sold to the public sector. The solutions the Company has sold primarily include Geographic Information Systems (GIS), Digital Public Security Technology (DPST), and Digital Hospital Information Systems (DHIS). In this segment, the Company generates revenues from sales of hardware and system integration services. As a result of the business transformation, the TIT segment is gradually being phased out in 2021. For more information regarding our operating segments, see Note 20 (Consolidated Segment Data). TAOPING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
Recent Accounting Pronouncements | (ab) Recent Accounting Pronouncements In August 2020, the FASB issued ASU No. 2020-06 (“ASU 2020-06”) “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity.” ASU 2020-06 will simplify the accounting for convertible instruments by reducing the number of accounting models for convertible debt instruments and convertible preferred stock. Limiting the accounting models results in fewer embedded conversion features being separately recognized from the host contract as compared with current GAAP. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting and (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. ASU 2020-06 is effective for public business entities fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. The Company is currently evaluating the effect of the adoption of ASU 2020-06 on the consolidated financial statements. The effect will largely depend on the composition and terms of the financial instruments at the time of adoption. In January 2020, the FASB issued ASU 2020-01, Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815)-Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. The guidance provides clarification of the interaction of rules for equity securities, the equity method of accounting and forward contracts and purchase options on certain types of securities. ASU 2020-01 is effective for the Company in the first quarter of 2021. The adoption did not have any significant impact on the Company’s condensed consolidated financial statements. In October 2021, the FASB issued ASU 2021-08, Business Combination (Topic 805) “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”. The ASU 2021-08 requires that an entity (acquirer) recognizes and measures contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. The ASU 2021-08 also provides certain practical expedients for acquirers when recognizing and measuring acquired contract assets and contract liabilities from revenue contracts in a business combination. The ASU 2021-08 also applies to contract assets and contract liabilities from other contracts to which the provisions of Topic 606 apply, such as contract liabilities from the sale of nonfinancial assets within the scope of Subtopic 610-20, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets. For public business entities, the ASU 2021-08 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The ASU 2021-08 should be applied prospectively to business combinations occurring on or after the effective date of the amendments. Early adoption of the amendments is permitted, including adoption in an interim period. An entity that early adopts in an interim period should apply the amendments (1) retrospectively to all business combinations for which the acquisition date occurs on or after the beginning of the fiscal year that includes the interim period of early application and (2) prospectively to all business combinations that occur on or after the date of initial application. Adoption of ASU 2021-08 is not expected to have material impact on the consolidated financial statements. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832), “Disclosures by Business Entities about Government Assistance”. The ASU 2021-10 requires the following annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy: 1. Information about the nature of the transactions and the related accounting policy used to account for the transactions 2. The line items on the balance sheet and income statement that are affected by the transactions, and the amounts applicable to each financial statement line item 3. Significant terms and conditions of the transactions, including commitments and contingencies. The amendments in this Update are effective for all entities within their scope for financial statements issued for annual periods beginning after December 15, 2021. Early application of the amendments is permitted. An entity should apply the amendments in this Update either (1) prospectively to all transactions within the scope of the amendments that are reflected in financial statements at the date of initial application and new transactions that are entered into after the date of initial application or (2) retrospectively to those transactions. Adoption of ASU 2021-10 is not expected to have material impact on the consolidated financial statements. The Company has considered all other recently issued accounting pronouncements and does not believe that the adoption of such pronouncements will have a material impact on the consolidated financial statements. |
ORGANIZATION, PRINCIPAL ACTIV_2
ORGANIZATION, PRINCIPAL ACTIVITIES AND MANAGEMENT’S PLANS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SCHEDULE OF SUBSIDIARIES AND VARIABLE INTEREST ENTITY | SCHEDULE OF SUBSIDIARIES AND VARIABLE INTEREST ENTITY December 31, December 31, December 31, 2021 2020 2019 Entities Subsidiaries % owned % owned % owned Location Taoping Inc British Virgin Islands Taoping Holdings Limited (THL) Subsidiary 100 % 100 % 100 % British Virgin Islands Taoping Group (China) Ltd. (IST HK) Subsidiary 100 % 100 % 100 % Hong Kong, China Taoping Digital Assets (Asia) Limited (TDAL) Subsidiary 100 % - - Hong Kong, China Taoping Digital Assets (Hong Kong) Limited (TDL) Subsidiary 100 % - - Hong Kong, China Taoping Capital Limited (TCL) Subsidiary 100 % - - Hong Kong, China Alpha Digital Group Ltd. (ADG) Subsidiary 100 % - - Cayman, Island Kazakh Taoping Operation Management Co. Ltd. (KTO) Subsidiary 100 % - - Kazakhstan Kazakh Taoping Data Center Co. Ltd. (KTD) Subsidiary 100 % - - Kazakhstan Information Security Tech. (China) Co., Ltd. (IST) Subsidiary 100 % 100 % 100 % Shenzhen, China TopCloud Software (China) Co., Ltd. (TopCloud) Subsidiary 100 % 100 % 100 % Shenzhen, China Information Security IoT Tech. Co., Ltd. (ISIOT) Subsidiary 100 % 100 % 100 % Shenzhen, China iASPEC Technology Group Co., Ltd. (iASPEC) Subsidiary 100 % VIE VIE Shenzhen, China Biznest Internet Tech. Co., Ltd. (Biznest) Subsidiary 100 % VIE VIE Shenzhen, China iASPEC Bocom IoT Tech. Co., Ltd. (Bocom) Subsidiary 100 % VIE VIE Shenzhen, China Taoping New Media Co., Ltd. (TNM) Subsidiary 100 % - - Shenzhen, China Shenzhen Taoping Education Technology Co., Ltd. (SZTET) Subsidiary 51 % - - Shenzhen, China Wuhu Taoping Education Technology Co., Ltd. (WHTET) Subsidiary 51 % - - Wuhu, China Taoping Digital Tech. (Dongguan) Co., Ltd. (TDTDG) Subsidiary 100 % - - Dongguan, China TopCloud Tech. (Chenzhou) Co., Ltd. (TCTCZ) Subsidiary 100 % - - Chenzhou, China Taoping Digital Tech. (Jiangsu) Co., Ltd. (TDTJS) Subsidiary 100 % - - Jiangsu, China |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SCHEDULE OF ACCOUNTS RECEIVABLE | Accounts receivable as at December 31, 2021 and 2020 are as follows: SCHEDULE OF ACCOUNTS RECEIVABLE December 31, 2021 December 31, 2020 Accounts Receivable $ 18,340,348 $ 12,359,619 Allowance for credit losses (11,582,186 ) (8,095,362 ) Accounts Receivable, net $ 6,758,162 $ 4,264,257 Accounts Receivable - related parties $ 16,032,134 $ 12,017,651 Allowance for credit losses (15,680,662 ) (9,098,436 ) Accounts Receivable - related parties, net $ 351,472 $ 2,919,215 Non-current Accounts Receivable $ - $ 3,013,532 Non-current credit losses - (1,174,302 ) Non-current Accounts Receivable, net $ - $ 1,839,230 Non-current Accounts Receivable - related parties $ - $ 4,172,502 Non-current Allowance for credit losses - related parties - (2,849,306 ) Non-current Accounts Receivable - related parties, net $ - $ 1,323,196 |
SCHEDULE OF ALLOWANCE FOR CREDIT LOSSES | SCHEDULE OF ALLOWANCE FOR CREDIT LOSSES Balance at January 1, 2020 $ 7,212,644 Increase in allowance for credit losses 13,528,638 Foreign exchange difference 476,124 Balance at December 31, 2020 $ 21,217,406 Addition from acquisition of subsidiaries under common control 314,214 Increase in allowance for credit losses 5,134,350 Foreign exchange difference 596,878 Balance at December 31, 2021 $ 27,262,848 |
SCHEDULE OF PROPERTY, EQUIPMENT AND SOFTWARE ESTIMATED USEFUL LIVES | SCHEDULE OF PROPERTY, EQUIPMENT AND SOFTWARE ESTIMATED USEFUL LIVES Office buildings 20 50 Lease improvement Shorter of lease term or assets lives Electronics equipment, furniture and fixtures 3 5 Motor vehicles 5 Purchased software 5 Media display equipment 5 Cryptocurrency mining machine 3 |
SCHEDULE OF INTANGIBLE ASSETS ESTIMATED USEFUL LIVES | SCHEDULE OF INTANGIBLE ASSETS ESTIMATED USEFUL LIVES Software development costs 3 5 Trademarks 5 |
SCHEDULE OF FOREIGN CURRENCY TRANSLATION | The exchange rates adopted are as follows: SCHEDULE OF FOREIGN CURRENCY TRANSLATION December 31, 2021 December 31, 2020 Year-end RMB to US$ exchange rate 6.3588 6.5377 Average yearly RMB to US$ exchange rate 6.4505 6.9044 Year-end HKD to US$ exchange rate 7.7971 - Average yearly HKD to US$ exchange rate 7.7724 - Foreign currency exchange rate, translation 7.7724 - |
BUSINESS ACQUISITION (Tables)
BUSINESS ACQUISITION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
SCHEDULE OF BUSINESS ACQUISITION ASSETS ACQUIRED, AND LIABILITIES ASSUMED | The following table summarizes the purchase price allocation for TNM, and the amounts of the assets acquired, and liabilities assumed which were based on their estimated fair values at the acquisition date: SCHEDULE OF BUSINESS ACQUISITION ASSETS ACQUIRED, AND LIABILITIES ASSUMED Cash $ 7,644 Accounts receivable, net 1,252,601 Advances to suppliers 75,971 Other receivables and other current assets, net 2,345,332 Long-term investments 1,386,191 Property and equipment 1,550,113 Right of use assets 74,812 Accounts payable (339,198 ) Advances from customers (10,943 ) Accrued payroll and benefits (32,840 ) Amount due to related parties (619,571 ) Other payables and accrued expenses (87,373 ) Lease liabilities (153,938 ) Total net assets acquired 5,448,801 Bargain purchase gain (12,345 ) Total purchase price $ 5,436,456 |
SCHEDULE OF BUSINESS ACQUISITION PRO-FORMA | SCHEDULE OF BUSINESS ACQUISITION PRO-FORMA December 31, 2021 December 31, 2020 Revenue $ 25,266,911 $ 13,678,873 Net (loss) (10,529,374 ) (20,093,374 ) Net (loss) attributable to TAOP (10,529,374 ) (19,456,941 ) Weighted Average Number of Shares: Basic and Diluted 13,494,454 8,586,977 (Loss) per share – Basic and Diluted (0.78 ) (2.34 ) (Loss) per share attributable to TAOP - Basic and Diluted $ (0.78 ) $ (2.27 ) |
VARIABLE INTEREST ENTITY (Table
VARIABLE INTEREST ENTITY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SCHEDULE OF VARIABLE INTEREST ENTITY OF ASSETS AND LIABILITIES | The VIE’s assets and liabilities were as follows as of December 31, 2020: SCHEDULE OF VARIABLE INTEREST ENTITY OF ASSETS AND LIABILITIES December 31, 2020 Total current assets $ 9,261,921 Other assets, non-current 4,302,000 Non-current accounts receivable, net 2,101,276 Property, plant and software 3,713,860 Total assets 19,379,057 Intercompany payable to the WFOE 20,449,508 Total current liabilities 41,717,595 Total liabilities 41,717,595 Total equity $ (22,338,538 ) |
LOSS PER SHARE (Tables)
LOSS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Loss per share - Basic and Diluted* | |
SCHEDULE OF COMPONENTS OF BASIC AND DILUTED EARNINGS PER SHARE | Components of basic and diluted loss per share were as follows for the year ended December 31, 2021, 2020, and 2019: SCHEDULE OF COMPONENTS OF BASIC AND DILUTED EARNINGS PER SHARE 2021 2020 2019 * Net loss attributable to the Company $ (9,924,859 ) $ (17,694,775 ) $ (3,582,332 ) Weighted average outstanding ordinary shares-Basic 12,962,452 7,373,347 6,964,740 -dilutive effect of stock options- employees - - - -dilutive effect of stock options- nonemployees - - - Weighted average outstanding ordinary shares- Diluted 12,962,452 7,373,347 6,964,740 Loss per share: Basic $ (0.77 ) $ (2.40 ) $ (0.54 ) Diluted $ (0.77 ) $ (2.40 ) $ (0.54 ) |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORIES | As of December 31, 2021 and 2020, inventories consist of: SCHEDULE OF INVENTORIES December 31, 2021 December 31, 2020 Raw materials $ 3,767 $ 3,663 Finished goods 559,659 427,942 Cost of projects 82,898 34,792 Inventories, gross $ 646,324 $ 466,397 Allowance for slow-moving or obsolete inventories (103,940 ) (211,719 ) Inventories, net $ 542,384 $ 254,678 |
PROPERTY, EQUIPMENT AND SOFTW_2
PROPERTY, EQUIPMENT AND SOFTWARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY, EQUIPMENT AND SOFTWARE | As of December 31, 2021 and 2020, property, equipment and software consist of: SCHEDULE OF PROPERTY, EQUIPMENT AND SOFTWARE December 31, 2021 2020 Office buildings $ 4,398,414 $ 5,140,635 Electronic equipment, furniture and fixtures 6,013,676 5,470,985 Motor vehicles 155,697 201,509 Cryptocurrency mining machine 8,147,574 - Media display equipment 1,197,273 - Leasehold improvement 529,885 - Purchased software 19,840,491 17,465,168 Property, equipment and software, gross 40,283,010 28,278,297 Less: accumulated depreciation (18,720,926 ) (17,426,398 ) Property, equipment and software, net $ 21,562,084 $ 10,851,899 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
SCHEDULE OF INTANGIBLE ASSETS | As of December 31, 2021 and 2020, intangible assets consist of: SCHEDULE OF INTANGIBLE ASSETS Software and software development costs Trademarks Total Gross carrying amounts Balance as of January 1, 2020 $ 4,030,482 881,245 4,911,727 Foreign currency translation 266,062 58,173 324,235 Balance as of December 31, 2020 4,296,545 939,419 5,235,964 Intangible assets, gross, beginning 4,296,545 939,419 5,235,964 Foreign currency translation 120,868 26,427 147,295 Balance as of December 31, 2021 4,417,413 965,846 5,383,259 Intangible assets, gross, ending 4,417,413 965,846 5,383,259 Accumulated amortization Balance as of January 1, 2020 4,030,482 879,749 4,910,231 Amortization expense - 1,510 1,510 Foreign currency translation 266,062 58,160 324,221 Balance as of December 31, 2020 4,296,545 939,419 5,235,964 Intangible assets, accumulated amortization, beginning 4,296,545 939,419 5,235,964 Amortization expense - - - Foreign currency translation 120,868 26,427 147,295 Balance as of December 31, 2021 4,417,413 965,846 5,383,259 Intangible assets, accumulated amortization, ending 4,417,413 965,846 5,383,259 Intangible assets, net $ - $ - $ - |
CRYPTOCURRENCIES (Tables)
CRYPTOCURRENCIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investment Company [Abstract] | |
SCHEDULE OF MOVEMENTS OF CRYPTOCURRENCIES | The following table presents the movements of cryptocurrencies for the year ended December 31, 2021: SCHEDULE OF MOVEMENTS OF CRYPTOCURRENCIES Amounts Balance at January 1, 2021 - Cryptocurrencies, net, beginning - Receipt of cryptocurrencies from mining activities $ 5,455,345 Sales of cryptocurrencies (4,543,543 ) Realized gain on sale of cryptocurrencies 410,979 Impairment loss on cryptocurrencies (493,617 ) Balance at December 31, 2021 $ 829,165 Cryptocurrencies, net, ending $ 829,165 |
BANK LOANS (Tables)
BANK LOANS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
SCHEDULE OF SHORT-TERM BANK DEBT | SCHEDULE OF SHORT-TERM BANK DEBT December 31, 2021 December 31, 2020 Secured short-term loans $ 7,792,125 $ 6,210,176 Total short-term bank loans $ 7,792,125 $ 6,210,176 |
SCHEDULE OF SECURED SHORT-TERM BANK DEBT | Detailed information of secured short-term loan balances as of December 31, 2021 and 2020 were as follows: SCHEDULE OF SECURED SHORT-TERM BANK DEBT December 31, 2021 December 31, 2020 Collateralized by office buildings of IST and guaranteed by Mr. Lin and Biznest $ - $ 3,976,960 Guaranteed by IST and Mr. Lin and Collateralized by the real property of ISIOT and equity investment of ISTIL 7,792,125 2,019,072 Guaranteed by a $ 0.2 - 214,144 Total $ 7,792,125 $ 6,210,176 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
SCHEDULE OF INCOME BEFORE INCOME TAXES | Pre-tax income (loss) from continuing operations for the year ended December 31, 2021, 2020, and 2019 were taxable in the following jurisdictions: SCHEDULE OF INCOME BEFORE INCOME TAXES 2021 2020 2019 PRC $ (8,287,495 ) $ (15,810,350 ) $ (2,342,102 ) Hong Kong (876,289 ) (12,072 ) (38,574 ) BVI (755,754 ) (2,580,102 ) (1,488,065 ) Total (loss) before income taxes $ (9,919,538 ) $ (18,402,524 ) $ (3,868,741 ) |
SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (BENEFIT) | Income tax (benefit) expense from continuing operations consists of the following: SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (BENEFIT) 2021 2020 2019 Current taxes $ 5,321 $ (71,316 ) $ (274,480 ) Deferred taxes - - - Income tax (benefit) $ 5,321 $ (71,316 ) $ (274,480 ) |
SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION | Current income tax (benefit) expense was recorded in 2021, 2020 and 2019 and was related to differences between the book and corporate income tax returns. SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION 2021 2020 2019 PRC statutory tax rate 25 % 25 % 25 % Computed expected income tax (benefit) expense $ (2,479,885 ) $ (4,600,631 ) $ (967,185 ) Tax rate differential benefit from tax holiday 950,843 1,805,951 180,996 Permanent differences 288,914 248,636 (203,842 ) Tax effect of deductible temporary differences not recognized 837,438 1,826,684 333,891 Non-deductible tax loss 408,011 648,004 381,660 Income tax (benefit) $ 5,321 $ (71,316 ) $ (274,480 ) |
SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS AND LIABILITIES | The significant components of deferred tax assets and deferred tax liabilities were as follows as of December 31, 2021 and 2020: SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS AND LIABILITIES December 31, 2021 December 31, 2020 Deferred Deferred Deferred Deferred Tax Tax Tax Tax Assets Liabilities Assets Liabilities Allowance for credit losses $ 4,537,564 $ - $ 3,640,083 $ - Loss carry-forwards 5,080,165 - 3,714,825 - Fixed assets 25,406 (272,344 ) 80,456 (258,451 ) Inventory valuation 329,915 - 369,064 - Cryptocurrency valuation 81,447 - - - Accrued liabilities 15,038 - - - Long-term investments 5,897 - 5,736 - Intangible assets - 137,973 - 134,197 Gross deferred tax assets and (liabilities) 10,075,432 (134,371 ) 7,810,164 (124,254 ) Valuation allowance (9,941,061 ) - (7,685,910 ) - Total deferred tax assets and (liabilities) $ 134,371 $ (134,371 ) $ 124,254 $ (124,254 ) |
OTHER CURRENT AND NON-CURRENT_2
OTHER CURRENT AND NON-CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
SCHEDULE OF OTHER CURRENT ASSETS | (a) As of December 31, 2021 and 2020, other current assets consist of: SCHEDULE OF OTHER CURRENT ASSETS December 31, 2021 December 31, 2020 Advances to unrelated-parties (i) (i) $ 937,235 $ 8,305 Advances to employees 49,218 45,396 Other current assets 231,695 119,325 Total $ 1,218,148 $ 173,026 (i) The advances to unrelated parties for business development are non-interest bearing and are due on demand. As of December 31, 2021, the balance included the amount due from a third-party vendor of approximately $ 747,000 Based on the amendment of the contract, the Company agrees to make advances to the vendor specifically for its market development purposes, and the total commitment of funding was RMB 6 929,532 12 If the Company’s revenue facilitated by the vendor does not reach certain threshold during specified periods, the contract could be terminated by the Company, and all funding with applicable interest, less any commissions and subcontractor fees payable to the vendor, shall be repaid to the Company within one month after the termination of the contract. If the two parties terminate the cooperation on the condition that the vendor meet the target, all funding without interest, shall be repaid. The first period as specified is from January 1, 2021 to December 31, 2021 with a threshold revenue of RMB 15 2,294,400 15.2 2,386,360 |
SCHEDULE OF OTHER NON-CURRENT ASSETS | (b) As of December 31, 2021 and 2020, Other assets, non-current consist of: SCHEDULE OF OTHER NON-CURRENT ASSETS December 31, 2021 December 31, 2020 Other assets, non-current, net $ 2,948,681 $ 4,302,000 Total $ 2,948,681 $ 4,302,000 |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Operating Leases | |
SCHEDULE OF OPERATING LEASE | Weighted-average remaining lease term as of December 31, 2021, and discount rate for its operating leases are as follows: SCHEDULE OF OPERATING LEASE Weighted-average remaining lease term 27.4 Weighted-average discount rate 4.75 % |
SCHEDULE OF MATURITIES OF OPERATING LEASE LIABILITIES | The following table outlines maturities of operating lease liabilities as of December, 2021: SCHEDULE OF MATURITIES OF OPERATING LEASE LIABILITIES Year ending December 31 Leases for office/ server rooms/ Dormitory Wall Space 2022 $ 424,348 $ 3,024 2023 385,236 - 2024 170,903 - Total lease payments 980,487 3,024 Less: Imputed interest (87,006 ) - Present value of lease liabilities $ 893,481 $ 3,024 |
LONG-TERM INVESTMENTS (Tables)
LONG-TERM INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments, All Other Investments [Abstract] | |
SCHEDULE OF EQUITY METHOD INVESTMENTS | As of December 31, 2021, the Company’s equity method investments had a carrying value of $ 285,137 SCHEDULE OF EQUITY METHOD INVESTMENTS Investees Abbreviation % of Ownership Carrying value Qingdao Taoping IoT Co., Ltd. QD Taoping, or QD 47 % $ - Yunnan Taoping IoT Co., Ltd. YN Taoping, or YN 40 % 147,257 Jiangsu Taoping IoT Technology Co., Ltd. JS Taoping, or JS 25 % 128,333 Jiangsu Taoping New Media Co., Ltd JS New Media, or JN 21 % 9,547 $ 285,137 |
OTHER PAYABLES AND ACCRUED EX_2
OTHER PAYABLES AND ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |
SCHEDULE OF OTHER PAYABLE AND ACCRUED EXPENSES | As of December 31, 2021 and 2020, other payables and accrued expenses consist of: SCHEDULE OF OTHER PAYABLE AND ACCRUED EXPENSES December 31, 2021 December 31, 2020 Advances from unrelated third-parties (i) (i) $ 770,612 $ 469,418 Other taxes payable (ii) (ii) 3,665,976 4,089,013 Unrecognized tax benefits (iii) (iii) - 433,000 Accrued professional fees 9,279 404,025 Amount due to employees (iv) (iv) 87,889 65,785 Other current liabilities (v) (v) 359,743 1,174,856 Other Payables and Accrued Expenses $ 4,893,499 $ 6,636,097 (i) The advances from unrelated parties are non-interest bearing and due on demand. (ii) The other taxes payable were the amounts due to the value added tax, business tax, city maintenance and construction tax, and individual income tax. (iii) The Unrecognized tax benefits refer to the land value added tax due to the sale of property, equipment, and land use rights in September 2015. As of December 31, 2021, the unrecognized tax liability passed the 5-year statute of limitation and recognized as other income in the consolidated statement of operations. (iv) The amounts due to employees were pertaining to employees’ out-of-pocket expenses for travel and meal allowance, etc. (v) The other current liabilities as of December 31, 2021 included the security and deposit of approximate $ 264,000 203,000 767,500 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
SCHEDULE OF SHARE BASED PAYMENTS EXPENSE | The following table provides the details of the share-based payments expense during the year ended December 31, 2021, 2020, and 2019: SCHEDULE OF SHARE BASED PAYMENTS EXPENSE December 31, 2021 December 31, 2020 December 31, 2019 For the Year Ended December 31, 2021 December 31, 2020 December 31, 2019 Employees and directors share-based payments $ 2,950,000 (a)(c) $ 298,000 (a)(c) $ 494,000 (c) Stock options issued for services $ - $ 89,000 (d) $ 67,000 (d) Shares issued for services $ 187,000 (a) $ 357,000 (a) $ 19,000 (a) Total share based payments expenses $ 3,137,000 $ 744,000 $ 580,000 |
SUMMARY OF STOCK OPTION ACTIVITY | Stock option activity for the year ended December 31, 2021, 2020 and 2019 is summarized as follows: SUMMARY OF STOCK OPTION ACTIVITY Weighted Average Remaining Weighted Contractual Aggregated Options Average Life Intrinsic Outstanding * Exercise Price* (Year) Value Outstanding at January 1, 2019 333,700 $ 6.66 2.40 $ 188,790 Exercised - - - - Canceled (36,800 ) $ 6.90 - $ - Outstanding at December 31, 2019 296,900 $ 6.66 1.4 $ - Granted 333,348 2.4 - - Exercised (294,733 ) 6.66 - - Canceled (9,167 ) $ 3.48 - $ - Outstanding at December 31, 2020 326,348 2.4 2.6 143,587 Granted - - - Exercised - - - Canceled (28,667 ) $ 2.4 - $ - Outstanding at December 31, 2021 297,681 2.4 1.6 714,400 Vested and expected to be vested as of December 31, 2021 297,681 2.4 1.6 714,600 Options exercisable as of December 31, 2021 (vested) - - - - |
SCHEDULE OF NON-VESTED SHARE ACTIVITY | The following table summarizes the status of options which contain vesting provisions: SCHEDULE OF NON-VESTED SHARE ACTIVITY Weighted Average Grant Date Options* Fair Value* Non-vested at January 1, 2021 326,348 $ 1.01 Granted - $ Vested (297,681 ) $ 1.01 Canceled (28,667 ) $ 1.01 Non-vested at December 31, 2021 - $ - |
SCHEDULE OF WARRANT OUTSTANDING AND EXERCISABLE | SCHEDULE OF WARRANT OUTSTANDING AND EXERCISABLE 2021 Number of Options Outstanding Exercise Expiration and Exercisable Price Date July 2020 stock options to consultants 57,366 $ 2.64 07/09/2023 April 2021 warrants to consultant 15,000 $ 6.30 04/15/2022 Total 72,366 |
CONSOLIDATED SEGMENT DATA (Tabl
CONSOLIDATED SEGMENT DATA (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
SCHEDULE OF SEGMENT REPORTING | Selected information by segment is presented in the following tables for the year ended December 31, 2021, 2020, and 2019. SCHEDULE OF SEGMENT REPORTING 2021 2020 2019 Revenues (1) TIT Segment $ 636,743 $ 377,499 $ 241,132 CBT Segment 18,753,836 10,685,276 13,550,171 BT Segment 5,455,345 - - $ 24,845,924 $ 11,062,775 $ 13,791,303 (1) Revenues by operating segments exclude intercompany transactions. 2021 2020 2019 (Loss) income from operations TIT Segment $ 570,220 $ (166,727 ) $ (662,556 ) CBT Segment (7,668,616 ) (15,268,750 ) (2,037,151 ) BT Segment (1,615,446 ) - - Corporate and others (2) - (1,931,252 ) (1,472,454 ) ( Loss) income from operations (8,713,842 ) (17,366,729 ) (4,172,161 ) Corporate other income, net (281,984 ) (22,580 ) 669,755 Corporate interest income 4,640 4,798 133,517 Corporate interest expense (928,352 ) (1,018,013 ) (499,852 ) (Loss) before income taxes (9,919,538 ) (18,402,524 ) (3,868,741 ) Income tax benefit (5,321 ) 71,316 274,480 Net (loss) (9,924,859 ) (18,331,208 ) (3,594,261 ) Less: Loss (income) attributable to the non-controlling interest - 636,433 11,929 Net (loss) income attributable to the Company $ (9,924,859 ) $ (17,694,775 ) $ (3,582,332 ) (2) Includes non-cash compensation, professional fees and consultancy fees for the Company. Non-cash employee compensation by segment for the year ended December 31, 2021, 2020, and 2019 are as follows: 2021 2020 2019 Non-cash employee compensation: Corporate and others 2,950,070 298,091 494,316 $ 2,950,070 $ 298,091 $ 494,316 Depreciation and amortization by segment for the year ended December 31, 2021, 2020, and 2019 are as follows: 2021 2020 2019 Depreciation and amortization: TIT Segment $ 13,173 $ 19,783 $ 17,278 CBT Segment 2,293,030 3,459,861 2,883,674 BT Segment 1,398,615 - - $ 3,704,818 $ 3,479,644 $ 2,900,952 TAOPING INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2021 2020 2019 Provisions for allowance for credit losses on accounts receivable, other receivable and advances to suppliers: TIT Segment $ (658,035 ) $ 36,895 $ 344,550 CBT Segment 6,192,425 13,484,287 3,283,994 BT Segment 7,327 - - $ 5,541,717 $ 13,521,182 $ 3,628,544 2021 2020 2019 Inventory obsolescence provision: TIT Segment $ - $ 10,943 $ 2,366 CBT Segment (82,255 ) (5,318 ) 112,824 $ (82,255 ) $ 5,625 $ 115,190 Total assets by segment as at December 31, 2021 and 2020 are as follows: 2021 2020 Total assets TIT Segment $ 6,462,162 $ 213,329 CBT Segment 30,981,079 30,488,753 BT Segment 9,712,250 Corporate and others - 74,569 $ 47,155,491 $ 30,776,651 |
SCHEDULE OF SUBSIDIARIES AND VA
SCHEDULE OF SUBSIDIARIES AND VARIABLE INTEREST ENTITY (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Taoping Inc. [Member] | |||
Entities | Taoping Inc | ||
Location | British Virgin Islands | ||
Taoping Holdings Limited (THL) [Member] | |||
Entities | Taoping Holdings Limited (THL) | ||
Location | British Virgin Islands | ||
Subsidiaries/VIE | Subsidiary | ||
Percentage owned | 100.00% | 100.00% | 100.00% |
Taoping Group (China) Ltd. (IST HK) [Member] | |||
Entities | Taoping Group (China) Ltd. (IST HK) | ||
Location | Hong Kong, China | ||
Subsidiaries/VIE | Subsidiary | ||
Percentage owned | 100.00% | 100.00% | 100.00% |
Taoping Digital Assets (Asia) Limited (TDAL) [Member] | |||
Entities | Taoping Digital Assets (Asia) Limited (TDAL) | ||
Location | Hong Kong, China | ||
Subsidiaries/VIE | Subsidiary | ||
Percentage owned | 100.00% | ||
Taoping Digital Assets (Hong Kong) Limited (TDL) [Member] | |||
Entities | Taoping Digital Assets (Hong Kong) Limited (TDL) | ||
Location | Hong Kong, China | ||
Subsidiaries/VIE | Subsidiary | ||
Percentage owned | 100.00% | ||
Taoping Capital Limited (TCL) [Member] | |||
Entities | Taoping Capital Limited (TCL) | ||
Location | Hong Kong, China | ||
Subsidiaries/VIE | Subsidiary | ||
Percentage owned | 100.00% | ||
Alpha Digital Group Ltd. (ADG) [Member] | |||
Entities | Alpha Digital Group Ltd. (ADG) | ||
Location | Cayman, Island | ||
Subsidiaries/VIE | Subsidiary | ||
Percentage owned | 100.00% | ||
Kazakh Taoping Operation Management Co. Ltd. (KTO) [Member] | |||
Entities | Kazakh Taoping Operation Management Co. Ltd. (KTO) | ||
Location | Kazakhstan | ||
Subsidiaries/VIE | Subsidiary | ||
Percentage owned | 100.00% | ||
Kazakh Taoping Data Center Co. Ltd. (KTD) [Member] | |||
Entities | Kazakh Taoping Data Center Co. Ltd. (KTD) | ||
Location | Kazakhstan | ||
Subsidiaries/VIE | Subsidiary | ||
Percentage owned | 100.00% | ||
Information Security Tech. (China) Co., Ltd. (IST) [Member] | |||
Entities | Information Security Tech. (China) Co., Ltd. (IST) | ||
Location | Shenzhen, China | ||
Subsidiaries/VIE | Subsidiary | ||
Percentage owned | 100.00% | 100.00% | 100.00% |
TopCloud Software (China) Co., Ltd. (TopCloud) [Member] | |||
Entities | TopCloud Software (China) Co., Ltd. (TopCloud) | ||
Location | Shenzhen, China | ||
Subsidiaries/VIE | Subsidiary | ||
Percentage owned | 100.00% | 100.00% | 100.00% |
Information Security IoT Tech. Co., Ltd. (ISIOT) [Member] | |||
Entities | Information Security IoT Tech. Co., Ltd. (ISIOT) | ||
Location | Shenzhen, China | ||
Subsidiaries/VIE | Subsidiary | ||
Percentage owned | 100.00% | 100.00% | 100.00% |
iASPEC Technology Group Co., Ltd. (iASPEC) [Member] | |||
Entities | iASPEC Technology Group Co., Ltd. (iASPEC) | ||
Location | Shenzhen, China | ||
Subsidiaries/VIE | Subsidiary | ||
Percentage owned | 100.00% | ||
Biznest Internet Tech. Co., Ltd. (Biznest) [Member] | |||
Entities | Biznest Internet Tech. Co., Ltd. (Biznest) | ||
Location | Shenzhen, China | ||
Subsidiaries/VIE | Subsidiary | ||
Percentage owned | 100.00% | ||
iASPEC Bocom IoT Tech. Co., Ltd. (Bocom) [Member] | |||
Entities | iASPEC Bocom IoT Tech. Co., Ltd. (Bocom) | ||
Location | Shenzhen, China | ||
Subsidiaries/VIE | Subsidiary | ||
Percentage owned | 100.00% | ||
Taoping New Media Co., Ltd. (TNM) [Member] | |||
Entities | Taoping New Media Co., Ltd. (TNM) | ||
Location | Shenzhen, China | ||
Subsidiaries/VIE | Subsidiary | ||
Percentage owned | 100.00% | ||
Shenzhen Taoping Education Technology Co., Ltd. (SZTET) [Member] | |||
Entities | Shenzhen Taoping Education Technology Co., Ltd. (SZTET) | ||
Location | Shenzhen, China | ||
Subsidiaries/VIE | Subsidiary | ||
Percentage owned | 51.00% | ||
Wuhu Taoping Education Technology Co., Ltd. (WHTET) [Member] | |||
Entities | Wuhu Taoping Education Technology Co., Ltd. (WHTET) | ||
Location | Wuhu, China | ||
Subsidiaries/VIE | Subsidiary | ||
Percentage owned | 51.00% | ||
Taoping Digital Tech. Dongguan, (Dongguan) Co., Ltd. (TDTDG) [Member] | |||
Entities | Taoping Digital Tech. (Dongguan) Co., Ltd. (TDTDG) | ||
Location | Dongguan, China | ||
Subsidiaries/VIE | Subsidiary | ||
Percentage owned | 100.00% | ||
TopCloud Tech. (Chenzhou) Co., Chenzhou, Ltd. (TCTCZ) [Member] | |||
Entities | TopCloud Tech. (Chenzhou) Co., Ltd. (TCTCZ) | ||
Location | Chenzhou, China | ||
Subsidiaries/VIE | Subsidiary | ||
Percentage owned | 100.00% | ||
Taoping Digital Tech. (Jiangsu) Jiangsu, Co., Ltd. (TDTJS) [Member] | |||
Entities | Taoping Digital Tech. (Jiangsu) Co., Ltd. (TDTJS) | ||
Location | Jiangsu, China | ||
Subsidiaries/VIE | Subsidiary | ||
Percentage owned | 100.00% |
ORGANIZATION, PRINCIPAL ACTIV_3
ORGANIZATION, PRINCIPAL ACTIVITIES AND MANAGEMENT’S PLANS (Details Narrative) - USD ($) | Sep. 18, 2021 | Dec. 13, 2009 | Jul. 01, 2007 | Sep. 30, 2021 | Jul. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2021 | Jun. 09, 2021 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||
Purchase price of assets | $ 1,800,000 | |||||||||||
Aggregate exercise price | $ 1,800,000 | |||||||||||
[custom:ImprovedProfitability] | $ 8,400,000 | |||||||||||
Net income loss | 9,924,859 | $ 18,331,208 | $ 3,594,261 | |||||||||
Cash | 4,500,000 | 1,100,000 | ||||||||||
Net income loss | 9,924,859 | 17,694,775 | $ 3,582,332 | [1] | ||||||||
Working capital deficiency | 6,300,000 | $ 17,400,000 | ||||||||||
Sale of stock, shares issued | 1,200,000 | 3,140,740 | ||||||||||
Net proceeds from issuance of stock | $ 4,730,000 | $ 13,100,000 | ||||||||||
Revolving Credit Facility [Member] | ||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 8,000,000 | |||||||||||
Cryptocurrency Mining [Member] | ||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||
Revenue | 5,500,000 | |||||||||||
Gross Profit | 2,700,000 | |||||||||||
Taoping Inc. [Member] | ||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 612,245 | |||||||||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | $ 1,800,000 | |||||||||||
iASPEC Technology Group Co., Ltd. (iASPEC) [Member] | ||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||
Net profit received, percentage | 95.00% | |||||||||||
Mr. Jianghuai Lin [Member] | ||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||
Shares outstanding, percentage | 26.90% | |||||||||||
Taoping New Media Co., Ltd [Member] | ||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||
Equity interest acquired, percentage | 100.00% | |||||||||||
Net income loss | (550,000) | |||||||||||
Business combination step acquisition shares percentage | 100.00% | |||||||||||
Revenue | $ 1,780,000 | |||||||||||
Taoping New Media Co., Ltd [Member] | Mr. Jianghuai Lin [Member] | ||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||||||
Equity interest acquired, percentage | 51.00% | |||||||||||
[1] | On July 30, 2020, the Company implemented a one-for-six reverse stock split of the Company’s issued and outstanding ordinary shares. Except shares authorized, all share and per share information has been retroactively adjusted to give effect to the reverse stock split for all periods presented, unless otherwise indicated. |
SCHEDULE OF ACCOUNTS RECEIVABLE
SCHEDULE OF ACCOUNTS RECEIVABLE (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Accounts Receivable | $ 18,340,348 | $ 12,359,619 |
Allowance for credit losses | (11,582,186) | (8,095,362) |
Accounts Receivable, net | 6,758,162 | 4,264,257 |
Accounts Receivable - related parties | 16,032,134 | 12,017,651 |
Allowance for credit losses | (15,680,662) | (9,098,436) |
Accounts Receivable - related parties, net | 351,472 | 2,919,215 |
Non-current Accounts Receivable | 3,013,532 | |
Non-current credit losses | (1,174,302) | |
Non-current Accounts Receivable, net | 1,839,230 | |
Non-current Accounts Receivable - related parties | 4,172,502 | |
Non-current Allowance for credit losses - related parties | (2,849,306) | |
Non-current Accounts Receivable - related parties, net | $ 1,323,196 |
SCHEDULE OF ALLOWANCE FOR CREDI
SCHEDULE OF ALLOWANCE FOR CREDIT LOSSES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Allowance for credit losses, beginning | $ 21,217,406 | $ 7,212,644 |
Increase in allowance for credit losses | 5,134,350 | 13,528,638 |
Foreign exchange difference | 596,878 | 476,124 |
Addition from acquisition of subsidiaries under common control | 314,214 | |
Allowance for credit losses, ending | $ 27,262,848 | $ 21,217,406 |
SCHEDULE OF PROPERTY, EQUIPMENT
SCHEDULE OF PROPERTY, EQUIPMENT AND SOFTWARE ESTIMATED USEFUL LIVES (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Office Building [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property, plant and equipment | 20 years |
Office Building [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property, plant and equipment | 50 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property, plant and equipment | Shorter of lease term or assets lives |
Electronics Equipment, Furniture and Fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property, plant and equipment | 3 years |
Electronics Equipment, Furniture and Fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property, plant and equipment | 5 years |
Motor Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property, plant and equipment | 5 years |
Purchased Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of intangible assets | 5 years |
Media Display Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property, plant and equipment | 5 years |
Cryptocurrency Mining Machine [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property, plant and equipment | 3 years |
SCHEDULE OF INTANGIBLE ASSETS E
SCHEDULE OF INTANGIBLE ASSETS ESTIMATED USEFUL LIVES (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Software Development Costs [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of intangible assets | 3 years |
Software Development Costs [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of intangible assets | 5 years |
Trademarks [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of intangible assets | 5 years |
SCHEDULE OF FOREIGN CURRENCY TR
SCHEDULE OF FOREIGN CURRENCY TRANSLATION (Details) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Year-end RMB [Member] | |||
Debt Instrument [Line Items] | |||
Foreign currency exchange rate, translation | 6.3588 | 6.5377 | |
Average Yearly RMB [Member] | |||
Debt Instrument [Line Items] | |||
Foreign currency exchange rate, translation | 6.4505 | 6.9044 | 6.9072 |
Year-end HKD [Member] | |||
Debt Instrument [Line Items] | |||
Foreign currency exchange rate, translation | 7.7971 | ||
Average Yearly HKD [Member] | |||
Debt Instrument [Line Items] | |||
Foreign currency exchange rate, translation | 7.7724 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 12 Months Ended | ||
Dec. 31, 2021USD ($)Number | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | |||
Reverse stock split | Reverse Stock Split: A one (1)-for-six (6) reverse stock split of the Company’s issued and outstanding ordinary shares was effective on July 30, 2020 (the “Reverse Stock Split”) | ||
Cash equivalents | $ 0 | $ 0 | |
Cash and Cash Equivalents, at Carrying Value | 4,531,266 | 882,770 | |
Restricted cash | 214,144 | ||
Increase in allowance for credit losses | 5,500,000 | ||
Allowance for credit losses | 27,262,848 | 21,217,406 | $ 7,212,644 |
Impairment of long-lived assets | 0 | 0 | 0 |
Rental income | 340,000 | 405,000 | |
Lessee payments to be received, 2022 | 126,850 | ||
Lessee payments to be received, 2022 and thereafter | 0 | ||
Recognized revenue | 141,000 | 256,000 | 335,000 |
Stock-based compensation expense | $ 3,137,000 | $ 744,000 | $ 580,000 |
Number of Reportable Segments | Number | 3 | ||
Average Yearly RMB [Member] | |||
Debt Instrument [Line Items] | |||
Foreign currency exchange rate, translation | 6.4505 | 6.9044 | 6.9072 |
SCHEDULE OF BUSINESS ACQUISITIO
SCHEDULE OF BUSINESS ACQUISITION ASSETS ACQUIRED, AND LIABILITIES ASSUMED (Details) | Jun. 09, 2021USD ($) |
Business Acquisition [Line Items] | |
Bargain purchase gain | $ (12,000) |
Taoping New Media Co., Ltd [Member] | |
Business Acquisition [Line Items] | |
Cash | 7,644 |
Accounts receivable, net | 1,252,601 |
Advances to suppliers | 75,971 |
Other receivables and other current assets, net | 2,345,332 |
Long-term investments | 1,386,191 |
Property and equipment | 1,550,113 |
Right of use assets | 74,812 |
Accounts payable | (339,198) |
Advances from customers | (10,943) |
Accrued payroll and benefits | (32,840) |
Amount due to related parties | (619,571) |
Other payables and accrued expenses | (87,373) |
Lease liabilities | (153,938) |
Total net assets acquired | 5,448,801 |
Bargain purchase gain | (12,345) |
Total purchase price | $ 5,436,456 |
SCHEDULE OF BUSINESS ACQUISIT_2
SCHEDULE OF BUSINESS ACQUISITION PRO-FORMA (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Business Combination and Asset Acquisition [Abstract] | ||
Revenue | $ 25,266,911 | $ 13,678,873 |
Net (loss) | (10,529,374) | (20,093,374) |
Net (loss) attributable to TAOP | $ (10,529,374) | $ (19,456,941) |
Basic and Diluted | 13,494,454 | 8,586,977 |
(Loss) per share – Basic and Diluted | $ (0.78) | $ (2.34) |
(Loss) per share attributable to TAOP - Basic and Diluted | $ (0.78) | $ (2.27) |
BUSINESS ACQUISITION (Details N
BUSINESS ACQUISITION (Details Narrative) - USD ($) | Jun. 09, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | [1] | Jan. 02, 2021 |
Business Acquisition [Line Items] | ||||||
Bargain purchase gain | $ 12,000 | |||||
Net loss | $ (9,924,859) | $ (17,694,775) | $ (3,582,332) | |||
Mr. Jianghuai Lin [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Shares outstanding, percentage | 26.90% | |||||
Taoping New Media Co., Ltd [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Equity interest acquired, percentage | 100.00% | |||||
Business acquisition, shares issued, shares | 1,213,630 | |||||
Business acquisition, shares issued, value | $ 5,400,000 | |||||
Bargain purchase gain | $ 12,345 | |||||
Revenues | 1,780,000 | |||||
Net loss | $ 550,000 | |||||
Transaction cost | $ 350,000 | |||||
Taoping New Media Co., Ltd [Member] | Mr. Jianghuai Lin [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Equity interest acquired, percentage | 51.00% | |||||
[1] | On July 30, 2020, the Company implemented a one-for-six reverse stock split of the Company’s issued and outstanding ordinary shares. Except shares authorized, all share and per share information has been retroactively adjusted to give effect to the reverse stock split for all periods presented, unless otherwise indicated. |
SCHEDULE OF VARIABLE INTEREST E
SCHEDULE OF VARIABLE INTEREST ENTITY OF ASSETS AND LIABILITIES (Details) | Dec. 31, 2020USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Total current assets | $ 9,261,921 |
Other assets, non-current | 4,302,000 |
Non-current accounts receivable, net | 2,101,276 |
Property, plant and software | 3,713,860 |
Total assets | 19,379,057 |
Intercompany payable to the WFOE | 20,449,508 |
Total current liabilities | 41,717,595 |
Total liabilities | 41,717,595 |
Total equity | $ (22,338,538) |
VARIABLE INTEREST ENTITY (Detai
VARIABLE INTEREST ENTITY (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Net income/loss attributable to non-controlling interest | $ 636,433 | $ 11,929 |
SCHEDULE OF COMPONENTS OF BASIC
SCHEDULE OF COMPONENTS OF BASIC AND DILUTED EARNINGS PER SHARE (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | [1] | |
Loss per share - Basic and Diluted* | ||||
Net loss attributable to the Company | $ (9,924,859) | $ (17,694,775) | $ (3,582,332) | |
Weighted average outstanding ordinary shares-Basic | 12,962,452 | 7,373,347 | 6,964,740 | |
-dilutive effect of stock options- employees | ||||
-dilutive effect of stock options- nonemployees | ||||
Weighted average outstanding ordinary shares- Diluted | 12,962,452 | 7,373,347 | 6,964,740 | |
Basic | $ (0.77) | $ (2.40) | $ (0.54) | |
Diluted | $ (0.77) | $ (2.40) | $ (0.54) | |
[1] | On July 30, 2020, the Company implemented a one-for-six reverse stock split of the Company’s issued and outstanding ordinary shares. Except shares authorized, all share and per share information has been retroactively adjusted to give effect to the reverse stock split for all periods presented, unless otherwise indicated. |
LOSS PER SHARE (Details Narrati
LOSS PER SHARE (Details Narrative) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of EPS | 0 | 0 | 0 |
Share-Based Payment Arrangement, Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of EPS | 290,000 | ||
Non Employees Stock Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of EPS | 57,366 | 296,900 | |
Non Employees Stock Warrants [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of EPS | 375,000 | 51,667 | |
Warrant [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of EPS | 106,667 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2021CNY (¥) | |
Related Party Transaction [Line Items] | ||||
Accounts receivable from related parties, net of allowance for credit losses | $ 16,032,134 | $ 12,017,651 | ||
Ownership percentage | 100.00% | 100.00% | ||
Taoping New Media Co., Ltd [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues from related parties | $ 100,000 | 400,000 | $ 7,400,000 | |
Accounts receivable from related parties, net of allowance for credit losses | 400,000 | 4,200,000 | 12,500,000 | |
Advances received from related parties | 100,000 | 200,000 | 100,000 | |
Rental income | 27,000 | 61,000 | 61,000 | |
Accounts payable - related party | 69,585 | |||
Loan receivable from related party | 330,000 | 500,000 | ||
Proceeds from loan | 170,000 | |||
Due to related party | 3,150,000 | 140,000 | ||
Taoping Affiliate Customers [Member] | System Maintenance Service [Member] | ||||
Related Party Transaction [Line Items] | ||||
Other revenue related party | 48,949 | $ 85,289 | $ 44,621 | |
Related Company Owned By Mr. Lin [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to related party | $ 3,145,000 | ¥ 20 | ||
Ownership percentage | 100.00% | 100.00% | ||
Debt term | 12 months | |||
Debt interest rate | 5.85% | |||
Debt maturity date | May 17, 2022 |
SCHEDULE OF INVENTORIES (Detail
SCHEDULE OF INVENTORIES (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 3,767 | $ 3,663 |
Finished goods | 559,659 | 427,942 |
Cost of projects | 82,898 | 34,792 |
Inventories, gross | 646,324 | 466,397 |
Allowance for slow-moving or obsolete inventories | (103,940) | (211,719) |
Inventories, net | $ 542,384 | $ 254,678 |
INVENTORIES (Details Narrative)
INVENTORIES (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |||
Impairments for obsolete inventories | $ 214,000 | $ 6,000 | $ 115,000 |
SCHEDULE OF PROPERTY, EQUIPME_2
SCHEDULE OF PROPERTY, EQUIPMENT AND SOFTWARE (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, equipment and software, gross | $ 40,283,010 | $ 28,278,297 |
Less: accumulated depreciation | (18,720,926) | (17,426,398) |
Property, equipment and software, net | 21,562,084 | 10,851,899 |
Office buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and software, gross | 4,398,414 | 5,140,635 |
Electronic Equipment Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and software, gross | 6,013,676 | 5,470,985 |
Motor Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and software, gross | 155,697 | 201,509 |
Cryptocurrency Mining Machine [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and software, gross | 8,147,574 | |
Media Display Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and software, gross | 1,197,273 | |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and software, gross | 529,885 | |
Purchased Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and software, gross | $ 19,840,491 | $ 17,465,168 |
PROPERTY, EQUIPMENT AND SOFTW_3
PROPERTY, EQUIPMENT AND SOFTWARE (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 3,704,818 | $ 3,206,568 | $ 2,842,787 |
Office Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Asset collateral amount | $ 3,000,000 |
SCHEDULE OF INTANGIBLE ASSETS (
SCHEDULE OF INTANGIBLE ASSETS (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross, beginning | $ 5,235,964 | $ 4,911,727 |
Foreign currency translation | 147,295 | 324,235 |
Intangible assets, gross, ending | 5,383,259 | 5,235,964 |
Intangible assets, accumulated amortization, beginning | 5,235,964 | 4,910,231 |
Amortization expense | 1,510 | |
Foreign currency translation | 147,295 | 324,221 |
Intangible assets, accumulated amortization, ending | 5,383,259 | 5,235,964 |
Intangible assets, net | ||
Software and Software Development Costs [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross, beginning | 4,296,545 | 4,030,482 |
Foreign currency translation | 120,868 | 266,062 |
Intangible assets, gross, ending | 4,417,413 | 4,296,545 |
Intangible assets, accumulated amortization, beginning | 4,296,545 | 4,030,482 |
Amortization expense | ||
Foreign currency translation | 120,868 | 266,062 |
Intangible assets, accumulated amortization, ending | 4,417,413 | 4,296,545 |
Intangible assets, net | ||
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross, beginning | 939,419 | 881,245 |
Foreign currency translation | 26,427 | 58,173 |
Intangible assets, gross, ending | 965,846 | 939,419 |
Intangible assets, accumulated amortization, beginning | 939,419 | 879,749 |
Amortization expense | 1,510 | |
Foreign currency translation | 26,427 | 58,160 |
Intangible assets, accumulated amortization, ending | 965,846 | $ 939,419 |
Intangible assets, net |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 1,510 | $ 58,164 |
SCHEDULE OF MOVEMENTS OF CRYPTO
SCHEDULE OF MOVEMENTS OF CRYPTOCURRENCIES (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investment Company [Abstract] | |||
Cryptocurrencies, net, beginning | |||
Receipt of cryptocurrencies from mining activities | 5,455,345 | ||
Sales of cryptocurrencies | (4,543,543) | ||
Realized gain on sale of cryptocurrencies | 410,979 | ||
Impairment loss on cryptocurrencies | (493,617) | ||
Cryptocurrencies, net, ending | $ 829,165 |
SCHEDULE OF SHORT-TERM BANK DEB
SCHEDULE OF SHORT-TERM BANK DEBT (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Secured short-term loans | $ 7,792,125 | $ 6,210,176 |
Total short-term bank loans | $ 7,792,125 | $ 6,210,176 |
SCHEDULE OF SECURED SHORT-TERM
SCHEDULE OF SECURED SHORT-TERM BANK DEBT (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Short-Term Debt [Line Items] | ||
Total | $ 7,792,125 | $ 6,210,176 |
Bank Loan 1 [Member] | ||
Short-Term Debt [Line Items] | ||
Total | 3,976,960 | |
Bank Loan 2 [Member] | ||
Short-Term Debt [Line Items] | ||
Total | 7,792,125 | 2,019,072 |
Bank Loan 3 [Member] | ||
Short-Term Debt [Line Items] | ||
Total | $ 214,144 |
SCHEDULE OF SECURED SHORT-TER_2
SCHEDULE OF SECURED SHORT-TERM BANK DEBT (Details) (Parenthetical) $ in Millions | Dec. 31, 2020USD ($) |
Bank Loan 3 [Member] | |
Short-Term Debt [Line Items] | |
Restricted bank time deposit | $ 0.2 |
BANK LOANS (Details Narrative)
BANK LOANS (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Short-term bank loans | $ 7,792,125 | $ 6,210,176 | |
Debt instrument maturity date description | mature on various dates from July 9, 2022 to December 17, 2022 | ||
Weighted average interest rate, percentage | 5.38% | 5.59% | 6.56% |
Interest expenses | $ 400,000 | $ 400,000 | $ 500,000 |
Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Borrowings, interest rate | 4.95% | ||
Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Borrowings, interest rate | 5.40% |
SCHEDULE OF INCOME BEFORE INCOM
SCHEDULE OF INCOME BEFORE INCOME TAXES (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | |||
Total (loss) before income taxes | $ (9,919,538) | $ (18,402,524) | $ (3,868,741) |
PRC [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Total (loss) before income taxes | (8,287,495) | (15,810,350) | (2,342,102) |
HONG KONG | |||
Operating Loss Carryforwards [Line Items] | |||
Total (loss) before income taxes | (876,289) | (12,072) | (38,574) |
BVI [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Total (loss) before income taxes | $ (755,754) | $ (2,580,102) | $ (1,488,065) |
SCHEDULE OF COMPONENTS OF INCOM
SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (BENEFIT) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Current taxes | $ 5,321 | $ (71,316) | $ (274,480) |
Deferred taxes | |||
Income tax (benefit) | $ 5,321 | $ (71,316) | $ (274,480) |
SCHEDULE OF EFFECTIVE INCOME TA
SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
PRC statutory tax rate | 25.00% | 25.00% | 25.00% |
Computed expected income tax (benefit) expense | $ (2,479,885) | $ (4,600,631) | $ (967,185) |
Tax rate differential benefit from tax holiday | 950,843 | 1,805,951 | 180,996 |
Permanent differences | 288,914 | 248,636 | (203,842) |
Tax effect of deductible temporary differences not recognized | 837,438 | 1,826,684 | 333,891 |
Non-deductible tax loss | 408,011 | 648,004 | 381,660 |
Income tax (benefit) | $ 5,321 | $ (71,316) | $ (274,480) |
SCHEDULE OF COMPONENTS OF DEFER
SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS AND LIABILITIES (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets, Allowance for doubtful accounts | $ 4,537,564 | $ 3,640,083 |
Deferred tax liabilities, Allowance for doubtful accounts | ||
Deferred tax assets, Loss carry-forwards | 5,080,165 | 3,714,825 |
Deferred tax liabilities, Loss carry-forwards | ||
Deferred tax assets, Fixed assets | 25,406 | 80,456 |
Deferred tax liabilities, Fixed assets | (272,344) | (258,451) |
Deferred tax assets, Inventory valuation | 329,915 | 369,064 |
Deferred tax liabilities, Inventory valuation | ||
Deferred tax assets, Cryptocurrency valuation | 81,447 | |
Deferred tax liabilities, Inventory valuation | ||
Deferred tax assets, Accrued liabilities | 15,038 | |
Deferred tax liabilities, Accrued liabilities | ||
Deferred tax assets, Long-term investments | 5,897 | 5,736 |
Deferred tax liabilities, Long-term investments | ||
Deferred tax assets, Intangible assets | ||
Deferred tax liabilities, Intangible assets | 137,973 | 134,197 |
Deferred tax assets, Gross | 10,075,432 | 7,810,164 |
Deferred tax liabilities, Gross (liabilities) | (134,371) | (124,254) |
Deferred tax assets, Valuation allowance | (9,941,061) | (7,685,910) |
Deferred tax liabilities, Valuation allowance | ||
Total deferred tax assets | 134,371 | 124,254 |
Total deferred tax (liabilities) | $ (134,371) | $ (124,254) |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2021CNY (¥) | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
PRC statutory tax rate | 25.00% | 25.00% | 25.00% | |
Operating loss carryforwards | $ 27,900,000 | ¥ 177.2 | ||
Operating loss carryforwards, expiration date | Dec. 31, 2025 | |||
Loss from operations | $ (8,713,842) | $ (17,366,729) | $ (4,172,161) | |
BVI [Member] | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Loss from operations | $ 3,300,000 | |||
High Technology Enterprise [Member] | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
PRC statutory tax rate | 15.00% | |||
Biznest [Member] | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
PRC statutory tax rate | 12.50% | |||
UNITED STATES | Maximum [Member] | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
PRC statutory tax rate | 35.00% | |||
UNITED STATES | Minimum [Member] | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
PRC statutory tax rate | 21.00% | |||
HONG KONG | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Tax profits | 16.50% |
SCHEDULE OF OTHER CURRENT ASSET
SCHEDULE OF OTHER CURRENT ASSETS (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Advances to unrelated-parties (i) | [1] | $ 937,235 | $ 8,305 |
Advances to employees | 49,218 | 45,396 | |
Other current assets | 231,695 | 119,325 | |
Total | $ 1,218,148 | $ 173,026 | |
[1] | The advances to unrelated parties for business development are non-interest bearing and are due on demand. |
SCHEDULE OF OTHER CURRENT ASS_2
SCHEDULE OF OTHER CURRENT ASSETS (Details) (Parenthetical) - 12 months ended Dec. 31, 2021 ¥ in Millions | USD ($) | CNY (¥) |
Vendor [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Due from related parties | $ 747,000 | |
Funding commitment | $ 929,532 | ¥ 6 |
Commission fee | 12.00% | |
Revenues | $ 2,386,360 | 15.2 |
Threshold [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Revenues | $ 2,294,400 | ¥ 15 |
SCHEDULE OF OTHER NON-CURRENT A
SCHEDULE OF OTHER NON-CURRENT ASSETS (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Other assets, non-current, net | $ 2,948,681 | $ 4,302,000 |
Total | $ 2,948,681 | $ 4,302,000 |
OTHER CURRENT AND NON-CURRENT_3
OTHER CURRENT AND NON-CURRENT ASSETS (Details Narrative) ¥ in Millions | Oct. 02, 2020 | Nov. 30, 2021USD ($) | Nov. 30, 2021CNY (¥) | Apr. 30, 2021USD ($) | Apr. 30, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Ownership percentage | 100.00% | ||||||||||
Revenue | [1] | $ 24,845,924 | $ 11,062,775 | $ 13,791,303 | |||||||
Debt instrument covenant description | The revenue is to increase incrementally by 15% in every six months going forward until the contract expires four years after the commencing date of the operation. | The revenue is to increase incrementally by 15% in every six months going forward until the contract expires four years after the commencing date of the operation. | |||||||||
[custom:ContractTerms] | 4 years | ||||||||||
Other assets noncurrent | 2,948,681 | 4,302,000 | |||||||||
Cost, Amortization | 1,400,000 | ||||||||||
Advertising [Member] | |||||||||||
Revenue | $ 2,577,712 | ||||||||||
UNITED STATES | |||||||||||
Due to related parties current and noncurrent | 4,300,000 | 4,300,000 | ¥ 30 | ¥ 30 | |||||||
Other commitment | $ 4,300,000 | $ 4,300,000 | ¥ 30 | ¥ 30 | |||||||
UNITED STATES | Advertising [Member] | |||||||||||
Revenue | $ 510,000 | ¥ 3.3 | $ 462,000 | ¥ 3 | |||||||
Increase in revenue | $ 462,000 | ¥ 3 | |||||||||
[1] | Revenues by operating segments exclude intercompany transactions. |
SCHEDULE OF OPERATING LEASE (De
SCHEDULE OF OPERATING LEASE (Details) | Dec. 31, 2021 |
Operating Leases | |
Weighted average remaining lease term | 27 months 12 days |
Weighted average discount rate | 4.75% |
SCHEDULE OF MATURITIES OF OPERA
SCHEDULE OF MATURITIES OF OPERATING LEASE LIABILITIES (Details) | Dec. 31, 2021USD ($) |
Leases Office Server Rooms Dormitory Leases [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
2022 | $ 424,348 |
2023 | 385,236 |
2024 | 170,903 |
Total lease payments | 980,487 |
Less: Imputed interest | (87,006) |
Present value of lease liabilities | 893,481 |
Wall Space Leases [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
2022 | 3,024 |
2023 | |
2024 | |
Total lease payments | 3,024 |
Less: Imputed interest | |
Present value of lease liabilities | $ 3,024 |
OPERATING LEASES (Details Narra
OPERATING LEASES (Details Narrative) | 12 Months Ended | |
Dec. 31, 2021USD ($) | Dec. 31, 2021HKD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||
Variable Lease, Payment | $ 0 | |
Short-term lease | 1,100 | |
[custom:UnpaindRentLiabilities] | $ 78,000 | |
Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Lessee, Operating Lease, Remaining Lease Term | 1 year | |
Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Lessee, Operating Lease, Remaining Lease Term | 3 years | |
Office Space [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Payments for Rent | $ 21,972 | $ 170,775 |
Lessee, Operating Lease, Remaining Lease Term | 3 years | |
Lease Expiration Date | Apr. 18, 2024 | Apr. 18, 2024 |
Operating Lease, Initial Direct Cost Expense, over Term | $ 0 | |
Incurred rent expenses | 335,000 | |
Server Rooms [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Payments for Rent | $ 7,462 | $ 58,000 |
Lessee, Operating Lease, Remaining Lease Term | 3 years | |
Lease Expiration Date | May 16, 2024 | May 16, 2024 |
Operating Lease, Initial Direct Cost Expense, over Term | $ 7,462 | $ 58,000 |
Dormitory Lease [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Payments for Rent | $ 4,374 | $ 34,000 |
Lessee, Operating Lease, Remaining Lease Term | 2 years | |
Lease Expiration Date | Apr. 19, 2023 | Apr. 19, 2023 |
Operating Lease, Initial Direct Cost Expense, over Term | $ 2,187 | $ 17,000 |
SCHEDULE OF EQUITY METHOD INVES
SCHEDULE OF EQUITY METHOD INVESTMENTS (Details) | Dec. 31, 2021USD ($) |
Ownership percentage | 100.00% |
Equity Method Investments [Member] | |
Carrying value | $ 285,137 |
Qingdao Taoping IoT Co Ltd [Member] | Equity Method Investments [Member] | |
Ownership percentage | 47.00% |
Carrying value | |
Yunnan Taoping IoT Co Ltd [Member] | Equity Method Investments [Member] | |
Ownership percentage | 40.00% |
Carrying value | $ 147,257 |
Jiangsu Taoping IoT Technology Co Ltd [Member] | Equity Method Investments [Member] | |
Ownership percentage | 25.00% |
Carrying value | $ 128,333 |
Jiangsu Taoping New Media Co Ltd [Member] | Equity Method Investments [Member] | |
Ownership percentage | 21.00% |
Carrying value | $ 9,547 |
LONG-TERM INVESTMENTS (Details
LONG-TERM INVESTMENTS (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Impairment Effects on Earnings Per Share [Line Items] | |||
Equity method investment | $ 679,807 | ||
Equity method investment impairment | 1,900,000 | ||
Income (Loss) from Equity Method Investments | (814,440) | ||
Equity investments without readily determinable fair value | 394,670 | ||
Initial investment equity investments without readily determinable fair value | 710,786 | ||
Equity Method Investments [Member] | |||
Impairment Effects on Earnings Per Share [Line Items] | |||
Equity method investment impairment | 90,000 | ||
Income (Loss) from Equity Method Investments | $ 800,000 |
CONVERTIBLE NOTE PAYABLE (Detai
CONVERTIBLE NOTE PAYABLE (Details Narrative) - USD ($) | 1 Months Ended | 2 Months Ended | 4 Months Ended | 12 Months Ended | ||||||
Oct. 31, 2021 | Jun. 30, 2021 | Oct. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | Oct. 31, 2019 | |
Short-Term Debt [Line Items] | ||||||||||
Debt instrument maturity date description | mature on various dates from July 9, 2022 to December 17, 2022 | |||||||||
Interest expense debt | $ 400,000 | $ 400,000 | $ 500,000 | |||||||
Amortization of debt discounts | 558,690 | $ 46,165 | ||||||||
Minimum [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Debt instrument interest rate | 4.95% | |||||||||
Maximum [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Debt instrument interest rate | 5.40% | |||||||||
Convertible Promissory Note-1 [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Debt instrument face amount | $ 1,040,000 | |||||||||
Debt conversion, converted instrument, shares issued | 454,097 | |||||||||
Debt instrument convertible conversion price | $ 2.4 | |||||||||
Convertible notes payable | $ 0 | 0 | ||||||||
Debt issuance cost | 0 | 0 | ||||||||
Warrant issued to purchase shares | 26,667 | |||||||||
Warrant exercise price | $ 9 | |||||||||
Interest expense debt | 160,216 | |||||||||
Contractual obligation | $ 37,000 | 37,000 | ||||||||
Amortization of debt discounts | 124,000 | |||||||||
Convertible Promissory Note-2 [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Debt instrument face amount | $ 1,480,000 | |||||||||
Debt conversion, converted instrument, shares issued | 612,748 | |||||||||
Convertible notes payable | $ 0 | 0 | ||||||||
Debt issuance cost | 0 | 0 | ||||||||
Warrant issued to purchase shares | 53,334 | |||||||||
Warrant exercise price | $ 9 | |||||||||
Interest expense debt | 244,871 | |||||||||
Contractual obligation | $ 46,000 | 46,000 | ||||||||
Amortization of debt discounts | $ 199,000 | |||||||||
Convertible Promissory Note-2 [Member] | Minimum [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Debt instrument convertible conversion price | $ 2.42 | $ 2.42 | ||||||||
Convertible Promissory Note-2 [Member] | Maximum [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Debt instrument convertible conversion price | $ 2.57 | $ 2.57 | ||||||||
Convertible Promissory Note-3 [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Debt instrument face amount | $ 1,480,000 | |||||||||
Debt conversion, converted instrument, shares issued | 298,716 | |||||||||
Debt instrument convertible conversion price | $ 2.565 | |||||||||
Debt conversion, converted instrument, amount | $ 740,000 | |||||||||
Convertible notes payable | $ 1,180,908 | $ 0 | $ 1,180,908 | |||||||
Unamortized debt discount | 299,695 | 0 | 299,695 | |||||||
Warrant issued to purchase shares | 53,334 | |||||||||
Warrant exercise price | $ 9 | |||||||||
Debt conversion, converted instrument, accrued interest | $ 26,208 | |||||||||
Repayment of convertible notes payable | $ 777,000 | |||||||||
Interest expense debt | 354,000 | 119,648 | ||||||||
Contractual obligation | 19,000 | 55,000 | 19,000 | |||||||
Amortization of debt discounts | $ 299,000 | $ 101,000 | ||||||||
Convertible Promissory Note-3 [Member] | Principal Amount [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Repayment of convertible notes payable | 740,000 | |||||||||
Convertible Promissory Note-3 [Member] | Accrued Interest [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Repayment of convertible notes payable | $ 37,000 | |||||||||
Convertible Promissory Notes [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Debt instrument maturity date description | All three Notes mature in 12 months from the issue dates of the Notes | |||||||||
Debt instrument interest rate | 5.00% | |||||||||
Convertible Promissory Note-1 and Note-2 [Member] | ||||||||||
Short-Term Debt [Line Items] | ||||||||||
Debt conversion, converted instrument, amount | $ 2,600,000 |
SCHEDULE OF OTHER PAYABLE AND A
SCHEDULE OF OTHER PAYABLE AND ACCRUED EXPENSES (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |||
Advances from unrelated third-parties (i) | [1] | $ 770,612 | $ 469,418 |
Other taxes payable (ii) | [2] | 3,665,976 | 4,089,013 |
Unrecognized tax benefits (iii) | [3] | 433,000 | |
Accrued professional fees | 9,279 | 404,025 | |
Amount due to employees(iv) | [4] | 87,889 | 65,785 |
Other current liabilities (v) | [5] | 359,743 | 1,174,856 |
Other Payables and Accrued Expenses | $ 4,893,499 | $ 6,636,097 | |
[1] | The advances from unrelated parties are non-interest bearing and due on demand. | ||
[2] | The other taxes payable were the amounts due to the value added tax, business tax, city maintenance and construction tax, and individual income tax. | ||
[3] | The Unrecognized tax benefits refer to the land value added tax due to the sale of property, equipment, and land use rights in September 2015. As of December 31, 2021, the unrecognized tax liability passed the 5-year statute of limitation and recognized as other income in the consolidated statement of operations. | ||
[4] | The amounts due to employees were pertaining to employees’ out-of-pocket expenses for travel and meal allowance, etc. | ||
[5] | The other current liabilities as of December 31, 2021 included the security and deposit of approximate $ 264,000 203,000 767,500 |
SCHEDULE OF OTHER PAYABLE AND_2
SCHEDULE OF OTHER PAYABLE AND ACCRUED EXPENSES (Details) (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Sep. 30, 2020 | Dec. 31, 2019 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Prior year government funding | $ 203,000 | ||
Convertible debt instrument amount | 767,500 | $ 1,480,000 | $ 1,040,000 |
Other Current Liabilities [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Security deposit | $ 264,000 |
RESERVE AND DISTRIBUTION OF P_2
RESERVE AND DISTRIBUTION OF PROFIT (Details Narrative) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Reserve And Distribution Of Profit | ||
Annual tax profits | 10.00% | |
Statutory reserve percentage | 50.00% | |
General reserve | $ 14 | $ 14 |
SCHEDULE OF SHARE BASED PAYMENT
SCHEDULE OF SHARE BASED PAYMENTS EXPENSE (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | |||
Employees and directors share-based payments | $ 2,950,000 | $ 298,000 | $ 494,000 |
Stock options issued for services | 89,000 | 67,000 | |
Shares issued for services | 187,000 | 357,000 | 19,000 |
Total share based payments expenses | $ 3,137,000 | $ 744,000 | $ 580,000 |
SUMMARY OF STOCK OPTION ACTIVIT
SUMMARY OF STOCK OPTION ACTIVITY (Details) - Equity Option [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Option Outstanding, Balance Beginning | 326,348 | 296,900 | 333,700 |
Weighted Average Exercise Price, Beginning Balance | $ 2.4 | $ 6.66 | $ 6.66 |
Weighted Average Remaining Contractual Life (Year), Beginning | 2 years 7 months 6 days | 1 year 4 months 24 days | 2 years 4 months 24 days |
Aggregated Intrinsic Value, Outstanding Beginning | $ 143,587 | $ 188,790 | |
Option Outstanding, Exercised | 294,733 | ||
Weighted Average Exercise Price, Exercised | $ 6.66 | ||
Option Outstanding, Canceled | (28,667) | (9,167) | (36,800) |
Weighted Average Exercise Price, Canceled | $ 2.4 | $ 3.48 | $ 6.90 |
Option Outstanding, Granted | 333,348 | ||
Weighted Average Exercise Price, Granted | $ 2.4 | ||
Option Outstanding, Exercised | (294,733) | ||
Option Outstanding, Balance Ending | 297,681 | 326,348 | 296,900 |
Weighted Average Exercise Price, Ending Balance | $ 2.4 | $ 2.4 | $ 6.66 |
Weighted Average Remaining Contractual Life (Year), Ending | 1 year 7 months 6 days | ||
Aggregated Intrinsic Value, Outstanding Ending | $ 714,400 | $ 143,587 | |
Option Outstanding, Vested and expected to be vested | 297,681 | ||
Weighted Average Exercise Price, Vested and expected to be vested | $ 2.4 | ||
Weighted Average Remaining Contractual Life (Year), Options vested | 1 year 7 months 6 days | ||
Aggregated Intrinsic Value, Vested and expected to be vested | $ 714,600 | ||
Option Outstanding, Options Exercisable | |||
Weighted Average Exercise Price, Options Exercisable | |||
Aggregated Intrinsic Value, Options exercisable |
SCHEDULE OF NON-VESTED SHARE AC
SCHEDULE OF NON-VESTED SHARE ACTIVITY (Details) | 12 Months Ended | |
Dec. 31, 2021$ / sharesshares | [1] | |
Equity [Abstract] | ||
Options Non-vested, Beginning | 326,348 | |
Weighted Average Grant Date Fair Value, Non-Vested Beginning Balance | $ / shares | $ 1.01 | |
Options Granted | ||
Options Vested | (297,681) | |
Weighted Average Grant Date Fair Value, Vested | $ / shares | $ 1.01 | |
Options Canceled | (28,667) | |
Weighted Average Grant Date Fair Value, Canceled | $ / shares | $ 1.01 | |
Options Non-vested, Ending | ||
Weighted Average Grant Date Fair Value, Non-Vested Ending Balance | $ / shares | ||
[1] | On July 30, 2020, the Company implemented a one-for-six reverse stock split of the Company’s issued and outstanding ordinary shares. Except shares authorized, all share and per share information has been retroactively adjusted to give effect to the reverse stock split for all periods presented, unless otherwise indicated. |
SCHEDULE OF WARRANT OUTSTANDING
SCHEDULE OF WARRANT OUTSTANDING AND EXERCISABLE (Details) | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Warrant One [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Number of Warrants Outstanding and Exercisable | 57,366 |
Exercise Price | $ / shares | $ 2.64 |
Expiration Date | Jul. 9, 2023 |
Warrant Two [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Number of Warrants Outstanding and Exercisable | 15,000 |
Exercise Price | $ / shares | $ 6.30 |
Expiration Date | Apr. 15, 2022 |
Warrants [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Number of Warrants Outstanding and Exercisable | 72,366 |
EQUITY (Details Narrative)
EQUITY (Details Narrative) - USD ($) | Jul. 31, 2020 | Jul. 24, 2020 | May 17, 2017 | May 27, 2016 | May 09, 2016 | Dec. 31, 2021 | Nov. 30, 2021 | Oct. 31, 2021 | Sep. 30, 2021 | Jul. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Feb. 28, 2021 | Jan. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jul. 31, 2020 | Jul. 30, 2020 | Apr. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Apr. 30, 2021 | Apr. 02, 2020 | Feb. 20, 2019 |
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||||||||||||
Ordinary shares, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | ||||||||||||||||||||||||||
Number of shares issued for services, shares | 32,887 | ||||||||||||||||||||||||||||||
Number of shares issued for services, value | $ 110,160 | ||||||||||||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 100.00% | 100.00% | |||||||||||||||||||||||||||||
Share based compensation | $ 2,950,070 | $ 298,091 | 494,316 | ||||||||||||||||||||||||||||
Allocation share based compensation | 3,137,000 | 744,000 | 580,000 | ||||||||||||||||||||||||||||
Unrecognized compensation expense related to non-vested share options | $ 200,000 | $ 200,000 | $ 200,000 | $ 200,000 | $ 200,000 | ||||||||||||||||||||||||||
Weighted average remaining vesting period | 0 years | 3 months 18 days | |||||||||||||||||||||||||||||
Fair value of stock option vested | $ 200,000 | $ 100,000 | 600,000 | ||||||||||||||||||||||||||||
General and Administrative Expense | $ 12,882,936 | $ 16,707,106 | 6,657,972 | ||||||||||||||||||||||||||||
2016 Equity Incentive Plan [Member] | |||||||||||||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||||||||||||
Number of ordinary shares issued as equity incentives | 833,334 | ||||||||||||||||||||||||||||||
Stock option granted | 452,000 | ||||||||||||||||||||||||||||||
Fair value of stock option grant date | $ 1,600,000 | ||||||||||||||||||||||||||||||
2016 Equity Incentive Plan [Member] | Selling, General and Administrative Expenses [Member] | |||||||||||||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||||||||||||
Share based compensation | $ 365,000 | ||||||||||||||||||||||||||||||
Financial Intermediary Service Organization [Member] | |||||||||||||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||||||||||||
Number of shares issued for services, shares | 45,000 | ||||||||||||||||||||||||||||||
Number of shares issued for services, value | $ 136,350 | ||||||||||||||||||||||||||||||
Taoping New Media Co Ltd [Member] | |||||||||||||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||||||||||||
Shares issued price per share | $ 5.27 | $ 5.27 | |||||||||||||||||||||||||||||
Number of restricted shares issued | 1,213,630 | ||||||||||||||||||||||||||||||
Business Combination, Consideration Transferred | $ 5,400,000 | ||||||||||||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 100.00% | 100.00% | |||||||||||||||||||||||||||||
IASPEC Technology Co., Ltd [Member] | |||||||||||||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||||||||||||
Shares issued price per share | $ 2.6 | ||||||||||||||||||||||||||||||
Number of restricted shares issued | 612,245 | ||||||||||||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 100.00% | ||||||||||||||||||||||||||||||
Direct Offering [Member] | |||||||||||||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||||||||||||
Number of shares issued | 1,200,000 | 500,000 | |||||||||||||||||||||||||||||
Shares issued price per share | $ 4.15 | $ 6.70 | |||||||||||||||||||||||||||||
Number of shares issued, value | $ 4,700,000 | $ 3,340,000 | |||||||||||||||||||||||||||||
Individual Investor [Member] | |||||||||||||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||||||||||||
Number of shares issued | 285,714 | ||||||||||||||||||||||||||||||
Shares issued price per share | $ 2.1 | ||||||||||||||||||||||||||||||
Number of shares issued, value | $ 576,000 | ||||||||||||||||||||||||||||||
Investors [Member] | |||||||||||||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||||||||||||
Number of shares issued | 1,900,000 | 740,740 | |||||||||||||||||||||||||||||
Shares issued price per share | $ 4.08 | $ 2.7 | |||||||||||||||||||||||||||||
Number of shares issued, value | $ 7,740,000 | $ 1,990,000 | |||||||||||||||||||||||||||||
Number of shares issued for services, shares | 30,000 | ||||||||||||||||||||||||||||||
Number of shares issued for services, value | $ 144,000 | ||||||||||||||||||||||||||||||
Consultant [Member] | |||||||||||||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||||||||||||
Number of shares issued for services, shares | 7,000 | 42,000 | |||||||||||||||||||||||||||||
Number of shares issued for services, value | $ 21,840 | $ 101,000 | |||||||||||||||||||||||||||||
Number of restricted shares issued | 16,220 | 16,667 | |||||||||||||||||||||||||||||
Number of restricted shares issued, value | $ 41,000 | $ 16,185 | |||||||||||||||||||||||||||||
Employee [Member] | |||||||||||||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||||||||||||
Number of shares issued for services, shares | 13,110 | ||||||||||||||||||||||||||||||
Number of shares issued for services, value | $ 65,000 | ||||||||||||||||||||||||||||||
Stock option granted | 0 | 333,348 | 0 | ||||||||||||||||||||||||||||
Intrinsic value of stock options exercised | 0 | 0 | |||||||||||||||||||||||||||||
Intrinsic value of stock options exercised | $ 637,000 | ||||||||||||||||||||||||||||||
Proceeds from stock option exercised | $ 0 | 0 | $ 0 | ||||||||||||||||||||||||||||
Employee [Member] | 2016 Equity Incentive Plan [Member] | |||||||||||||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||||||||||||
Stock option granted | 13,110 | 13,110 | |||||||||||||||||||||||||||||
Promissory Note Holder [Member] | |||||||||||||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||||||||||||
Debt Conversion, Converted Instrument, Shares Issued | 299,318 | 1,066,845 | |||||||||||||||||||||||||||||
Debt Conversion, Converted Instrument, Amount | $ 1,800,000 | $ 2,600,000 | $ 800,000 | ||||||||||||||||||||||||||||
Employees [Member] | |||||||||||||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||||||||||||
Number of shares issued for services, shares | 200,000 | ||||||||||||||||||||||||||||||
Number of shares issued for services, value | $ 2,792,000 | ||||||||||||||||||||||||||||||
Holder [Member] | |||||||||||||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||||||||||||
Debt Conversion, Converted Instrument, Shares Issued | 298,716 | ||||||||||||||||||||||||||||||
Debt Conversion, Converted Instrument, Rate | 50.00% | ||||||||||||||||||||||||||||||
Consultants [Member] | |||||||||||||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||||||||||||
Number of shares issued for services, shares | 10,000 | ||||||||||||||||||||||||||||||
Number of shares issued for services, value | 29,200 | ||||||||||||||||||||||||||||||
Number of restricted shares issued | 40,000 | ||||||||||||||||||||||||||||||
Number of restricted shares issued, value | $ 29,200 | $ 136,350 | $ 21,840 | $ 58,000 | 300,000 | $ 110,000 | |||||||||||||||||||||||||
Consultants [Member] | 2016 Equity Incentive Plan [Member] | |||||||||||||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||||||||||||
Stock option granted | 57,366 | 33,333 | |||||||||||||||||||||||||||||
Intrinsic value of stock options exercised | 6,250 | ||||||||||||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 12,500 | 20,833 | |||||||||||||||||||||||||||||
Warrant, shares | 1,915,000 | 16,667 | 25,000 | ||||||||||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 2.52 | $ 6.60 | |||||||||||||||||||||||||||||
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 2.64 | ||||||||||||||||||||||||||||||
General and Administrative Expense | $ 77,000,000,000 | 89,000 | $ 67,000 | ||||||||||||||||||||||||||||
Consultants [Member] | 2016 Equity Incentive Plan [Member] | February Two Thousand Twenty One [Member] | |||||||||||||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||||||||||||
Warrant, shares | 1,000,000 | 1,000,000 | |||||||||||||||||||||||||||||
Consultants [Member] | 2016 Equity Incentive Plan [Member] | April Two Thousand Twenty One [Member] | |||||||||||||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||||||||||||
Warrant, shares | 900,000 | 900,000 | |||||||||||||||||||||||||||||
Consultants [Member] | 2016 Equity Incentive Plan [Member] | Warrants Two [Member] | |||||||||||||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||||||||||||
Intrinsic value of stock options exercised | 11,894 | ||||||||||||||||||||||||||||||
Employees and Directors [Member] | |||||||||||||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||||||||||||
Stock issued for options exercised | $ 72,414 | ||||||||||||||||||||||||||||||
Employees and Directors [Member] | 2016 Equity Incentive Plan [Member] | |||||||||||||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||||||||||||
Stock option granted | 333,348 | 160,000 | 333,348 | ||||||||||||||||||||||||||||
Fair value of stock option grant date | $ 300,000 | $ 500,000 | |||||||||||||||||||||||||||||
Employees and Directors [Member] | 2016 Equity Incentive Plan [Member] | Selling, General and Administrative Expenses [Member] | |||||||||||||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||||||||||||
Share based compensation | $ 160,000 | 140,000 | |||||||||||||||||||||||||||||
Allocation share based compensation | $ 92,000 | $ 129,000 | |||||||||||||||||||||||||||||
Non-employees [Member] | |||||||||||||||||||||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||||||||||||||||||||
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 3.40 | ||||||||||||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 1 year 3 months 3 days |
SCHEDULE OF SEGMENT REPORTING (
SCHEDULE OF SEGMENT REPORTING (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Segment Reporting Information [Line Items] | |||||
Revenues | [1] | $ 24,845,924 | $ 11,062,775 | $ 13,791,303 | |
(Loss) income from operations | (8,713,842) | (17,366,729) | (4,172,161) | ||
Corporate other income, net | (281,984) | (22,580) | 669,755 | ||
Corporate interest income | 4,640 | 4,798 | 133,517 | ||
Corporate interest expense | (928,352) | (1,018,013) | (499,852) | ||
(Loss) before income taxes | (9,919,538) | (18,402,524) | (3,868,741) | ||
Income tax benefit | (5,321) | 71,316 | 274,480 | ||
Net (loss) | (9,924,859) | (18,331,208) | (3,594,261) | ||
Net income/loss attributable to non-controlling interest | 636,433 | 11,929 | |||
Net (loss) income attributable to the Company | (9,924,859) | (17,694,775) | (3,582,332) | [2] | |
Non-cash compensation | 3,137,000 | 744,000 | 580,000 | ||
Non-cash compensation | 2,950,070 | 298,091 | 494,316 | ||
Depreciation and amortization | 3,704,818 | 3,479,644 | 2,900,952 | ||
Provisions for allowance for credit losses on accounts receivable, other receivable and advances to suppliers | 5,541,717 | 13,521,182 | 3,628,544 | ||
Inventory obsolescence provision | (82,255) | 5,625 | 115,190 | ||
Total assets | 47,155,491 | 30,776,651 | |||
TIT Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | [1] | 636,743 | 377,499 | 241,132 | |
(Loss) income from operations | 570,220 | (166,727) | (662,556) | ||
Depreciation and amortization | 13,173 | 19,783 | 17,278 | ||
Provisions for allowance for credit losses on accounts receivable, other receivable and advances to suppliers | (658,035) | 36,895 | 344,550 | ||
Inventory obsolescence provision | 10,943 | 2,366 | |||
Total assets | 6,462,162 | 213,329 | |||
CBT Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | [1] | 18,753,836 | 10,685,276 | 13,550,171 | |
(Loss) income from operations | (7,668,616) | (15,268,750) | (2,037,151) | ||
Depreciation and amortization | 2,293,030 | 3,459,861 | 2,883,674 | ||
Provisions for allowance for credit losses on accounts receivable, other receivable and advances to suppliers | 6,192,425 | 13,484,287 | 3,283,994 | ||
Inventory obsolescence provision | (82,255) | (5,318) | 112,824 | ||
Total assets | 30,981,079 | 30,488,753 | |||
BT Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | [1] | 5,455,345 | |||
(Loss) income from operations | (1,615,446) | ||||
Depreciation and amortization | 1,398,615 | ||||
Provisions for allowance for credit losses on accounts receivable, other receivable and advances to suppliers | 7,327 | ||||
Total assets | 9,712,250 | ||||
Corporate and Others [Member] | |||||
Segment Reporting Information [Line Items] | |||||
(Loss) income from operations | [3] | (1,931,252) | (1,472,454) | ||
Non-cash compensation | 2,950,070 | 298,091 | $ 494,316 | ||
Total assets | $ 74,569 | ||||
[1] | Revenues by operating segments exclude intercompany transactions. | ||||
[2] | On July 30, 2020, the Company implemented a one-for-six reverse stock split of the Company’s issued and outstanding ordinary shares. Except shares authorized, all share and per share information has been retroactively adjusted to give effect to the reverse stock split for all periods presented, unless otherwise indicated. | ||||
[3] | Includes non-cash compensation, professional fees and consultancy fees for the Company. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - Jul. 28, 2016 | USD ($) | CNY (¥) |
Accrued contingent liability | $ 89,000 | |
Shenzhen Kejian Information Technology Co Ltd [Member] | ||
Preferential payment received | $ 89,000 | ¥ 550,000 |
CONCENTRATIONS (Details Narrati
CONCENTRATIONS (Details Narrative) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Top Five Customer [Member] | |||
Concentration Risk [Line Items] | |||
Concentration of risk percentage | 19.00% | 25.00% | 24.00% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Top Five Receivables [Member] | |||
Concentration Risk [Line Items] | |||
Concentration of risk percentage | 19.00% | 25.00% | |
Purchases [Member] | Suppliers Concentration Risk [Member] | Five Unrelated Suppliers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration of risk percentage | 69.00% | 62.00% | 97.00% |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) $ / shares in Units, ¥ in Thousands | Mar. 02, 2022USD ($) | Jan. 19, 2022CNY (¥)shares | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Feb. 24, 2022 | Feb. 17, 2022 | Jan. 19, 2022$ / shares | |
Subsequent Event [Line Items] | |||||||||
Net loss attributable to the Company | $ | $ (9,924,859) | $ (17,694,775) | $ (3,582,332) | [1] | |||||
Equity interest | 100.00% | ||||||||
Research and Development Expense | $ | $ 4,479,045 | $ 3,889,126 | $ 3,592,843 | ||||||
Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Research and Development Expense | $ | $ 8,200,000,000 | ||||||||
Subsequent Event [Member] | Zhenjiang TaopingIo Technology Limited [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Equity interest | 100.00% | 51.00% | 46.00% | ||||||
Subsequent Event [Member] | Zhenjiang TaopingIo Technology Limited [Member] | Common Stock First Phase [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 67,184 | ||||||||
Subsequent Event [Member] | Zhenjiang TaopingIo Technology Limited [Member] | Common Stock Second Phase [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 67,184 | ||||||||
Net loss attributable to the Company | ¥ | ¥ 500 | ||||||||
Subsequent Event [Member] | Zhenjiang TaopingIo Technology Limited [Member] | Common Stock Second Phase [Member] | Minimum [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Revenues | ¥ | ¥ 2,500 | ||||||||
Subsequent Event [Member] | Zhenjiang TaopingIo Technology Limited [Member] | Common Stock Third Phase [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 67,184 | ||||||||
Net loss attributable to the Company | ¥ | ¥ 550 | ||||||||
Subsequent Event [Member] | Zhenjiang TaopingIo Technology Limited [Member] | Common Stock Third Phase [Member] | Minimum [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Revenues | ¥ | ¥ 2,600 | ||||||||
Subsequent Event [Member] | Share Purchase Agreement [Member] | Zhenjiang TaopingIo Technology Limited [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 95.56% | ||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 201,552 | ||||||||
Share Price | $ / shares | $ 1.94 | ||||||||
[1] | On July 30, 2020, the Company implemented a one-for-six reverse stock split of the Company’s issued and outstanding ordinary shares. Except shares authorized, all share and per share information has been retroactively adjusted to give effect to the reverse stock split for all periods presented, unless otherwise indicated. |