Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2021 shares | |
Entity Addresses [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2021 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-36885 |
Entity Registrant Name | TANTECH HOLDINGS LTD |
Entity Incorporation, State or Country Code | D8 |
Entity Address, Address Line One | No. 10 Cen Shan Road, Shuige Industrial Zone |
Entity Address, City or Town | Lishui City |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 323000 |
Title of 12(b) Security | Common shares |
Trading Symbol | TANH |
Security Exchange Name | NASDAQ |
Entity Common Stock, Shares Outstanding | 6,399,460 |
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 |
Entity Shell Company | false |
Document Accounting Standard | U.S. GAAP |
Entity Central Index Key | 0001588084 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Auditor Name | YCM CPA, Inc. |
Auditor Firm ID | 6781 |
Auditor Location | Irvine, California |
Business Contact [Member] | |
Entity Addresses [Line Items] | |
Contact Personnel Name | Mr. Weilin Zhang |
Entity Address, Address Line One | No. 10 Cen Shan Road, Shuige Industrial Zone |
Entity Address, City or Town | Lishui City |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 323000 |
City Area Code | 86 |
Local Phone Number | 578-226-2305 |
Contact Personnel Fax Number | 86-578-226-2360 |
Contact Personnel Email Address | tantech@tantech.cn |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | |
Current Assets | |||
Cash and cash equivalents | $ 43,144,049 | $ 37,119,195 | |
Restricted cash | 422,832 | 220,109 | |
Accounts receivable, net | 44,962,926 | 34,410,597 | |
Inventories, net | 1,069,698 | 671,251 | |
Due from a related party | 10,354,051 | ||
Advances to suppliers, net | 3,420,628 | 6,854,461 | |
Advances to suppliers - related party | 0 | 1,533,000 | |
Prepaid taxes | 1,609,466 | 1,046,667 | |
Prepaid expenses and other receivables, net | 824,239 | 45,467 | |
Total Current Assets | 105,807,889 | 81,900,747 | |
Property, plant and equipment, net | 2,103,947 | 2,477,912 | |
Other Assets | |||
Manufacturing rebate receivable | 5,755,237 | ||
Intangible assets, net | 205,971 | 664,033 | |
Right of use assets | 313,172 | ||
Long-term Investment | 26,096,079 | 25,497,316 | |
Total Other Assets | 26,615,222 | 31,916,586 | |
Total Assets (Note 3 at VIE) | 134,527,058 | 116,295,245 | |
Current Liabilities | |||
Short-term bank loans | 4,719,552 | 5,564,790 | |
Bank acceptance notes payable | 0 | 1,753,109 | |
Accounts payable | 1,563,787 | 1,543,994 | |
Due to related parties | 1,847,421 | 2,019,087 | |
Customer deposits | 3,580,622 | 3,183,088 | |
Taxes payable | 823,701 | 571,354 | |
Loan payable to third parties | 7,002,385 | 306,600 | |
Lease liabilities-current | 115,330 | ||
Accrued liabilities and other payables | 2,114,258 | 1,861,835 | |
Total Current Liabilities | 21,767,056 | 16,803,857 | |
Lease liabilities non-current | 223,291 | ||
Total Liabilities | 21,990,347 | 16,803,857 | |
Stockholders' Equity | |||
Common stock, $0.01 par value, 60,000,000 shares authorized, 6,399,460 and 3,589,409 shares issued and outstanding as of December 31, 2021 and 2020, respectively | [1] | 63,995 | 35,894 |
Additional paid-in capital | 69,566,786 | 48,392,181 | |
Statutory reserves | 6,874,614 | 6,437,506 | |
Retained earnings | 36,684,794 | 45,480,031 | |
Accumulated other comprehensive income (loss) | 1,071,149 | (1,493,070) | |
Total Stockholders' Equity attributable to the Company | 114,261,338 | 98,852,542 | |
Noncontrolling interest | (1,724,627) | 638,846 | |
Total Stockholders' Equity | 112,536,711 | 99,491,388 | |
Total Liabilities and Stockholders' Equity | $ 134,527,058 | $ 116,295,245 | |
[1]Retroactively restated for one |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) | 12 Months Ended | |
Dec. 31, 2021 $ / shares shares | Dec. 31, 2020 $ / shares shares | |
Consolidated Balance Sheets | ||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 60,000,000 | 60,000,000 |
Common Stock, Shares Issued | 6,399,460 | 3,589,409 |
Common stock, shares outstanding | 6,399,460 | 3,589,409 |
Stock split ratio | 0.1 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Consolidated Statements of Comprehensive Loss | ||||
Revenues | $ 55,263,673 | $ 42,283,670 | $ 49,230,570 | |
Cost of revenues | 44,832,347 | 37,807,297 | 43,253,070 | |
Gross Profit | 10,431,326 | 4,476,373 | 5,977,500 | |
Operating expenses | ||||
Selling expenses | 221,364 | 977,201 | 319,946 | |
General and administrative expenses | 8,831,407 | 955,210 | 4,655,382 | |
Share based compensation | 1,840,000 | 0 | 0 | |
Impairment of goodwill and intangible asset | 0 | 11,998,606 | 9,584,000 | |
Research and development expenses | 8,053,400 | 890,316 | 327,260 | |
Total operating expenses | 18,946,171 | 14,821,333 | 14,886,588 | |
Loss from operations | (8,514,845) | (10,344,960) | (8,909,088) | |
Other income (expenses) | ||||
Interest income | 117,735 | 50,732 | 53,060 | |
Interest expense | (740,400) | (300,125) | (443,262) | |
Rental income from related party | 117,958 | |||
Gain from sale property to a related party | 545,874 | |||
Other income (loss), net | 210,176 | (39,530) | 3,669 | |
Total other income (expenses) | 251,343 | (288,923) | (386,533) | |
Loss before income tax expense (credit) | (8,263,502) | (10,633,883) | (9,295,621) | |
Income tax expense (credit) | 2,429,480 | (611,655) | 363,662 | |
Net loss from continuing operations | (10,692,982) | (10,022,228) | (9,659,283) | |
Discontinued operation: | ||||
Income from discontinued operations, net of tax | 0 | 0 | 270,479 | |
Loss from disposal of discontinued operations | 0 | 0 | (569,891) | |
Net loss from discontinued operations | 0 | 0 | (299,412) | |
Net loss | (10,692,982) | (10,022,228) | (9,958,695) | |
Less: net loss attributable to noncontrolling interest from continuing operations | (2,334,853) | (3,501,808) | (3,601,728) | |
Net loss attributable to common stockholders of Tantech Holdings Ltd | (8,358,129) | (6,520,420) | (6,356,967) | |
Net loss | (10,692,982) | (10,022,228) | (9,958,695) | |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | 2,535,599 | 5,892,311 | (5,494,731) | |
Comprehensive loss | (8,157,383) | (4,129,917) | (15,453,426) | |
Less: Comprehensive loss attributable to noncontrolling interest | (2,363,473) | (3,707,370) | (3,571,880) | |
Comprehensive loss attributable to common stockholders of Tantech Holdings Ltd | $ (5,793,910) | $ (422,547) | $ (11,881,546) | |
Loss from Continuing Operations, Per Basic and Diluted Share | [1] | $ (2.01) | $ (2.21) | $ (2.10) |
Loss from Discontinued Operations and Disposal of Discontinued Operations, Per Basic and Diluted Share | [1] | (0.10) | ||
Loss per share - Basic | [1] | (2.01) | (2.21) | (2.20) |
Loss per share - Diluted | [1] | $ (2.01) | $ (2.21) | $ (2.20) |
Weighted Average Shares Outstanding - Basic, Continuing operations and discontinued operations | [1] | 4,148,737 | 2,956,624 | 2,885,324 |
Weighted Average Shares Outstanding - Diluted, Continuing operations and discontinued operations | [1] | 4,148,737 | 2,956,624 | 2,885,324 |
[1]Retroactively restated for one |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Loss (Parenthetical) | 12 Months Ended |
Dec. 31, 2021 | |
Consolidated Statements of Comprehensive Loss | |
Stock split ratio | 0.1 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Common Stock | Additional Paid in Capital | Accumulated Other Comprehensive Income (Loss) | Statutory Reserve Member [Member] | Retained Earnings [Member] | Noncontrolling Interest | Total | |
Balance at Dec. 31, 2018 | $ 28,853 | $ 39,310,178 | $ (2,066,364) | $ 6,461,788 | $ 58,333,136 | $ 7,918,096 | $ 109,985,687 | |
Balance (In Shares) at Dec. 31, 2018 | [1] | 2,885,324 | ||||||
Foreign currency translation adjustment | $ 0 | 0 | (5,524,579) | 0 | 0 | 29,848 | (5,494,731) | |
Net loss | 0 | 0 | 0 | (82,512) | (6,356,967) | (3,601,728) | (9,958,695) | |
Balance at Dec. 31, 2019 | $ 28,853 | 39,310,178 | (7,590,943) | 6,379,276 | 52,058,681 | 4,346,216 | 94,532,261 | |
Balance (In Shares) at Dec. 31, 2019 | [1] | 2,885,324 | ||||||
Issuance of common stock for private placement | $ 6,061 | 9,048,939 | 0 | 0 | 0 | 0 | 9,055,000 | |
Issuance of common stock for private placement (in shares) | [1] | 606,061 | ||||||
Exercise of 2017 warrants | $ 945 | (713) | 0 | 0 | 0 | 0 | 232 | |
Exercise of 2017 warrants (in shares) | [1] | 94,465 | ||||||
Issuance of common stock for service | $ 35 | 33,777 | 0 | 0 | 0 | 0 | 33,812 | |
Issuance of common stock for service (in shares) | [1] | 3,559 | ||||||
Foreign currency translation adjustment | $ 0 | 0 | 6,097,873 | 0 | 0 | (205,562) | 5,892,311 | |
Appropriation of retained earnings to statutory reserve fund | 0 | 0 | 0 | 58,230 | (58,230) | 0 | 0 | |
Net loss | 0 | 0 | 0 | 0 | (6,520,420) | (3,501,808) | (10,022,228) | |
Balance at Dec. 31, 2020 | $ 35,894 | 48,392,181 | (1,493,070) | 6,437,506 | 45,480,031 | 638,846 | 99,491,388 | |
Balance (In Shares) at Dec. 31, 2020 | [1] | 3,589,409 | ||||||
Issuance of common stock for private placement | $ 26,501 | 19,336,205 | 0 | 0 | 0 | 0 | 19,362,706 | |
Issuance of common stock for private placement (in shares) | [1] | 2,650,051 | ||||||
Issuance of common stock for compensation | $ 1,600 | 1,838,400 | 0 | 0 | 0 | 0 | 1,840,000 | |
Issuance of common stock for compensation (in Shares) | [1] | 160,000 | ||||||
Foreign currency translation adjustment | 2,564,219 | 0 | (28,620) | 2,535,599 | ||||
Appropriation of retained earnings to statutory reserve fund | $ 0 | 0 | 0 | 437,108 | (437,108) | 0 | 0 | |
Net loss | 0 | 0 | 0 | (8,358,129) | (2,334,853) | (10,692,982) | ||
Balance at Dec. 31, 2021 | $ 63,995 | $ 69,566,786 | $ 1,071,149 | $ 6,874,614 | $ 36,684,794 | $ (1,724,627) | $ 112,536,711 | |
Balance (In Shares) at Dec. 31, 2021 | [1] | 6,399,460 | ||||||
[1]Retroactively restated for one |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) | 12 Months Ended |
Dec. 31, 2021 | |
Consolidated Statements of Stockholders' Equity | |
Stock split ratio | 0.1 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | |||
Net loss | $ (10,692,982) | $ (10,022,228) | $ (9,958,695) |
Net loss from discontinued operations | 0 | 0 | 299,412 |
Net loss from continuing operations | (10,692,982) | (10,022,228) | (9,659,283) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
(Reversal of) allowance for doubtful accounts - accounts receivable | (52,789) | (845,416) | 1,297,752 |
(Reversal of) allowance for doubtful accounts - advance to suppliers | (142,799) | (378,233) | 164,220 |
Write off manufacturing rebate receivable | 5,819,059 | 0 | 0 |
(Reversal of) Allowance for doubtful accounts - other receivables | 0 | (84,573) | 705,400 |
Share based compensation | 1,840,000 | 0 | 0 |
Inventory reserve | 359,501 | 92,064 | 1,030,236 |
Impairment of goodwill and intangible asset | 0 | 11,998,606 | 9,584,000 |
Decrease in deferred tax liability | 0 | (1,799,791) | (165,500) |
Depreciation expense | 444,462 | 436,427 | 462,639 |
Amortization of intangible asset | 472,140 | 441,489 | 441,489 |
Amortization of right of use assets | 44,964 | 0 | 0 |
Amortization of prepaid consulting expense | 0 | 0 | 140,738 |
Loss (gain) from disposal of property, plant and equipment | (545,844) | 68,614 | (8,047) |
Issuance of common stock for service | 0 | 33,812 | 0 |
Contingent liability | 535,389 | 0 | 0 |
Changes in operating assets and liabilities: | |||
Accounts receivable - non-related party | (9,573,463) | 8,024,036 | (9,879,682) |
Accounts receivable - related party | 0 | 0 | 0 |
Advances to suppliers | 3,694,066 | 7,093,022 | 415,727 |
Advances to suppliers - related party | 1,550,000 | (1,448,000) | 0 |
Inventory | (737,552) | (125,492) | 242,142 |
Prepaid expenses and other receivables | (768,288) | 133,768 | 9,127 |
Manufacturing rebate receivable | 2,374,720 | 1,563,840 | |
Accounts payable | (16,266) | (206,261) | (751,363) |
Accrued liabilities and other payables | (323,441) | 313,552 | (78,923) |
Customer deposits | 318,875 | (3,792,409) | 6,184,836 |
Collection of receivables from discontinued operations | 0 | 0 | 8,962,187 |
Lease liabilities | (19,824) | 0 | 0 |
Taxes payable | (295,666) | 1,863,853 | (597,392) |
Net cash provided by continuing operations | (8,090,458) | 14,171,560 | 10,064,143 |
Net cash provided by discontinued operations | 0 | 0 | 4,632,769 |
Net cash provided by operating activities | (8,090,458) | 14,171,560 | 14,696,912 |
Cash flows from investing activities | |||
Acquisition of property, plant and equipment | (220,308) | (144,806) | (92,369) |
Proceeds from disposal of property, plant and equipment | 748,612 | 21,842 | 16,580 |
Additions to intangible assets | (4,220) | 0 | 0 |
Payment for investment | 0 | 0 | (6,707,570) |
Proceeds from disposition of subsidiaries | 0 | 0 | 854,567 |
Net cash used in continuing operations | 524,084 | (122,964) | (5,928,792) |
Net cash used in discontinued operations | 0 | 0 | (1,522) |
Net cash used in investing activities | 524,084 | (122,964) | (5,930,314) |
Cash flows from financing activities | |||
Proceeds from (repayment of) loans from third parties | 6,917,589 | 0 | (2,823,890) |
Repayment of loans from third parties | (310,000) | 0 | 0 |
Bank acceptance notes payable, net of repayment | (1,772,550) | 1,448,667 | (1,823,003) |
Proceeds from bank loans | 7,774,800 | 9,568,384 | 6,918,544 |
Repayment of bank loans | (8,738,900) | (11,230,688) | (7,352,944) |
Proceeds from (repayment of) loans from related parties, net | (10,428,196) | 98,474 | (378,833) |
Proceeds from issuance of common stock and warrants | 19,362,706 | 9,055,232 | 0 |
Net cash provided by (used in) continuing operations | 12,805,449 | 8,940,069 | (5,460,126) |
Net cash provided by discontinued operations | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | 12,805,449 | 8,940,069 | (5,460,126) |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | 988,502 | 1,704,662 | (530,288) |
Net increase in cash, restricted cash and cash equivalents | 6,227,577 | 24,693,327 | 2,776,184 |
Cash, restricted cash and cash equivalents, beginning of year | 37,339,304 | 12,645,977 | 9,869,793 |
Cash, restricted cash and cash equivalents, end of year | 43,566,881 | 37,339,304 | 12,645,977 |
Supplemental disclosure information: | |||
Income taxes paid | 2,278,134 | 436,566 | 1,105,876 |
Interest paid | $ 265,248 | $ 308,690 | $ 439,869 |
Organization and nature of busi
Organization and nature of business | 12 Months Ended |
Dec. 31, 2021 | |
Organization and nature of business | |
Organization and nature of business | Note 1 – Organization and Nature of Business Tantech Holdings Ltd (“Tantech” or “Tantech BVI”) is a holding company established under the laws of the British Virgin Islands on November 9, 2010. Tantech engages in the research and development, production and distribution of various products made from bamboo, manufacture and selling electric vehicles and non-electric vehicles, as well as investment in mining exploration. On August 3, 2021, Tantech completed dismantling its VIE structure (see Note 3). As of December 31, 2021, details of the subsidiaries of the Company and their principal business activities are set out below: Date of Place of % of Principal Name of Entity Incorporation Incorporation Ownership Activities Tantech Holdings Ltd (“Tantech” or “Tantech BVI”) November 9, 2010 BVI Parent Holding Company USCNHK Group Limited (“USCNHK”) October 17, 2008 Hong Kong 100% by the Parent Holding Company EAG International Vantage Capitals Limited (“Euroasia”) April 27, 2015 Hong Kong 100% by the Parent Holding Company Tantech Holdings (Lishui) Co. Ltd. (“Lishui Tantech”) April 7, 2016 Lishui, Zhejiang Province, China 100% by USCNHK Holding Company Euroasia New Energy Automotive (Jiangsu) Co. Ltd. (“Euroasia New Energy”) October 24, 2017 Zhangjia Gang, Jiangsu Province, China 100% by Euroasia Holding Company Shanghai Jiamu Investment Management Co., Ltd (“Jiamu”) July 14, 2015 Shanghai, China 100% by Euroasia Holding Company Hangzhou Wangbo Investment Management Co., Ltd (“Wangbo”) February 2, 2016 Hangzhou, Zhejiang Province, China 100% by Jiamu Holding Company Hangzhou Jiyi Investment Management Co., Ltd (“Jiyi”) February 2, 2016 Hangzhou, Zhejiang Province, China 100% by Jiamu Holding Company Shangchi Automobile Co., Ltd. (“Shangchi Automobile”) Acquired on July 12, 2017 Zhangjia Gang, Jiangsu Province, China 51% by Wangbo and 19% by Jiyi Manufacturing and sale of specialty electric and non-electric vehicles and power batteries Shenzhen Yimao New Energy Sales Co., Ltd. (“Shenzhen Yimao”) November 13, 2018 Shenzhen, Guangdong Province, China 100% by Shangchi Automobile Electric vehicles sales Lishui Xincai Industrial Co., Ltd. (“Lishui Xincai”) December 14, 2017 Lishui, Zhejiang Province, China 100% by Lishui Tantech Holding Company Zhejiang Tantech Bamboo Charcoal Co., Ltd. (“Tantech Charcoal”) September 5, 2002 Lishui, Zhejiang Province, China 100% by Lishui Xincai Manufacturing, selling and trading various products made from bamboo and charcoal Lishui Jikang Energy Technology Co., Ltd. (“Jikang Energy”) January 2, 2020 Lishui, Zhejiang Province, China 100% by Lishui Xincai Holding Company Hangzhou Tanbo Tech Co., Ltd. (“Tanbo Tech”) December 8, 2015 Hangzhou, Zhejiang Province, China 100% by Lishui Xincai Exploring business opportunities outside Lishui area Zhejiang Tantech Bamboo Technology Co., Ltd. (“Tantech Bamboo”) December 31, 2005 Lishui, Zhejiang Province, China 100% by Jikang Energy Manufacturing and sale of various products made from bamboo Zhejiang Shangchi New Energy Automobile Co., Ltd. (“Zhejiang Shangchi”) November 12, 2020 Lishui, Zhejiang Province, China 100% by Lishui Tantech Sales of automobiles Lishui Smart New Energy Automobile Co., Ltd. (“Lishui Smart”) November 16, 2020 Lishui, Zhejiang Province, China 100% by Lishui Tantech Research, development and manufacturing new energy automobiles Gangyu Trading (Jiangsu) Co., Ltd. (“Gangyu Trading”) August 10, 2021 Zhangjiagang Jiangsu Province, China 100% by Euroasia New Energy Marketing and selling electric vehicles Shangchi (Zhejiang) Intelligent Equipment Co., Ltd. (“Shangchi Intelligent Equipment”) August 26, 2021 Pinghu Zhejiang Province, China 100% by Euroasia Manufacturing and sales company focusing on new energy vehicles Shanghai Wangju Industrial Group Co., Ltd. (“Shanghai Wangju”) September 23, 2021 Shanghai, China 100% by Jiamu Investing in the factoring industry Eurasia Holdings (Zhejiang) Co., Ltd. (“Eurasia Holdings”) July 15, 2021 Hangzhou Zhejiang province, China 100% by Euroasia Marketing and selling electric vehicles Hangzhou Eurasia Supply Chain Co., Ltd. (“Eurasia Supply”) August 4 2021 Hangzhou Zhejiang province, China 100% by Eurasia Holdings Supply chain business Zhejiang Shangchi Medical Equipment Co., Ltd. (“Shangchi Medical”) November 13, 2021 Pinghu Zhejiang Province, China 100% by Shangchi Intelligent Equipment Manufacturing and sales company focusing on new energy vehicles Shenzhen Shangdong Trading Co., Ltd. (“Shenzhen Shangdong”) July 13, 2016 Shenzhen Guangdong Province, China 100% by Shanghai Wangju Investing in the factoring industry China East Trade Co., Ltd. (“China East”) February 15, 2018 Hong Kong 100% by Euroasia Investing in the factoring industry First International Commercial Factoring (Shenzhen) Co., Ltd. (“First International”) July 27, 2017 Shenzhen Guangdong Province, China 75% by Shenzhen Shangdong 25% by China East Investing in the factoring industry |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2021 | |
Summary of significant accounting policies | |
Summary of significant accounting policies | Note 2 – Summary of Significant Accounting Policies Principal of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The consolidated financial statements include the financial statements of Tantech BVI and its subsidiaries (collectively, the “Company”). All significant inter-company balances and transactions are eliminated upon consolidation. Non-controlling interest Non-controlling interest represents 30% of the equity interest in Shangchi Automobile and its subsidiary Shenzhen Yimao owned by Zhangjiagang Jinke Chuangtou Co., Ltd., which is not under the Company’s control. Use of Estimates In preparing the consolidated financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting year. Significant items subject to such estimates and assumptions include the fair value estimates used in the useful lives of property and equipment and intangible assets, allowances pertaining to the allowance for doubtful accounts of accounts receivable, advance to suppliers and other receivables, the valuation of inventories, the impairment of long-lived assets, and the realizability of deferred tax assets. Fair Value of Financial Instruments The Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, “Fair Value Measurements”, defines fair value, establishes a three-level valuation hierarchy for fair value measurements and enhances disclosure requirements. The three levels are defined as follows: Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3 - inputs to the valuation methodology are unobservable. Unless otherwise disclosed, the fair value of the Company’s financial instruments including cash, restricted cash, accounts receivable, advances to suppliers, other receivables, accounts payable, customer deposits, accrued expenses, short term bank loans and bank acceptance notes payable approximates their recorded values due to their short-term maturities. Cash and cash equivalents For purposes of the statements of cash flows, the Company considers all highly liquid instruments purchased with an original maturity of three months or less and money market accounts to be cash equivalents. All cash balances are in bank accounts in PRC and are not insured by the Federal Deposit Insurance Corporation or other programs. Note 2 – Summary of Significant Accounting Policies (continued) Restricted Cash For the year ended December 31, 2020, restricted cash represents the cash of $220,109 required deposits as a part of collateral for bank acceptance notes payable and letters of credit. The Company is required to maintain 0% to 100% of the balance of the bank acceptance notes payable in restricted cash to ensure future credit availability. The Company earns interest at a variable rate per month on this restricted cash. For the year ended December 31, 2021, the Company’s restricted cash represents the cash of $422,832 remains frozen in the bank accounts of one of the Company’s subsidiaries as the result of the ongoing lawsuit filed by Mr. Hengwei Chen to against the Company (see Note 15). Concentrations of credit risk Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash, trade accounts receivable and advances to suppliers. All of the Company’s cash is maintained with banks within the People’s Republic of China of which no deposits are covered by insurance. The Company has not experienced any losses in such accounts. A significant portion of the Company’s sales are credit sales which are primarily to customers whose ability to pay is dependent upon the industry economics prevailing in these areas. The Company also makes cash advances to certain suppliers to ensure the stable supply of key raw materials. The Company performs ongoing credit evaluations of its customers and key suppliers to help further reduce credit risk. Accounts receivable Accounts receivable are presented at invoiced amount net of an allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts for estimated losses. The Company reviews its accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, customer’s payment history, its current credit-worthiness and current economic trends. Accounts are written off after efforts at collection prove unsuccessful. Inventory The Company values its inventories at the lower of cost, determined on a weighted average basis, or net realizable value. The Company reviews its inventories periodically to determine if any markdown is necessary for potential obsolescence or if a write-down is necessary if the carrying value exceeds net realizable value. Advances to suppliers In order to ensure a steady supply of raw materials, the Company is required from time to time to make cash advances when placing its purchase orders. The Company reviews its advances to suppliers on a periodic basis and makes general and specific allowances when there is doubt as to the ability of a supplier to refund an advance or provide supplies to the Company. Property and Equipment and Construction in Progress Property and equipment are stated at cost less accumulated depreciation. The cost of an asset comprises its purchase price and any directly attributable costs of bringing the asset to its present working condition and location for its intended use. Note 2 – Summary of Significant Accounting Policies (continued) Depreciation is computed on a straight-line basis over the estimated useful lives of the related assets. The estimated useful lives for significant property and equipment are as follows: Buildings 20 years Machinery and equipment 5 - 10 years Transportation equipment 4 - 5 years Office equipment 4 - 5 years Electronic equipment 3 - 5 years Repairs and maintenance costs are normally charged to earnings in the year in which they are incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefits expected to be obtained from the use of the asset, the expenditure is capitalized as an additional cost of the asset. Construction in progress includes direct costs of construction or acquisition of equipment, interest expense associated with the loans used for the construction and design fees incurred. Capitalization of these costs ceases and the construction in progress is transferred to plant and equipment when substantially all the activities necessary to prepare the assets for their intended use are completed. No depreciation is provided until it is completed and ready for its intended use. Intangible assets Intangible assets are acquired individually or as part of a group of assets, and are initially recorded at cost. The cost of a group of assets acquired in a transaction is allocated to the individual assets based on their relative fair values. Intangible assets are carried at cost less accumulated amortization and any recorded impairment. Intangible assets with finite useful lives are amortized using a straight-line method over the period of estimated useful life. The estimated useful lives of the Company’s intangible assets are as follows: Estimated Useful Life Licenses and permits Indefinite Software 5 - 10 years Land use right 50 years Patents 10 years The Company evaluates intangible assets for impairment whenever events or changes in circumstances indicate that the assets might be impaired. Long term investments The Company accounts for investment in equity investees over which it has significant influence but does not own a majority of the equity interest or lack of control using the equity method. For investment in equity investees over which the Company does not have significant influence or the underlying shares the Company invested in are not considered in-substance common stock and have no readily determinable fair value, the cost method accounting is applied. The Company records the equity method investments at historical cost and subsequently adjusts the carrying amount each period for share of the earnings or losses of the investee and other adjustments required by the equity method of accounting. Dividends received from the equity method investments are recorded as reductions in the cost of such investments. The Company records the cost method investments at historical cost and subsequently record any dividends received from the net accumulated earnings of the investee as income. Dividends received in excess of earnings are considered a return of investment and are recorded as reductions in the cost of the investments. Note 2 – Summary of Significant Accounting Policies (continued) Investment in equity investees are evaluated for impairment when facts or circumstances indicate that the fair value of the investment is less than its carrying value. An impairment is recognized when a decline in fair value is determined to be other-than-temporary. The Company reviews several factors to determine whether a loss is other-than-temporary. These factors include, but are not limited to, the: (i) nature of the investment; (ii) cause and duration of the impairment; (iii) extent to which fair value is less than cost; (iv) financial condition and near term prospects of the investments; and (v) ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. Impairment of Long-Lived Assets The Company evaluates its long-lived assets for impairment whenever events or changes in circumstances, such as a significant adverse change to market conditions that will impact the future use of the assets, indicate that the carrying amount of an asset may not be fully recoverable. When these events occur, the Company evaluates the recoverability of long-lived assets by comparing the carrying amount of the assets to the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Company recognizes an impairment loss based on the excess of the carrying amount of the assets over their fair value. Fair value is generally determined by discounting the cash flows expected to be generated by the assets, when the market prices are not readily available. Customer Deposits Customer deposits represent amounts received from customers in advance of shipments relating to the sales of the Company’s products. Loan Payable to Third Parties Loan payable to third parties represent amounts the Company borrowed from third parties for working capital purpose. As of December 31, 2021, the balance amounted $7,002,385, the balances are unsecured with interest rate 6% per annum and with one year term from December 17, 2021 to December 16, 2022. If the Company fails to repay the debt, the Company shall pay the third parties for the liquidated damages at the rate of thousandths of the amount in arrears per day, and also compensate the legal costs, execution fees, etc. incurred in realizing the creditor’s rights. As of December 31, 2020, the balance amounted $306,600, the balance is unsecured, interest-free and due upon demand. Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases (Topic 842). The standard requires lessees to recognize lease assets and lease liabilities on the balance sheet and requires expanded disclosures about leasing arrangements. The new standard establishes a right-of-use model (“ROU”) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. The Company adopted ASC 842 on January 1, 2019 on a modified retrospective basis and elected the practical expedients permitted under the transition guidance, which allows the Company to carryforward the historical lease classification, the assessment on whether a contract is or contains a lease, and the initial direct costs for any leases that exist prior to adoption of the new standard. Leases with an initial term of 12 months or less are not recognized on the balance sheet and the associated lease payments are included in the consolidated statements of comprehensive income (loss) on a straight-line basis over the lease term. The standard did not materially impact our consolidated net earnings and cash flows. Note 2 – Summary of Significant Accounting Policies (continued) Revenue Recognition The Company adopted ASC Topic 606 Revenue from Contracts with Customers (“ASC 606”) on January 1, 2018 using the modified retrospective approach. There is no adjustment to the opening balance of retained earnings at January 1, 2018 since there was no change to the timing and pattern of revenue recognition upon adoption of ASC 606. Under ASC 606, revenue is recognized when control of promised goods or services is transferred to the Company’s customers in an amount of consideration to which an entity expects to be entitled to in exchange for those goods or services. The Company’s revenues are primarily derived from the following sources: Sales of products: The Company recognizes sales revenue, net of sales taxes and estimated sales returns, at the time the product is delivered to the customer and control is transferred (point of sale). For the Company’s electric vehicles sales contracts, the Company provides a warranty for 12 months from the products are delivered. The Company determines such product warranty is an assurance-type warranty and is not a separated performance obligation in revenue recognition, because the nature of warranty is to provide assurance that a product will function as expected and in accordance with customer’s specification. The Company estimates the warranty costs when the promised good is delivered to the customer and accrues as warranty liabilities. Commission income: The Company acts as an agent without assuming the risks and rewards of ownership of the goods and reports the revenue on a net basis. Revenue is recognized based on the completion of the contracted service. Government manufacturing rebate income: The Company sells electric vehicles in China and is eligible for a government manufacturing rebate on each qualifying electric vehicle sold. The government manufacturing rebates are recognized as part of revenue when sales are finalized, amount of rebates can be reasonably estimated and collection is assured. The collectability of rebates can be assured as long as the sales are deemed qualifying based on the criteria set by the government. Revenue is reported net of all value added taxes. The Company does not routinely permit customers to return products and historically, customer returns have been immaterial. Cost of Revenues Cost of revenues includes cost of raw materials purchased, inbound freight cost, cost of direct labor, depreciation expense and other overhead. Write-down of inventory for lower of cost or net realizable value adjustments is also recorded in cost of revenues. Shipping and Handling Shipping and handling costs are expensed as incurred and included in selling expenses. Subsidy Income The Company periodically receives various government grants such as “High Technology Projects Subsidy” and “Scientific Research Grant”. There is no guarantee the Company will continue to receive such grants in the future. Note 2 – Summary of Significant Accounting Policies (continued) Foreign Currency Translation The Company’s financial information is presented in U.S. dollars. The functional currency of the Company’s subsidiaries in the PRC is the RMB, the currency of the PRC. Any subsidiary transactions, which are denominated in currencies other than RMB, are translated into RMB at the exchange rate quoted by the People’s Bank of China prevailing at the dates of the transactions, and exchange gains and losses are included in the statements of comprehensive income (loss) as foreign currency transaction gain or loss. The consolidated financial statements of the Company have been translated into U.S. dollars in accordance with ASC 830, “Foreign Currency Matters”. The financial information is first prepared in RMB and then is translated into U.S. dollars at period-end exchange rates for assets and liabilities and average exchange rates for revenue and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. The effects of foreign currency translation adjustments are included as a component of accumulated other comprehensive income in stockholders’ equity. Cash flows from the Company’s operations are calculated based upon the local currencies using the average translation rate. As a result, amounts related to assets and liabilities reported on the statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets. The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report: December 31, 2021 December 31, 2020 December 31, 2019 US$: RMB exchange rate Period End $ 0.1569 Period End $ 0.1533 Period End $ 0.1436 Average $ 0.1550 Average $ 0.1448 Average $ 0.1448 Research and development costs Research and development expenses include costs directly attributable to the conduct of research and development projects, including the cost of salaries and other employee benefits, testing expenses, consumable equipment and consulting fees prior to the establishment of technological feasibility. All costs associated with research and development are expensed as incurred. Comprehensive Income (loss) Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under GAAP are recorded as an element of stockholders’ equity but are excluded from net income (loss). Other comprehensive income (loss) consists of foreign currency translation adjustment from those subsidiaries not using the U.S. dollar as their functional currency. Income Taxes The Company’s subsidiaries in China are subject to the income tax laws of the PRC. No taxable income was generated outside the PRC as of December 31, 2021. The Company accounts for income taxes in accordance with ASC 740, “Income Taxes”. ASC 740 requires an asset and liability approach for financial accounting and reporting for income taxes and allows recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or future deductibility is uncertain. ASC 740-10-25 prescribes a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. It also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, years open for tax examination, accounting for income taxes in interim periods and income tax disclosures. The statute of limitation on the PRC tax authority’s audit or examination of previously filed tax returns expires three years from the date they were filed. There were no material uncertain tax positions as of December 31, 2021 and 2020. Note 2 – Summary of Significant Accounting Policies (continued) Value Added Tax (“VAT”) The Company is subject to VAT for selling merchandise. The applicable VAT rate is 11% or 13% or 17% (depending on the type of goods involved) for products sold in the PRC. The applicable VAT rate of 17% and 11% decreased to 16% and 10% starting from May 2018, and further decreased to 13% and 9% from April 1, 2019. The amount of VAT liability is determined by applying the applicable tax rate to the invoiced amount of goods sold (output VAT) less VAT paid on purchases made with the relevant supporting invoices (input VAT). Under the commercial practice of the PRC, the Company pays VAT based on tax invoices issued. The tax invoices may be issued subsequent to the date on which revenue is recognized, and there may be a considerable delay between the date on which the revenue is recognized and the date on which the tax invoice is issued. In the event the PRC tax authorities dispute the date on which revenue is recognized for tax purposes, the PRC tax office has the right to assess a penalty based on the amount of taxes which is determined to be late or deficient, with any penalty being expensed in the period when a determination is made by the tax authorities that a penalty is due. During the reporting periods, the Company had no dispute with PRC tax authorities and there was no tax penalty incurred. Earnings (loss) per Share (“EPS”) The Company computes earnings (loss) per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”), and SEC Staff Accounting Bulletin No. 98 (“SAB 98”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. As of December 31, 2021 and 2020, the total number of registered and unregistered warrants outstanding both was 6,557,635 (split-adjusted 655,764). For the years ended December 31, 2021, 2020 and 2019, no warrants were included in the diluted income (loss) per share as they would be anti-dilutive. Statement of Cash Flows In accordance with ASC 230, “Statement of Cash Flows,” cash flows from the Company’s operations are calculated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets. Risks and Uncertainties The operations of the Company are located in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by the political, economic, and legal environments in the PRC, in addition to the general state of the PRC economy. The Company’s operating results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. The Company’s sales, purchases and expense transactions are denominated in RMB, and primarily all of the Company’s assets and liabilities are also denominated in RMB. The RMB is not freely convertible into foreign currencies under the current law. In China, foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China, the central bank of China. Remittances in currencies other than RMB may require certain supporting documentation in order to affect the remittance. Note 2 – Summary of Significant Accounting Policies (continued) The Company does not carry any business interruption insurance, products liability insurance or any other insurance policy except for a limited property insurance policy. As a result, the Company may incur uninsured losses, increasing the possibility that investors would lose their entire investment in the Company. COVID-19 The Company’s operations were affected by the recent and ongoing outbreak of the coronavirus disease 2019 (COVID-19) which in March 2020, was declared a pandemic by the World Health Organization. The COVID-19 outbreak is causing lockdowns, travel restrictions, and closures of businesses. The Company’s business has been negatively impacted by the COVID-19 coronavirus outbreak to certain extent in fiscal 2020. From late January 2020 to the middle of February 2020, the Company had to temporarily suspend our manufacturing activities due to government restrictions. During the temporary business closure period, our employees had very limited access to our manufacturing facilities and the shipping companies were not available and as a result, the Company experienced difficulty delivering our products to the customers on a timely basis. In addition, due to the COVID-19 outbreak, some of the customers or suppliers may experience financial distress, delay or default on their payments, reduce the scale of their business, or suffer disruptions in their business due to the outbreak. Any increased difficulty in collecting accounts receivable, delayed raw materials supply, bankruptcy of small and medium businesses, or early termination of agreements due to deterioration in economic conditions could negatively impact our results of operations. As of the date of this filing, the COVID-19 coronavirus outbreak in China appears to be controlled and most provinces and cities have resumed business activities under the guidance and support of the government. In light of the current situation, the Company believes that the impact of the COVID-19 outbreak on the business is both temporary and limited, and that the revenues have started growing again in fiscal 2021. However, there is still significant uncertainty regarding the possibility of another wave of infections, and the breadth and duration of business disruptions related to COVID-19, which could continue to have material impact to the Company’s operations. Recent accounting pronouncements The Company considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued. In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes” (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 will simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The Company adopted this guidance and this guidance did not have a material impact on the consolidated financial statements. Note 2 – Summary of Significant Accounting Policies (continued) 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) (“ASU 2020-01”), which is intended to clarify the interaction of the accounting for equity securities under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. ASU 2020-01 is effective for the Company beginning January 1, 2021. The Company adopted this guidance and this guidance did not have a material impact on the consolidated financial statements. In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt — Modifications and Extinguishments (Subtopic 470-50), Compensation — Stock Compensation (Topic 718), and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options (“ASU 2021-04”). ASU 2021-04 provides guidance as to how an issuer should account for a modification of the terms or conditions or an exchange of a freestanding equity-classified written call option (i.e., a warrant) that remains classified after modification or exchange as an exchange of the original instrument for a new instrument. An issuer should measure the effect of a modification or exchange as the difference between the fair value of the modified or exchanged warrant and the fair value of that warrant immediately before modification or exchange and then apply a recognition model that comprises four categories of transactions and the corresponding accounting treatment for each category (equity issuance, debt origination, debt modification, and modifications unrelated to equity issuance and debt origination or modification). ASU 2021-04 is effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. An entity should apply the guidance provided in ASU 2021-04 prospectively to modifications or exchanges occurring on or after the effective date. Early adoption is permitted for all entities, including adoption in an interim period. If an entity elects to early adopt ASU 2021-04 in an interim period, the guidance should be applied as of the beginning of the fiscal year that includes that interim period. The Company adopted this guidance and this guidance did not have a material impact on the consolidated financial statements. Except for the above-mentioned pronouncements, there are no new recent issued accounting standards that will have material impact on the consolidated financial statements. |
Variable Interest Entity
Variable Interest Entity | 12 Months Ended |
Dec. 31, 2021 | |
Variable Interest Entity | |
Variable Interest Entity | Note 3 – Variable Interest Entity Before August 3, 2021, Tantech BVI controls certain entities through a series of agreements known as variable interest agreements (“VIE”). Wangbo, Shangchi Automobile and its subsidiary, Shenzhen Yimao, are controlled through contractual arrangements in lieu of direct equity ownership by the Company. These agreements include an Exclusive Management Consulting and Technology Agreement, two Equity Pledge Agreements, two Exclusive Call Option Agreements, two Proxy Agreements and two Powers of Attorney (collectively “VIE Agreements”). Pursuant to the above VIE Agreements, Jiamu has the exclusive right to provide Wangbo consulting services related to business operations including technical and management consulting services. All the above contractual agreements obligate Jiamu to absorb a majority of the risk of loss from Wangbo’s activities and entitle Jiamu to receive a majority of their residual returns. In essence, Jiamu has gained effective control over Wangbo. Wangbo owns 51% and Jiyi owns 19% of Shangchi Automobile respectively. A third party owns 30% of Shangchi automobile. In accordance with accounting standards regarding consolidation of variable interest entities, VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability. The VIEs with which the Company is involved must be evaluated to determine the primary beneficiary of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes. Therefore, the Company believes that Wangbo should be considered as a Variable Interest Entity (“VIE”) under the Statement of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810 “Consolidation”. Jiamu is deemed to have a controlling financial interest in and be the primary beneficiary of Wangbo because it has both of the following characteristics: ● The power to direct activities at Wangbo that most significantly impact such entity’s economic performance, and ● The obligation to absorb losses of, and the right to receive benefits from Wangbo that could potentially be significant to such entity. Pursuant to the contractual arrangements with Wangbo, Wangbo pays service fees equal to 95% of its net profit after tax payments to Jiamu. At the same time, Jiamu is obligated to absorb a majority of Wangbo’s losses. Such contractual arrangements are designed so that the operation of Wangbo is for the benefit of Jiamu and ultimately, the Company. Note 3 – Variable Interest Entity (continued) Risks associated with the VIE structure The Company believes that the contractual arrangements with its VIE and the VIE’s shareholders are in compliance with PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could: ● revoke the business and operating licenses of the Company’s PRC subsidiary and VIE; ● discontinue or restrict the operations of any related-party transactions between the Company’s PRC subsidiary and VIE; ● limit the Company’s business expansion in China by way of entering into contractual arrangements; ● impose fines or other requirements with which the Company’s PRC subsidiary and VIE may not be able to comply; ● require the Company or the Company’s PRC subsidiary and VIE to restructure the relevant ownership structure or operations; or ● restrict or prohibit the Company’s use of the proceeds from public offering to finance the Company’s business and operations in China. The Company’s ability to conduct its business through its VIE may be negatively affected if the PRC government were to carry out of any of the aforementioned actions. As a result, the Company may not be able to consolidate its VIE and its VIE’s subsidiary in its consolidated financial statements as it may lose the ability to exert effective control over the VIE and its shareholders and it may lose the ability to receive economic benefits from the VIE. The Company, however, does not believe such actions would result in the liquidation or dissolution of the Company, its PRC subsidiary and its VIE. Dismantling VIE structure On August 3, 2021, the Company completed dismantling its VIE structure and began controlling Wangbo, Shangchi Automobile and its subsidiary, Shenzhen Yimao, through direct equity ownership instead of a series of contractual arrangements. After the VIE was dismantled, the Company indirectly owns 100% of Wangbo. Wangbo and Jiyi keep owning 51% and 19% of Shangchi Automobile respectively. A third party keeps owning 30% of Shangchi Automobile. Note 3 – Variable Interest Entity (continued) The following assets and liabilities of the consolidated VIE were included in the accompanying consolidated balance sheets of the Company as of December 31, 2021 and 2020, after elimination of intercompany balances: December 31, December 31, 2021 2020 Current assets Cash and cash equivalents $ — $ 206,893 Restricted cash — 220,109 Accounts receivable, net — — Prepaid taxes — 1,045,027 Inventories, net — 301,607 Advances to suppliers, net — 333,010 Prepaid expenses and other receivables, net — 37,104 Total Current Assets 2,143,750 Non-current assets Property, plant and equipment, net — 1,157,803 Manufacturing rebate receivable — 5,755,237 Intangible assets, net — 462,279 Total Assets $ — $ 9,519,069 Current liabilities Bank acceptance notes payable $ — $ 220,109 Accounts payable — 1,207,623 Customer deposits — 381,623 Taxes payable — 369 Due to related parties — 892,590 Accrued liabilities and other payables — 350,928 Total Current Liabilities — 3,053,242 Total Liabilities $ — $ 3,053,242 |
Liquidity
Liquidity | 12 Months Ended |
Dec. 31, 2021 | |
Liquidity | |
Liquidity | Note 4 — Liquidity In fiscal 2021, the Company had a significantly growth in bamboo related products which generated revenue of $53.4 million from its consumer product segment. In addition, two subsidiaries focus on developing and manufacturing of smart electric sanitation vehicles also generated revenue of $1.9 million from Electric Vehicle (the “EV”) segment. However, the Company had incurred approximately $8.1 million research and development costs on its smart electric sanitation vehicles designed to be used in industrial parks and residential communities. The Company also recorded 100% allowance of total $5.8 million manufacturing rebate receivable due to the fact that there is remote possibility to successfully claim the manufacturing rebate under the newly implemented government policy (see Note 8). These costs offset the increase of the revenues and gross profit in fiscal 2021. Therefore, for the year ended December 31, 2021, the Company incurred continuous loss and had negative cash flows from its operations. In fiscal 2021, the Company successfully completed two equity financings which resulted in net proceeds of $19.4 million. In addition, the Company obtained net proceeds of $9.1 million and $5.6 million from equity financings in November 2020 and September 2017, respectively. As a result, the Company had approximately $43.1 million cash on hand as of December 31, 2021. Although the Company maintains a positive working capital as of December 31, 2021, the future operations of the Company depend on whether or not the Company can successfully collect its accounts receivable and utilize its advances, as well as how the change of government policies affect its EV business. The Company currently plans to fund its operations mainly through renewal of bank borrowings, additional equity financing and the continuing financial support by its shareholders and its affiliates controlled by its principal shareholder, if necessary, in the near future to ensure sufficient working capital. The Company has implemented a stricter policy on sales to supermarkets and less credible customers and continues to improve its collection efforts on accounts with outstanding balances. The Company is actively working with its customers and suppliers and expects to fully collect outstanding accounts receivables or utilize the rest of prepayment balance in 2022. The Company plans to fund the EV segment through additional private placement and continued support from the parent company. The principal shareholder of the Company, along with the affiliated entity, Forasen Group, has agreed to provide financial support to the Company whenever necessary. Based on its current operating plan, management believes that the above-mentioned measures collectively will provide sufficient liquidity for the Company to meet its future liquidity and capital requirements for at least next twelve months from the date of this report. |
Accounts receivable
Accounts receivable | 12 Months Ended |
Dec. 31, 2021 | |
Accounts receivable | |
Accounts receivable | Note 5 – Accounts Receivable Accounts receivable consisted of the following: December 31, December 31, 2021 2020 Accounts receivable $ 48,680,634 $ 38,110,487 Allowance for doubtful accounts (3,717,708) (3,699,890) Accounts receivable, net $ 44,962,926 $ 34,410,597 The movement of allowance for doubtful accounts are as follows: December 31, December 31, 2021 2020 Balance at beginning of period $ 3,699,890 $ 5,731,281 Change of allowance for doubtful accounts (53,436) (895,043) Write off (15,631) (1,523,489) Translation adjustments 86,885 387,141 Balance at end of period $ 3,717,708 $ 3,699,890 |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2021 | |
Inventory | |
Inventory | Note 6 – Inventory Inventory consisted of the following: December 31, December 31, 2021 2020 Raw materials $ 542,062 $ 489,750 Finished products 231,836 53,223 Work in process 295,800 128,278 Total Inventory $ 1,069,698 $ 671,251 For the years ended December 31, 2021, 2020 and 2019, the Company recorded inventory markdown in the amounts of $359,501, $92,064 and $1,030,236, respectively. |
Advances to suppliers
Advances to suppliers | 12 Months Ended |
Dec. 31, 2021 | |
Advances to suppliers | |
Advances to suppliers | Note 7 – Advances to Suppliers December 31, December 31, 2021 2020 Advances to suppliers $ 3,459,374 $ 7,033,556 Allowance for doubtful accounts (38,746) (179,095) Advances to suppliers, net $ 3,420,628 $ 6,854,461 The movement of allowance for doubtful accounts are as follows: December 31, December 31, 2021 2020 Balance at beginning of period $ 179,095 $ 1,517,017 Change of allowance for doubtful accounts (144,549) (400,436) Write off (5) (1,039,958) Translation adjustments 4,205 102,472 Balance at end of period $ 38,746 $ 179,095 |
Manufacturing rebate receivable
Manufacturing rebate receivable | 12 Months Ended |
Dec. 31, 2021 | |
Manufacturing rebate receivable | |
Manufacturing rebate receivable | Note 8 – Manufacturing Rebate Receivable On September 13, 2013, the Chinese Ministry of Finance, the Chinese Ministry of Science and Technology, the Chinese Ministry of Industry and Information Technology, and the Chinese National Development and Reform Commission issued a joint announcement that in order to promote the development, sale and use of alternative energy vehicles, Chinese government will continue to provide a manufacturing rebate for qualifying alternative energy vehicles sold. The government manufacturing rebates are typically provided to eligible alternative energy automobile manufacturers after sales are finalized and paperwork regarding the eligible mileages is submitted. Based on the criteria, Shangchi Automobile (formerly known as Suzhou E-Motors) was eligible for government manufacturing rebates and had $5,755,237 as manufacturing rebate receivable as of December 31, 2020. In 2021, the Chinese Ministry of Finance, the Chinese Ministry of Science and Technology, the Chinese Ministry of Industry and Information Technology, and the Chinese National Development and Reform Commission implemented a new policy which requires the minimum number of alternative energy vehicles for manufacturing rebate application shall be 10,000 for passenger vehicles and 1,000 for commercial use vehicles. The Company determined that there is remote possibility to successfully claim the manufacturing rebate under the newly implemented policy. As a result, the Company recorded 100% allowance against the manufacturing rebate receivable as of December 31, 2021. |
Property, plant and equipment,
Property, plant and equipment, net | 12 Months Ended |
Dec. 31, 2021 | |
Property, plant and equipment, net | |
Property, plant and equipment, net | Note 9 – Property, Plant and Equipment, net Property, plant and equipment stated at cost less accumulated depreciation consisted of the following: December 31, December 31, 2021 2020 Building $ 5,228,347 $ 5,631,049 Machinery and Production equipment 1,307,356 1,311,624 Electronic equipment 203,305 193,912 Office equipment 48,440 38,524 Automobiles 545,006 545,008 Construction in progress 343,401 133,339 Subtotal 7,675,855 7,853,456 Less: Accumulated depreciation (5,571,908) (5,375,544) Property, plant and equipment, net $ 2,103,947 $ 2,477,912 Depreciation expense was $444,462, $436,427 and $703,113 for the years ended December 31, 2021, 2020 and 2019, respectively, among which $444,462, $436,427 and $462,639 were for continuing operations, respectively. As of December 31, 2021 and 2020, building with net book value of $588,063 and $895,742 respectively, were pledged as collateral for bank loans (Note 12). |
Intangible assets, net
Intangible assets, net | 12 Months Ended |
Dec. 31, 2021 | |
Intangible assets, net | |
Intangible assets, net | Note 10 – Intangible Assets, net December 31, December 31, 2021 2020 Software $ 30,838 $ 25,957 Land use rights* 314,456 307,241 Patents 4,707,000 4,599,000 Subtotal 5,052,294 4,932,198 Less: Accumulated amortization (4,846,323) (4,268,165) Intangible assets, net $ 205,971 $ 664,033 *There is no private ownership of land in China. Land is usually owned by the local government and the government grants land use rights for specified terms. The Company acquired land use rights from the local government in December 2002 for period of 50 years. As of December 31, 2021 and 2020, land use rights with net book value of $200,204 and $201,755, respectively, were pledged as collateral for bank loans (Note 12). Amortization expense for intangible assets totaled $472,140, $441,489 and $459,898 for the years ended December 31, 2021, 2020 and 2019, respectively, among which $472,140, $441,489 and $441,489 were for continuing operations, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases | |
Leases | Note 11 – Leases Effective January 1, 2019, the Company adopted ASC 842, the new lease accounting standard using a modified retrospective transition method which allowed the Company not to recast comparative periods presented in its consolidated financial statements. In addition, the Company elected the package of practical expedients, which allowed the Company to not reassess whether any existing contracts contain a lease, to not reassess historical lease classification as operating or finance leases, and to not reassess initial direct costs. The Company has not elected the practical expedient to use hindsight to determine the lease term for its leases at transition. The Company combines the lease and non-lease components in determining the ROU assets and related lease obligation. Adoption of this standard resulted in the recording of operating lease ROU assets and corresponding operating lease liabilities as disclosed below and had no impact on retained earnings as of December 31, 2021. ROU assets and related lease obligations are recognized at commencement date based on the present value of remaining lease payments over the lease term. Supplemental balance sheet information related to operating leases was as follows: December 31, 2021 Right-of-use assets, net $ 313,172 Operating lease liabilities - current $ 115,330 Operating lease liabilities - non-current 223,291 Total operating lease liabilities $ 338,621 The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of December 31, 2021: Remaining lease term and discount rate: Weighted average remaining lease term (years) 3.10 Weighted average discount rate 4.50 % The following is a schedule of maturities of lease liabilities as of December 31, 2021: Twelve months ending December 31, 2022 $ 104,589 2023 144,916 2024 98,246 2025 14,121 Total future minimum lease payments 361,872 Less: imputed interest 23,251 Total $ 338,621 |
Short-term bank loans
Short-term bank loans | 12 Months Ended |
Dec. 31, 2021 | |
Loans Payable [Member] | |
Short-term Debt [Line Items] | |
Short-term bank loans | Note 12 – Short-term Bank Loans The Company’s short-term bank loans consist of the following: December 31, December 31, 2021 2020 Loan payable to Bank of China Lishui Branch $ 2,679,852 $ 2,958,690 Loan payable to Shanghai Pudong Development (“SPD”) Bank Lishui Branch 2,039,700 2,606,100 Total $ 4,719,552 $ 5,564,790 On July 2, 2021, Tantech Charcoal entered into a short-term loan agreement with Bank of China (Lishui Branch) to borrow approximately $2,679,852 (RMB 17,080,000) for six months with fixed annual interest rate of 4.65%. The purpose of the loan was for purchasing bamboo charcoal materials. The loan was collateralized by building and land use right of Tantech Bamboo with maximum guaranteed amount up to approximately $4.1 million (RMB25,960,000). The loan was also guaranteed by two related parties, Lishui Jiuanju Commercial Trade Co., Ltd. (“LJC”), and Forasen Group Co., Ltd., one unrelated third party, Zhejiang Meifeng Tea Industry Co., Ltd., and other three related individuals, Zhengyu Wang, Chairman of the Board and previous CEO of the Company, his wife, Yefang Zhang, and his relative, Aihong Wang. The loan was renewed for one year from December 22, 2021 with fixed annual interest rate of 4.5%. On April 7, 2021, Tantech Bamboo entered into a short-term loan agreement with SPD Bank (Lishui Branch) to borrow $ 2,510,400 (RMB 16 million) for one year with fixed annual interest rate of 5.65%. The purpose of the loan was to fund working capital needs. The loan was guaranteed by three related parties, Zhengyu Wang and his wife, Yefang Zhang and Forasen Group Co., Ltd., a company owned by Zhengyu Wang and Yefang Zhang. The loan was also collateralized by building and land use right of Tantech Energy with maximum guaranteed amount up to approximately $4.6 million (RMB29,250,000). The Company repaid $470,700 (RMB 3.0 million) as required during years ended December 31, 2021. The company further repaid $ 156,900 (RMB 1 million) subsequently. And the remaining loan was subsequently renewed for another year with new maturity date of March 30, 2023, at a fixed annual interest rate of 3.90%. The renewed loan was guaranteed by one more unrelated third party, Lishui Zhongyun Mitai Industrial Co., Ltd. As of December 31, 2021, total bank loans payable amounted to $4,719,552. On July 9, 2020, Tantech Charcoal entered into a short-term loan agreement with Bank of China (Lishui Branch) to borrow $2,958,690 (RMB 19,300,000) for one year with fixed annual interest rate of 4.85%. The purpose of the loan was for purchasing bamboo charcoal materials. The loan was collateralized by building and land use right of Tantech Bamboo with maximum guaranteed amount up to approximately $4.0 million (RMB25,960,000). The loan was also guaranteed by two related parties, Lishui Jiuanju Commercial Trade Co., Ltd. (“LJC”), and Forasen Group Co., Ltd., one unrelated third party, Zhejiang Meifeng Tea Industry Co., Ltd., and other three related individuals, Zhengyu Wang, Chairman of the Board and previous CEO of the Company, his wife, Yefang Zhang, and his relative, Aihong Wang. The loan was fully repaid upon its maturity in July 2021. On April 27, 2020, Tantech Bamboo entered into a short-term loan agreement with SPD Bank (Lishui Branch) to borrow $2,912,700 (RMB 19 million) for one year with fixed annual interest rate of 4.785%. The purpose of the loan was to fund working capital needs. The loan was guaranteed by three related parties, Zhengyu Wang and his wife, Yefang Zhang and Forasen Group Co., Ltd., a company owned by Zhengyu Wang and Yefang Zhang. The loan was also collateralized by building and land use right of Tantech Energy with maximum guaranteed amount up to approximately $4.5 million (RMB29,250,000). The Company repaid $306,600 (RMB 2 million) as required in fiscal year 2020. The loan was fully repaid upon its maturity by April 2021. On January 6, 2020, Tantech Bamboo entered into a short-term loan agreement with Bank of China (Lishui Branch) to borrow $2,725,674 (RMB 17.78 million) for six months with annual interest rate of 5.88%. The purpose of the loan was to fund working capital needs. The loan was collateralized by building and land use right of Tantech Bamboo with maximum guaranteed amount up to approximately $4.0 million (RMB25,960,000). The loan was also guaranteed by three related parties, Zhengyu Wang, Chairman of the Board and previous CEO of the Company and his wife, Yefang Zhang and LJC, a related party, the president of which was also the present CEO and previous COO of the Company. The Company repaid the loan upon maturity. Note 12 – Short-term Bank Loans (continued) On January 6, 2020, Tantech Charcoal entered into a short-term loan agreement with Bank of China (Lishui Branch) to borrow $1,533,000 (RMB 10 million) for six months with annual interest rate of 4%. The purpose of the loan was for working capital needs. The loan was guaranteed by Tantech Bamboo, two individual related parties, Zhengyu Wang and Yefang Zhang and an unrelated third party, Zhejiang Meifeng Tea Industry Co., Ltd. The loan was also collateralized by two properties owned by Zhengyu Wang and Yefang Zhang and building and land use right of Tantech Bamboo with maximum guaranteed amount up to approximately $1.5 million (RMB 10 million). The Company repaid the loan upon maturity. As of December 31, 2020, total bank loans payable amounted $ 5,564,790. For the years ended December 31, 2021, 2020 and 2019, the interest expense related to bank loans was $265,248, $300,125 and $421,646, respectively. |
Bank acceptance notes payable
Bank acceptance notes payable | 12 Months Ended |
Dec. 31, 2021 | |
Notes Payable to Banks [Member] | |
Bank acceptance notes payable | Note 13 – Bank Acceptance Notes Payable Bank acceptance notes payable do not carry a stated interest rate but have a specific due date usually for a period of up to one year. These notes are negotiable documents issued by or guaranteed by financial institutions on the Company’s behalf to vendors. These notes can either be endorsed by the vendor to other third parties as payment or can be factored to other financial institutions before becoming due. These notes are short-term in nature. As collateral security for financial institutions’ undertakings, the Company is required to maintain deposits with such financial institutions in restricted cash amounts of 0% to 100% of the balances of the bank acceptance notes. As of December 31, 2020, deposits of $220,109 were reported as restricted cash on balance sheet. Bank acceptance notes payable consisted of the following: December 31, December 31, 2021 2020 Bank acceptance notes payable issued by Zhang Jiagang Rural Commercial Bank (a) $ — $ 220,109 Commercial acceptance notes payable guaranteed by SPD Bank Lishui Branch (b) — 1,533,000 Total $ — $ 1,753,109 (a) Bank acceptance notes payable of $220,109 (RMB 1,435,805 ) issued by Zhang Jiagang Rural Commercial Bank with due dates from February 10, 2021 to March 29, 2021. The Company is required to maintain restricted cash deposits at 100% of the notes payable with the bank, in order to ensure future credit availability. These notes were fully paid upon maturity and restricted deposit was also released upon the payments. (b) Commercial acceptance notes payable of $1,533,000 (RMB 10,000,000 ) issued by Tantech Bamboo and guaranteed by SPD Bank Lishui Branch with due date on April 19, 2021. The Company is required to maintain restricted cash deposits at 100% of the notes payable with the bank, in order for the bank to make guarantee for the notes and ensure the availability for future credit. A related party, Zhejiang Xinsen Industrial Co., Ltd. (“Zhejiang Xinsen”), made collateral for this commercial acceptance notes payable on behalf of Tantech Bamboo with a one -year term deposit of approximately $1,533,000 (RMB 10,000,000 ), which has a due date of April 21, 2021. The note was fully paid upon maturity by Zhejiang Xinsen on behalf of Tantech Bamboo. |
Related Party Balances and Tran
Related Party Balances and Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Balances and Transactions | |
Related Party Balances and Transactions | Note 14 – Related Party Balances and Transactions Due from a related party In October 2021, an aggregated of $10,354,051 (RMB65,991,404) funds was transferred to an Entrusted Bank Account under Mr. Zhengyu Wang, the Chairman and previous CEO of the Company, for general business-related purpose. Both the fund balance of $10,354,051 (or RMB65,991,404) and the related banking interest of $144,851 (or RMB923,079) were transferred back to the Company by April 6, 2022 and the funds was under full custody and control by the Company's treasurer during the above period. Due to related parties The balances due to related parties were as follows: December 31, December 31, 2021 2020 Mr. Hengwei Chen and his affiliates * $ 902,141 $ 881,442 Forasen Group and its affiliates, controlled by Mr. Zhengyu Wang, Chairman and previous CEO of the Company until December 6, 2019 806,556 1,058,188 Mr. Wangfeng Yan, the CEO of the Company since December 7, 2019 and his affiliates 138,724 79,457 Total $ 1,847,421 $ 2,019,087 *Mr. Hengwei Chen was the former general manager of Shangchi Automobile (formerly known as Suzhou E-Motors). The Company acquired 70% equity interest in Shangchi Automobile and issued 2,500,000 restricted shares of Tantech’s common stock the Henglong Chen in connection with the acquisition of Shangchi Automobile. As of December 31, 2021 and 2020, the amount due to Mr. Hengwei Chen and his affiliates were $902,141 and $881,442, respectively. As of December 31, 2021 and 2020, the Company borrowed $806,556 and $1,058,188 from Forasen Group and its affiliates, controlled by Mr. Zhengyu Wang, Chairman and previous CEO of the Company, for working capital purpose. Mr. Wangfeng Yan, the CEO of the Company, and his affiliates, also made advances to the Company. The balance due to Mr. Wangfeng Yan and his affiliates was $138,724 and $79,457 as of December 31, 2021 and 2020, respectively. All balances of due to the related parties were unsecured, interest-free and due upon demand. The Company’s major shareholder Mr. Zhengyu Wang, his wife Ms. Yefang Zhang and his relative Ms. Aihong Wang, as well as related party entities controlled by Mr. Wang, and LJC the company controlled by the CEO, Mr. Wangfeng Yan provided guarantees to the Company’s bank loans (Note 12). Advance to vendor – related party During the year ended December 31, 2020, the Company paid $3,089,690 (RMB20,154,532) to LJC, a company controlled by the CEO, Mr. Wangfeng Yan, to purchase bamboo charcoal materials. As of December 31, 2020, the Company received materials of $1,556,690 (RMB 10,154,532 with tax), the remaining advance of $1,533,000 (RMB 10 million) was returned by the vendor in March 2021. Disposal of fixed asset to related party On July 29, 2021, Tantech Bamboo entered into a sales agreement with Xigema Holding Hangzhou Co., Ltd. (“Xigema”) to sale part of its real property for an amount of approximately $0.8 million (RMB4,923,564). Xigema is controlled by Aihong Wang, who is a relative of Mr. Zhengyu Wang. Lease arrangement with related party On July 6, 2020, Tantech Bamboo signed a lease agreement with Zhejiang Forasen Food Co., Ltd. (“Forasen Food”) to lease part of its production facilities of approximately 1,914 square meters to Forasen Food for ten years with monthly rent of approximately $5,900 (RMB38,280). Forasen Food is controlled by Ms. Yefang Zhang who is the director of the Company. For the year ended December 31, 2021, the Company recorded rent income of $68,540 from Forasen Food. This lease agreement was terminated on July 13, 2021. Note 14 – Related Party Balances and Transactions (continued) On July 13, 2021, Tantech Bamboo signed a lease agreement with Zhejiang Nongmi Food Co., Ltd. (“Nongmi Food”) to lease part of its production facilities of approximately 1,180 square meters to Nongmi Food for ten years with monthly rent of approximately $2,400 (RMB15,338). Nongmi Food is controlled by Ms. Yefang Zhang who is the director of the Company. For the years ended December 31, 2021, the Company recorded rent income of $13,086 from Nongmi Food. On July 13, 2021, Tantech Bamboo signed a lease agreement with Zhejiang Nongmi Biotechnology Co., Ltd. (“Nongmi Biotechnology”) to lease part of its production facilities of approximately 1,914 square meters to Nongmi Biotechnology for ten years with monthly rent of approximately $5,900 (RMB38,280). Nongmi Biotechnology is controlled by Ms. Yefang Zhang who is the director of the Company. For the years ended December 31, 2021, the Company recorded rent income of $36,332 from Nongmi Biotechnology. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 15 – Commitments and Contingencies Guaranty provided for related party In July 2017, Tantech Energy provided a guarantee with SPD Bank Lishui Branch on behalf of Forasen Group for maximum amount of approximately $9.0 million (RMB57,070,000) by pledging certain land and building as the collateral for the loan and notes. The guarantee expired on July 23, 2020. In July 2020, Tantech Bamboo provided a guarantee with Bank of China Lishui Branch for Forasen Food for maximum amount of approximately $1.6 million (RMB10 million) by pledging certain land and building as the collateral for the loan and notes. The guarantee will expire on July 8, 2023. Forasen Food is controlled by Ms. Yefang Zhang who is the Company’s director. Operating leases Shangchi Automobile leased certain factory facilities under operating leases through August 9, 2021. The annual rent under operating lease agreement was approximately $155,000 (RMB 1 million). On August 10, 2021, Shangchi Automobile renewed the operating lease agreement with the landlord for one year until August 9, 2022 with annual rent of approximately $155,000 (RMB 1 million). Shenzhen Yimao leased office space under operating leases for one year from November 12, 2018 to November 11, 2019 with annual rent of approximately $14,500 (RMB93,600). The lease agreement was renewed for another year until November 11, 2020. On November 20, 2020, Shenzhen Yimao signed a new operating lease agreement for office space for one year from November 23, 2020 to November 22, 2021 with annual rent of approximately $6,900 (RMB 44,352). On January 17, 2022, the lease agreement was renewed for another year until January 16, 2023. Tantech Bamboo leased factory facilities and office space from Tantech Energy after Tantech Energy was sold in July 2019 under operating leases until December 31, 2019. This agreement was renewed for another year from January 1, 2020 to December 31, 2020 with annual rent of approximately $192,000 (RMB1,238,784). On December 2020, the Company renewed the above agreement for another year to December 31, 2021. On December 10, 2021, Tantech Charcoal and Tantech Energy signed a new lease agreement for ten years from January 1, 2022 to December 31, 2031 with annual rent of approximately $192,000 (RMB1,238,784). The rental expense for the years ended December 31, 2021, 2020 and 2019 were $427,493, $299,562 and $167,526, respectively. Note 15 – Commitments and Contingencies (continued) Contingencies In May 2018, the Company’s wholly owned subsidiary Tantech Bamboo signed a guarantee agreement with other co-guarantors to jointly and severally guarantee the share repurchase obligation of Forasen Group, in favor of an unrelated third party. Such third party filed a complaint to claim a payment of approximately $4.6 million (RMB 29.50 million) against Forasen Group, together with the guarantors on January 9, 2019. On August 30, 2019, the court issued a settlement by which another third party agreed to purchase the shares from the plaintiff by paying approximately $14.1 million (RMB 90 million), and all the co-guarantors including Tantech Bamboo jointly and severally guarantee the payment obligation regarding the $14.1 million (RMB 90 million) and other possible fees, for three years from June 30, 2020, the due date of the share purchase payment obligation. On June 11, 2021, a new settlement agreement was reached by all parties. As of the settlement date, total payment obligation increased to approximately $16.5 million (RMB 105.36 million) due to accrued interest for unpaid portion. The accused third party has paid approximately $5.6 million (RMB 35.86 million) and approximately $10.9 million (RMB 69.50 million) remains unpaid including accrued interest. As of the date of this filing, all outstanding payments were fully paid by the accused third party and dispute was settled. On March 23, 2021, Mr. Hengwei Chen filed a lawsuit against Shangchi Automobile and the Company for a debt dispute of approximately $1.8 million (RMB 11.35 million). Mr. Chen was the former general manager of Shangchi Automobile before the Company acquired Shangchi Automobile in 2017. On December 15, 2021, the court ordered Shangchi Automobile to pay Mr. Hengwei Chen approximately $1.4 million (RMB 8.95 million). The Company filed an appeal on January 4, 2022. This case is still in appeal period as of the date of this filing. The Company has recorded the disputed amount and further accrued interest of $0.5 million (RMB3.5 million) in the accrued liabilities based on the best estimate of the management and the Company’s legal counsel as of December 31, 2021. The court also extended an order to freeze total cash of $422,832 until March 22, 2022 which was recorded as restricted cash as of December 31, 2021. |
Stockholders' equity
Stockholders' equity | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' equity | |
Stockholders' equity | Note 16 – Stockholders’ Equity On March 23, 2020, the Company issued 35,592 (split-adjusted 3,559) common shares to an individual for consulting services provided for the period from September 2019 to February 2020, which were valued at $33,812 based on the quoted market price at issuance. On November 24, 2020, the Company completed an offering of 6,060,608 (split-adjusted 606,061 On May 18, 2021, the Company issued 1,600,000 (split-adjusted 160,000) common shares to its employees under the Company’s 2014 Share Incentive Plan, which were valued at $1.84 million based on the quoted market price at issuance. On June 7, 2021, the Company completed an offering of 5,380,000 (split-adjusted 538,000) common shares at an offering price of $1.30 (split-adjusted $13.00) per share for total net proceeds of $6,939,000 after deducting legal costs related to the offering. On July 15, 2021, the Company increased its authorized shares from 50,000,000 (split-adjusted 5,000,000) to 600,000,000 (split-adjusted 60,000,000) shares. On December 6, 2021, the Company completed an offering of 21,120,509 (split-adjusted 2,112,051) common shares at an offering price of $0.65 (split-adjusted $6.50) per share for total net proceeds of $12,423,706 after deducting legal costs related to the offering. Note 16 – Stockholders’ Equity (continued) September 2017 Offering Warrants In connection with the offering closed in September 2017, the Company registered and issued warrants to purchase an aggregate of 1,078,045 (split-adjusted 107,804) common shares, consisting of 945,654 (split-adjusted 94,565) common shares exercisable underlying investor warrants and 132,391 (split-adjusted 13,239) common shares exercisable underlying placement agent warrants. All warrants carry a term of 5 years. The initial exercise price of the investor warrants and the placement agent warrants was $4.25 (split-adjusted $42.5) per share and $4.675 (split-adjusted $46.75) per share, respectively. The investor warrants can be exercisable immediately as of the date of issuance. The placement agent warrants are not exercisable for a period of 180 days after the effective date of the offering. A holder of the warrants also will have the right to exercise its warrants on a cashless basis if the registration statement or prospectus contained therein is not available for the issuance of the common shares issuable upon exercise thereof. The exercisability of the warrants may be limited if, upon exercise, the holder or any of its affiliates would beneficially own more than 4.99% of the Company’s common shares. During the year ended December 31, 2020, 944,655 (split-adjusted 94,465) common shares were issued upon excise of investor warrants at $0.001 (split-adjusted $0.01) per share. The exercise price of such warrants was reduced from $4.25 (split-adjusted $42.5) per share to $0.001 (split-adjusted $0.01) per share by virtue of the Company’s entry into a securities purchase agreement on November 20, 2020. November 2020 Offering Warrants In connection with and upon closing of the offering on November 24, 2020, the Company issued registered warrants to purchase up to 2,754,820 (split-adjusted 275,482) common shares and unregistered warrants to purchase up to 3,305,788 (split-adjusted 330,579) common shares. Such registered and unregistered warrants are immediately exercisable, expire five years from the date of issuance and have an exercise price of $1.81 (split-adjusted $18.10) per share. The placement agent also received unregistered warrants in connection with this offering exercisable for up to 363,637 (split-adjusted 36,364) common shares at $1.815 (split-adjusted $18.15) per share, exercisable between May 24, 2021 to November 24, 2023. Management determined that these warrants meet the requirements for equity classification under ASC 815-40 because they are indexed to its own stock. The warrants were recorded at their fair value on the date of issuance as a component of shareholders’ equity. As of December 31, 2021, the total number of common shares underlying registered and unregistered warrants outstanding was 6,557,635 (split-adjusted 655,764). These warrants have weighted average of remaining life of 3.73 years and weighted average exercise price of $1.87 (split-adjusted $18.70). Share Consolidation On February 24, 2022, the Company’s Board approved a share consolidation of the Company’s common shares at the ratio of one As a result of the share consolidation, each 10 common shares outstanding automatically combines and converts to one issued and outstanding common share without any action on the part of the shareholder. The share consolidation reduces the number of common shares issued outstanding one All share information included in the consolidated financial statements and notes thereto have been retroactively adjusted for the one |
Noncontrolling Interests
Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2021 | |
Noncontrolling Interests | |
Noncontrolling Interests | Note 17 – Noncontrolling Interests A reconciliation of non-controlling interest as of December 31, 2021 and 2020 is as follows: December 31, December 31, 2021 2020 Beginning Balance $ 638,846 $ 4,346,216 Proportionate shares of net loss (2,334,853) (3,501,808) Foreign currency translation adjustment (28,620) (205,562) Total $ (1,724,627) $ 638,846 As of December 31, 2021 and 2020, the noncontrolling interests balances represented the noncontrolling shareholder’s 30% equity interests in Shangchi Automobile (formerly known as Suzhou E-Motors) and its subsidiary Shenzhen Yimao. |
Long term investments
Long term investments | 12 Months Ended |
Dec. 31, 2021 | |
Long term investments | |
Long term investments | Note 18 – Long Term Investments On January 10, 2018, the Company invested approximately $18.8 million (or RMB 120 million) to acquire 18% equity interest in Libo Haokun Stone Co., Ltd. (“Libo Haokun”). Libo Haokun holds a government-issued permit and has the exclusive right to mine a 0.11-square-kilometer marble quarry in the central area of Guizhou province, China. Libo Haokun obtained the permit to mine the quarry from the local government in September 2016. The permit was renewed in July 2020 and is further renewable by July 2023. On November 29, 2019, the Company entered into an investment agreement (the “Investment Agreement”) with Jingning Zhonggang Mining Co., Ltd. (“Jingning Zhonggang”) through Lishui Tantech to acquire 18% of the equity interest of Fuquan Chengwang Mining Co., Ltd. (“Fuquan Chengwang”), a wholly-owned subsidiary of Jingning Zhonggang, at a price of $7.3 million (RMB46.32 million). The consideration equals 18% of RMB257.35 million, the value of the mining right under a permit being renewed by Fuquan Chengwang according to an evaluation report. Fuquan Chengwang is a basalt mining company. Pursuant to the Investment Agreement, Tantech is obligated to pay the consideration within 30 days after Fuquan Chengwang completes the recording process with the local industrial and commerce administration for transfer of the share ownership. Pursuant to the Investment Agreement, after the transfer of the 18% share ownership, if the value of Fuquan Chengwang is lower than RMB257.35 million according to the financial statements audited by an accounting firm approved by the Tantech, Jingning Zhonggang will be obligated to refund to Tantech the overpaid amount. The payment could be in the form of cash, shares, or other assets with the same value, as selected by Tantech. After a series of transactions and reorganization, as of December 31, 2019, the Company and Jingning Zhonggang owns 18% and 82% of Libo Haokun, respectively, through Jingning Meizhongkuang Industry Co., Ltd. (“Jingning Meizhongkuang”). Jingning Meizhongkuang owns 100% of Fuquan Chengwang. The Agreements would enable Tantech to indirectly hold a 18% stake in Fuquan Chengwang through holding 18% of the equity interest of Jingning Meizhongkuang. On April 3, 2020, Lishui Ansheng Energy Technology Co., a third party, signed an investment agreement with Jingning Meizhongkuang to invest in Fuquan Chengwang by paying $7.3 million (RMB 46.5 million) to exchange 18% of the interest of Fuquan Chengwang. After the transaction, the Company’s indirect interest in Fuquan Chengwang was diluted from 18% to 14.76% through holding 18% of the equity interest of Jingning Meizhongkuang. Fuquan Chengwang received the renewed mining permit in March 2021, and expiration date is March 2024. The mining permit provides it the right to mine a 0.2607-square-kilometer basalt quarry in Fuquan City, Guizhou Province, China. As the Company did not have significant influence over the equity investees, the investments were accounted for using the cost method. For the year ended December 31, 2021, 2020 and 2019, the Company did not recognize any impairment losses for the long-term investments. |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Taxes | |
Taxes | Note 19 – Taxes Prepaid taxes Prepaid taxes as of December 31, 2021 and 2020 consist of the following: December 31, December 31, 2021 2020 Prepaid value-added tax $ 1,609,466 $ 1,046,667 Total $ 1,609,466 $ 1,046,667 Taxes Payable Taxes payable as of December 31, 2021 and 2020 consist of the following: December 31, December 31, 2021 2020 Corporation income tax payable $ 578,445 $ 415,488 Other tax payable 245,256 155,866 Total $ 823,701 $ 571,354 Corporation Income Tax (“CIT”) Tantech BVI was incorporated in the BVI and is not subject to income taxes under the current laws of BVI. USCNHK and Euroasia are holding companies registered in Hong Kong and has no operating profit for tax liabilities. The Group’s subsidiaries in the PRC are subject to the statutory rate of 25%, in accordance with the Enterprise Income Tax law (the “EIT Law”), which was effective since January 1, 2008 Tantech Bamboo was registered in the PRC and is subject to corporate income tax at a reduced rate of 15% starting from 2008 when it was approved by local government as a high-tech company. Tantech Bamboo did not renew the high-tech certificate for fiscal 2020 and subject to corporate tax rate of 25% for the year 2020. Shangchi Automobile was approved by local government as a high–tech company on December 7, 2017 and renewed on December 2, 2020, which valid for three calendar years of 2020 to 2022. Shangchi Automobile was subject to income tax rate of 15%. The following table reconciles PRC statutory rates to the Company’s effective tax rates for the years ended December 31, 2021, 2020 and 2019: Years ended December 31, 2021 2020 2019 Statutory PRC income tax rate 25 % 25 % 25 % Favorable tax rate impact (17) % (14) % (11) % Permanent difference and others 1 % (5) % 4 % Changes of deferred tax assets valuation allowances (38) % 0 % (22) % Total (29) % 6 % (4) % Note 19 – Taxes (continued) The income tax expense (credit) consisted of the following: Years ended December 31, 2021 2020 2019 Current $ 2,429,480 $ 1,188,136 $ 529,162 Deferred — (1,799,791) (165,500) Total $ 2,429,480 $ (611,655) $ 363,662 Significant components of deferred tax assets and liabilities are as follows: December 31, December 31, 2021 2020 Deferred tax assets: Allowance for doubtful accounts and other markdown and impairments $ 7,622,322 $ 4,464,601 Valuation allowance (7,622,322) (4,464,601) Total $ — $ — Deferred tax liability: Increase in fair value of intangible assets acquired through acquisition $ 2,129,517 $ 1,905,442 Impairment of intangible assets acquired through acquisition (2,129,517) (1,905,442) Total $ — $ — At December 31, 2021 and 2020, the Company has provided full valuation allowance for deferred tax assets that the Company estimated the Company could not realize due to expected future operating loss in certain entities. As of December 31, 2021 and 2020, the valuation allowance was $7,622,322 and $4,464,601, respectively. The Company’s management reviews this valuation allowance periodically and makes adjustments as necessary. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Information | |
Segment Information | Note 20 – Segment Information The Company uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. Due to business strategic changes, the Company merged consumer products segment and trading segment. As a result, the Company has determined that it has two operating segments as defined by ASC 280, “Segment Reporting”: consumer products and electric vehicles (“EV”). Consumer products segment manufactures, sell and trade Charcoal Doctor branded products and BBQ charcoal in China. The EV segment was acquired in July 2017. Management, including the chief operating decision maker, reviews operation results of consumer products and electric vehicles separately. Note 20 – Segment Information (continued) Adjustments and eliminations of inter-company transactions were not included in determining segment (loss) profit, as they are not used by the chief operating decision maker. The following table presents summary information by segment for the years ended December 31, 2021, 2020 and 2019, respectively. Consumer product EV Total 2021 2020 2019 2021 2020 2019 2021 2020 2019 Revenue from external customers $ 53,411,271 $ 41,899,677 $ 49,200,868 $ 1,852,402 $ 383,993 $ 29,702 $ 55,263,673 $ 42,283,670 $ 49,230,570 Cost of revenue 43,427,306 37,411,824 42,409,429 1,405,041 395,473 843,641 44,832,347 37,807,297 43,253,070 Gross profit 9,983,965 4,487,853 6,791,439 447,361 (11,480) (813,939) 10,431,326 4,476,373 5,977,500 Interest expenses 265,248 300,125 427,379 475,152 — 15,883 740,400 300,125 443,262 Depreciation & amortization 271,536 244,601 276,170 645,066 633,315 627,958 916,602 877,916 904,128 Capital expenditure 11,417 2,489 6,787,833 213,111 142,317 12,106 224,528 144,806 6,799,939 Segment assets 128,727,344 106,775,636 91,431,857 5,799,714 9,519,609 24,018,920 134,527,058 116,295,245 115,450,777 Segment profit $ 4,810,563 $ 2,216,371 $ 2,346,477 $ (15,503,545) $ (12,238,599) $ (12,005,760) $ (10,692,982) $ (10,022,228) $ (9,659,283) All of the Company’s long-lived assets are located in the PRC. Geographic information about the revenues, which are classified based on customers, is set out as follows: Years ended December 31 2021 2020 2019 Revenue from China $ 55,263,673 $ 42,283,670 $ 49,230,570 Revenue directly from foreign countries — — — Total Revenue $ 55,263,673 $ 42,283,670 $ 49,230,570 |
Major Customers and Suppliers
Major Customers and Suppliers | 12 Months Ended |
Dec. 31, 2021 | |
Major Customers and Suppliers | |
Major Customers and Suppliers | Note 21 – Major Customers and Suppliers The Company had certain customers whose revenue individually represented 10% or more of the Company’s total revenue, or whose accounts receivable balances individually represented 10% or more of the Company’s total accounts receivable, as follows: For the year ended December 31, 2021, four major customers accounted for approximately 21%, 19%, 19% and 13% of the Company’s total sales, respectively. For the year ended December 31, 2020, five major customers accounted for approximately 28%, 20%, 14%, 12% and 10% of the Company’s total sales, respectively. For the year ended December 31, 2019, six major customers accounted for approximately 19%, 19%, 18%, 17%, 13% and 12% of the Company’s total sales, respectively. As of December 31, 2021, four customers accounted for approximately 29%,26%, 25% and 12% of the Company’s accounts receivable balance. As of December 31, 2020, four customers accounted for approximately 32%, 22%, 21% and 20% of the Company’s accounts receivable balance. The Company also had certain major suppliers whose purchases individually represented 10% or more of the Company’s total purchases. For the year ended December 31, 2021, two major suppliers accounted for approximately 46% and 19% of the Company’s total purchases, respectively. For the year ended December 31, 2020, two major suppliers accounted for approximately 53% and 17% of the Company’s total purchases, respectively. For the year ended December 31, 2019, three major suppliers accounted for approximately 38%, 20% and 18% of the Company’s total purchases, respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events | |
Subsequent Events | Note 22 – Subsequent Events Share Consolidation On February 24, 2022, the Company’s Board approved a share consolidation of the Company’s common shares at the ratio of one-for-ten As a result of the share consolidation, each 10 common shares outstanding automatically combines and converts to one issued and outstanding common share without any action on the part of the shareholder. The share consolidation reduces the number of common shares issued and outstanding from 63,994,606 to 6,399,460. The authorized number of common shares will be reduced by the same one Public Offering On March 18, 2022, the Company closed a public offering of 20,000,000 common shares and prefunded warrants to purchase common shares at a price of $0.50 per common share (the “Offering”). The gross proceeds to the Company were approximately $10.0 million, before deducting underwriting discounts and commissions and other estimated expenses payable by the Company. In addition, the Company granted the underwriters a 45-day option to purchase an additional 15% of common shares at the public offering price to cover over-allotments, if any (the “Over-allotment Option”). On March 22, 2022, the underwriter of the Offering had exercised its Over-allotment Option to purchase an additional 2,880,000 common shares at a price of $0.50 per common share. Total gross proceeds to the Company from the Offering, including the proceeds received from the prior closing and the exercise of the Over-allotment Option, were approximately $11.4 million, before deducting underwriting discounts, commissions, and other offering expenses payable by the Company. NASDAQ Notice On April 28, 2022 and May 18, 2022, the Company received notification letters (the “Notice”) from NASDAQ advising the Company that for 30 consecutive business days preceding the date of the Notice, the bid price of the Company’s common shares had closed below the $1.00 per share minimum required for continued listing on The NASDAQ Capital Market pursuant to the Minimum Bid Price Rule. The Company was provided until November 14, 2022 to regain compliance with the Minimum Bid Price Rule. Incorporation of New Entity On May 19, 2022, the Company formed a wholly-owned subsidiary, EPakia Inc. (“EPakia”), under the laws of the State of Delaware. Based in the Mid-Atlantic region of the United States, EPakia will be primarily focused on developing biodegradable packaging business in the United States and the international markets. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of significant accounting policies | |
Principal of Consolidation | Principal of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The consolidated financial statements include the financial statements of Tantech BVI and its subsidiaries (collectively, the “Company”). All significant inter-company balances and transactions are eliminated upon consolidation. |
Non-controlling interest | Non-controlling interest Non-controlling interest represents 30% of the equity interest in Shangchi Automobile and its subsidiary Shenzhen Yimao owned by Zhangjiagang Jinke Chuangtou Co., Ltd., which is not under the Company’s control. |
Use of Estimates | Use of Estimates In preparing the consolidated financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting year. Significant items subject to such estimates and assumptions include the fair value estimates used in the useful lives of property and equipment and intangible assets, allowances pertaining to the allowance for doubtful accounts of accounts receivable, advance to suppliers and other receivables, the valuation of inventories, the impairment of long-lived assets, and the realizability of deferred tax assets. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, “Fair Value Measurements”, defines fair value, establishes a three-level valuation hierarchy for fair value measurements and enhances disclosure requirements. The three levels are defined as follows: Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data. Level 3 - inputs to the valuation methodology are unobservable. Unless otherwise disclosed, the fair value of the Company’s financial instruments including cash, restricted cash, accounts receivable, advances to suppliers, other receivables, accounts payable, customer deposits, accrued expenses, short term bank loans and bank acceptance notes payable approximates their recorded values due to their short-term maturities. |
Cash and cash equivalents | Cash and cash equivalents For purposes of the statements of cash flows, the Company considers all highly liquid instruments purchased with an original maturity of three months or less and money market accounts to be cash equivalents. All cash balances are in bank accounts in PRC and are not insured by the Federal Deposit Insurance Corporation or other programs. |
Restricted Cash | Restricted Cash For the year ended December 31, 2020, restricted cash represents the cash of $220,109 required deposits as a part of collateral for bank acceptance notes payable and letters of credit. The Company is required to maintain 0% to 100% of the balance of the bank acceptance notes payable in restricted cash to ensure future credit availability. The Company earns interest at a variable rate per month on this restricted cash. For the year ended December 31, 2021, the Company’s restricted cash represents the cash of $422,832 remains frozen in the bank accounts of one of the Company’s subsidiaries as the result of the ongoing lawsuit filed by Mr. Hengwei Chen to against the Company (see Note 15). |
Concentrations of credit risk | Concentrations of credit risk Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash, trade accounts receivable and advances to suppliers. All of the Company’s cash is maintained with banks within the People’s Republic of China of which no deposits are covered by insurance. The Company has not experienced any losses in such accounts. A significant portion of the Company’s sales are credit sales which are primarily to customers whose ability to pay is dependent upon the industry economics prevailing in these areas. The Company also makes cash advances to certain suppliers to ensure the stable supply of key raw materials. The Company performs ongoing credit evaluations of its customers and key suppliers to help further reduce credit risk. |
Accounts receivable | Accounts receivable Accounts receivable are presented at invoiced amount net of an allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts for estimated losses. The Company reviews its accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, customer’s payment history, its current credit-worthiness and current economic trends. Accounts are written off after efforts at collection prove unsuccessful. |
Inventory | Inventory The Company values its inventories at the lower of cost, determined on a weighted average basis, or net realizable value. The Company reviews its inventories periodically to determine if any markdown is necessary for potential obsolescence or if a write-down is necessary if the carrying value exceeds net realizable value. |
Advances to suppliers | Advances to suppliers In order to ensure a steady supply of raw materials, the Company is required from time to time to make cash advances when placing its purchase orders. The Company reviews its advances to suppliers on a periodic basis and makes general and specific allowances when there is doubt as to the ability of a supplier to refund an advance or provide supplies to the Company. |
Property and Equipment and Construction in Progress | Property and Equipment and Construction in Progress Property and equipment are stated at cost less accumulated depreciation. The cost of an asset comprises its purchase price and any directly attributable costs of bringing the asset to its present working condition and location for its intended use. Note 2 – Summary of Significant Accounting Policies (continued) Depreciation is computed on a straight-line basis over the estimated useful lives of the related assets. The estimated useful lives for significant property and equipment are as follows: Buildings 20 years Machinery and equipment 5 - 10 years Transportation equipment 4 - 5 years Office equipment 4 - 5 years Electronic equipment 3 - 5 years Repairs and maintenance costs are normally charged to earnings in the year in which they are incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefits expected to be obtained from the use of the asset, the expenditure is capitalized as an additional cost of the asset. Construction in progress includes direct costs of construction or acquisition of equipment, interest expense associated with the loans used for the construction and design fees incurred. Capitalization of these costs ceases and the construction in progress is transferred to plant and equipment when substantially all the activities necessary to prepare the assets for their intended use are completed. No depreciation is provided until it is completed and ready for its intended use. |
Intangible assets | Intangible assets Intangible assets are acquired individually or as part of a group of assets, and are initially recorded at cost. The cost of a group of assets acquired in a transaction is allocated to the individual assets based on their relative fair values. Intangible assets are carried at cost less accumulated amortization and any recorded impairment. Intangible assets with finite useful lives are amortized using a straight-line method over the period of estimated useful life. The estimated useful lives of the Company’s intangible assets are as follows: Estimated Useful Life Licenses and permits Indefinite Software 5 - 10 years Land use right 50 years Patents 10 years The Company evaluates intangible assets for impairment whenever events or changes in circumstances indicate that the assets might be impaired. |
Long term investments | Long term investments The Company accounts for investment in equity investees over which it has significant influence but does not own a majority of the equity interest or lack of control using the equity method. For investment in equity investees over which the Company does not have significant influence or the underlying shares the Company invested in are not considered in-substance common stock and have no readily determinable fair value, the cost method accounting is applied. The Company records the equity method investments at historical cost and subsequently adjusts the carrying amount each period for share of the earnings or losses of the investee and other adjustments required by the equity method of accounting. Dividends received from the equity method investments are recorded as reductions in the cost of such investments. The Company records the cost method investments at historical cost and subsequently record any dividends received from the net accumulated earnings of the investee as income. Dividends received in excess of earnings are considered a return of investment and are recorded as reductions in the cost of the investments. Note 2 – Summary of Significant Accounting Policies (continued) Investment in equity investees are evaluated for impairment when facts or circumstances indicate that the fair value of the investment is less than its carrying value. An impairment is recognized when a decline in fair value is determined to be other-than-temporary. The Company reviews several factors to determine whether a loss is other-than-temporary. These factors include, but are not limited to, the: (i) nature of the investment; (ii) cause and duration of the impairment; (iii) extent to which fair value is less than cost; (iv) financial condition and near term prospects of the investments; and (v) ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company evaluates its long-lived assets for impairment whenever events or changes in circumstances, such as a significant adverse change to market conditions that will impact the future use of the assets, indicate that the carrying amount of an asset may not be fully recoverable. When these events occur, the Company evaluates the recoverability of long-lived assets by comparing the carrying amount of the assets to the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Company recognizes an impairment loss based on the excess of the carrying amount of the assets over their fair value. Fair value is generally determined by discounting the cash flows expected to be generated by the assets, when the market prices are not readily available. |
Customer Deposits | Customer Deposits Customer deposits represent amounts received from customers in advance of shipments relating to the sales of the Company’s products. |
Loan Payable to Third Parties | Loan Payable to Third Parties Loan payable to third parties represent amounts the Company borrowed from third parties for working capital purpose. As of December 31, 2021, the balance amounted $7,002,385, the balances are unsecured with interest rate 6% per annum and with one year term from December 17, 2021 to December 16, 2022. If the Company fails to repay the debt, the Company shall pay the third parties for the liquidated damages at the rate of thousandths of the amount in arrears per day, and also compensate the legal costs, execution fees, etc. incurred in realizing the creditor’s rights. As of December 31, 2020, the balance amounted $306,600, the balance is unsecured, interest-free and due upon demand. |
Leases | Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases (Topic 842). The standard requires lessees to recognize lease assets and lease liabilities on the balance sheet and requires expanded disclosures about leasing arrangements. The new standard establishes a right-of-use model (“ROU”) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. The Company adopted ASC 842 on January 1, 2019 on a modified retrospective basis and elected the practical expedients permitted under the transition guidance, which allows the Company to carryforward the historical lease classification, the assessment on whether a contract is or contains a lease, and the initial direct costs for any leases that exist prior to adoption of the new standard. Leases with an initial term of 12 months or less are not recognized on the balance sheet and the associated lease payments are included in the consolidated statements of comprehensive income (loss) on a straight-line basis over the lease term. The standard did not materially impact our consolidated net earnings and cash flows. |
Revenue Recognition | Revenue Recognition The Company adopted ASC Topic 606 Revenue from Contracts with Customers (“ASC 606”) on January 1, 2018 using the modified retrospective approach. There is no adjustment to the opening balance of retained earnings at January 1, 2018 since there was no change to the timing and pattern of revenue recognition upon adoption of ASC 606. Under ASC 606, revenue is recognized when control of promised goods or services is transferred to the Company’s customers in an amount of consideration to which an entity expects to be entitled to in exchange for those goods or services. The Company’s revenues are primarily derived from the following sources: Sales of products: The Company recognizes sales revenue, net of sales taxes and estimated sales returns, at the time the product is delivered to the customer and control is transferred (point of sale). For the Company’s electric vehicles sales contracts, the Company provides a warranty for 12 months from the products are delivered. The Company determines such product warranty is an assurance-type warranty and is not a separated performance obligation in revenue recognition, because the nature of warranty is to provide assurance that a product will function as expected and in accordance with customer’s specification. The Company estimates the warranty costs when the promised good is delivered to the customer and accrues as warranty liabilities. Commission income: The Company acts as an agent without assuming the risks and rewards of ownership of the goods and reports the revenue on a net basis. Revenue is recognized based on the completion of the contracted service. Government manufacturing rebate income: The Company sells electric vehicles in China and is eligible for a government manufacturing rebate on each qualifying electric vehicle sold. The government manufacturing rebates are recognized as part of revenue when sales are finalized, amount of rebates can be reasonably estimated and collection is assured. The collectability of rebates can be assured as long as the sales are deemed qualifying based on the criteria set by the government. Revenue is reported net of all value added taxes. The Company does not routinely permit customers to return products and historically, customer returns have been immaterial. |
Cost of Revenues | Cost of Revenues Cost of revenues includes cost of raw materials purchased, inbound freight cost, cost of direct labor, depreciation expense and other overhead. Write-down of inventory for lower of cost or net realizable value adjustments is also recorded in cost of revenues. |
Shipping and Handling | Shipping and Handling Shipping and handling costs are expensed as incurred and included in selling expenses. |
Subsidy Income | Subsidy Income The Company periodically receives various government grants such as “High Technology Projects Subsidy” and “Scientific Research Grant”. There is no guarantee the Company will continue to receive such grants in the future. |
Foreign Currency Translation | Foreign Currency Translation The Company’s financial information is presented in U.S. dollars. The functional currency of the Company’s subsidiaries in the PRC is the RMB, the currency of the PRC. Any subsidiary transactions, which are denominated in currencies other than RMB, are translated into RMB at the exchange rate quoted by the People’s Bank of China prevailing at the dates of the transactions, and exchange gains and losses are included in the statements of comprehensive income (loss) as foreign currency transaction gain or loss. The consolidated financial statements of the Company have been translated into U.S. dollars in accordance with ASC 830, “Foreign Currency Matters”. The financial information is first prepared in RMB and then is translated into U.S. dollars at period-end exchange rates for assets and liabilities and average exchange rates for revenue and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred. The effects of foreign currency translation adjustments are included as a component of accumulated other comprehensive income in stockholders’ equity. Cash flows from the Company’s operations are calculated based upon the local currencies using the average translation rate. As a result, amounts related to assets and liabilities reported on the statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets. The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report: December 31, 2021 December 31, 2020 December 31, 2019 US$: RMB exchange rate Period End $ 0.1569 Period End $ 0.1533 Period End $ 0.1436 Average $ 0.1550 Average $ 0.1448 Average $ 0.1448 |
Research and development costs | Research and development costs Research and development expenses include costs directly attributable to the conduct of research and development projects, including the cost of salaries and other employee benefits, testing expenses, consumable equipment and consulting fees prior to the establishment of technological feasibility. All costs associated with research and development are expensed as incurred. |
Comprehensive Income (loss) | Comprehensive Income (loss) Comprehensive income (loss) consists of two components, net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under GAAP are recorded as an element of stockholders’ equity but are excluded from net income (loss). Other comprehensive income (loss) consists of foreign currency translation adjustment from those subsidiaries not using the U.S. dollar as their functional currency. |
Income Taxes | Income Taxes The Company’s subsidiaries in China are subject to the income tax laws of the PRC. No taxable income was generated outside the PRC as of December 31, 2021. The Company accounts for income taxes in accordance with ASC 740, “Income Taxes”. ASC 740 requires an asset and liability approach for financial accounting and reporting for income taxes and allows recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or future deductibility is uncertain. ASC 740-10-25 prescribes a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. It also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, years open for tax examination, accounting for income taxes in interim periods and income tax disclosures. The statute of limitation on the PRC tax authority’s audit or examination of previously filed tax returns expires three years from the date they were filed. There were no material uncertain tax positions as of December 31, 2021 and 2020. |
Value Added Tax ("VAT") | Value Added Tax (“VAT”) The Company is subject to VAT for selling merchandise. The applicable VAT rate is 11% or 13% or 17% (depending on the type of goods involved) for products sold in the PRC. The applicable VAT rate of 17% and 11% decreased to 16% and 10% starting from May 2018, and further decreased to 13% and 9% from April 1, 2019. The amount of VAT liability is determined by applying the applicable tax rate to the invoiced amount of goods sold (output VAT) less VAT paid on purchases made with the relevant supporting invoices (input VAT). Under the commercial practice of the PRC, the Company pays VAT based on tax invoices issued. The tax invoices may be issued subsequent to the date on which revenue is recognized, and there may be a considerable delay between the date on which the revenue is recognized and the date on which the tax invoice is issued. In the event the PRC tax authorities dispute the date on which revenue is recognized for tax purposes, the PRC tax office has the right to assess a penalty based on the amount of taxes which is determined to be late or deficient, with any penalty being expensed in the period when a determination is made by the tax authorities that a penalty is due. During the reporting periods, the Company had no dispute with PRC tax authorities and there was no tax penalty incurred. |
Earnings (loss) per Share ("EPS") | Earnings (loss) per Share (“EPS”) The Company computes earnings (loss) per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”), and SEC Staff Accounting Bulletin No. 98 (“SAB 98”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. As of December 31, 2021 and 2020, the total number of registered and unregistered warrants outstanding both was 6,557,635 (split-adjusted 655,764). For the years ended December 31, 2021, 2020 and 2019, no warrants were included in the diluted income (loss) per share as they would be anti-dilutive. |
Statement of Cash Flows | Statement of Cash Flows In accordance with ASC 230, “Statement of Cash Flows,” cash flows from the Company’s operations are calculated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets. |
Risks and Uncertainties | Risks and Uncertainties The operations of the Company are located in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by the political, economic, and legal environments in the PRC, in addition to the general state of the PRC economy. The Company’s operating results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. The Company’s sales, purchases and expense transactions are denominated in RMB, and primarily all of the Company’s assets and liabilities are also denominated in RMB. The RMB is not freely convertible into foreign currencies under the current law. In China, foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China, the central bank of China. Remittances in currencies other than RMB may require certain supporting documentation in order to affect the remittance. Note 2 – Summary of Significant Accounting Policies (continued) The Company does not carry any business interruption insurance, products liability insurance or any other insurance policy except for a limited property insurance policy. As a result, the Company may incur uninsured losses, increasing the possibility that investors would lose their entire investment in the Company. |
COVID-19 | COVID-19 The Company’s operations were affected by the recent and ongoing outbreak of the coronavirus disease 2019 (COVID-19) which in March 2020, was declared a pandemic by the World Health Organization. The COVID-19 outbreak is causing lockdowns, travel restrictions, and closures of businesses. The Company’s business has been negatively impacted by the COVID-19 coronavirus outbreak to certain extent in fiscal 2020. From late January 2020 to the middle of February 2020, the Company had to temporarily suspend our manufacturing activities due to government restrictions. During the temporary business closure period, our employees had very limited access to our manufacturing facilities and the shipping companies were not available and as a result, the Company experienced difficulty delivering our products to the customers on a timely basis. In addition, due to the COVID-19 outbreak, some of the customers or suppliers may experience financial distress, delay or default on their payments, reduce the scale of their business, or suffer disruptions in their business due to the outbreak. Any increased difficulty in collecting accounts receivable, delayed raw materials supply, bankruptcy of small and medium businesses, or early termination of agreements due to deterioration in economic conditions could negatively impact our results of operations. As of the date of this filing, the COVID-19 coronavirus outbreak in China appears to be controlled and most provinces and cities have resumed business activities under the guidance and support of the government. In light of the current situation, the Company believes that the impact of the COVID-19 outbreak on the business is both temporary and limited, and that the revenues have started growing again in fiscal 2021. However, there is still significant uncertainty regarding the possibility of another wave of infections, and the breadth and duration of business disruptions related to COVID-19, which could continue to have material impact to the Company’s operations. |
Recent accounting pronouncements | Recent accounting pronouncements The Company considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued. In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes” (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 will simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The Company adopted this guidance and this guidance did not have a material impact on the consolidated financial statements. Note 2 – Summary of Significant Accounting Policies (continued) 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) (“ASU 2020-01”), which is intended to clarify the interaction of the accounting for equity securities under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. ASU 2020-01 is effective for the Company beginning January 1, 2021. The Company adopted this guidance and this guidance did not have a material impact on the consolidated financial statements. In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt — Modifications and Extinguishments (Subtopic 470-50), Compensation — Stock Compensation (Topic 718), and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options (“ASU 2021-04”). ASU 2021-04 provides guidance as to how an issuer should account for a modification of the terms or conditions or an exchange of a freestanding equity-classified written call option (i.e., a warrant) that remains classified after modification or exchange as an exchange of the original instrument for a new instrument. An issuer should measure the effect of a modification or exchange as the difference between the fair value of the modified or exchanged warrant and the fair value of that warrant immediately before modification or exchange and then apply a recognition model that comprises four categories of transactions and the corresponding accounting treatment for each category (equity issuance, debt origination, debt modification, and modifications unrelated to equity issuance and debt origination or modification). ASU 2021-04 is effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. An entity should apply the guidance provided in ASU 2021-04 prospectively to modifications or exchanges occurring on or after the effective date. Early adoption is permitted for all entities, including adoption in an interim period. If an entity elects to early adopt ASU 2021-04 in an interim period, the guidance should be applied as of the beginning of the fiscal year that includes that interim period. The Company adopted this guidance and this guidance did not have a material impact on the consolidated financial statements. Except for the above-mentioned pronouncements, there are no new recent issued accounting standards that will have material impact on the consolidated financial statements. |
Organization and nature of bu_2
Organization and nature of business (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization and nature of business | |
Schedule of details of subsidiaries of Company and principal business activities | Date of Place of % of Principal Name of Entity Incorporation Incorporation Ownership Activities Tantech Holdings Ltd (“Tantech” or “Tantech BVI”) November 9, 2010 BVI Parent Holding Company USCNHK Group Limited (“USCNHK”) October 17, 2008 Hong Kong 100% by the Parent Holding Company EAG International Vantage Capitals Limited (“Euroasia”) April 27, 2015 Hong Kong 100% by the Parent Holding Company Tantech Holdings (Lishui) Co. Ltd. (“Lishui Tantech”) April 7, 2016 Lishui, Zhejiang Province, China 100% by USCNHK Holding Company Euroasia New Energy Automotive (Jiangsu) Co. Ltd. (“Euroasia New Energy”) October 24, 2017 Zhangjia Gang, Jiangsu Province, China 100% by Euroasia Holding Company Shanghai Jiamu Investment Management Co., Ltd (“Jiamu”) July 14, 2015 Shanghai, China 100% by Euroasia Holding Company Hangzhou Wangbo Investment Management Co., Ltd (“Wangbo”) February 2, 2016 Hangzhou, Zhejiang Province, China 100% by Jiamu Holding Company Hangzhou Jiyi Investment Management Co., Ltd (“Jiyi”) February 2, 2016 Hangzhou, Zhejiang Province, China 100% by Jiamu Holding Company Shangchi Automobile Co., Ltd. (“Shangchi Automobile”) Acquired on July 12, 2017 Zhangjia Gang, Jiangsu Province, China 51% by Wangbo and 19% by Jiyi Manufacturing and sale of specialty electric and non-electric vehicles and power batteries Shenzhen Yimao New Energy Sales Co., Ltd. (“Shenzhen Yimao”) November 13, 2018 Shenzhen, Guangdong Province, China 100% by Shangchi Automobile Electric vehicles sales Lishui Xincai Industrial Co., Ltd. (“Lishui Xincai”) December 14, 2017 Lishui, Zhejiang Province, China 100% by Lishui Tantech Holding Company Zhejiang Tantech Bamboo Charcoal Co., Ltd. (“Tantech Charcoal”) September 5, 2002 Lishui, Zhejiang Province, China 100% by Lishui Xincai Manufacturing, selling and trading various products made from bamboo and charcoal Lishui Jikang Energy Technology Co., Ltd. (“Jikang Energy”) January 2, 2020 Lishui, Zhejiang Province, China 100% by Lishui Xincai Holding Company Hangzhou Tanbo Tech Co., Ltd. (“Tanbo Tech”) December 8, 2015 Hangzhou, Zhejiang Province, China 100% by Lishui Xincai Exploring business opportunities outside Lishui area Zhejiang Tantech Bamboo Technology Co., Ltd. (“Tantech Bamboo”) December 31, 2005 Lishui, Zhejiang Province, China 100% by Jikang Energy Manufacturing and sale of various products made from bamboo Zhejiang Shangchi New Energy Automobile Co., Ltd. (“Zhejiang Shangchi”) November 12, 2020 Lishui, Zhejiang Province, China 100% by Lishui Tantech Sales of automobiles Lishui Smart New Energy Automobile Co., Ltd. (“Lishui Smart”) November 16, 2020 Lishui, Zhejiang Province, China 100% by Lishui Tantech Research, development and manufacturing new energy automobiles Gangyu Trading (Jiangsu) Co., Ltd. (“Gangyu Trading”) August 10, 2021 Zhangjiagang Jiangsu Province, China 100% by Euroasia New Energy Marketing and selling electric vehicles Shangchi (Zhejiang) Intelligent Equipment Co., Ltd. (“Shangchi Intelligent Equipment”) August 26, 2021 Pinghu Zhejiang Province, China 100% by Euroasia Manufacturing and sales company focusing on new energy vehicles Shanghai Wangju Industrial Group Co., Ltd. (“Shanghai Wangju”) September 23, 2021 Shanghai, China 100% by Jiamu Investing in the factoring industry Eurasia Holdings (Zhejiang) Co., Ltd. (“Eurasia Holdings”) July 15, 2021 Hangzhou Zhejiang province, China 100% by Euroasia Marketing and selling electric vehicles Hangzhou Eurasia Supply Chain Co., Ltd. (“Eurasia Supply”) August 4 2021 Hangzhou Zhejiang province, China 100% by Eurasia Holdings Supply chain business Zhejiang Shangchi Medical Equipment Co., Ltd. (“Shangchi Medical”) November 13, 2021 Pinghu Zhejiang Province, China 100% by Shangchi Intelligent Equipment Manufacturing and sales company focusing on new energy vehicles Shenzhen Shangdong Trading Co., Ltd. (“Shenzhen Shangdong”) July 13, 2016 Shenzhen Guangdong Province, China 100% by Shanghai Wangju Investing in the factoring industry China East Trade Co., Ltd. (“China East”) February 15, 2018 Hong Kong 100% by Euroasia Investing in the factoring industry First International Commercial Factoring (Shenzhen) Co., Ltd. (“First International”) July 27, 2017 Shenzhen Guangdong Province, China 75% by Shenzhen Shangdong 25% by China East Investing in the factoring industry |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of significant accounting policies | |
Schedule of estimated useful lives for significant property and equipment | Buildings 20 years Machinery and equipment 5 - 10 years Transportation equipment 4 - 5 years Office equipment 4 - 5 years Electronic equipment 3 - 5 years |
Schedule of estimated useful lives of intangible assets | Estimated Useful Life Licenses and permits Indefinite Software 5 - 10 years Land use right 50 years Patents 10 years |
Schedule of currency exchange rates that were used in creating the consolidated financial statements | December 31, 2021 December 31, 2020 December 31, 2019 US$: RMB exchange rate Period End $ 0.1569 Period End $ 0.1533 Period End $ 0.1436 Average $ 0.1550 Average $ 0.1448 Average $ 0.1448 |
Variable Interest Entity (Table
Variable Interest Entity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Variable Interest Entity | |
Schedule of variable interest entities | December 31, December 31, 2021 2020 Current assets Cash and cash equivalents $ — $ 206,893 Restricted cash — 220,109 Accounts receivable, net — — Prepaid taxes — 1,045,027 Inventories, net — 301,607 Advances to suppliers, net — 333,010 Prepaid expenses and other receivables, net — 37,104 Total Current Assets 2,143,750 Non-current assets Property, plant and equipment, net — 1,157,803 Manufacturing rebate receivable — 5,755,237 Intangible assets, net — 462,279 Total Assets $ — $ 9,519,069 Current liabilities Bank acceptance notes payable $ — $ 220,109 Accounts payable — 1,207,623 Customer deposits — 381,623 Taxes payable — 369 Due to related parties — 892,590 Accrued liabilities and other payables — 350,928 Total Current Liabilities — 3,053,242 Total Liabilities $ — $ 3,053,242 |
Accounts receivable (Tables)
Accounts receivable (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of accounts receivable | December 31, December 31, 2021 2020 Accounts receivable $ 48,680,634 $ 38,110,487 Allowance for doubtful accounts (3,717,708) (3,699,890) Accounts receivable, net $ 44,962,926 $ 34,410,597 |
Accounts Receivable [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of allowance for doubtful accounts | The movement of allowance for doubtful accounts are as follows: December 31, December 31, 2021 2020 Balance at beginning of period $ 3,699,890 $ 5,731,281 Change of allowance for doubtful accounts (53,436) (895,043) Write off (15,631) (1,523,489) Translation adjustments 86,885 387,141 Balance at end of period $ 3,717,708 $ 3,699,890 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory | |
Schedule of inventory | December 31, December 31, 2021 2020 Raw materials $ 542,062 $ 489,750 Finished products 231,836 53,223 Work in process 295,800 128,278 Total Inventory $ 1,069,698 $ 671,251 |
Advances to suppliers (Tables)
Advances to suppliers (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Advances to suppliers [Line Items] | |
Schedule of advances to suppliers | December 31, December 31, 2021 2020 Advances to suppliers $ 3,459,374 $ 7,033,556 Allowance for doubtful accounts (38,746) (179,095) Advances to suppliers, net $ 3,420,628 $ 6,854,461 |
Advances To Suppliers [Member] | |
Advances to suppliers [Line Items] | |
Schedule of allowance for doubtful accounts | December 31, December 31, 2021 2020 Balance at beginning of period $ 179,095 $ 1,517,017 Change of allowance for doubtful accounts (144,549) (400,436) Write off (5) (1,039,958) Translation adjustments 4,205 102,472 Balance at end of period $ 38,746 $ 179,095 |
Property, plant and equipment_2
Property, plant and equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, plant and equipment, net | |
Schedule of property, plant and equipment | December 31, December 31, 2021 2020 Building $ 5,228,347 $ 5,631,049 Machinery and Production equipment 1,307,356 1,311,624 Electronic equipment 203,305 193,912 Office equipment 48,440 38,524 Automobiles 545,006 545,008 Construction in progress 343,401 133,339 Subtotal 7,675,855 7,853,456 Less: Accumulated depreciation (5,571,908) (5,375,544) Property, plant and equipment, net $ 2,103,947 $ 2,477,912 |
Intangible assets, net (Tables)
Intangible assets, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Intangible assets, net | |
Schedule of intangible assets, net | December 31, December 31, 2021 2020 Software $ 30,838 $ 25,957 Land use rights* 314,456 307,241 Patents 4,707,000 4,599,000 Subtotal 5,052,294 4,932,198 Less: Accumulated amortization (4,846,323) (4,268,165) Intangible assets, net $ 205,971 $ 664,033 *There is no private ownership of land in China. Land is usually owned by the local government and the government grants land use rights for specified terms. The Company acquired land use rights from the local government in December 2002 for period of 50 years. As of December 31, 2021 and 2020, land use rights with net book value of $200,204 and $201,755, respectively, were pledged as collateral for bank loans (Note 12). |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases | |
Schedule of Supplemental balance sheet information related to operating leases | December 31, 2021 Right-of-use assets, net $ 313,172 Operating lease liabilities - current $ 115,330 Operating lease liabilities - non-current 223,291 Total operating lease liabilities $ 338,621 |
Schedule of weighted average remaining lease terms and discount rates | Remaining lease term and discount rate: Weighted average remaining lease term (years) 3.10 Weighted average discount rate 4.50 % |
Schedule of maturities of lease liabilities | Twelve months ending December 31, 2022 $ 104,589 2023 144,916 2024 98,246 2025 14,121 Total future minimum lease payments 361,872 Less: imputed interest 23,251 Total $ 338,621 |
Short-term bank loans (Tables)
Short-term bank loans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Short-term bank loans | |
Schedule of Short-term bank loans | December 31, December 31, 2021 2020 Loan payable to Bank of China Lishui Branch $ 2,679,852 $ 2,958,690 Loan payable to Shanghai Pudong Development (“SPD”) Bank Lishui Branch 2,039,700 2,606,100 Total $ 4,719,552 $ 5,564,790 |
Bank acceptance notes payable (
Bank acceptance notes payable (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Bank acceptance notes payable | |
Schedule of Bank acceptance notes payable | December 31, December 31, 2021 2020 Bank acceptance notes payable issued by Zhang Jiagang Rural Commercial Bank (a) $ — $ 220,109 Commercial acceptance notes payable guaranteed by SPD Bank Lishui Branch (b) — 1,533,000 Total $ — $ 1,753,109 (a) Bank acceptance notes payable of $220,109 (RMB 1,435,805 ) issued by Zhang Jiagang Rural Commercial Bank with due dates from February 10, 2021 to March 29, 2021. The Company is required to maintain restricted cash deposits at 100% of the notes payable with the bank, in order to ensure future credit availability. These notes were fully paid upon maturity and restricted deposit was also released upon the payments. (b) Commercial acceptance notes payable of $1,533,000 (RMB 10,000,000 ) issued by Tantech Bamboo and guaranteed by SPD Bank Lishui Branch with due date on April 19, 2021. The Company is required to maintain restricted cash deposits at 100% of the notes payable with the bank, in order for the bank to make guarantee for the notes and ensure the availability for future credit. A related party, Zhejiang Xinsen Industrial Co., Ltd. (“Zhejiang Xinsen”), made collateral for this commercial acceptance notes payable on behalf of Tantech Bamboo with a one -year term deposit of approximately $1,533,000 (RMB 10,000,000 ), which has a due date of April 21, 2021. The note was fully paid upon maturity by Zhejiang Xinsen on behalf of Tantech Bamboo. |
Related Party Balances and Tr_2
Related Party Balances and Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Balances and Transactions | |
Schedule of balances due to related parties | December 31, December 31, 2021 2020 Mr. Hengwei Chen and his affiliates * $ 902,141 $ 881,442 Forasen Group and its affiliates, controlled by Mr. Zhengyu Wang, Chairman and previous CEO of the Company until December 6, 2019 806,556 1,058,188 Mr. Wangfeng Yan, the CEO of the Company since December 7, 2019 and his affiliates 138,724 79,457 Total $ 1,847,421 $ 2,019,087 *Mr. Hengwei Chen was the former general manager of Shangchi Automobile (formerly known as Suzhou E-Motors). The Company acquired 70% equity interest in Shangchi Automobile and issued 2,500,000 restricted shares of Tantech’s common stock the Henglong Chen in connection with the acquisition of Shangchi Automobile. As of December 31, 2021 and 2020, the amount due to Mr. Hengwei Chen and his affiliates were $902,141 and $881,442, respectively. |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Noncontrolling Interests | |
Schedule of reconciliation of non-controlling interest | December 31, December 31, 2021 2020 Beginning Balance $ 638,846 $ 4,346,216 Proportionate shares of net loss (2,334,853) (3,501,808) Foreign currency translation adjustment (28,620) (205,562) Total $ (1,724,627) $ 638,846 |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Taxes | |
Schedule of prepaid taxes | December 31, December 31, 2021 2020 Prepaid value-added tax $ 1,609,466 $ 1,046,667 Total $ 1,609,466 $ 1,046,667 |
Schedule of taxes payable | December 31, December 31, 2021 2020 Corporation income tax payable $ 578,445 $ 415,488 Other tax payable 245,256 155,866 Total $ 823,701 $ 571,354 |
Schedule of effective tax rates reconciliation | Years ended December 31, 2021 2020 2019 Statutory PRC income tax rate 25 % 25 % 25 % Favorable tax rate impact (17) % (14) % (11) % Permanent difference and others 1 % (5) % 4 % Changes of deferred tax assets valuation allowances (38) % 0 % (22) % Total (29) % 6 % (4) % |
Schedule of provision for income | Years ended December 31, 2021 2020 2019 Current $ 2,429,480 $ 1,188,136 $ 529,162 Deferred — (1,799,791) (165,500) Total $ 2,429,480 $ (611,655) $ 363,662 |
Schedule of components of deferred tax assets and liabilities | December 31, December 31, 2021 2020 Deferred tax assets: Allowance for doubtful accounts and other markdown and impairments $ 7,622,322 $ 4,464,601 Valuation allowance (7,622,322) (4,464,601) Total $ — $ — Deferred tax liability: Increase in fair value of intangible assets acquired through acquisition $ 2,129,517 $ 1,905,442 Impairment of intangible assets acquired through acquisition (2,129,517) (1,905,442) Total $ — $ — |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Information | |
Schedule of information by segment | Consumer product EV Total 2021 2020 2019 2021 2020 2019 2021 2020 2019 Revenue from external customers $ 53,411,271 $ 41,899,677 $ 49,200,868 $ 1,852,402 $ 383,993 $ 29,702 $ 55,263,673 $ 42,283,670 $ 49,230,570 Cost of revenue 43,427,306 37,411,824 42,409,429 1,405,041 395,473 843,641 44,832,347 37,807,297 43,253,070 Gross profit 9,983,965 4,487,853 6,791,439 447,361 (11,480) (813,939) 10,431,326 4,476,373 5,977,500 Interest expenses 265,248 300,125 427,379 475,152 — 15,883 740,400 300,125 443,262 Depreciation & amortization 271,536 244,601 276,170 645,066 633,315 627,958 916,602 877,916 904,128 Capital expenditure 11,417 2,489 6,787,833 213,111 142,317 12,106 224,528 144,806 6,799,939 Segment assets 128,727,344 106,775,636 91,431,857 5,799,714 9,519,609 24,018,920 134,527,058 116,295,245 115,450,777 Segment profit $ 4,810,563 $ 2,216,371 $ 2,346,477 $ (15,503,545) $ (12,238,599) $ (12,005,760) $ (10,692,982) $ (10,022,228) $ (9,659,283) |
Schedule of long-lived assets, by geographic information about the revenues | Years ended December 31 2021 2020 2019 Revenue from China $ 55,263,673 $ 42,283,670 $ 49,230,570 Revenue directly from foreign countries — — — Total Revenue $ 55,263,673 $ 42,283,670 $ 49,230,570 |
Organization and nature of bu_3
Organization and nature of business - Details of Subsidiaries of Company and Principal Business Activities (Details) | Dec. 31, 2021 |
USCNHK | |
% of Ownership | 100% |
Euroasia. | |
% of Ownership | 100% |
Euroasia New Energy | Euroasia | |
% of Ownership | 100% |
Jiamu | Euroasia | |
% of Ownership | 100% |
Eurasia Holdings | Euroasia | |
% of Ownership | 100% |
China East | Euroasia | |
% of Ownership | 100% |
USCNHK | Lishui Tantech | |
% of Ownership | 100% |
Euroasia. | Shangchi Intelligent Equipment | |
% of Ownership | 100% |
Jiamu | Wangbo | |
% of Ownership | 100% |
Jiamu | Jiyi | |
% of Ownership | 100% |
Jiamu | Shanghai Wangju | |
% of Ownership | 100% |
Wangbo | Shangchi Automobile | |
% of Ownership | 51% |
Jiyi | Shangchi Automobile | |
% of Ownership | 19% |
Shangchi Automobile | Shenzhen Yimao | |
% of Ownership | 100% |
Lishui Tantech | Lishui Xincai | |
% of Ownership | 100% |
Lishui Tantech | Zhejiang Shangchi | |
% of Ownership | 100% |
Lishui Tantech | Lishui Smart | |
% of Ownership | 100% |
Euroasia New Energy | Gangyu Trading | |
% of Ownership | 100% |
Lishui Xincai | Tantech Charcoal | |
% of Ownership | 100% |
Lishui Xincai | Jikang Energy | |
% of Ownership | 100% |
Lishui Xincai | Tanbo Tech | |
% of Ownership | 100% |
Jikang Energy | Tantech Bamboo | |
% of Ownership | 100% |
Eurasia Holdings | Eurasia Supply | |
% of Ownership | 100% |
Shangchi Intelligent Equipment | Shangchi Medical | |
% of Ownership | 100% |
Shanghai Wangju | Shenzhen Shangdong | |
% of Ownership | 100% |
Shenzhen Shangdong | First International | |
% of Ownership | 75% |
China East | First International | |
% of Ownership | 25% |
Summary of significant accoun_4
Summary of significant accounting policies - Significant property and equipment (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 20 years |
Machinery and Production equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Machinery and Production equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Transportation equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 4 years |
Transportation equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Office equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 4 years |
Office equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Electronic equipment. | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Electronic equipment. | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Summary of significant accoun_5
Summary of significant accounting policies - Estimated useful lives of intangible assets (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Software | Maximum | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Software | Minimum | |
Finite-Lived Intangible Asset, Useful Life | 5 years |
Land use right | |
Finite-Lived Intangible Asset, Useful Life | 50 years |
Patents | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Summary of significant accoun_6
Summary of significant accounting policies - Currency exchange rates (Details) | Dec. 31, 2021 $ / ¥ | Dec. 31, 2020 $ / ¥ | Dec. 31, 2019 $ / ¥ |
Foreign Currency Translation | |||
Foreign Currency Exchange Rate, Translation | 0.1569 | 0.1533 | 0.1436 |
Foreign Currency Average Exchange Rate Translation | 0.1550 | 0.1448 | 0.1448 |
Summary of significant accoun_7
Summary of significant accounting policies - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Summary Of Significant Accounting Policies [Line Items] | ||
Value Added Tax Description | The Company is subject to VAT for selling merchandise. The applicable VAT rate is 11% or 13% or 17% (depending on the type of goods involved) for products sold in the PRC. The applicable VAT rate of 17% and 11% decreased to 16% and 10% starting from May 2018, and further decreased to 13% and 9% from April 1, 2019. | |
Loan payable to third parties | $ 7,002,385 | $ 306,600 |
Restricted cash | 422,832 | 220,109 |
Restricted cash remaining frozen bank balance | $ 422,832 | |
Warranty period | 12 months | |
Income tax examination, expire | 3 years | |
Unsecured loan | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Loan payable to third parties | $ 7,002,385 | $ 306,600 |
Loan, interest rate per annum | 6% | |
Loan, maturity term | 1 year | |
Maximum | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Restricted Cash Minimum Balance Maintain Percentage | 100% | |
Minimum | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Restricted Cash Minimum Balance Maintain Percentage | 0% | |
Warrant [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 6,557,635 | 6,557,635 |
Warrant [Member] | Split-adjusted | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 655,764 | 655,764 |
Suzhou E-Motor [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 30% |
Variable Interest Entity (Detai
Variable Interest Entity (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 43,144,049 | $ 37,119,195 |
Restricted cash | 422,832 | 220,109 |
Accounts receivable, net | 44,962,926 | 34,410,597 |
Prepaid taxes | 1,609,466 | 1,046,667 |
Inventories, net | 1,069,698 | 671,251 |
Advances to suppliers, net | 3,420,628 | 6,854,461 |
Prepaid expenses and other receivables, net | 824,239 | 45,467 |
Total Current Assets | 105,807,889 | 81,900,747 |
Non-current assets | ||
Property, plant and equipment, net | 2,103,947 | 2,477,912 |
Manufacturing rebate receivable | 5,755,237 | |
Intangible assets, net | 205,971 | 664,033 |
Total Assets (Note 3 at VIE) | 134,527,058 | 116,295,245 |
Current liabilities | ||
Bank acceptance notes payable | 0 | 1,753,109 |
Accounts payable | 1,563,787 | 1,543,994 |
Customer deposits | 3,580,622 | 3,183,088 |
Taxes payable | 823,701 | 571,354 |
Due to related parties | 1,847,421 | 2,019,087 |
Accrued liabilities and other payables | 2,114,258 | 1,861,835 |
Total Current Liabilities | 21,767,056 | 16,803,857 |
Non-current liabilities | ||
Deferred tax liability | 0 | 0 |
Total Liabilities | 21,990,347 | 16,803,857 |
VIE | ||
Current assets | ||
Cash and cash equivalents | 206,893 | |
Restricted cash | 220,109 | |
Accounts receivable, net | $ 0 | 0 |
Prepaid taxes | 1,045,027 | |
Inventories, net | 301,607 | |
Advances to suppliers, net | 333,010 | |
Prepaid expenses and other receivables, net | 37,104 | |
Total Current Assets | 2,143,750 | |
Non-current assets | ||
Property, plant and equipment, net | 1,157,803 | |
Manufacturing rebate receivable | 5,755,237 | |
Intangible assets, net | 462,279 | |
Total Assets (Note 3 at VIE) | 9,519,069 | |
Current liabilities | ||
Bank acceptance notes payable | 220,109 | |
Accounts payable | 1,207,623 | |
Customer deposits | 381,623 | |
Taxes payable | 369 | |
Due to related parties | 892,590 | |
Accrued liabilities and other payables | 350,928 | |
Total Current Liabilities | 3,053,242 | |
Non-current liabilities | ||
Total Liabilities | $ 3,053,242 |
Variable Interest Entity - Addi
Variable Interest Entity - Additional Information (Details) - VIE | 12 Months Ended | |
Jul. 12, 2017 | Dec. 31, 2021 | |
Jivi [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity interest Owned | 19% | |
Wangbo [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity interest Owned | 51% | 100% |
Service fee (percentage) | 95% | |
Third Party [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity interest Owned | 30% | |
Wangbo | Jivi [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity interest Owned | 51% | |
Shangchi Automobile [Member]. | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity interest Owned | 19% | |
Shangchi Automobile [Member]. | Third Party [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity interest Owned | 30% |
Liquidity (Details)
Liquidity (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2020 | Sep. 30, 2017 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||||
Research and development costs | $ 8,053,400 | $ 890,316 | $ 327,260 | ||
Amount of recognized manufacturing rebate receivable. | $ 5,800,000 | ||||
Percentage of manufacturing rebate receivable | 100% | ||||
Net proceeds from equity financing | $ 9,100,000 | $ 5,600,000 | $ 19,400,000 | ||
Cash on hand | 43,144,049 | 37,119,195 | |||
Short-term bank loans | 4,719,552 | 5,564,790 | |||
Bank acceptance notes payable | 0 | $ 1,753,109 | |||
Bamboo related products | Consumer product segment | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 53,400,000 | ||||
Electric Vehicle | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | $ 1,900,000 |
Accounts receivable (Details)
Accounts receivable (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts receivable | ||
Accounts receivable | $ 48,680,634 | $ 38,110,487 |
Allowance for doubtful accounts | (3,717,708) | (3,699,890) |
Accounts receivable, net | $ 44,962,926 | $ 34,410,597 |
Accounts receivable - Movement
Accounts receivable - Movement of allowance for doubtful accounts (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts receivable | ||
Balance at beginning of period | $ 3,699,890 | $ 5,731,281 |
Change of allowance for doubtful accounts | (53,436) | (895,043) |
Write off | (15,631) | (1,523,489) |
Translation adjustments | 86,885 | 387,141 |
Balance at end of period | $ 3,717,708 | $ 3,699,890 |
Inventory (Details)
Inventory (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory | ||
Raw materials | $ 542,062 | $ 489,750 |
Finished products | 231,836 | 53,223 |
Work in process | 295,800 | 128,278 |
Inventory, Net, Total | $ 1,069,698 | $ 671,251 |
Inventory - Write-offs (Details
Inventory - Write-offs (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Inventory | |||
Inventory, LIFO Reserve, Period Charge | $ 359,501 | $ 92,064 | $ 1,030,236 |
Advances to suppliers (Details)
Advances to suppliers (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Advances to suppliers | ||
Advances to suppliers | $ 3,459,374 | $ 7,033,556 |
Allowance for doubtful accounts | (38,746) | (179,095) |
Including: | ||
Advances to suppliers, net | $ 3,420,628 | $ 6,854,461 |
Advances to suppliers - Allowan
Advances to suppliers - Allowance for doubtful accounts (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Advances to suppliers [Line Items] | ||
Balance at beginning of period | $ 3,699,890 | $ 5,731,281 |
Change of allowance for doubtful accounts | (53,436) | (895,043) |
Write off | (15,631) | (1,523,489) |
Translation adjustments | 86,885 | 387,141 |
Balance at end of period | 3,717,708 | 3,699,890 |
Advances To Suppliers [Member] | ||
Advances to suppliers [Line Items] | ||
Balance at beginning of period | 179,095 | 1,517,017 |
Change of allowance for doubtful accounts | (144,549) | (400,436) |
Write off | (5) | (1,039,958) |
Translation adjustments | 4,205 | 102,472 |
Balance at end of period | $ 38,746 | $ 179,095 |
Manufacturing rebate receivab_2
Manufacturing rebate receivable (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Manufacturing Rebate Receivables | $ 5,755,237 | |
Manufacturing Rebate Receivables for passage vehicles | $ 10,000 | |
Manufacturing rebate receivables for commercial use vehicles | $ 1,000 | |
Allowance against the manufacturing rebate receivable | 100% | |
Suzhou E-Motor [Member] | ||
Manufacturing Rebate Receivables | $ 5,755,237 |
Property, plant and equipment_3
Property, plant and equipment, net (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 7,675,855 | $ 7,853,456 |
Less: Accumulated depreciation | (5,571,908) | (5,375,544) |
Property, Plant and Equipment, Net, Total | 2,103,947 | 2,477,912 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 5,228,347 | 5,631,049 |
Machinery and Production equipment | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 1,307,356 | 1,311,624 |
Electronic equipment | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 203,305 | 193,912 |
Office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 48,440 | 38,524 |
Automobiles | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 545,006 | 545,008 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 343,401 | $ 133,339 |
Property, plant and equipment_4
Property, plant and equipment, net - Depreciation expense (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation, Continued and Discontinued Operations | $ 444,462 | $ 436,427 | $ 703,113 |
Depreciation | 444,462 | 436,427 | $ 462,639 |
Continuing Operations [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Buildings pledged as collateral for bank loans | $ 588,063 | $ 895,742 |
Intangible assets, net (Details
Intangible assets, net (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Subtotal | $ 5,052,294 | $ 4,932,198 |
Less: Accumulated amortization | (4,846,323) | (4,268,165) |
Intangible assets, net | 205,971 | 664,033 |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Subtotal | 30,838 | 25,957 |
Land use rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Subtotal | 314,456 | 307,241 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Subtotal | $ 4,707,000 | $ 4,599,000 |
Intangible assets, net - Land u
Intangible assets, net - Land use rights (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization, Continued and Discontinued Operations | $ 472,140 | $ 441,489 | $ 459,898 |
Amortization of Intangible Assets | $ 472,140 | 441,489 | $ 441,489 |
Land use rights | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Remaining Amortization Period | 50 years | ||
Intangible Assets, Net (Excluding Goodwill) | $ 200,204 | $ 201,755 |
Leases - Supplemental balance s
Leases - Supplemental balance sheet information related to operating leases (Details) | Dec. 31, 2021 USD ($) |
Leases | |
Right-of-use assets, net | $ 313,172 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Finance Lease, Right-of-Use Asset, after Accumulated Amortization |
Operating lease liabilities - current | $ 115,330 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Operating lease liabilities - current |
Operating lease liabilities - non-current | $ 223,291 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Finance Lease, Liability, Noncurrent |
Total operating lease liabilities | $ 338,621 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Total operating lease liabilities |
Leases - Weighted average remai
Leases - Weighted average remaining lease terms and discount rates (Details) | Dec. 31, 2021 |
Remaining lease term and discount rate: | |
Weighted average remaining lease term (years) | 3 years 1 month 6 days |
Weighted average discount rate | 4.50% |
Leases - Maturities of lease li
Leases - Maturities of lease liabilities (Details) | Dec. 31, 2021 USD ($) |
Leases | |
2022 | $ 104,589 |
2023 | 144,916 |
2024 | 98,246 |
2025 | 14,121 |
Total future minimum lease payments | 361,872 |
Less: imputed interest | 23,251 |
Total operating lease liabilities | $ 338,621 |
Short-term bank loans (Details)
Short-term bank loans (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Short-term Bank Loans and Notes Payable | $ 4,719,552 | $ 5,564,790 |
Loan payable One [Member] | Loan payable to Bank of China Lishui Branch [Member] | ||
Short-term Bank Loans and Notes Payable | 2,679,852 | 2,958,690 |
Loan payable Two [Member] | Loan payable to Shanghai Pudong Development ("SPD") Bank Lishui Branch [Member] | ||
Short-term Bank Loans and Notes Payable | $ 2,039,700 | $ 2,606,100 |
Short-term bank loans - Additio
Short-term bank loans - Additional Information (Details) | 12 Months Ended | |||||||||||||||||
Jul. 04, 2021 | Jul. 02, 2021 USD ($) | Apr. 07, 2021 USD ($) item | Jul. 09, 2020 USD ($) | Jul. 09, 2020 USD ($) | Jul. 09, 2020 USD ($) item | Apr. 27, 2020 USD ($) item | Jan. 06, 2020 USD ($) item | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 USD ($) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2019 USD ($) | Jul. 02, 2021 CNY (¥) | Apr. 07, 2021 CNY (¥) | Jul. 09, 2020 CNY (¥) | Apr. 27, 2020 CNY (¥) | Jan. 06, 2020 CNY (¥) | |
Short-term Debt [Line Items] | ||||||||||||||||||
Short-term Bank Loans and Notes Payable | $ | $ 4,719,552 | $ 5,564,790 | ||||||||||||||||
Interest Expense | $ | $ 740,400 | 300,125 | $ 443,262 | |||||||||||||||
Loan payable to Bank of China Lishui Branch [Member] | Tantech Bamboo [Member] | ||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||
Debt Instrument, Face Amount | $ 2,725,674 | ¥ 17,780,000 | ||||||||||||||||
Debt Instrument, Term | 6 months | |||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.88% | 5.88% | ||||||||||||||||
Debt Instrument, Collateral Amount | $ 4,000,000 | ¥ 25,960,000 | ||||||||||||||||
Number of related paties | 3 | |||||||||||||||||
Loan payable to Bank of China Lishui Branch [Member] | Tantech Charcoal [Member] | ||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||
Debt Instrument, Face Amount | $ 2,679,852,000 | $ 2,958,690 | $ 2,958,690 | $ 2,958,690 | $ 1,533,000 | ¥ 17,080,000 | ¥ 19,300,000 | ¥ 10,000,000 | ||||||||||
Debt Instrument, Term | 6 months | 1 year | 6 months | |||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.65% | 4.85% | 4.85% | 4.85% | 4% | 4.50% | 4.65% | 4.85% | 4% | |||||||||
Debt Instrument, Collateral Amount | $ 1,500,000 | ¥ 10,000,000 | ||||||||||||||||
Number of related paties | 2 | |||||||||||||||||
Number of third party | 1 | |||||||||||||||||
Number of individual related party | 3 | 3 | 2 | |||||||||||||||
Number of properties collateralized for loan | 2 | |||||||||||||||||
Loan payable to Bank of China Lishui Branch [Member] | Building And Land Use Right [Member] | Tantech Charcoal [Member] | ||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||
Debt Instrument, Collateral Amount | $ 4,100,000 | $ 4,000,000 | $ 4,000,000 | $ 4,000,000 | ¥ 25,960,000 | |||||||||||||
Loan payable to Shanghai Pudong Development ("SPD") Bank Lishui Branch [Member] | Tantech Bamboo [Member] | ||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||
Debt Instrument, Face Amount | $ 2,510,400 | $ 2,912,700 | ¥ 16,000,000 | ¥ 19,000,000 | ||||||||||||||
Debt Instrument, Term | 1 year | 1 year | ||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.65% | 4.785% | 3.90% | 5.65% | 4.785% | |||||||||||||
Debt Instrument, Collateral Amount | $ 4,500,000 | ¥ 29,250,000 | ||||||||||||||||
Number of related paties | 3 | 3 | ||||||||||||||||
Amount of loan repaid | $ 470,700 | ¥ 3,000,000 | 306,600 | ¥ 2,000,000 | ||||||||||||||
Loan payable to Shanghai Pudong Development ("SPD") Bank Lishui Branch [Member] | Building And Land Use Right [Member] | Tantech Bamboo [Member] | ||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||
Debt Instrument, Collateral Amount | $ 4,600,000 | ¥ 29,250,000 | ||||||||||||||||
Notes Payable to Banks [Member] | ||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||
Interest Expense | $ | 265,248 | $ 300,125 | $ 421,646 | |||||||||||||||
Notes Payable to Banks [Member] | Loan payable to Bank of China Lishui Branch [Member] | Tantech Bamboo [Member] | ||||||||||||||||||
Short-term Debt [Line Items] | ||||||||||||||||||
Amount of loan repaid | $ 156,900 | ¥ 1,000,000 |
Bank acceptance notes payable_2
Bank acceptance notes payable (Details) | Dec. 31, 2021 USD ($) | Apr. 19, 2021 USD ($) | Apr. 19, 2021 CNY (¥) | Mar. 31, 2021 USD ($) | Mar. 31, 2021 CNY (¥) | Dec. 31, 2020 USD ($) |
Total | $ 0 | $ 1,753,109 | ||||
Bank acceptance notes payable issued by Zhang Jiagang Rural Commercial Bank | ||||||
Total | 0 | $ 220,109 | ¥ 1,435,805 | 220,109 | ||
Commercial acceptance notes payable guaranteed by SPD Bank Lishui Branch | ||||||
Total | $ 0 | $ 1,533,000 | ¥ 10,000,000 | $ 1,533,000 |
Bank acceptance notes payable -
Bank acceptance notes payable - Additional Information (Details) | Apr. 21, 2021 USD ($) | Dec. 31, 2021 USD ($) | Apr. 21, 2021 CNY (¥) | Apr. 19, 2021 USD ($) | Apr. 19, 2021 CNY (¥) | Mar. 31, 2021 USD ($) | Mar. 31, 2021 CNY (¥) | Dec. 31, 2020 USD ($) |
Restricted Cash | $ 220,109 | |||||||
Notes Payable to Bank, Current | $ 0 | 1,753,109 | ||||||
Maximum | ||||||||
Minimum Percentage Of Balances Of Bankers Acceptance To Maintain Deposits | 100% | |||||||
Minimum | ||||||||
Minimum Percentage Of Balances Of Bankers Acceptance To Maintain Deposits | 0% | |||||||
Bank acceptance notes payable issued by SPD Bank Zhang Jiagang Branch | ||||||||
Minimum Percentage Of Balances Of Bankers Acceptance To Maintain Deposits | 100% | |||||||
Bank acceptance notes payable issued by Zhang Jiagang Rural Commercial Bank | ||||||||
Notes Payable to Bank, Current | $ 0 | $ 220,109 | ¥ 1,435,805 | 220,109 | ||||
Commercial acceptance notes payable guaranteed by SPD Bank Lishui Branch | ||||||||
Minimum Percentage Of Balances Of Bankers Acceptance To Maintain Deposits | 100% | 100% | ||||||
Notes Payable to Bank, Current | $ 0 | $ 1,533,000 | ¥ 10,000,000 | $ 1,533,000 | ||||
Debt Instrument, Term | 1 year | |||||||
Commercial acceptance notes payable guaranteed by SPD Bank Lishui Branch | Zhejiang Xinsen Industrial Co., Ltd., | ||||||||
Collateral amount | $ 1,533,000 | ¥ 10,000,000 |
Related Party Balances and Tr_3
Related Party Balances and Transactions (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | ||
Due to related parties | $ 1,847,421 | $ 2,019,087 |
Mr. Hengwei Chen and his affiliates | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 902,141 | 881,442 |
Forasen Group and its affiliates, controlled by Mr. Zhengyu Wang, Chairman previous and CEO of the Company until December 6, 2019 | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 806,556 | 1,058,188 |
Mr. Wangfeng Yan, the CEO of the Company since December 7, 2019 and his affiliates | ||
Related Party Transaction [Line Items] | ||
Due to related parties | $ 138,724 | $ 79,457 |
Related Party Balances and Tr_4
Related Party Balances and Transactions - Additional Information (Details) | 12 Months Ended | |||||||||||||
Apr. 06, 2022 USD ($) | Apr. 06, 2022 CNY (¥) | Jul. 13, 2021 USD ($) | Jul. 13, 2021 CNY (¥) USD ($) | Jul. 06, 2020 USD ($) | Jul. 06, 2020 CNY (¥) USD ($) | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | Oct. 31, 2021 USD ($) | Oct. 31, 2021 CNY (¥) | Jul. 29, 2021 USD ($) | Jul. 29, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Related Party Transaction [Line Items] | ||||||||||||||
Due to Related Parties, Current | $ 1,847,421 | $ 2,019,087 | ||||||||||||
Due from related parties, current | 10,354,051 | |||||||||||||
Proceeds from related party | $ (10,428,196) | 98,474 | $ (378,833) | |||||||||||
Shangchi Automobile [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 70% | |||||||||||||
Forasen Group and its affiliates, controlled by Mr. Zhengyu Wang, Chairman previous and CEO of the Company until December 6, 2019 | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Due to Related Parties, Current | $ 806,556 | 1,058,188 | ||||||||||||
Mr.Hengwei Chen | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Due to Related Parties, Current | $ 902,141 | 881,442 | ||||||||||||
Mr.Hengwei Chen | Shangchi Automobile [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 2,500,000 | |||||||||||||
Mr. Wangfeng Yan, the CEO of the Company since December 7, 2019 and his affiliates | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Due to Related Parties, Current | $ 138,724 | 79,457 | ||||||||||||
Mr. Wangfeng Yan, the CEO of the Company since December 7, 2019 and his affiliates | Advances to Company [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Due to Related Parties, Current | 138,724 | 79,457 | ||||||||||||
Mr. Wangfeng Yan, the CEO of the Company since December 7, 2019 and his affiliates | LJC | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Advance paid to purchase bamboo charcoal materials | 3,089,690 | ¥ 20,154,532 | ||||||||||||
Received materials, amount | 1,556,690 | 10,154,532 | ||||||||||||
Remaining advance return amount | $ 1,533,000 | ¥ 10,000,000 | ||||||||||||
Forasen Food | Tantech Bamboo [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Production facilities square meters | 1,914 | 1,914 | ||||||||||||
Term of Rent | 10 years | 10 years | ||||||||||||
Monthly rent expense | $ 5,900 | ¥ 38,280 | ||||||||||||
Rent Income | 68,540 | |||||||||||||
Nongmi Food | Tantech Bamboo [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Production facilities square meters | 1,180 | 1,180 | ||||||||||||
Term of Rent | 10 years | 10 years | ||||||||||||
Monthly rent expense | $ 2,400 | |||||||||||||
Rent Income | ¥ 15,338 | 13,086 | ||||||||||||
Nongmi Biotechnology | Tantech Bamboo [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Production facilities square meters | 1,914 | 1,914 | ||||||||||||
Term of Rent | 10 years | 10 years | ||||||||||||
Monthly rent expense | $ 5,900 | ¥ 38,280 | ||||||||||||
Rent Income | $ 36,332 | |||||||||||||
Xigema Holding Hangzhou Co Ltd | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Disposal of fixed asset to related party | $ 800,000 | ¥ 4,923,564 | ||||||||||||
Entrusted Bank Account under Mr. Zhengyu Wang, Chairman and previous CEO | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Due from related parties, current | $ 10,354,051 | ¥ 65,991,404 | ||||||||||||
Proceeds from related party | $ 10,354,051 | ¥ 65,991,404 | ||||||||||||
Related party interest income | $ 144,851 | ¥ 923,079 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 1 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||
Dec. 15, 2021 USD ($) | Dec. 15, 2021 CNY (¥) | Jun. 11, 2021 USD ($) | Jun. 11, 2021 CNY (¥) | Mar. 23, 2021 USD ($) | Mar. 23, 2021 CNY (¥) | Aug. 30, 2019 USD ($) | Aug. 30, 2019 CNY (¥) | Aug. 10, 2019 USD ($) | Aug. 10, 2019 CNY (¥) | Jul. 31, 2020 USD ($) | May 31, 2018 USD ($) | May 31, 2018 CNY (¥) | Jul. 31, 2017 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Nov. 30, 2021 USD ($) | Nov. 22, 2021 USD ($) | Nov. 22, 2021 CNY (¥) | Aug. 10, 2021 | Jun. 11, 2021 CNY (¥) | Aug. 09, 2020 CNY (¥) | Jul. 31, 2020 CNY (¥) | Nov. 11, 2019 CNY (¥) | Oct. 31, 2019 CNY (¥) | Sep. 30, 2019 CNY (¥) | Aug. 31, 2019 USD ($) | Aug. 31, 2019 CNY (¥) | Dec. 31, 2018 CNY (¥) | Nov. 30, 2018 CNY (¥) | Jul. 31, 2017 CNY (¥) | |
Commitments and Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||
Operating Leases, Rent Expense | $ 427,493 | $ 299,562 | $ 167,526 | ||||||||||||||||||||||||||||||||
Settlement awarded | $ 16,500,000 | ¥ 105,360,000 | |||||||||||||||||||||||||||||||||
Payments by third party | 5,600,000 | ¥ 35,860,000 | |||||||||||||||||||||||||||||||||
Remaining unpaid and accrued interest | $ 10,900,000 | ¥ 69,500,000 | |||||||||||||||||||||||||||||||||
Restricted cash remaining frozen | $ 422,832 | ||||||||||||||||||||||||||||||||||
Tantech Bamboo [Member] | |||||||||||||||||||||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||
Lease term | 10 years | 10 years | |||||||||||||||||||||||||||||||||
Operating Leases, Rent Expense | $ 192,000 | ¥ 1,238,784 | |||||||||||||||||||||||||||||||||
Operating lease annual rent | 192,000 | ¥ 1,238,784 | |||||||||||||||||||||||||||||||||
Shangchi Automobile [Member] | |||||||||||||||||||||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||
Short-term Lease Commitment, Amount | 155,000 | ¥ 1,000,000 | |||||||||||||||||||||||||||||||||
Lease term | 1 year | ||||||||||||||||||||||||||||||||||
Operating Leases, Rent Expense | $ 155,000 | ¥ 1,000,000 | |||||||||||||||||||||||||||||||||
Shenzhen E-Motors [Member] | |||||||||||||||||||||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||
Short-term Lease Commitment, Amount | $ 14,500 | $ 6,900 | ¥ 44,352 | ¥ 93,600 | ¥ 93,600 | ¥ 93,600 | ¥ 93,600 | ¥ 93,600 | |||||||||||||||||||||||||||
Lease term | 1 year | 1 year | 1 year | ||||||||||||||||||||||||||||||||
Forasen Group's [Member] | |||||||||||||||||||||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||
Guaranty Liabilities | $ 9,000,000 | ¥ 57,070,000 | |||||||||||||||||||||||||||||||||
Line of Credit Facility, Expiration Date | Jul. 08, 2023 | Jul. 23, 2020 | |||||||||||||||||||||||||||||||||
Building Pledged As Collateral For Loans | $ 1,600,000 | ¥ 10,000,000 | |||||||||||||||||||||||||||||||||
Forasen Group's [Member] | Tantech Bamboo [Member] | |||||||||||||||||||||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||
Loss contingency, damage sought | $ 4,600,000 | ¥ 29,500,000 | |||||||||||||||||||||||||||||||||
Settlement awarded | $ 14,100,000 | ¥ 90,000,000 | |||||||||||||||||||||||||||||||||
Potential payment obligation | $ 14,100,000 | ¥ 90,000,000 | |||||||||||||||||||||||||||||||||
Mr.Hengwei Chen | Shangchi Automobile [Member] | |||||||||||||||||||||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||
Settlement awarded | $ 1,400,000 | ¥ 8,950,000 | |||||||||||||||||||||||||||||||||
Remaining unpaid and accrued interest | $ 500,000 | ¥ 3,500,000 | |||||||||||||||||||||||||||||||||
Debt Dispute Commitment Amount | $ 1,800,000 | ¥ 11,350,000 | |||||||||||||||||||||||||||||||||
Mr.Hengwei Chen | Shangchi Automobile [Member] | Subsequent Event | |||||||||||||||||||||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||
Restricted cash remaining frozen | $ 422,832 |
Stockholders' equity (Details)
Stockholders' equity (Details) | 1 Months Ended | 12 Months Ended | ||||||||||||||
Mar. 22, 2022 $ / shares shares | Feb. 25, 2022 shares | Feb. 24, 2022 shares | Dec. 06, 2021 USD ($) $ / shares shares | Jul. 07, 2021 USD ($) $ / shares shares | May 18, 2021 USD ($) shares | Nov. 24, 2020 USD ($) $ / shares shares | Mar. 23, 2020 USD ($) shares | Nov. 30, 2020 USD ($) | Sep. 30, 2017 USD ($) | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) $ / shares shares | Jul. 15, 2021 shares | Dec. 30, 2020 $ / shares | Nov. 20, 2020 $ / shares | Sep. 27, 2017 $ / shares shares | |
Stock issued during period, shares, issued for services | 35,592 | |||||||||||||||
Common shares issued for service | $ | $ 33,812 | $ 33,812 | ||||||||||||||
Issuance of common stock (in shares) | 21,120,509 | 5,380,000 | 6,060,608 | |||||||||||||
Shares issued, price per share | $ / shares | $ 0.65 | $ 1.30 | $ 1.65 | |||||||||||||
Proceeds from issuance of common stock gross | $ | $ 10,000,000 | |||||||||||||||
Issuance of common stock | $ | $ 12,423,706 | $ 6,939,000 | $ 9,100,000 | $ 19,362,706 | $ 9,055,000 | |||||||||||
Proceeds from issuance of common stocks | $ | $ 9,100,000 | $ 5,600,000 | $ 19,400,000 | |||||||||||||
Stock split ratio | 0.1 | |||||||||||||||
Common stock, shares issued | 6,399,460 | 3,589,409 | ||||||||||||||
Common stock, shares outstanding | 6,399,460 | 3,589,409 | ||||||||||||||
Common stock, shares authorized | 60,000,000 | 60,000,000 | ||||||||||||||
Maximum | ||||||||||||||||
Common stock, shares authorized | 600,000,000 | |||||||||||||||
Minimum | ||||||||||||||||
Common stock, shares authorized | 50,000,000 | |||||||||||||||
Split-adjusted | ||||||||||||||||
Stock issued during period, shares, issued for services | 3,559 | |||||||||||||||
Issuance of common stock (in shares) | 2,112,051 | 538,000 | 606,061 | |||||||||||||
Shares issued, price per share | $ / shares | $ 6.50 | $ 13 | $ 16.5 | |||||||||||||
Split-adjusted | Maximum | ||||||||||||||||
Common stock, shares authorized | 60,000,000 | |||||||||||||||
Split-adjusted | Minimum | ||||||||||||||||
Common stock, shares authorized | 5,000,000 | |||||||||||||||
Subsequent Event | ||||||||||||||||
Issuance of common stock (in shares) | 60 | |||||||||||||||
Stock split ratio | 0.1 | 0.1 | ||||||||||||||
Number of common shares outstanding automatically combines and converts | 10 | 10 | ||||||||||||||
Shares issued upon conversion | 1 | 1 | ||||||||||||||
Common stock, shares issued | 6,399,460 | 63,994,606 | ||||||||||||||
Common stock, shares outstanding | 6,399,460 | 6,399,460 | ||||||||||||||
Common stock, shares authorized | 60,000,000 | 600,000,000 | ||||||||||||||
September 2017 Offering Warrants | ||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 944,655 | 1,078,045 | ||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 0.001 | $ 4.25 | $ 0.001 | |||||||||||||
Description Warrants Exercise Term | The exercisability of the warrants may be limited if, upon exercise, the holder or any of its affiliates would beneficially own more than 4.99% of the Company’s common shares. | |||||||||||||||
September 2017 Offering Warrants | Split-adjusted | ||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 94,465 | 107,804 | ||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 0.01 | $ 42.5 | $ 0.01 | |||||||||||||
November 2020 Offering Warrants | ||||||||||||||||
Term of warrant | 5 years | |||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 1.81 | $ 1.87 | ||||||||||||||
Class of warrant or right, outstanding | 6,557,635 | |||||||||||||||
Weighted Average Remaining Life of Warrants | 3 days 17 hours | |||||||||||||||
November 2020 Offering Warrants | Split-adjusted | ||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 18.10 | $ 18.70 | ||||||||||||||
Class of warrant or right, outstanding | 655,764 | |||||||||||||||
Investor Warrants [Member] | September 2017 Offering Warrants | ||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 945,654 | |||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 4.25 | |||||||||||||||
Investor Warrants [Member] | September 2017 Offering Warrants | Split-adjusted | ||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 94,565 | |||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 42.5 | |||||||||||||||
Placement Agent Warrants [Member] | September 2017 Offering Warrants | ||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 132,391 | |||||||||||||||
Term of warrant | 5 years | |||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 4.675 | |||||||||||||||
Placement Agent Warrants [Member] | September 2017 Offering Warrants | Split-adjusted | ||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 13,239 | |||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 46.75 | |||||||||||||||
Registered Warrants [Member] | November 2020 Offering Warrants | ||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 2,754,820 | |||||||||||||||
Registered Warrants [Member] | November 2020 Offering Warrants | Split-adjusted | ||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 275,482 | |||||||||||||||
Unregistered Warrants [Member] | November 2020 Offering Warrants | ||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 3,305,788 | |||||||||||||||
Unregistered Warrants [Member] | November 2020 Offering Warrants | Split-adjusted | ||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 330,579 | |||||||||||||||
Placement agent [Member] | Subsequent Event | ||||||||||||||||
Issuance of common stock (in shares) | 2,880,000 | |||||||||||||||
Shares issued, price per share | $ / shares | $ 0.50 | |||||||||||||||
Placement agent [Member] | Unregistered Warrants [Member] | November 2020 Offering Warrants | ||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 363,637 | |||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 1.815 | |||||||||||||||
Placement agent [Member] | Unregistered Warrants [Member] | November 2020 Offering Warrants | Split-adjusted | ||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 36,364 | |||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 18.15 | |||||||||||||||
Under 2014 Shares Incentive Plans [Member] | ||||||||||||||||
Issuance of common stock to employees (in shares) | 1,600,000 | |||||||||||||||
Issuance of common stock to employees | $ | $ 1,840,000 | |||||||||||||||
Under 2014 Shares Incentive Plans [Member] | Split-adjusted | ||||||||||||||||
Issuance of common stock to employees (in shares) | 160,000 |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Noncontrolling Interests | |||
Beginning Balance | $ 638,846 | $ 4,346,216 | |
Proportionate shares of net loss | (2,334,853) | (3,501,808) | $ (3,601,728) |
Foreign currency translation adjustment | (28,620) | (205,562) | |
Total | $ (1,724,627) | $ 638,846 | $ 4,346,216 |
Noncontrolling Interests - Addi
Noncontrolling Interests - Additional Information (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
Shangchi Automobile And Subsidiary Shenzhen Yimao [Member] | ||
Noncontrolling interest, ownership percentage by noncontrolling owners | 30% | 30% |
Long term investments (Details)
Long term investments (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||
Nov. 29, 2019 USD ($) | Jan. 10, 2018 USD ($) km² | Mar. 31, 2021 km² | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | Apr. 03, 2020 USD ($) | Apr. 03, 2020 CNY (¥) | Apr. 02, 2020 | Nov. 29, 2019 CNY (¥) | Jan. 10, 2018 CNY (¥) | |
Other than Temporary Impairment Losses, Investments | $ | $ 0 | $ 0 | $ 0 | ||||||||
Libo Haokun [Member] | |||||||||||
Amount of investment | $ 18,800 | ¥ 120,000 | |||||||||
Equity Method Investment, Ownership Percentage | 18% | 18% | |||||||||
Number of square kilometers, right to mine provided | 0.11 | ||||||||||
Jingning Zhonggang [Member] | |||||||||||
Equity Method Investment, Ownership Percentage | 82% | ||||||||||
Tantech [Member] | |||||||||||
Equity Method Investment, Ownership Percentage | 18% | ||||||||||
Fuquan Chengwang [Member] | |||||||||||
Amount of investment | $ 7,300 | $ 7,300 | ¥ 46,500 | ¥ 46,320 | |||||||
Equity Method Investment, Ownership Percentage | 18% | 100% | 14.76% | 14.76% | 18% | 18% | |||||
Value of the mining rights | ¥ | ¥ 257,350 | ||||||||||
Number of days, consideration payable after the completion of transfer of ownership | 30 days | ||||||||||
Number of square kilometers, right to mine provided | 0.2607 | ||||||||||
Fuquan Chengwang [Member] | Tantech [Member] | |||||||||||
Equity Method Investment, Ownership Percentage | 18% | 18% | |||||||||
Jingning Meizhongkuang [Member] | |||||||||||
Equity Method Investment, Ownership Percentage | 18% | 18% | 18% | 18% |
Taxes - Prepaid taxes (Details)
Taxes - Prepaid taxes (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Taxes | ||
Prepaid value-added tax | $ 1,609,466 | $ 1,046,667 |
Total | $ 1,609,466 | $ 1,046,667 |
Taxes - Taxes payable (Details)
Taxes - Taxes payable (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Taxes | ||
Corporation income tax payable | $ 578,445 | $ 415,488 |
Other tax payable | 245,256 | 155,866 |
Total | $ 823,701 | $ 571,354 |
Taxes - Reconciles PRC statutor
Taxes - Reconciles PRC statutory rates (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Taxes | |||
Statutory PRC income tax rate | 25% | 25% | 25% |
Favorable tax rate impact | (17.00%) | (14.00%) | (11.00%) |
Permanent difference and others | 1% | (5.00%) | 4% |
Changes of deferred tax assets valuation allowances | (38.00%) | 0% | (22.00%) |
Total | (29.00%) | 6% | (4.00%) |
Taxes - Income tax expense cred
Taxes - Income tax expense credit (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Taxes | |||
Current | $ 2,429,480 | $ 1,188,136 | $ 529,162 |
Deferred | (1,799,791) | (165,500) | |
Total | $ 2,429,480 | $ (611,655) | $ 363,662 |
Taxes - Components of deferred
Taxes - Components of deferred tax assets and liabilities (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Allowance for doubtful accounts and other markdown and impairments | $ 7,622,322 | $ 4,464,601 |
Valuation allowance | (7,622,322) | (4,464,601) |
Total | 0 | 0 |
Deferred tax liability: | ||
Increase in fair value of intangible assets acquired through acquisition | 2,129,517 | 1,905,442 |
Impairment of intangible assets acquired through acquisition | (2,129,517) | (1,905,442) |
Total | $ 0 | $ 0 |
Taxes - Additional Information
Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |||||
Dec. 02, 2020 | Jul. 17, 2017 | Jan. 01, 2008 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income tax rate (as a percent) | 25% | 25% | 25% | |||
Deferred Tax Assets, Valuation Allowance | $ 7,622,322 | $ 4,464,601 | ||||
Tantech Bamboo [Member] | ||||||
Income tax rate (as a percent) | 15% | 25% | 25% | |||
Tantech Bamboo [Member] | Shangchi Automobile [Member] | ||||||
Income tax rate (as a percent) | 15% | 15% |
Segment Information (Details)
Segment Information (Details) | 12 Months Ended | ||
Dec. 31, 2021 USD ($) segment | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of operating segments | segment | 2 | ||
Revenues | $ 55,263,673 | $ 42,283,670 | $ 49,230,570 |
Cost of revenue | 44,832,347 | 37,807,297 | 43,253,070 |
Gross profit | 10,431,326 | 4,476,373 | 5,977,500 |
Interest expenses | 265,248 | 308,690 | 439,869 |
Capital expenditure | 220,308 | 144,806 | 92,369 |
Segment assets | 134,527,058 | 116,295,245 | |
Segment profit | (10,692,982) | (10,022,228) | (9,659,283) |
Operating Segments [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Cost of revenue | 44,832,347 | 37,807,297 | 43,253,070 |
Gross profit | 10,431,326 | 4,476,373 | 5,977,500 |
Interest expenses | 740,400 | 300,125 | 443,262 |
Depreciation & amortization | 916,602 | 877,916 | 904,128 |
Capital expenditure | 224,528 | 144,806 | 6,799,939 |
Segment assets | 134,527,058 | 116,295,245 | 115,450,777 |
Segment profit | (10,692,982) | (10,022,228) | (9,659,283) |
Consumer product | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Cost of revenue | 43,427,306 | 37,411,824 | 42,409,429 |
Gross profit | 9,983,965 | 4,487,853 | 6,791,439 |
Interest expenses | 265,248 | 300,125 | 427,379 |
Depreciation & amortization | 271,536 | 244,601 | 276,170 |
Capital expenditure | 11,417 | 2,489 | 6,787,833 |
Segment assets | 128,727,344 | 106,775,636 | 91,431,857 |
Segment profit | 4,810,563 | 2,216,371 | 2,346,477 |
EV [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Cost of revenue | 1,405,041 | 395,473 | 843,641 |
Gross profit | 447,361 | (11,480) | (813,939) |
Interest expenses | 475,152 | 0 | 15,883 |
Depreciation & amortization | 645,066 | 633,315 | 627,958 |
Capital expenditure | 213,111 | 142,317 | 12,106 |
Segment assets | 5,799,714 | 9,519,609 | 24,018,920 |
Segment profit | (15,503,545) | (12,238,599) | (12,005,760) |
External Customers [Member] | Operating Segments [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 55,263,673 | 42,283,670 | 49,230,570 |
External Customers [Member] | Consumer product | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 53,411,271 | 41,899,677 | 49,200,868 |
External Customers [Member] | EV [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 1,852,402 | $ 383,993 | $ 29,702 |
Segment Information - Geographi
Segment Information - Geographic information about revenues (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 55,263,673 | $ 42,283,670 | $ 49,230,570 |
CHINA [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 55,263,673 | 42,283,670 | 49,230,570 |
Foreign Countries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 0 | $ 0 | $ 0 |
Major Customers and Suppliers (
Major Customers and Suppliers (Details) | 12 Months Ended | ||
Dec. 31, 2021 customer | Dec. 31, 2020 item customer | Dec. 31, 2019 item customer | |
Cost of Goods, Total [Member] | Major Suppliers [Member] | |||
Number of Suppliers | 2 | ||
Three Major Suppliers [Member] | Cost of Goods, Total [Member] | Suppliers A | |||
Concentration Risk, Percentage | 46% | 38% | |
Three Major Suppliers [Member] | Cost of Goods, Total [Member] | Suppliers B | |||
Concentration Risk, Percentage | 19% | 20% | |
Three Major Suppliers [Member] | Cost of Goods, Total [Member] | Suppliers C | |||
Concentration Risk, Percentage | 18% | ||
Four Major Customers [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer A [Member] | |||
Concentration Risk, Percentage | 21% | ||
Four Major Customers [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer B [Member] | |||
Concentration Risk, Percentage | 19% | ||
Four Major Customers [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer C [Member] | |||
Concentration Risk, Percentage | 19% | ||
Four Major Customers [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer D [Member] | |||
Concentration Risk, Percentage | 13% | ||
Five Major Customers [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer A [Member] | |||
Concentration Risk, Percentage | 28% | ||
Five Major Customers [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer B [Member] | |||
Concentration Risk, Percentage | 20% | ||
Five Major Customers [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer C [Member] | |||
Concentration Risk, Percentage | 14% | ||
Five Major Customers [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer D [Member] | |||
Concentration Risk, Percentage | 12% | ||
Five Major Customers [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer E [Member] | |||
Concentration Risk, Percentage | 10% | ||
Six Major Customers [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer A [Member] | |||
Concentration Risk, Percentage | 19% | ||
Six Major Customers [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer B [Member] | |||
Concentration Risk, Percentage | 19% | ||
Six Major Customers [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer C [Member] | |||
Concentration Risk, Percentage | 18% | ||
Six Major Customers [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer D [Member] | |||
Concentration Risk, Percentage | 17% | ||
Six Major Customers [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer E [Member] | |||
Concentration Risk, Percentage | 13% | ||
Six Major Customers [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer F [Member] | |||
Concentration Risk, Percentage | 12% | ||
Four Customers [Member] | Accounts Receivable [Member] | |||
Number of Customers | 4 | ||
Four Customers [Member] | Accounts Receivable [Member] | Customer A [Member] | |||
Concentration Risk, Percentage | 29% | 32% | |
Four Customers [Member] | Accounts Receivable [Member] | Customer B [Member] | |||
Concentration Risk, Percentage | 26% | 22% | |
Four Customers [Member] | Accounts Receivable [Member] | Customer C [Member] | |||
Concentration Risk, Percentage | 25% | 21% | |
Four Customers [Member] | Accounts Receivable [Member] | Customer D [Member] | |||
Concentration Risk, Percentage | 12% | 20% | |
Customer Concentration Risk [Member] | Revenue from Contract with Customer Benchmark [Member] | Major Customer [Member] | |||
Number of Customers | 4 | 5 | 6 |
Concentration Risk, Percentage | 10% | ||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||
Number of Customers | 4 | ||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Major Customer [Member] | |||
Concentration Risk, Percentage | 10% | ||
Supplier Concentration Risk [Member] | Cost of Goods, Total [Member] | Major Suppliers [Member] | |||
Concentration Risk, Percentage | 10% | ||
Major Suppliers [Member] | Cost of Goods, Total [Member] | |||
Number of Suppliers | item | 2 | 3 | |
Two Major Suppliers [Member] | Cost of Goods, Total [Member] | Suppliers A | |||
Concentration Risk, Percentage | 53% | ||
Two Major Suppliers [Member] | Cost of Goods, Total [Member] | Suppliers B | |||
Concentration Risk, Percentage | 17% |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||||||||||
May 18, 2022 $ / shares | Apr. 28, 2022 $ / shares | Mar. 22, 2022 USD ($) $ / shares shares | Mar. 18, 2022 USD ($) $ / shares shares | Feb. 25, 2022 shares | Feb. 24, 2022 shares | Dec. 06, 2021 $ / shares shares | Jul. 07, 2021 $ / shares shares | Nov. 24, 2020 $ / shares shares | Dec. 31, 2021 shares | Dec. 31, 2020 shares | |
Subsequent Event [Line Items] | |||||||||||
Stock split ratio | 0.1 | ||||||||||
Common stock, shares issued | 6,399,460 | 3,589,409 | |||||||||
Common stock, shares outstanding | 6,399,460 | 3,589,409 | |||||||||
Common stock, shares authorized | 60,000,000 | 60,000,000 | |||||||||
Issuance of common stock (in shares) | 21,120,509 | 5,380,000 | 6,060,608 | ||||||||
Shares issued, price per share | $ / shares | $ 0.65 | $ 1.30 | $ 1.65 | ||||||||
Subsequent Event | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Stock split ratio | 0.1 | 0.1 | |||||||||
Number of common shares outstanding automatically combines and converts | 10 | 10 | |||||||||
Shares issued upon conversion | 1 | 1 | |||||||||
Common stock, shares issued | 6,399,460 | 63,994,606 | |||||||||
Common stock, shares outstanding | 6,399,460 | 6,399,460 | |||||||||
Common stock, shares authorized | 60,000,000 | 600,000,000 | |||||||||
Issuance of common stock (in shares) | 60 | ||||||||||
Consecutive business days preceding the date of the Notice | 30 days | 30 days | |||||||||
Share price (per share) | $ / shares | $ 1 | $ 1 | |||||||||
Subsequent Event | IPO | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Issuance of common stock (in shares) | 20,000,000 | ||||||||||
Shares issued, price per share | $ / shares | $ 0.50 | ||||||||||
Gross proceeds before deducting underwriting discounts and commissions and other estimated expenses | $ | $ 10 | ||||||||||
Underwriting option period | 45 days | ||||||||||
Percentage of underwriters option to purchase additional common shares | 15% | ||||||||||
Subsequent Event | Placement agent [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Issuance of common stock (in shares) | 2,880,000 | ||||||||||
Shares issued, price per share | $ / shares | $ 0.50 | ||||||||||
Gross proceeds before deducting underwriting discounts and commissions and other estimated expenses | $ | $ 11.4 |