Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Document Information Line Items | |
Entity Registrant Name | NISUN INTERNATIONAL ENTERPRISE DEVELOPMENT GROUP CO., LTD |
Trading Symbol | NISN |
Document Type | 20-F |
Current Fiscal Year End Date | --12-31 |
Amendment Flag | false |
Entity Central Index Key | 0001603993 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Document Period End Date | Dec. 31, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | true |
Entity Shell Company | false |
Entity Ex Transition Period | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-37829 |
Entity Incorporation, State or Country Code | D8 |
Entity Address, Address Line One | 99 Danba Rd |
Entity Address, Address Line Two | Bldg C9Putuo District |
Entity Address, City or Town | Shanghai |
Entity Address, Country | CN |
Title of 12(b) Security | Class A common shares, par value $0.001 per share |
Security Exchange Name | NASDAQ |
Entity Interactive Data Current | Yes |
Document Accounting Standard | U.S. GAAP |
Entity Address, Postal Zip Code | N/A |
Business Contact | |
Document Information Line Items | |
Entity Address, Address Line One | 99 Danba Rd |
Entity Address, Address Line Two | Bldg C9Putuo District |
Entity Address, City or Town | Shanghai |
Entity Address, Country | CN |
Contact Personnel Name | Changjuan Liang |
Contact Personnel Email Address | liangchangjuan@cnisun.com |
City Area Code | +86-577 |
Entity Address, Postal Zip Code | N/A |
Local Phone Number | 8689-5678 |
Class A Common Stock | |
Document Information Line Items | |
Entity Common Stock, Shares Outstanding | 20,555,129 |
Class B Common Stock | |
Document Information Line Items | |
Entity Common Stock, Shares Outstanding | 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | |
CURRENT ASSETS: | |||
Cash and cash equivalents | $ 22,135,310 | $ 2,756,490 | [1] |
Restricted cash | 62,947 | 25,016 | [1] |
Short-term investments | 4,680,843 | [1] | |
Accounts receivable, net | 4,939,912 | 1,233,038 | [1] |
Receivables from supply chain financing | 10,741,981 | [1] | |
Prepaid expenses and other current assets | 971,839 | 280,202 | [1] |
Loans to third parties - current portion | 1,915,709 | 2,434,715 | [1] |
Due from discontinued operations | 9,201,432 | [1] | |
Receivable from sale of discontinued operations | 14,950,730 | [1] | |
Assets of discontinued operations - current | 36,985,779 | [1] | |
TOTAL CURRENT ASSETS | 60,399,271 | 52,916,672 | [1] |
NON-CURRENT ASSETS: | |||
Property and equipment, net | 655,643 | 287,057 | [1] |
Intangible assets, net | 3,726,602 | 4,189,350 | [1] |
Right-of-use assets, net | 1,464,745 | 502,670 | [1] |
Loans to third parties - non-current | 2,872,820 | [1] | |
Equity investments | 484,864 | 500,715 | [1] |
Investment in limited partnership | 15,736,927 | [1] | |
Goodwill | 25,172,407 | 11,074,864 | [1] |
Deferred tax assets, net | 456,370 | 20,040 | [1] |
Assets of discontinued operations - non-current | 21,636,501 | [1] | |
TOTAL NON-CURRENT ASSETS | 47,697,558 | 41,084,017 | [1] |
TOTAL ASSETS | 108,096,829 | 94,000,689 | [1] |
CURRENT LIABILITIES: | |||
Accounts payable | 1,312,560 | 224,045 | [1] |
Accrued expenses and other current liabilities | 2,001,031 | 674,169 | [1] |
Operating lease liabilities - current | 736,854 | 138,133 | [1] |
Advance from customers | 11,624 | 28,728 | [1] |
Taxes payable | 3,133,038 | 138,157 | [1] |
Loan from related party | 10,528,965 | [1] | |
Due to related parties | 2,071,309 | 7,759,443 | [1] |
Purchase price payable for acquisition | 7,007,905 | [1] | |
Liabilities of discontinued operations - current | 28,472,022 | [1] | |
TOTAL CURRENT LIABILITIES | 26,803,286 | 37,434,697 | [1] |
Operating lease liabilities – non-current | 680,130 | 368,019 | [1] |
Deferred tax liabilities | 676,015 | 805,826 | [1] |
Liabilities of discontinued operations - non-current | 1,456,634 | [1] | |
TOTAL LIABILITIES | 28,159,431 | 40,065,176 | [1] |
Commitments and contingencies | [1] | ||
EQUITY: | |||
Additional paid-in capital | 59,472,255 | 28,369,076 | [1] |
Retained earnings | 14,380,976 | 27,472,766 | [1] |
Unearned compensation | (624,455) | ||
Accumulated other comprehensive income (loss) | 3,593,188 | (1,914,232) | [1] |
TOTAL SHAREHOLDERS’ EQUITY | 76,842,519 | 53,945,320 | [1] |
Non-controlling interests | 3,094,879 | (9,807) | [1] |
TOTAL EQUITY | 79,937,398 | 53,935,513 | [1] |
TOTAL LIABILITIES AND EQUITY | 108,096,829 | 94,000,689 | [1] |
Class A common stock | |||
EQUITY: | |||
Common stock value | 20,555 | 17,710 | [1] |
TOTAL EQUITY | 20,555 | 17,710 | |
Class B common stock | |||
EQUITY: | |||
Common stock value | |||
TOTAL EQUITY | |||
[1] | The amounts have been reclassified to conform with the Group’s decision to classify Hebron HK as assets and liabilities of discontinued operations. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Class A common stock | ||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 20,555,129 | 17,710,471 |
Common stock, shares outstanding | 20,555,129 | 17,710,471 |
Class B common stock | ||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | ||
Common stock, shares outstanding |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
REVENUE: | |||
Small and Medium Enterprise financing solutions | $ 40,779,794 | $ 2,522,143 | |
Supply Chain financing solutions | 1,369,859 | ||
Other financing solutions | 40,538 | 3,381 | |
Financial services | 42,190,191 | 2,525,524 | |
OPERATING EXPENSES: | |||
Selling expenses | 3,181,810 | 93,620 | |
General and administrative expenses | 8,188,736 | 1,082,631 | $ 1,170,900 |
Research and development expenses | 817,770 | 155,216 | 923,094 |
Total operating expenses | 12,188,316 | 1,331,467 | 2,093,994 |
INCOME (LOSS) FROM OPERATIONS | 10,028,219 | 1,174,565 | (2,093,994) |
OTHER INCOME (EXPENSE): | |||
Interest and investment income | 585,177 | ||
Other income (expense), net | 244,274 | 1,371 | |
Total other income (expense), net | 829,451 | 1,371 | |
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES | 10,857,670 | 1,175,936 | (2,093,994) |
PROVISION (BENEFIT) FOR INCOME TAXES | 941,064 | (55,731) | |
NET INCOME (LOSS) FROM CONTINUING OPERATIONS | 9,916,606 | 1,231,667 | (2,093,994) |
DISCONTINUED OPERATIONS: | |||
(Loss) income from discontinued operations, net of tax | (23,107,066) | 1,508,323 | (3,050,721) |
Net gain on sale of discontinued operations, net of tax | 136,050 | ||
NET (LOSS) INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX | (22,971,016) | 1,508,323 | (3,050,721) |
NET (LOSS) INCOME | (13,054,410) | 2,739,990 | (5,144,715) |
Net income attributable to non-controlling interests | 37,380 | ||
NET (LOSS) INCOME ATTRIBUTABLE TO SHAREHOLDERS | (13,091,790) | 2,739,990 | (5,144,715) |
OTHER COMPREHENSIVE INCOME (LOSS) | |||
Foreign currency translation income (loss) | 5,507,420 | (561,091) | (1,755,528) |
COMPREHENSIVE (LOSS) INCOME | (7,584,370) | 2,178,899 | (6,900,243) |
Comprehensive loss attributable to non-controlling interests | (2,172) | ||
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO SHAREHOLDERS | $ (7,582,198) | $ 2,178,899 | $ (6,900,243) |
BASIC AND DILUTED EARNINGS (LOSS) PER COMMON SHARE: | |||
Income (loss) from continuing operations (in Dollars per share) | $ 0.53 | $ 0.08 | $ (0.13) |
Income (loss) from discontinued operations (in Dollars per share) | (1.24) | 0.09 | (0.20) |
TOTAL (LOSS) EARNINGS PER COMMON SHARE (in Dollars per share) | $ (0.71) | $ 0.17 | $ (0.33) |
Weighted average number of shares outstanding-basic and diluted (in Shares) | 18,587,674 | 16,269,577 | 15,760,633 |
Cost of revenue | $ (19,740,267) | ||
Business and sales related taxes | (233,389) | $ (19,492) | |
GROSS PROFIT | $ 22,216,535 | $ 2,506,032 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) | Class A Common Stock Shares | Class B Common Stock Shares | Additional Paid in Capital | Unearned Compensation | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interests | Total | |
Balance at Dec. 31, 2017 | $ 6,917 | $ 7,778 | $ 10,237,965 | $ 29,877,491 | $ 402,387 | $ 40,532,538 | |||
Balance (in Shares) at Dec. 31, 2017 | 6,916,947 | 7,778,400 | |||||||
Net income (loss) | (5,144,715) | (5,144,715) | |||||||
Foreign currency translation adjustment | (1,755,528) | (1,755,528) | |||||||
Issuance of class A common stock for consulting services | $ 131 | 239,369 | 239,500 | ||||||
Issuance of class A common stock for consulting services (in Shares) | 131,452 | ||||||||
Issuance of common stock for equity investment | $ 1,443 | 2,884,113 | 2,885,556 | ||||||
Issuance of common stock for equity investment (in Shares) | 1,442,778 | ||||||||
Balance at Dec. 31, 2018 | $ 8,491 | $ 7,778 | 13,361,447 | 24,732,776 | (1,353,141) | 36,757,351 | |||
Balance (in Shares) at Dec. 31, 2018 | 8,491,177 | 7,778,400 | |||||||
Net income (loss) | 2,739,990 | 2,739,990 | |||||||
Foreign currency translation adjustment | (561,091) | (561,091) | |||||||
Capital contribution by shareholder | 3,582,781 | 3,582,781 | |||||||
Shares issued for business acquisition | $ 1,441 | 11,424,848 | (9,807) | 11,416,482 | |||||
Shares issued for business acquisition (in Shares) | 1,440,894 | ||||||||
Reclassification of common stock | $ 7,778 | $ (7,778) | |||||||
Reclassification of common stock (in Shares) | 7,778,400 | (7,778,400) | |||||||
Balance at Dec. 31, 2019 | $ 17,710 | 28,369,076 | 27,472,766 | (1,914,232) | (9,807) | 53,935,513 | [1] | ||
Balance (in Shares) at Dec. 31, 2019 | 17,710,471 | ||||||||
Net income (loss) | (13,091,790) | 37,380 | (13,054,410) | ||||||
Foreign currency translation adjustment | 5,507,420 | 2,172 | 5,509,592 | ||||||
Private placement | $ 1,049 | 6,502,329 | 6,503,378 | ||||||
Private placement (in Shares) | 1,048,932 | ||||||||
Capital contribution by shareholder | 4,550,000 | 4,550,000 | |||||||
Shares issued for business acquisition | $ 1,563 | 18,329,213 | 18,330,776 | ||||||
Shares issued for business acquisition (in Shares) | 1,562,726 | ||||||||
Shares issued for share-based compensation | $ 233 | 1,721,637 | (624,455) | 1,097,415 | |||||
Shares issued for share-based compensation (in Shares) | 233,000 | ||||||||
Capital contribution from non-controlling interest | 3,065,134 | 3,065,134 | |||||||
Balance at Dec. 31, 2020 | $ 20,555 | $ 59,472,255 | $ (624,455) | $ 14,380,976 | $ 3,593,188 | $ 3,094,879 | $ 79,937,398 | ||
Balance (in Shares) at Dec. 31, 2020 | 20,555,129 | ||||||||
[1] | The amounts have been reclassified to conform with the Group’s decision to classify Hebron HK as assets and liabilities of discontinued operations. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net (loss) income | $ (13,054,410) | $ 2,739,990 | $ (5,144,715) |
Net (loss) income from discontinued operations | (22,971,016) | 1,508,323 | (3,050,721) |
Net income (loss) from continuing operations | 9,916,606 | 1,231,667 | (2,093,994) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 1,686,518 | 242,409 | |
Stock-based compensation | 1,097,415 | ||
Bad debt expense | 1,162,594 | ||
Loss on disposition of property and equipment | 42,534 | ||
(Income) from investments | (169,720) | ||
Deferred taxes | (584,760) | (55,731) | |
Changes in operating assets and liabilities: | |||
Decrease (increase) in accounts receivable | 573,418 | (815,534) | |
Decrease (increase) in prepaid expenses and other current assets | 16,009 | (108,150) | 931,320 |
(Increase) in operating lease right-of-use assets | (56,831) | ||
(Increase) in receivable from supply chain financing | (10,741,981) | ||
Increase in accounts payable | 1,014,227 | ||
Increase in advance from customers | (17,977) | ||
(Decrease) in other payable | (2,112,886) | ||
Increase in taxes payable | 1,609,498 | 54,474 | |
(Decrease) in operating lease liabilities | (523,797) | ||
Increase in accrued expenses and other current liabilities | 502,100 | 49,574 | |
Net cash provided by (used in) operating activities from continuing operations | 2,250,373 | 598,709 | (80) |
Net cash provided by (used in) operating activities from discontinued operations | 436,389 | (263,476) | (725,000) |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 2,686,762 | 335,233 | (725,080) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Acquisition of property and equipment | (204,904) | (237,548) | |
Acquisition of intangible assets | (94,400) | ||
Proceeds from disposal of equipment | 41,688 | ||
Cash acquired with business acquisitions | 4,990,754 | 2,043,176 | |
Investment in limited partnership | (15,589,966) | ||
Purchase of short-term investment | (3,065,134) | ||
Repayments from loan to third parties | 11,019,545 | ||
Loans to third parties | (1,810,495) | (3,611,682) | |
Net cash (used in) investing activities from continuing operations | (4,712,912) | (1,806,054) | |
Net cash (used in) investing activities from discontinued operations | (6,713) | (157,440) | (115,210) |
NET CASH (USED IN) FINANCING ACTIVITIES | (4,719,625) | (1,963,494) | (115,210) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Repayment to related parties | (6,803,115) | 566,360 | |
Advances from related parties | 1,303,556 | ||
Loan from related parties | 10,528,965 | ||
Proceeds from private placement | 6,503,378 | ||
Capital contribution from non-controlling interest | 3,065,134 | ||
Capital contribution from shareholder | 4,550,000 | 3,582,781 | |
Net cash provided by financing activities from continuing operations | 19,147,918 | 4,149,141 | |
Net cash (used in) provided by financing activities from discontinued operations | (788,599) | (996,355) | 730,669 |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 18,359,319 | 3,152,786 | 730,669 |
EFFECT OF EXCHANGE RATE CHANGE ON CASH AND CASH EQUIVALENT | 2,806,981 | (184,449) | (94,230) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 19,133,437 | 1,340,076 | (203,860) |
Add: decrease in cash and cash equivalents from discontinued operations | 283,314 | 1,440,823 | 203,710 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS FROM CONTINUING OPERATIONS | 19,416,751 | 2,780,899 | (150) |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH-BEGINNING | 2,781,506 | 607 | 757 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH-ENDING | 22,198,257 | 2,781,506 | 607 |
SUPPLEMENTAL CASH FLOW DISCLOSURES: | |||
Cash paid for income taxes | 552,783 | 5,158 | 42,250 |
Cash paid for interest | 124,778 | 147,900 | 91,917 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES: | |||
Payment payable to related parties for business acquisition | 7,007,905 | 7,000,000 | |
Issuance of shares for business acquisition | 18,330,776 | 11,426,289 | |
Receivable from sale of discontinued operations | 14,950,730 | ||
Issuance of shares for share based compensation | 1,721,870 | ||
Issuance of shares for consulting services | 239,500 | ||
Issuance of shares for equity investment | 2,885,556 | ||
CASH AND CASH EQUIVALENTS FROM CONTINUING OPERATION COMPRISE OF THE FOLLOWING: | |||
Cash and cash equivalents | 22,135,310 | 2,756,490 | 607 |
Restricted cash | 62,947 | 25,016 | |
Total cash, cash equivalents and restricted cash | $ 22,198,257 | $ 2,781,506 | $ 607 |
Organization and Business Descr
Organization and Business Description | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND BUSINESS DESCRIPTION | Note 1 — ORGANIZATION AND BUSINESS DESCRIPTION Organization and description of business Nisun International Enterprise Development Group Co., Ltd (“Nisun International” or the “Company”), formerly known as Hebron Technology Co., Ltd, is an investment holding company established under the laws of the British Virgin Islands (“BVI”) on May 29, 2012. On November 16, 2020, the Company officially changed its Nasdaq trading symbol to “NISN” and its name from “Hebron Technology Co., Ltd” to “Nisun International Enterprise Development Group Co., Ltd”, which the management believes more closely reflects the Company’s new financial services business. The Company conducts its business mainly through its subsidiaries, variable interest entities (“VIEs”) and subsidiaries of the VIEs (collectively referred to as the “Group”) in the People’s Republic of China (‘‘PRC’’). The Group began to conduct its financial services business in 2019 through the Group’s newly acquired entities, Fintech (Shanghai) Digital Technology Co., Ltd. (“Fintech”), Beijing Hengtai Puhui Information services Co., Ltd. (“Hengpu”), Nami Shanghai Financial Consulting Co., Ltd (“Nami Shanghai”) and their subsidiaries. The Group provides a set of technology-driven customized financing solutions to small-and mid-size enterprises through Hengpu, Fintech, Nami Shanghai and their subsidiaries. Hengpu and Fintech provide comprehensive financing solutions for small to medium-sized enterprises, while Nami facilitates the matching of investors and small to medium-sized enterprises. The Group commenced a technology-driven integrated supply chain financing solutions through Fintech and its subsidiaries in January 2020 by involvement in bringing the lender and borrower together. Acquisition of Nami Holding (Cayman) Co., Ltd (Note 3) On May 31, 2020, the Group acquired 100% of Nami Holding (Cayman) Co., Ltd. (“Nami Cayman”) for $25.34 million, consisting of $7.01 million (RMB 50 million) to be paid in cash and 1,562,726 shares of our common stock issued at $11.73 per share valued at $18.33 million, to Nami Cayman’s original shareholders (See Note 3). Nami Cayman effectively controls Nami Shanghai through a series of contractual agreements (“VIE Agreements”). Disposition of Hong Kong Xibolun Technology Co., Ltd (Note 4) On November 30, 2020, the Group completed the disposition of its valve manufacturing and installation business. The Group sold all equity interests in its subsidiary, Hong Kong Xibolun Technology Co., Ltd. (“Hebron HK”) to Wise Metro Development Co., Ltd. (a company owned by the Company’s prior CEO and another officer) for consideration of approximately $14.95 million (RMB 98.3 million). As a result of the disposition, the Group sold all the equity interests it held in Zhejiang Xibolun Automation Project Technology Co., Ltd, Wenzhou Xibolun Fluid Equipment Co., Ltd., and Xuzhou Weijia Biotechnology Co., Ltd. The manufacturing and installation business have been presented as discontinued operations (“Discontinued Operations”) retroactively for the periods presented in the consolidated financial statements. COVID-19 In December 2019, a novel strain of coronavirus (COVID-19) surfaced. COVID-19 has spread rapidly to many parts of the PRC and other parts of the world in the first quarter of 2020, which has caused significant volatility in the PRC and international markets. There is significant uncertainty around the breadth and duration of business disruptions related to COVID-19, as well as its impact on the PRC and international economies. For the year ended December 31, 2020 and subsequent period up to the date of this report, the COVID-19 pandemic did not have a material negative impact on the Group’s financial services business. For the year ended December 31, 2020, the COVID-19 pandemic resulted in material adverse effects on the Group’s discontinued manufacturing and installation business. During the temporary business closure period, employees had very limited access to the Group’s manufacturing facilities, and as a result, the Group experienced difficulty providing manufacturing and installation services on a timely basis. In addition, due to the COVID-19 outbreak, some of the Group’s customers and suppliers experienced financial distress, delayed or defaulted on their payments, reduced the scale of their business, and suffered disruptions in their business. On November 30, 2020, the Group disposed of the manufacturing and installation business. The extent of the impact on the Group’s fiscal 2021 results will be dependent on future developments such as the length and severity of the crisis, the potential resurgence of the crisis, future go As of December 31, 2020, the Group’s subsidiaries and consolidated VIEs are as follows: Date of incorporation/ acquisition Place of incorporation Percentage of direct or indirect economic interest Subsidiaries NiSun International Enterprise Management Group (British Virgin Islands) Co., Ltd. (“NiSun BVI”) July 12, 2019 BVI 100 % NiSun International Enterprise Management Group (Hong Kong) Co., Limited (“NiSun HK”) July 12, 2019 Hong Kong 100 % Nisun (Shandong) Industrial Development Co., Ltd (“Nisun Shandong” or “WOFE”) December 15, 2020 PRC 100 % NingChen (Shanghai) Enterprise Management Co., Ltd.(“NingChen”) July 12, 2019 PRC 100 % Shandong Taiding International Investment Co., Ltd. (“Taiding”) November 12, 2019 PRC 80 % Nami Holding (Cayman) Co., Ltd (“Nami Cayman”) April 09, 2019 Cayman Islands 100 % Nami Holding (Hong Kong) Co., Limited (“Nami HK”) May 02, 2019 Hong Kong 100 % Shanghai Naqing Enterprise Management Co., Ltd (“Naqing” or “WOFE”) April 10, 2019 PRC 100 % VIEs , Fintech (Shanghai) Digital Technology Co., Ltd. (“Fintech Shanghai”) July 12, 2019 PRC 100 % Beijing Hengtai Puhui Information Services Co., Ltd (“Hengpu”) December 31, 2019 PRC 100 % Nami Shanghai Financial Consulting Co., Ltd (“Nami Shanghai”) June 04, 2015 PRC 100 % Subsidiaries of the VIEs Khorgos Fintech Network Technology Co., Ltd. (“Khorgos”) July 12, 2019 PRC 100 % Jilin Lingang Supply Chain Management Co., Ltd (“Lingang”) November 27, 2019 PRC 100 % NiSun Family Office (Guangzhou) Co., Ltd. (“Guangzhou”) October 29, 2019 PRC 100 % Hangzhou Fengtai Supply Chain Management Co., Ltd. (“Fengtai”) December 31, 2019 PRC 100 % Dunhua Midtown Asset Management Registration Center Co., Ltd. (“Midtown”)* December 31, 2019 PRC 100 % Nanjing Nisun Gold Co., Ltd. (“Nisun Gold”) December 10, 2020 PRC 100 % Fintech (Henan) Supply Chain Management Co., Ltd. (“Fintech Henan”) August 26, 2020 PRC 100 % Fintech (Jiangsu) Supply Chain Management Co., Ltd. (“Fintech Jiangsu”) November 06, 2020 PRC 100 % Fintech (Shandong) Supply Chain Management Co., Ltd. (“Fintech Shandong”) November 04, 2020 PRC 100 % Fanlunke Supply Chain Management (Shanghai) Co., Ltd. (“Fanlunke Shanghai”) December 29, 2020 PRC 100 % Shanxi Fintech Supply Chain Management Co., Ltd (“Fintech Shanxi”) December 30, 2020 PRC 80 % Jilin Province Lingang Hengda Supply Chain Management Co., Ltd. (“Lingang Hengda”) August 18, 2020 PRC 100 % * The entity was deregistered on February 19, 2021. Since the entity did not have significant operations, the deregistration did not have a material impact to the Group’s consolidated financial statements for the years ended December 31, 2020, 2019 and 2018. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Note 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Basis of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIEs and the subsidiaries of the VIEs for which the Company or its subsidiary is the primary beneficiary. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting power or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors under a statute or agreement among the shareholders or equity holders. A consolidated VIE is an entity in which the Company, or its subsidiaries, through contractual arrangements, has the power to direct the activities that most significantly impact the entity’s economic performance, bears the risks of and enjoys the rewards normally associated with ownership of the entity, and therefore the Company or its subsidiaries are the primary beneficiary of the entity. All transactions and balances among the Group, its subsidiaries, the VIEs and subsidiaries of the VIEs have been eliminated upon consolidation. VIE companies 1) Contractual Agreements with VIE The following is a summary of the VIE agreements: Management and Consulting Service Agreement. Under the Consulting Services Agreements, the Group has the exclusive right to provide management and consulting and other services to the VIEs for a consulting service fee from the VIEs and agree to authorize the VIEs to use the trademarks, technologies and related intellectual property rights held by the Group. The VIEs agree to pay the Group or the designated agent of the Group for the management and consulting services in the amount equivalent to all the VIEs net profits after tax. The agreement shall be effective as of the date of agreement and shall remain effective until the date when the Group terminates such agreements and Fintech, Hengpu or Nami Shanghai cease to exist. Equity Interest Pledge Agreements Pursuant to the Equity Interest Pledge Agreements, each Shareholder of the VIEs agreed to pledge his equity interest in the VIEs to the Group to secure the performance of the VIEs’ obligations under the Exclusive Business Cooperation Agreements and any such agreements to be entered into in the future. Each shareholder of the VIEs agrees not to transfer, sell, pledge, dispose of or otherwise create any encumbrance on their equity interests in the VIEs without the prior written consent of the Group. The Pledges became effective on such date when the pledge of the Equity Interest contemplated herein were registered with the relevant Administration for Industry and Commerce (the “AIC”) and remain effective until all contract obligations have been fully performed and all secured indebtedness has been fully paid. Voting Rights Proxy Agreement. Under the Voting Rights Proxy Agreement, each shareholder of the VIEs irrevocably authorizes the Group to exercise rights and powers as the shareholders of the VIEs, including but not limited to, convening and attending shareholders’ meetings, voting on all matters of the VIEs requiring shareholder approval and appointing directors and senior management members. The Voting Rights Proxy Agreements will remain in force unless otherwise terminated in writing by the Group or with the written consent of all parties. Exclusive Call Option Agreement. Under the Exclusive Call Option Agreement, the VIEs and their shareholders have irrevocably granted the Group an exclusive option to purchase or authorize their designated persons to purchase all or part of each shareholder’s equity interests in the VIEs. The purchase price shall be equal to the minimum price required by the relevant PRC laws. Without prior written consent of the Group, the VIEs shall not among other things, amend their articles of association, sell or otherwise dispose of their assets or beneficial interests, enter into transactions which may adversely affect their assets, liabilities, business operations, equity interests and other legal interests, or merge with any other entities or make any investments, or distribute dividends. The Group has the right to transfer the rights and obligations pursuant to the Exclusive Call Option Agreement to any third party, which do not require any prior consent of the VIEs and their shareholders. The Exclusive Call Option Agreement will remain effective until the Group terminates this agreement with 30 days advance notice. 2) Risks in relation to the VIE structure The Group believes that the contractual arrangements with its VIEs and their respective shareholders are in compliance with PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit the Group’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 Group’s PRC subsidiaries and VIEs; ● discontinue or restrict the operations of any related-party transactions between the Group’s PRC subsidiaries and VIEs; ● limit the Group’s business expansion in China by way of entering into contractual arrangements; ● impose fines or other requirements with which the Group’s PRC subsidiaries and VIEs may not be able to comply; ● require the Group’s PRC subsidiaries and VIEs to restructure the relevant ownership structure or operations; or ● restrict or prohibit the Group’s use of the proceeds of a public offering to finance the Group’s business and operations in China. The Group’s ability to conduct its financial services business may be negatively affected if the PRC government were to carry out of any of the aforementioned actions. As a result, the Group may not be able to consolidate its VIEs in its consolidated financial statements as it may lose the ability to exert effective control over the VIEs – Fintech, Hengpu, and Nami Shanghai and their respective shareholders and it may lose the ability to receive the economic benefits from the VIEs. The Group, however, does not believe such actions would result in the liquidation or dissolution of the Group, its PRC subsidiaries and VIEs. The interests of the shareholders of VIEs may diverge from that of the Group and that may potentially increase the risk that they would seek to act contrary to the contractual terms, for example by influencing the VIEs not to pay the service fees when required to do so. The Group cannot assure that when conflicts of interest arise, shareholders of the VIEs will act in the best interests of the Group or that conflicts of interests will be resolved in the Group’s favor. Currently, the Group does not have existing arrangements to address potential conflicts of interest the shareholders of the VIEs may encounter in their capacity as beneficial owners and directors of the VIEs, on the one hand, and as beneficial owners and directors of the Group, on the other hand. The Group believes the shareholders of the VIEs will not act contrary to any of the contractual arrangements and the exclusive option agreements provide the Group with a mechanism to remove the current shareholders of the VIEs should they act to the detriment of the Group. The Group relies on certain current shareholders of the VIEs to fulfill their fiduciary duties and abide by laws of the PRC and act in the best interest of the Group. If the Group cannot resolve any conflicts of interest or disputes between the Group and the shareholders of the VIEs, the Group would have to rely on legal proceedings, which could result in disruption of its business, and there are substantial uncertainties as to the PRC legal system and the outcome of any such legal proceedings. The following table sets forth the assets, liabilities, results of operations and changes in cash and cash equivalents of the VIEs and their subsidiaries taken as a whole, which were included in the Group’s consolidated financial statements for continuing operations with intercompany balances and transactions eliminated between the VIEs and their subsidiaries: December 31, December 31, Total current asset $ 43,832,012 $ 5,988,899 Total assets $ 47,223,358 $ 9,793,910 Total current liabilities $ 11,146,286 $ 1,295,055 Total liabilities $ 11,826,417 $ 1,295,055 For the year ended December 31, 2020 For the year ended December 31, 2019 Financial services revenue $ 42,190,191 $ 2,525,524 Net income $ 11,583,787 $ 1,600,661 For the year ended December 31, 2020 For the year ended December 31, 2019 Net cash provided by operating activities $ 2,560,400 $ 824,462 Net cash (used in) investing activities $ (13,321,524 ) $ (3,132,684 ) Net cash provided by financing activities $ 4,051,162 $ 3,044,235 As of December 31, 2020, there were no consolidated assets of the VIEs that are collateral for the VIEs’ obligations and can only be used to settle the VIEs’ obligations. There were no creditors (or beneficial interest holders) of the VIEs that have recourse to the general credit of the Group in the normal course of business. The Group neither provides nor intends to provide additional financial or other support not previously contractually required to the VIEs and subsidiaries of the VIEs. Relevant PRC laws and regulations restrict the VIEs from transferring a portion of its net assets, equivalent to the balance of its paid-in capital, capital reserve and statutory reserves, to the Group in the form of loans, advances or cash dividends. Please refer to Note 18 for disclosure of restricted net assets. Non-controlling interests Non-controlling interests are recognized to reflect the portion of the equity that is not attributable, directly, or indirectly, to the Group. Non-controlling interests are presented as a separate component of equity in the consolidated balance sheets and earnings and other comprehensive income (loss) are attributed to controlling and non-controlling interests. As of December 31, 2020, non-controlling interest relates to the 20% equity interest in Taiding. Uses of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during each reporting period. Actual results could differ from those estimates. Significant accounting estimates reflected in the Group’s consolidated financial statements include: the allowance for doubtful accounts, the valuation of inventory, realizability of deferred tax assets, costs to complete contracts, estimated useful lives and fair values in connection with the impairment of property and equipment, the valuation of intangible assets, and goodwill, accruals for income tax uncertainties, and the determination of fair values related to business acquisitions. Business combinations The Group accounts for business combinations using the purchase method of accounting in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) topic 805, Business Combinations. The purchase method of accounting requires the consideration transferred to be allocated to the assets, including separately identifiable assets and liabilities the Group acquired, based on their estimated fair values. The consideration transferred in an acquisition is measured as the aggregate of the fair values at the date of exchange of the assets given, liabilities incurred, and equity instruments issued as well as the contingent consideration and all contractual contingencies as of the acquisition date. The costs directly attributable to the acquisition are expensed as incurred. Identifiable assets, liabilities and contingent liabilities acquired or assumed are measured separately at their fair value as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of (i) the total acquisition cost, fair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree, is recorded as goodwill. If the cost of the acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in earnings as a bargain purchase gain. The determination and allocation of fair values to the identifiable assets acquired, liabilities assumed, and non-controlling interests is based on various assumptions and valuation methodologies requiring considerable judgment from management. The most significant variables in these valuations are discount rates, terminal values, the number of years on which to base the cash flow projections, as well as the assumptions and estimates used to determine the cash inflows and outflows. The Group determines discount rates to be used based on the risk inherent in the related activity’s current business model and industry comparisons. Terminal values are based on the expected life of assets, the forecasted life cycle and forecasted cash flows over that period. The fair value of the identifiable assets acquired, and liabilities assumed at the acquisition date is based on a valuation performed by an independent valuation firm engaged by the Group. Discontinued operations A component of a reporting entity or a group of components of a reporting entity that are disposed or meet the criteria to be classified as held for sale, such as the management, having the authority to approve the action, commits to a plan to sell the disposal group, should be reported as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. Discontinued operations are reported when a component of an entity comprising operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity is classified as held for disposal or has been disposed of, if the component either (1) represents a strategic shift or (2) have a major impact on an entity’s financial results and operations. Included in the consolidated statements of operations and comprehensive income (loss), the results from discontinued operations are reported separately from the income and expense from continuing operations and prior periods are presented on a comparative basis. In order to present the financial effects of the continuing operations and discontinued operations, revenues and expenses arising from intra-group transactions are eliminated except for those revenues and expenses that are considered to continue after the disposal of the discontinued operations, if any. Revenue recognition The Group adopted FASB ASC Topic 606 Revenue from Contracts with Customers (“ASC 606”) on January 1, 2018 using the modified retrospective approach. Revenues are presented under ASC 606, and there was no adjustment to the opening balance of retained earnings at January 1, 2018 since there was no significant 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 Group’s customers in an amount of consideration to which an entity expects to be entitled to in exchange for those goods or services. All of the Group’s contracts with customers do not contain cancelable and refund-type provisions. Under the guidance of ASC 606, the Group is required to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract and (e) recognize revenue when (or as) the Group satisfies its performance obligation. In determining the transaction price, the Group includes variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur. Revenues are recorded, net of sales related taxes and surcharges. Small and medium enterprise financing solution The Group earns one-time advisory fees from its services provided to small-and mid-size enterprises. The Group enters into one-time advisory fee agreements with small-and mid-size enterprises, underwriters, financial institutions and issuers, which specifies the key terms and conditions of the arrangement. Such agreements generally do not include rights of return, credits or discounts, rebates, price protection or other similar privileges. The Group earns a one-time advisory fee from its clients upon offerings completed on the PRC provincial or national asset exchanges or other designated markets. Revenue is calculated at a fixed charge rate based on the amount and length of the offering (prorated by the financing term). The Group believes such arrangement represents a performance obligation that is satisfied at a point of time, therefore, the underwriting related advisory fees are recognized as revenue upon the closing of the offerings. Other financing solutions The Group also provides ongoing user management services to small and medium commercial banks and financial institutions in distributing and sourcing funds for their direct banking and other financial products in exchange for a recurring service fee. Recurring service agreements do not include rights of return, credits or discounts, rebates, price protection or other similar privileges. Recurring service fees are calculated as a fixed percentage of the qualified investments made by users during the contractual investment period of the direct banking and other financial products. Payment of recurring service fees by commercial banks and financial institutions are normally on a regular basis (typically quarterly or annually). The Group believes such arrangement requires the Group to provide ongoing management services including but not limited to direct banking account reconciliation between the financial institution and investors and maintaining investors’ account portfolios over the contractual term, which represents a performance obligation that the Group satisfies over time. Therefore, the recurring service revenue is recognized over the contract term on a straight-line basis. Supply chain financing solution For the year ended December 31, 2020, the Group started to offer supply chain financing advisory services through Fintech and its subsidiaries by integrating the working capital needs of suppliers and merchants in the supply chain and assisting them to obtain sufficient funds. One-time commission fees: Recurring supply chain management service fees: Disaggregation of revenue The Group derives revenue primarily from one-time commissions and recurring service fees paid by clients or financial product providers. The following tables show the revenue from financial services disaggregated by nature for the years ended December 31, 2020 and 2019: For the year ended December 31 For the year ended December 31, 2019 One-time commission fees $ 42,082,585 $ 2,522,143 Recurring service fees 107,606 3,381 Total revenue $ 42,190,191 $ 2,525,524 The Group provides small and medium enterprise financing solutions, supply chain financing solutions and other financing solutions. The following tables show the revenue from financial services disaggregated by revenue line for the years ended December 31, 2020 and 2019: For the year ended December 31 For the year ended December 31, Small and medium enterprise financing solutions $ 40,779,794 $ 2,522,143 Supply chain financing solutions 1,369,859 Other financing solutions 40,538 3,381 Total revenue $ 42,190,191 $ 2,525,524 Practical expedient The Group has applied the practical expedient for certain revenue streams to exclude the value of remaining performance obligations for (i) contracts with an original expected term of one year or less or (ii) contracts for which the Group recognizes revenue in proportion to the amount the Group has the right to invoice for services performed. Cash and cash equivalent Cash and cash equivalents consist of cash on hand, money market fund investments, time deposits, as well as highly liquid investments, which have original maturities of three months or less. Restricted Cash The Group had restricted cash of $62,947 and $25,016 at December 31, 2020 and December 31, 2019, respectively, which are primarily security deposits related to our financing services. In November 2016, the FASB issued Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts presented in the statement of cash flows. Short-term investments The Group’s short-term investments include the Group’s investments in wealth management products issued by commercial banks and financial institutions that have a stated maturity within one year and normally pay a prospective fixed interest rate. The wealth management products are unsecured and primarily invested in financial instruments with high credit ratings and good liquidity in the interbank and exchange markets, including but not limited to debt securities issued by financial institutions, central bank bills, interbank and exchange-traded bonds, and asset backed securities. The Group measures the short-term investments at fair value using the quoted subscription or redemption prices published or by discounting the future cash flows at the expected yield rate with reference to the expected benchmark yield rates of the wealth management product. Fair value of financial instruments The Group follows the provisions of FASB ASC Section 820, “Fair Value Measurements and Disclosures” (“ASC 820”). ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1 — Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. Level 2 — Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities 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 are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions market participants would use in pricing the asset or liability based on the best available information. The carrying amounts reported in the balance sheets for cash and cash equivalents, short term investments, accounts receivable, receivables from supply chain financing, loans to third parties, accounts payable, advances from customers, taxes payable, due to related parties and accrued expenses and other current liabilities, approximate their fair value based on the short-term maturity of these instruments. The Group believes that the carrying amount of the investment in debt securities approximates fair value based on the terms of the investments and current market rates as the interest rates are reflective of the current market rates. Transfers into or out of the fair value hierarchy classifications are made if the significant inputs used in the financial models measuring the fair value of the assets and liabilities became unobservable or observable in the current marketplace. These transfers are considered to be effective as of the beginning of the period in which they occur. The Group did not transfer any assets or liabilities in or out of Level 2 and Level 3 during the years ended December 31, 2020 and 2019. Fair value measurements on a recurring basis As of December 31, 2019, the Group did not have any financial instruments measured at fair value on a recurring basis. As of December 31, 2020, the financial instruments measured at fair value on a recurring basis are as follows: Fair value Fair value measurement at reporting date Description 2020 (Level 1) (Level 2) (Level 3) Short-term investments: Wealth management products $ 4,680,843 $ - $ 4,680,843 $ - Accounts receivable Accounts receivable is stated at the historical carrying amount net of an allowance for uncollectible accounts. An allowance for uncollectable accounts is established based on the management’s assessment of the recoverability of accounts and other receivables. Judgment is required in assessing the realizability of these receivables, including the current credit worthiness of each customer and the related aging analysis. An allowance is provided for accounts when management has determined that the likelihood of collection is doubtful. The Group writes off accounts and contract receivables against the allowance when a balance is determined to be uncollectible. Investment in debt securities The Group’s investments in debt securities that have a stated maturity and normally pay a prospective fixed rate of return. The Group classifies the investments in debt securities as held-to-maturity when it has both the positive intent and ability to hold them until maturity. Held-to-maturity investments are recorded at amortized cost and are classified as long-term or short-term according to their contractual maturity. Long-term investments are reclassified as short-term when their contractual maturity date is less than one year. Investments that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and are reported at fair value with changes in fair value recognized in earnings. Investments that do not meet the criteria of held-to-maturity or trading securities are classified as available-for-sale, and are reported at fair value with changes in fair value deferred in other comprehensive income. Long term investments FASB ASU 2016-01 (“ASU 2016-01”), Recognition and Measurement of Financial Assets and Financial Liabilities amends certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The main provisions require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value through earnings, unless they qualify for a measurement alternative. The Group adopted the new financial instruments accounting standard on January 1, 2019. Prior to January 1, 2019, the Group did not have any long-term investments, so the adoption of ASU 20106-01 did not have any material impact to the Group’s consolidated financial statements upon adoption. Equity investments without readily determinable fair values After the adoption of this new accounting standard, the Group elected to record equity investments without readily determinable fair values and not accounted for under the equity method at cost, less impairment, adjusted for subsequent observable price changes on a nonrecurring basis, and report changes in the carrying value of the equity investment in current earnings. Changes in the carrying value of the equity investment are required to be made whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. Reasonable efforts are be made to identify price changes that are known or that can reasonably be known. Equity investments with readily determinable fair values Equity investments with readily determinable fair values are measured and recorded at fair value using the market approach based on the quoted prices in active markets at the reporting date. Equity investments accounted for using the equity method The Group accounts for its equity investments over which it has significant influence (usually 20% to 49.9%) but does not own a majority equity interest or otherwise control, using the equity method. The Group adjusts the carrying amount of the investment and recognizes investment income or loss for its share of the earnings or loss of the investee after the date of investment. The Group assesses its equity investment for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, operating performance of the entity, including current earnings trends and undiscounted cash flows, and other entity-specific information. The fair value determination, particularly for investments in a privately held entity, requires judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investment and determination of whether any identified impairment is other-than-temporary. The investment held by the Group as of December 31, 2020 and 2019 represented the Group’s 23.08% equity interest in Wenzhou Jinda Holding Co., Ltd (“Jinda”). The Group considers it has significant influence over Jinda due to the level of ownership and its participation in their significant business operating and strategic decisions. Accordingly, the Group accounts for the investment using the equity method. For the year ended December 31, 2020, the Group did not receive any dividends from this investment. For the years ended December 31, 2020 and 2019, the Group recognized its share of loss in Jinda of $46,659 and $0, respectively. Property and equipment, net Property and equipment are recorded at cost. Depreciation is provided in amounts sufficient to amortize the cost of the related assets over their useful lives using the straight-line method, as follows: Useful life Transportation equipment 4 years Office equipment 3 - 5 years Electronic equipment 3 - 5 years Leasehold improvements Shorter of remaining lease term or life of assets The Group charges maintenance, repairs and minor renewals directly to expense as incurred; major additions and betterments to equipment are capitalized. Intangible assets, net Intangible assets acquired are recorded at cost less accumulated amortization. Amortization is provided in amounts sufficient to amortize the cost of the related assets over their useful lives using the straight-line method, as follows: Useful life Software 3 - 5 years Trademark 3-5 years Technology 5-10 years The estimated useful lives of amortizable intangible assets are reassessed if circumstances occur that indicate the original estimated useful lives have changed. Impairment of long-lived assets Long-lived assets are evaluated for impairment whenever events or changes in circumstances (such as significant adverse changes to market conditions that will impact the future use of the assets) indicate that the carrying amount may not be fully recoverable or that the useful life is shorter than the Group had originally estimated. When these events occur, the Group evaluates the impairment by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Group recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. No impairment charge was recognized for the years ended December 31, 2020, 2019 and 2018. Goodwill Goodwill represents the excess of the consideration over the fair value of the identifiable assets and liabilities acquired at the date of acquisition. In January 2017, the FASB issued ASU 2017-04, “Intangibles—Goodwill and Other (Topic 350), simplifying the test for goodwill impairment”. The guidance removes Step 2 of the goodwill impairment test, which required a hypothetical purchase price allocation. Goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value. The ASU is applicable for the annual or any interim goodwill impairment tests beginning after December 15, 2019. The ado |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | Note 3 — BUSINESS COMBINATIONS Acquisition of Nami Cayman The Group completed the acquisition of 100% of Nami Cayman on May 31, 2020 (the “closing date”). Nami Cayman effectively controls Nami Shanghai, a company that provides intermediate matching services to small-and mid-size enterprises and high-quality investors in the PRC. The Group believes the acquisition provides an opportunity for the Group to offer comprehensive financing solutions to small and medium size enterprises in the market with significant growth potential. The Group’s acquisition of Nami Cayman was accounted for as business combination in accordance with FASB ASC 805. Pursuant to the acquisition agreement, the Group is required to pay cash consideration of approximately $7.0 million (RMB 50 million) within 12 months following the close of the transaction and issued 1,562,726 the Group’s Class A common shares to the original shareholders of Nami Cayman as purchase consideration. The fair value of common shares paid was approximately $18.3 million based on the weighted average of the closing share price of the Group for five trading days up to the date immediately prior to the signing date of the purchase agreement. Acquisition-related costs incurred for the acquisitions are not material. The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed at the acquisition date, which represents the net purchase price allocation at the date of the acquisition based on a valuation performed by an independent valuation firm engaged by the Group: May 31, Cash and cash equivalents acquired $ 4,990,754 Short-term investments 1,402,632 Accounts receivable, net 3,869.453 Prepayments and other current assets 621,735 Loans to third parties 5,484,531 Right-of-use assets 1,305,961 Property and equipment, net 407,678 Intangible assets, net 144,153 Accounts payable (322 ) Advance from customers and other payables (1,839,558 ) Salary payable (891,347 ) Taxes payable (1,172,980 ) Operating lease liabilities (1,308,864 ) Goodwill 12,324,856 Total consideration $ 25,338,682 The goodwill is attributable to the excess of the consideration paid over the fair value of the net assets acquired that cannot be recognized separately as identifiable assets and comprise (a) the assembled work force with their knowledge and experience in the industry and (b) the expected but unidentifiable business growth potential as a result of the synergy resulting from the acquisition. None of the goodwill is expected to be deductible for income tax purposes. The total revenue and net income from Nami Cayman that are included in the Group’s consolidated statement of operations for the year ended December 31, 2020 were $16.2 million (RMB 114.3 million) and $3.0 million (RMB20.6 million), respectively. The following unaudited pro forma consolidated financial information reflects the combined results of operations of the Group and Nami Cayman for the years ended December 31, 2019 and 2018, as if the acquisition of Nami Cayman had occurred on January 1, 2018, and after giving effect to purchase accounting adjustments. These pro forma results have been prepared for comparative purposes only and do not purport to be indicative of what operating results would have been had the acquisition actually taken place as of the beginning of the periods presented and may not be indicative of future operating results. For the Year Ended December 31, For the Year Ended December 31, Revenue from continuing operations $ 21,436,553 $ 11,407,879 Net income (loss) from continuing operations 4,686,302 (6,289,702 ) |
Discontinuued Operations
Discontinuued Operations | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUUED OPERATIONS | Note 4 — DISCONTINUUED OPERATIONS On November 30, 2020, the Group sold all its equity interests in its subsidiary- Hong Kong Xibolun Technology Co., Ltd. (“Hebron HK”) to Wise Metro Development Co., Ltd. (an entity owned by the Group’s chief executive officer and another officer) for cash consideration of approximately $15.0 million (RMB 98.3 million), which was fully collected subsequently on April 9, 2021. The disposition resulted in a gain from disposition of $136,050 for the year ended December 31, 2020. The discontinued equipment and engineering business represent a strategic shift that has a significant effect on the Group’s operations and financial results, which trigger discontinued operations accounting in accordance with FASB ASC 205-20-45. The assets and liabilities related to the discontinued operations are classified as assets/liabilities of discontinued operations, while results of operations related to the discontinued operations, including comparatives, were reported as income (loss) from discontinued operations. The results of discontinued operations for the years ended December 31, 2020, 2019 and 2018 were as follows: For the Year Ended For the Year Ended For the Year Ended 2020 2019 2018 REVENUE Installation service $ 876,972 $ 10,490,191 $ 17,297,212 Fluid equipment sales 3,344,328 8,087,399 7,992,848 4,221,300 18,577,590 25,290,060 COST OF REVENUE Cost of revenue (3,439,279 ) (12,882,094 ) (17,458,252 ) Business and sales related taxes (22,759 ) (144,907 ) (253,856 ) GROSS PROFIT 759,262 5,550,589 7,577,952 OPERATING EXPENSES: General and administrative expenses 1,226,966 1,484,200 2,127,288 Selling and marketing expenses 161,389 891,632 1,337,321 Bad debt expenses 22,376,509 2,079,837 6,990,348 Research and development expenses - 337,480 358,411 Total operating expenses 23,764,864 4,793,149 10,813,368 (LOSS) INCOME FROM OPERATIONS (23,005,602 ) 757,440 (3,235,416 ) OTHER INCOME (EXPENSES) Other expenses, net 72,170 1,253,778 (426,585 ) Interest (expenses) (59,517 ) (158,119 ) (208,306 ) (Loss) income from investments (90,541 ) 153,554 168,534 Total other (expense), net (77,888 ) 1,249,213 (466,357 ) (Loss) income (Loss) before income taxes (23,083,490 ) 2,006,653 (3,701,773 ) Income tax expense (benefit) 23,576 498,330 (651,052 ) Net loss from discontinued operations $ (23,107,066 ) $ 1,508,323 $ (3,050,721 ) The carrying amounts of major classes of assets and liabilities from discontinued operations in the consolidated balance sheets as of December 31, 2019 are as follow: December 31, CURRENT ASSETS: $ Cash and cash equivalents 696,157 Restricted cash 934,656 Contracts receivable, net 30,120,533 Accounts receivable, net 1,791,493 Bank acceptance notes receivable 22,660 Inventories 635,989 Other receivables, net 415,496 Prepaid expenses and other current assets 2,368,795 TOTAL CURRENT ASSETS OF DISCONTINUED OPERATIONS $ 36,985,779 Property and equipment at cost, net of accumulated depreciation $ 11,602,316 Intangible asset, net 934,914 Retainage receivables, net 2,408,070 Operating lease right-of-use assets, net 1,412,907 Rent and other deposits 82,517 Equity investments 3,207,644 Deferred tax assets, net 1,988,133 TOTAL NON-CURRENT ASSETS OF DISCONTINUED OPERATIONS $ 21,636,501 CURRENT LIABILITIES: Short-term loans $ 861,846 Bank acceptance notes Payable 929,148 Accounts payable 2,162,016 Accrued expenses and other current liabilities 3,050,980 Operating lease liabilities 50,424 Advances from customers 1,282,276 Taxes payable 10,777,326 Due to Nisun International 9,201,432 TOTAL CURRENT LIABILITIES OF DISCONTINUED OPERATIONS $ 28,472,022 Loan payable – long-term 54,726 Operating lease liabilities - non-current 1,401,908 TOTAL NON-CURRENT LIABILITIES OF DISCONTINUED OPERATIONS 1,456,634 |
Accounts Receivables, Net
Accounts Receivables, Net | 12 Months Ended |
Dec. 31, 2020 | |
Credit Loss, Additional Improvements [Abstract] | |
ACCOUNTS RECEIVABLES, NET | Note 5 — ACCOUNTS RECEIVABLES, NET The accounts receivable consists of the following: December 31 December 31, Accounts receivable $ 5,018,839 $ 1,307,013 Less: allowance for doubtful accounts (78,927 ) (73,975 ) Accounts receivable, net $ 4,939,912 $ 1,233,038 |
Receivables from Supply Chain F
Receivables from Supply Chain Financing | 12 Months Ended |
Dec. 31, 2020 | |
Receivable Related To Supply Chain Business [Abstract] | |
RECEIVABLES FROM SUPPLY CHAIN FINANCING | Note 6 — RECEIVABLES FROM SUPPLY CHAIN FINANCING December 31, 2020 December 31, Receivables related to supply chain financing $ 10,741,981 $ - Less: allowance for doubtful accounts - - Receivables related to supply chain financing business, net $ 10,741,981 $ - The age of these financing receivables is generally within 12 months. Since the related suppliers pledge their inventory to guarantee the repayment of these receivables in the short term, no provision for doubtful accounts was recorded for the year ended December 31, 2020. |
Loans to Third Parties
Loans to Third Parties | 12 Months Ended |
Dec. 31, 2020 | |
Loans To Third Parties [Abstract] | |
LOANS TO THIRD PARTIES | Note 7 — LOANS TO THIRD PARTIES Loans to third parties consist of the following: December 31, December 31, Jianuo Finance Lease (Shanghai) Co., Ltd. (“Jianuo”) (1) $ - $ 1,723,692 Shandong Daohong Industry and Trade Co., Ltd (2) - 711,023 Qingdao Manster Digital Technology Co., Ltd (3) - 2,872,820 Sichuan Jingpin Construction Decoration Engineering Co., Ltd (4) 306,514 - Henan Tianxia Kang Trading Co., Ltd (5) 1,609,195 - Total 1,915,709 5,307,535 Less: current portion 1,915,709 2,434,715 Loans to third parties – noncurrent portion $ - $ 2,872,820 (1) Hengpu had a loan receivable of $1,723,692 (or RMB 12 million) from Jianuo Finance Lease (Shanghai) Co., Ltd.(“Jianuo”) The loan earned interest of 1.2% and its principal and interest matured on January 10, 2020. The Group fully collected the loan receivable on January 9, 2020. (2) Taiding, a subsidiary of the Group, made a loan of $711,023 (or RMB 4.95 million) to Shandong Daohong industry and Trade Co., Ltd. (“Daohong”) on December 26, 2019. The loan earned interest of 7% and its principal and interest matured on December 25, 2020. The Group fully collected the loan receivable on December 24, 2020. (3) Fintech, had a loan receivable of $2,872,820 (or RMB 20 million) from Qingdao Manster Digital Technology Co., Ltd (“Manster”) that earned interest of 4.8%. The principal of the loan was due on December 9, 2024 and the interest was due on an annual basis. The Group fully collected the loan receivable on December 16, 2020. (4) Hengpu, made a loan of $306,514 (or RMB 2 million) to Sichuan Jingpin Construction Decoration Engineering Co., Ltd (“Jingpin”) on February 10, 2020. The loan earns interest of 18% and its principal and interest are due on February 10, 2021, which was subsequently extended to June 10, 2021. (5) Taiding made a loan of $1,609,195 (or RMB 10.5 million) to Henan Tianxia Kang Trading Co., Ltd (“Tianxia Kang”) on December 28, 2020. The loan is interest free due to the short term and due on January 28, 2021. The loan was repaid on January 13, 2021. The Group classifies loans to third parties as held-to-maturity investments, because the loans have a stated maturity and normally pay a fixed rate of return. In addition, the Group has the positive intent and ability to hold them until maturity. Held-to-maturity investments are recorded at amortized cost and are classified as long-term or short-term according to their contractual maturity. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment, Net [Abstract] | |
PROPERTY AND EQUIPMENT, NET | Note 8 — PROPERTY AND EQUIPMENT, NET Property and equipment, net, consists of the following: December 31, December 31, Transportation equipment $ 505,423 $ 284,922 Office equipment 258,420 13,716 Electronic equipment 375,991 59,473 Leasehold improvements 388,792 18,244 Subtotal 1,528,626 376,355 Less: accumulated depreciation (872,983 ) (89,298 ) Property, plant and equipment, net $ 665,643 $ 287,057 Depreciation expense was $211,796 and $15,551 for the year ended December 31, 2020 and 2019, respectively. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | Note 9 — INTANGIBLE ASSETS, NET The following is a summary of intangible assets as of December 31, 2020 and 2019: December 31, 2020 December 31, Software $ 479,000 $ 185,215 Technology 4,551,724 4,266,138 Total intangible assets 5,030,724 4,451,353 Less: accumulated amortization (1,304,122 ) (262,003 ) Intangible assets, net $ 3,726,602 $ 4,189,350 Amortization expense was $ 945,744 and $226,858 for the year ended December 31, 2020 and 2019, respectively. |
Investment in Limited Partnersh
Investment in Limited Partnership | 12 Months Ended |
Dec. 31, 2020 | |
Investment In Debt Security [Abstract] | |
INVESTMENT IN LIMITED PARTNERSHIP | Note 10 – INVESTMENT IN LIMITED PARTNERSHIP During the year end December 31, 2020, the Group invested, as a limited partner, $15,589,966 (RMB101,724,531) into a Limited partnership (“LP”), which invests the funds in debt securities of private companies. Pursuant to the agreement, the LP’s investment in debt securities have a fixed interest rate of 8% starting in August 2020 for a term of 5 years. The interest is due on an annual basis. The Group values its investment in the LP at amortized cost and classified it as long-term according to the underlying debts contractual maturities. As of December 31, 2020, the carrying value of this investment principal was $15,589,966 (RMB101,724,531) and the Group accrued interest income of $146,961 (RMB 958,921) for the year ended December 31, 2020. For the year ended December 31, 2020, the Group did not recognize any impairment loss for the investment in the LP. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
ASU 2016-02 Transition [Abstract] | |
LEASES | Note 11—LEASES Leases are classified as operating leases or finance leases in accordance with FASB ASC 842. The Group’s operating leases mainly relats to office facilities. For leases with terms greater than 12 months, the Group records the related right-of-use asset and lease liability at the present value of lease payments over the term. The right of use Asset is amortized using the straight-line method over the life of the lease. Certain leases include rental escalation clauses, renewal options and/or termination options, which are factored into the Group’s determination of lease payments when appropriate. As of December 31, 2020, the weighted average remaining lease term was 1.99 years and the weighted average discount rate was 4.75% for the Group’s operating leases. The Group’s lease costs are included within cost of revenue, and selling and administrative expenses on the consolidated statements of operations. For the year ended December 31, 2020, the lease cost amounted to $578,689. As of December 31, 2019, the weighted average remaining lease term was 3.75 years and the weighted average discount rate was 4.75% for the Group’s operating leases. The Group’s lease costs are included within selling and administrative expenses on the consolidated statement of operations. For the year ended December 31, 2019, the lease cost amounted to $63,749. The future undiscounted aggregate minimum lease payments under non-cancellable operating leases are as follows as of December 31, 2020: Year ended December 31, 2020 Amount 2021 $ 783,955 2022 539,558 2023 154,367 2024 11,723 2025 - thereafter - Total undiscounted future minimum lease payments 1,489,603 Less: Amounts representing interest (72,619 ) Total present value of operating lease liabilities 1,416,984 Less: current portion of operating lease liabilities (736,854 ) Non-current portion of operating lease liabilities $ 680,130 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | Note 12 – INCOME TAXES Taxes payable consisted of the following: December 31, 2020 December 31, Income taxes payable $ 2,045,559 $ 57,761 Value added taxes payable 889,257 57,317 Business taxes payable 43,704 - Withholding taxes payable 112,113 - Other taxes payable 42,405 23,079 Total taxes payable $ 3,133,038 $ 138,157 BVI Nisun International, formerly known as Hebron Technology, and Nisun BVI were incorporated in the BVI and are not subject to income taxes under the current laws of the BVI. Cayman Nami Cayman is incorporated in the Cayman Islands and is not subject to income taxes under the current laws of the Cayman Islands. Hong Kong Nisun HK and Nami HK are registered in Hong Kong and subject to a corporate income tax of 17.5% if revenue is generated in Hong Kong. No revenue was generated in Hong Kong for the years ended December 31, 2020 and 2019. PRC Under the PRC Enterprise Income Tax Law (the “EIT Law”), the standard enterprise income tax rate for domestic enterprises and foreign invested enterprises is 25%. Starting from the year ended December 31, 2018, Hengpu was qualified as a High-technology Company and subject to a favorable income tax rate of 15%. Hengpu’s High-technology certificate is valid for three years starting from November 2018 and subject to renewal. Starting from the year ended December 31, 2020, Fintech was recognized as a High-technology Company by the Chinese government and is subject to a favorable income tax rate of 15%. In accordance with the implementation rules of the Income Tax Law of the PRC, for the enterprises newly established in the Horgos Development Zone within the scope of “preferential catalogue of income tax for key industries encouraged to develop in Xinjiang’s difficult areas”, the enterprise income tax shall be exempt for five years from the tax year of the first production and operations income. Khorgos is established in the Horgos Development Zone and its income is exempt for five years starting from 2019. The remaining Group’s subsidiaries VIEs and VIEs’ subsidiaries from the financial services business are subject to corporate income taxes at the PRC unified rate of 25%. The PRC does not allow the filling of consolidated tax returns and accordingly, each subsidiary and VIE and their subsidiaries file their own tax Returns. i) The components of the income tax provision (benefit) are as follows: For the year ended For the year ended For the year ended Current tax provision $ 1,525,824 $ - $ - Deferred tax provision (benefit) (584,760 ) (55,731 ) - Total $ 941,064 $ (55,731 ) $ - ii) The following table summarizes deferred tax assets resulting from differences between financial accounting basis and tax basis of assets and liabilities and net operating loss carryforwards: December 31, December 31, Deferred tax assets Provision for doubtful accounts $ 368,165 $ 346,864 Operating loss carryforwards 456,370 1,015,053 Total deferred tax assets 824,535 1,361,917 Less: valuation allowance (368,165 ) (1,341,877 ) Net deferred tax assets $ 456,370 $ 20,040 The change in valuation allowance for the year ended December 31, 2020, and 2019 amounted to $ 973,712, and $ 1,341,877, respectively. December 31, December 31, Deferred tax liabilities Intangible assets acquired from business combinations $ 676,015 $ 805,826 Total deferred tax liabilities $ 676,015 $ 805,826 The following table reconciles the China statutory rates to the Group’s effective tax rate for the year ended, 2020 and 2019: For the year ended For the year ended For the year ended China Income tax statutory rate 25.0 % 25.0 % - Effect of favorable income tax rates (23.8 )% (25 )% - Effect of temporary differences 1.2 % (4.7 )% - Effect of non-deductible expenses 10 % - - Effect of previous year net operating loss (3.8 )% - - Effective tax rate for the continuing operation 8.7 % (4.7 )% - * For the year ended December 31, 2018, all the Group business was related to the equipment and engineering businesses, which was disposed in November 2020 and included in discontinued operations. The Group continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings. As of December 31, 2020, the tax years ended December 31, 2018 through December 31, 2020 for the Group’s PRC subsidiaries and VIEs remain open for statutory examination by PRC tax authorities. The per share effect of favorable income tax rates for the year ended December 31, 2020, and 2019 were $0.14, and $ 0.02, respectively. |
Concentration of Major Customer
Concentration of Major Customers | 12 Months Ended |
Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION OF MAJOR CUSTOMERS | Note 13 — CONCENTRATION OF MAJOR CUSTOMERS Substantially all of the Group’s financial services revenue is derived from customers that are located primarily in China. The Group has a concentration of its revenues with specific customers. For the year ended December 31, 2020, three customers accounting for 31%, 21% and 12% of the Group’s total revenue. For the year ended December 31, 2019, one customer accounts for approximately 100% of the Group’s total revenue from the financial services business. As of December 31, 2020, three customers accounted for approximately 45%, 20% and 17%, of the Group’s total accounts receivable balance. As of December 31, 2019, one customer accounted for approximately 62% of the Group’s total accounts receivable balance. |
Shareholders_ Equity
Shareholders’ Equity | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS’ EQUITY | Note 14 — SHAREHOLDERS’ EQUITY The Group has 50,000,000 authorized common shares at $0.001 par value, consisting of 40,000,000 authorized Class A common shares and 10,000,000 Class B common shares, of which 20,555,129 and 17,710,471 Class A common shares were issued and outstanding as of December 31, 2020 and 2019, respectively. No Class B common shares were issued and outstanding as of December 31, 2020 and 2019. On June 14, 2019, the Shareholders of the Group approved a share transfer transaction by Wise Metro Development Co., Ltd., a British Virgin Islands company (“Wise”) and Mr. Zuoqiao Sun Zhang, a citizen of Guatemala (“Sun Zhang”); and together with Wise, (“Sellers”) of all of such Sellers’ Class B common shares of the Group to NiSun International Enterprise Management Group Co., Ltd., a company organized under the laws of Cayman Islands (“NiSun Cayman”). Upon the close of the transaction, NiSun Cayman purchased (i) Wise’s 1,800,000 Class B common shares of The Group and (ii) Sun Zhang’s 5,978,400 Class B common shares of The Group, which constituted approximately 47.8% of all of The Group’s outstanding common shares at the time of the Closing on a fully diluted basis (Wise’s and Sun Zhang’s Class B common shares are referred to as the “Shares”). The Shares were automatically converted into Class A common shares upon transfer from the Sellers to the Buyer, and upon such transfer the Group had no remaining issued and outstanding Class B common shares. Upon this conversion, the Shares are entitled to one vote per share. The transaction was closed in July 2019. Additional paid-in capital On November 20, 2019, NiSun Cayman, the controlling shareholder of the Group, contributed additional capital of $3,582,781 which has been shown as additional paid-in capital. On June 30, 2020, Nisun Cayman contributed additional capital of $4,550,000 which has been shown as additional paid-in capital. Shares issued for acquisition of Hengpu In connection of the acquisition of Hengpu on December 31, 2019, the Group issued 1,440,894 Class A common shares to the original shareholders of Hengpu as purchase consideration. The fair value of the purchase consideration was $11,426,289 based on the weighted average of the closing share price of the Group for five trading days up to the date immediately prior to the signing date of purchase agreement. Private placement 2019 On December 6, 2019, the Group and certain institutional investors entered into a share purchase agreement pursuant to which the Group sold 1,048,932 Class A common shares at $6.21 per share. The transaction was closed on May 1, 2020 and the Group received net proceeds of $6,503,378. Shares issued for acquisition of Nami In connection of the acquisition of Nami on May 31, 2020, the Group issued 1,562,726 Class A common shares to the shareholders of Nami as purchase consideration. The fair value of the stock consideration was $18,330,776 based on the weighted average of the closing share price of the Group for five trading days up to the date immediately prior to the signing date of purchase agreement. Share incentive plan The Board of directors approved the 2019 One Million Share Incentive Plan (the “2019 Plan”) on December 20, 2019, which permits the grant of restricted shares and options to employees, directors, officers and consultants to purchase the Group’s Class A common shares. The maximum aggregate number of Class A common shares, which may be issued pursuant to all awards under the 2019 Plan, is 1 million shares. The Plan is valid and effective for a term of ten years commencing from its adoption. On April 6, 2020, the Board granted an aggregate of 300,000 restricted Class A common shares to the Group’s CFO and two officers of which 67,000 shares were subsequently forfeited and cancelled. The fair value of these restricted Class A common shares was $1,721,870, determined using the closing price of $7.39 on April 6, 2020. Pursuant to the agreement, one-third (33%) of the shares of restricted stock issued will vest on the date of the grant and the first anniversary of the date of grant; and the remaining 34% will vest on the second anniversary of the date of the grant. For the year ended December 31, 2020 and 2019, the Group recognized shares-based compensation of $1,097,415 and $0, respectively. As of December 31, 2020, the Group had unrecognized share-based compensation of $624,455, which is expected to be recognized in the remaining 1.25 years. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | Note 15 — RELATED PARTY TRANSACTIONS The table below sets forth major related parties of the Group and their relationships with the Group: Entity or individual name Relationship with the Group Shanghai NiSun Enterprise Management Group Co., Ltd (“NiSun Shanghai”) An affiliated entity controlled by the ultimate controlling shareholder of the Group Huizhong Business Consulting (Beijing) Co., Ltd. (“Huizhong”) An affiliated entity controlled by the ultimate controlling shareholder of the Group Nisun International Enterprise Management Group Co., Ltd (“Nisun Cayman”) A shareholder who owns 37.8% equity interest of the Group Mr. Bodang Liu The ultimate controlling shareholder of the Group Mr. Anyuan Sun Former Chief executive officer of the Group Mr. Jian Lin The shareholder of Wenzhou Jinda Hong Kong Xibolun Technology Limited (“Hebron HK”) The entity disposed on November 30, 2020 (a) The Group entered into the following related party transactions: Starting on July 12, 2019, the Group rented an office from NiSun Shanghai and incurred $127,565 and $63,749 of rent expense for the year ended December 31, 2020 and 2019, respectively. The Group has commercial arrangements with Huizhong to provide small and medium enterprise financing solution services. In connection with these services provided by Nami to Huizhong $3,908,134 (RMB26,982,503) was recorded as revenue from Small and Medium Enterprise financing solutions in the consolidated statement of operations for the period from the acquisition date May 31,2020 through December 31, 2020. (b) The Group had the following significant related party balances: During the year ended December 31, 2020, Nisun Cayman advanced $10,528,965 (RMB 69,883,631) as a loan to the Group. The loan is due on demand and without interest. As of December 31, 2020, the Group had a due to related party balance of $393,148 owing to Mr. Bodang Liu. For the year ended December 31, 2020, the Group paid approximately $6.5 million (RMB 45.9 million) related to the purchase price payable the for acquisition of Nisun BVI. As of December 31, 2019, the Group had a due to related party balance of $7,345,399 owning to Mr. Bodang Liu, of which, $7 million was related to the purchase price payable for the acquisition of NiSun BVI. The due to related party balance is non-interest bearing and due on demand. As of December 31, 2020, and 2019, the Group had a due to related party balance of $1,379,310 and $0, respectively, payable to Nisun Shanghai, an affiliated entity controlled by our controlling shareholder. The due to related party balance is non-interest bearing and was repaid on February 26, 2021. As of December 31, 2020, and 2019, the Group had a due to related party balance of $0 and $414,044, respectively, due to Mr. Anyuan Sun, the former chief executive officer of the Group. The due to related party balance is non-interest bearing and was offset against the the amount due from the sale of discontinued operations for the disposition of Hebron HK. As of December 31, 2020, and 2019, the Group had a due to related party balance of $298,851 and $280,100, respectively, due to Mr. Jian Lin, the shareholder of Wenzhou Jinda. The Group owns a 23.08% equity interest in Wenzhou Jinda. The due to related party balance is non-interest bearing and due on demand. As of December 31, 2019, the Group had a due from discontinued operations of $9,201,432 related to Hebron HK and its affiliates, which was received during the year ended December 31, 2020. For the year ended December 31, 2020, the Group disposed of Hebron HK and the Purchaser - Wise Metro Development Co., Ltd. agreed to pay approximately $15.0 million (RMB98.3 million) in accordance with the Equity Transfer Agreement. As of December 31,2020, the Group has a receivable from sale of discontinued operations of approximately $15.0 million from the disposition, which was fully collected in April 2021. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | Note 16 — COMMITMENTS AND CONTINGENCIES The Group may be involved in various legal proceedings, claims and other disputes arising from the commercial operations, employees and other matters which, in general, are subject to uncertainties and in which the outcomes are not predictable. The Group determines whether an estimated loss for a contingency should be accrued by assessing whether a loss is deemed probable and can be reasonably estimated. The Group was not aware of any litigation, lawsuits or claims against them as of December 31, 2020 except for the following. On June 3, 2020, a short seller issued a report alleging that, among other things, the private placement the Group consummated in December 2019, Hengpu and Nami acquisitions were related party transactions which the Group failed to disclose. The Group had conducted an independent investigation by special counsel that concluded that the allegations were substantially unfounded. A shareholder class action lawsuit was filed against the Group and certain of the Group’s directors and officers. On March 19, 2021, the Group submitted a motion to the court to dismiss this lawsuit. No decision has been made by the court and it is unclear when a decision will be made. Although the ultimate outcome is uncertain at this time, the Group will defend its position vigorously and believes that the ultimate outcome will not have a material adverse effect on its financial position. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | Note 17 — SUBSEQUENT EVENTS On January 15, 2021, Fintech incorporated a majority-owned subsidiary, Inner Mongolia Fintech Supply Chain Management Co., Ltd. (“Fintech Mongolia”), in the Inner Mongolia Province, China. On January 15, 2021, Fintech incorporated another subsidiary, Fintech Supply Chain Management (Ningbo) Co., Ltd (“Fintech Ningbo”) in Zhejiang Province, China. Both subsidiaries provide a technology-driven integrated supply chain financing in China. In December 2020, based on a preliminary agreement with the local government, the Group established a wholly owned subsidiary, Nisun (Shandong) Industry Development Co., Ltd (“Nisun Shandong”), in Tai’an, Shandong province. Nisun Shandong is a holding company for our existing PRC operating subsidiaries and is expected to be a key operations platform. In March 2021, the ownership of Naqing transferred to Nisun Shandong from Nami HK |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Text Block Supplement [Abstract] | |
RESTRICTED NET ASSETS | Note 18 — RESTRICTED NET ASSETS The Group’s ability to pay dividends is primarily dependent on the Group receiving distributions of funds from its subsidiaries and VIEs. Relevant PRC statutory laws and regulations permit payments of dividends by the Group’s subsidiaries and VIEs incorporated in the PRC only out of their retained earnings, after required statutory reserves, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Group’s subsidiaries and VIEs. In accordance with the PRC laws and regulations, statutory reserve funds shall be made and can only be used for specific purposes and are not distributable as cash dividends. As a result of these PRC laws and regulations that require annual appropriation of 10% of net after-tax profits determined in accordance with PRC accounting standards and regulations to be set aside prior to payment of dividends as a general reserve fund or statutory surplus fund until such reserve reaches 50% of the registered capital. The Group’s PRC subsidiaries and VIEs are restricted in their ability to transfer a portion of their net assets to the Group. For the years ended December 31, 2020 and 2019, the statutory reserve balance for the Group’s entities established in the PRC was $2,190,847 and $516,193, respectively. |
Condensed Financial Information
Condensed Financial Information of the Parent Company | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | Note 19 — CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY The Group performed a test on the restricted net assets of its consolidated subsidiaries and VIEs (the “restricted net assets”) in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e) (3), “General Notes to Financial Statements”. Such restricted net assets amounted to approximately $46.5 million, or 60.5% of the Group’s total consolidated net assets, as of December 31, 2020. Based upon this percentage, the Group is required to disclose the financial information for the parent company. No dividends have been paid to the Group for the periods presented. For the purpose of presenting parent only financial information, the group records it investment in its subsidiaries under the equity method of accounting. Such investment is presented on the separate consolidated balance sheets as “Investment in Subsidiaries, VIEs and VIEs’ subsidiaries” and the income of the subsidiaries, VIEs and VIEs’ subsidiaries as “Share of Profit (Loss) in Subsidiaries, VIEs and VIEs’ subsidiaries.” Certain information and footnote disclosures generally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The Group did not have any significant or other commitments, long-term obligations or guarantees as of December 31, 2020 and 2019. ADDITIONAL FINANCIAL INFORMATION OF PARENT COMPANY a) Condensed parent company balance sheets December 31, December 31, Assets: Cash and cash equivalents $ 2,426 $ 5,213 Prepayments and advances, net - 38,221 Due from intercompany and others 14,951,086 6,147,054 TOTAL CURRENT ASSETS 14,953,512 6,190,488 Investment in subsidiaries, VIE, and VIEs’ subsidiaries 61,889,007 48,218,876 TOTAL ASSETS $ 76,842,519 $ 54,409,364 LIABILITIES CURRENT LIABILITIES Accrued expenses and other current liabilities $ - $ 464,044 TOTAL CURRENT LIABILITIES - 464,044 Commitments and contingencies Shareholders’ equity Class A common stock, $0.001 par value, 40,000,000 shares authorized, 20,555,129 and 17,710,471 shares issued and outstanding as of December 31, 2020 and 2019, respectively. 20,555 17,710 Class B common stock, $0.001 par value, 10,000,000 shares authorized, no shares issued and outstanding as of December 31, 2020 and 2019 - - Additional paid-in capital 59,472,255 28,369,076 Unearned compensation (624,455 ) - Retained earnings 14,380,976 27,472,766 Accumulated other comprehensive income (loss) 3,593,188 (1,914,232 ) Total shareholders’ equity 76,842,519 53,945,320 Total liabilities and shareholders’ equity $ 76,842,519 $ 54,409,364 b) Condensed statements of comprehensive income (loss) For the year ended December 31, 2020 2019 2018 Selling and marketing $ $ (15,005 ) $ - Administrative (1,098,668 ) (408,656 ) (2,093,307 ) Other income (expense) (820 ) (686 ) Share of profit (loss) in subsidiaries, VIEs and VIEs’ subsidiaries (11,993,625 ) $ 3,164,471 $ (3,050,722 ) Net income (loss) (13,092,293 ) 2,739,990 (5,144,715 ) Other comprehensive income Foreign currency translation adjustment 5,507,420 (561,091 ) (1,755,528 ) Comprehensive income (loss) $ (7,584,873 ) $ 2,178,899 $ (6,900,243 ) ADDITIONAL FINANCIAL INFORMATION OF PARENT COMPANY c) Condensed statement of cash flows For the years ended December 31, 2020 2019 2018 Cash flows from operating activities: Net income(loss) $ (13,092,293 ) $ 2,739,990 $ (5,144,715 ) Adjustments to reconcile net income to net cash used in operating activities Share of profit (loss) in subsidiaries, VIEs and VIEs’ subsidiaries 11,992,091 (3,164,471 ) 3,050,722 Shares-based compensation 1,097,415 - - Impairment charge recognized - - 923,094 Due from intercompany and others - (38,561 ) 1,170,749 Accrued expenses and other current liabilities - 467,648 - Net cash provided by (used in) operating activities (2,787 ) 4,606 (150 ) Net (decrease)/increase in cash and cash equivalents (2,787 ) 4,606 (150 ) Cash and cash equivalents at beginning of the year 5,213 607 757 Cash and cash equivalents at end of the year $ 2,426 $ 5,213 $ 607 Basis of presentation Condensed financial information is used for the presentation of the Group, or the parent company. The condensed financial information of the parent company has been prepared using the same accounting policies as set out in the Group’s consolidated financial statements except that the parent company uses the equity method to account for investment in its subsidiaries and VIEs. The parent company records its investment in its subsidiaries and VIEs under the equity method of accounting as prescribed in FASB ASC 323, Investments-Equity Method and Joint Ventures. Equity method accounting ceases when the carrying amount of the investment, including any additional financial support, in a subsidiary and VIE is reduced to zero unless the parent company has guaranteed obligations of the subsidiary and VIE or is otherwise committed to provide further financial support. If the subsidiary and VIE subsequently reports net income, the parent company shall resume applying the equity method only after its share of that net income equals the share of net losses not recognized during the period the equity method was suspended. The parent company’s condensed financial statements should be read in conjunction with the Group’s consolidated financial statements. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Basis of consolidation | Basis of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIEs and the subsidiaries of the VIEs for which the Company or its subsidiary is the primary beneficiary. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting power or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors under a statute or agreement among the shareholders or equity holders. A consolidated VIE is an entity in which the Company, or its subsidiaries, through contractual arrangements, has the power to direct the activities that most significantly impact the entity’s economic performance, bears the risks of and enjoys the rewards normally associated with ownership of the entity, and therefore the Company or its subsidiaries are the primary beneficiary of the entity. All transactions and balances among the Group, its subsidiaries, the VIEs and subsidiaries of the VIEs have been eliminated upon consolidation. |
VIE companies | VIE companies 1) Contractual Agreements with VIE The following is a summary of the VIE agreements: Management and Consulting Service Agreement. Under the Consulting Services Agreements, the Group has the exclusive right to provide management and consulting and other services to the VIEs for a consulting service fee from the VIEs and agree to authorize the VIEs to use the trademarks, technologies and related intellectual property rights held by the Group. The VIEs agree to pay the Group or the designated agent of the Group for the management and consulting services in the amount equivalent to all the VIEs net profits after tax. The agreement shall be effective as of the date of agreement and shall remain effective until the date when the Group terminates such agreements and Fintech, Hengpu or Nami Shanghai cease to exist. Equity Interest Pledge Agreements Pursuant to the Equity Interest Pledge Agreements, each Shareholder of the VIEs agreed to pledge his equity interest in the VIEs to the Group to secure the performance of the VIEs’ obligations under the Exclusive Business Cooperation Agreements and any such agreements to be entered into in the future. Each shareholder of the VIEs agrees not to transfer, sell, pledge, dispose of or otherwise create any encumbrance on their equity interests in the VIEs without the prior written consent of the Group. The Pledges became effective on such date when the pledge of the Equity Interest contemplated herein were registered with the relevant Administration for Industry and Commerce (the “AIC”) and remain effective until all contract obligations have been fully performed and all secured indebtedness has been fully paid. Voting Rights Proxy Agreement. Under the Voting Rights Proxy Agreement, each shareholder of the VIEs irrevocably authorizes the Group to exercise rights and powers as the shareholders of the VIEs, including but not limited to, convening and attending shareholders’ meetings, voting on all matters of the VIEs requiring shareholder approval and appointing directors and senior management members. The Voting Rights Proxy Agreements will remain in force unless otherwise terminated in writing by the Group or with the written consent of all parties. Exclusive Call Option Agreement. Under the Exclusive Call Option Agreement, the VIEs and their shareholders have irrevocably granted the Group an exclusive option to purchase or authorize their designated persons to purchase all or part of each shareholder’s equity interests in the VIEs. The purchase price shall be equal to the minimum price required by the relevant PRC laws. Without prior written consent of the Group, the VIEs shall not among other things, amend their articles of association, sell or otherwise dispose of their assets or beneficial interests, enter into transactions which may adversely affect their assets, liabilities, business operations, equity interests and other legal interests, or merge with any other entities or make any investments, or distribute dividends. The Group has the right to transfer the rights and obligations pursuant to the Exclusive Call Option Agreement to any third party, which do not require any prior consent of the VIEs and their shareholders. The Exclusive Call Option Agreement will remain effective until the Group terminates this agreement with 30 days advance notice. 2) Risks in relation to the VIE structure The Group believes that the contractual arrangements with its VIEs and their respective shareholders are in compliance with PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit the Group’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 Group’s PRC subsidiaries and VIEs; ● discontinue or restrict the operations of any related-party transactions between the Group’s PRC subsidiaries and VIEs; ● limit the Group’s business expansion in China by way of entering into contractual arrangements; ● impose fines or other requirements with which the Group’s PRC subsidiaries and VIEs may not be able to comply; ● require the Group’s PRC subsidiaries and VIEs to restructure the relevant ownership structure or operations; or ● restrict or prohibit the Group’s use of the proceeds of a public offering to finance the Group’s business and operations in China. The Group’s ability to conduct its financial services business may be negatively affected if the PRC government were to carry out of any of the aforementioned actions. As a result, the Group may not be able to consolidate its VIEs in its consolidated financial statements as it may lose the ability to exert effective control over the VIEs – Fintech, Hengpu, and Nami Shanghai and their respective shareholders and it may lose the ability to receive the economic benefits from the VIEs. The Group, however, does not believe such actions would result in the liquidation or dissolution of the Group, its PRC subsidiaries and VIEs. The interests of the shareholders of VIEs may diverge from that of the Group and that may potentially increase the risk that they would seek to act contrary to the contractual terms, for example by influencing the VIEs not to pay the service fees when required to do so. The Group cannot assure that when conflicts of interest arise, shareholders of the VIEs will act in the best interests of the Group or that conflicts of interests will be resolved in the Group’s favor. Currently, the Group does not have existing arrangements to address potential conflicts of interest the shareholders of the VIEs may encounter in their capacity as beneficial owners and directors of the VIEs, on the one hand, and as beneficial owners and directors of the Group, on the other hand. The Group believes the shareholders of the VIEs will not act contrary to any of the contractual arrangements and the exclusive option agreements provide the Group with a mechanism to remove the current shareholders of the VIEs should they act to the detriment of the Group. The Group relies on certain current shareholders of the VIEs to fulfill their fiduciary duties and abide by laws of the PRC and act in the best interest of the Group. If the Group cannot resolve any conflicts of interest or disputes between the Group and the shareholders of the VIEs, the Group would have to rely on legal proceedings, which could result in disruption of its business, and there are substantial uncertainties as to the PRC legal system and the outcome of any such legal proceedings. The following table sets forth the assets, liabilities, results of operations and changes in cash and cash equivalents of the VIEs and their subsidiaries taken as a whole, which were included in the Group’s consolidated financial statements for continuing operations with intercompany balances and transactions eliminated between the VIEs and their subsidiaries: December 31, December 31, Total current asset $ 43,832,012 $ 5,988,899 Total assets $ 47,223,358 $ 9,793,910 Total current liabilities $ 11,146,286 $ 1,295,055 Total liabilities $ 11,826,417 $ 1,295,055 For the year ended December 31, 2020 For the year ended December 31, 2019 Financial services revenue $ 42,190,191 $ 2,525,524 Net income $ 11,583,787 $ 1,600,661 For the year ended December 31, 2020 For the year ended December 31, 2019 Net cash provided by operating activities $ 2,560,400 $ 824,462 Net cash (used in) investing activities $ (13,321,524 ) $ (3,132,684 ) Net cash provided by financing activities $ 4,051,162 $ 3,044,235 As of December 31, 2020, there were no consolidated assets of the VIEs that are collateral for the VIEs’ obligations and can only be used to settle the VIEs’ obligations. There were no creditors (or beneficial interest holders) of the VIEs that have recourse to the general credit of the Group in the normal course of business. The Group neither provides nor intends to provide additional financial or other support not previously contractually required to the VIEs and subsidiaries of the VIEs. Relevant PRC laws and regulations restrict the VIEs from transferring a portion of its net assets, equivalent to the balance of its paid-in capital, capital reserve and statutory reserves, to the Group in the form of loans, advances or cash dividends. Please refer to Note 18 for disclosure of restricted net assets. |
Non-controlling interests | Non-controlling interests Non-controlling interests are recognized to reflect the portion of the equity that is not attributable, directly, or indirectly, to the Group. Non-controlling interests are presented as a separate component of equity in the consolidated balance sheets and earnings and other comprehensive income (loss) are attributed to controlling and non-controlling interests. As of December 31, 2020, non-controlling interest relates to the 20% equity interest in Taiding. |
Uses of estimates | Uses of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during each reporting period. Actual results could differ from those estimates. Significant accounting estimates reflected in the Group’s consolidated financial statements include: the allowance for doubtful accounts, the valuation of inventory, realizability of deferred tax assets, costs to complete contracts, estimated useful lives and fair values in connection with the impairment of property and equipment, the valuation of intangible assets, and goodwill, accruals for income tax uncertainties, and the determination of fair values related to business acquisitions. |
Business combinations | Business combinations The Group accounts for business combinations using the purchase method of accounting in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) topic 805, Business Combinations. The purchase method of accounting requires the consideration transferred to be allocated to the assets, including separately identifiable assets and liabilities the Group acquired, based on their estimated fair values. The consideration transferred in an acquisition is measured as the aggregate of the fair values at the date of exchange of the assets given, liabilities incurred, and equity instruments issued as well as the contingent consideration and all contractual contingencies as of the acquisition date. The costs directly attributable to the acquisition are expensed as incurred. Identifiable assets, liabilities and contingent liabilities acquired or assumed are measured separately at their fair value as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of (i) the total acquisition cost, fair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree, is recorded as goodwill. If the cost of the acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in earnings as a bargain purchase gain. The determination and allocation of fair values to the identifiable assets acquired, liabilities assumed, and non-controlling interests is based on various assumptions and valuation methodologies requiring considerable judgment from management. The most significant variables in these valuations are discount rates, terminal values, the number of years on which to base the cash flow projections, as well as the assumptions and estimates used to determine the cash inflows and outflows. The Group determines discount rates to be used based on the risk inherent in the related activity’s current business model and industry comparisons. Terminal values are based on the expected life of assets, the forecasted life cycle and forecasted cash flows over that period. The fair value of the identifiable assets acquired, and liabilities assumed at the acquisition date is based on a valuation performed by an independent valuation firm engaged by the Group. |
Discontinued operations | Discontinued operations A component of a reporting entity or a group of components of a reporting entity that are disposed or meet the criteria to be classified as held for sale, such as the management, having the authority to approve the action, commits to a plan to sell the disposal group, should be reported as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. Discontinued operations are reported when a component of an entity comprising operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity is classified as held for disposal or has been disposed of, if the component either (1) represents a strategic shift or (2) have a major impact on an entity’s financial results and operations. Included in the consolidated statements of operations and comprehensive income (loss), the results from discontinued operations are reported separately from the income and expense from continuing operations and prior periods are presented on a comparative basis. In order to present the financial effects of the continuing operations and discontinued operations, revenues and expenses arising from intra-group transactions are eliminated except for those revenues and expenses that are considered to continue after the disposal of the discontinued operations, if any. |
Revenue recognition | Revenue recognition The Group adopted FASB ASC Topic 606 Revenue from Contracts with Customers (“ASC 606”) on January 1, 2018 using the modified retrospective approach. Revenues are presented under ASC 606, and there was no adjustment to the opening balance of retained earnings at January 1, 2018 since there was no significant 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 Group’s customers in an amount of consideration to which an entity expects to be entitled to in exchange for those goods or services. All of the Group’s contracts with customers do not contain cancelable and refund-type provisions. Under the guidance of ASC 606, the Group is required to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract and (e) recognize revenue when (or as) the Group satisfies its performance obligation. In determining the transaction price, the Group includes variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur. Revenues are recorded, net of sales related taxes and surcharges. Small and medium enterprise financing solution The Group earns one-time advisory fees from its services provided to small-and mid-size enterprises. The Group enters into one-time advisory fee agreements with small-and mid-size enterprises, underwriters, financial institutions and issuers, which specifies the key terms and conditions of the arrangement. Such agreements generally do not include rights of return, credits or discounts, rebates, price protection or other similar privileges. The Group earns a one-time advisory fee from its clients upon offerings completed on the PRC provincial or national asset exchanges or other designated markets. Revenue is calculated at a fixed charge rate based on the amount and length of the offering (prorated by the financing term). The Group believes such arrangement represents a performance obligation that is satisfied at a point of time, therefore, the underwriting related advisory fees are recognized as revenue upon the closing of the offerings. Other financing solutions The Group also provides ongoing user management services to small and medium commercial banks and financial institutions in distributing and sourcing funds for their direct banking and other financial products in exchange for a recurring service fee. Recurring service agreements do not include rights of return, credits or discounts, rebates, price protection or other similar privileges. Recurring service fees are calculated as a fixed percentage of the qualified investments made by users during the contractual investment period of the direct banking and other financial products. Payment of recurring service fees by commercial banks and financial institutions are normally on a regular basis (typically quarterly or annually). The Group believes such arrangement requires the Group to provide ongoing management services including but not limited to direct banking account reconciliation between the financial institution and investors and maintaining investors’ account portfolios over the contractual term, which represents a performance obligation that the Group satisfies over time. Therefore, the recurring service revenue is recognized over the contract term on a straight-line basis. Supply chain financing solution For the year ended December 31, 2020, the Group started to offer supply chain financing advisory services through Fintech and its subsidiaries by integrating the working capital needs of suppliers and merchants in the supply chain and assisting them to obtain sufficient funds. One-time commission fees: Recurring supply chain management service fees: Disaggregation of revenue The Group derives revenue primarily from one-time commissions and recurring service fees paid by clients or financial product providers. The following tables show the revenue from financial services disaggregated by nature for the years ended December 31, 2020 and 2019: For the year ended December 31 For the year ended December 31, 2019 One-time commission fees $ 42,082,585 $ 2,522,143 Recurring service fees 107,606 3,381 Total revenue $ 42,190,191 $ 2,525,524 The Group provides small and medium enterprise financing solutions, supply chain financing solutions and other financing solutions. The following tables show the revenue from financial services disaggregated by revenue line for the years ended December 31, 2020 and 2019: For the year ended December 31 For the year ended December 31, Small and medium enterprise financing solutions $ 40,779,794 $ 2,522,143 Supply chain financing solutions 1,369,859 Other financing solutions 40,538 3,381 Total revenue $ 42,190,191 $ 2,525,524 |
Practical expedient | Practical expedient The Group has applied the practical expedient for certain revenue streams to exclude the value of remaining performance obligations for (i) contracts with an original expected term of one year or less or (ii) contracts for which the Group recognizes revenue in proportion to the amount the Group has the right to invoice for services performed. |
Cash and cash equivalent | Cash and cash equivalent Cash and cash equivalents consist of cash on hand, money market fund investments, time deposits, as well as highly liquid investments, which have original maturities of three months or less. |
Restricted Cash | Restricted Cash The Group had restricted cash of $62,947 and $25,016 at December 31, 2020 and December 31, 2019, respectively, which are primarily security deposits related to our financing services. In November 2016, the FASB issued Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts presented in the statement of cash flows. |
Short-term investments | Short-term investments The Group’s short-term investments include the Group’s investments in wealth management products issued by commercial banks and financial institutions that have a stated maturity within one year and normally pay a prospective fixed interest rate. The wealth management products are unsecured and primarily invested in financial instruments with high credit ratings and good liquidity in the interbank and exchange markets, including but not limited to debt securities issued by financial institutions, central bank bills, interbank and exchange-traded bonds, and asset backed securities. The Group measures the short-term investments at fair value using the quoted subscription or redemption prices published or by discounting the future cash flows at the expected yield rate with reference to the expected benchmark yield rates of the wealth management product. |
Fair value of financial instruments | Fair value of financial instruments The Group follows the provisions of FASB ASC Section 820, “Fair Value Measurements and Disclosures” (“ASC 820”). ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1 — Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date. Level 2 — Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities 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 are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions market participants would use in pricing the asset or liability based on the best available information. The carrying amounts reported in the balance sheets for cash and cash equivalents, short term investments, accounts receivable, receivables from supply chain financing, loans to third parties, accounts payable, advances from customers, taxes payable, due to related parties and accrued expenses and other current liabilities, approximate their fair value based on the short-term maturity of these instruments. The Group believes that the carrying amount of the investment in debt securities approximates fair value based on the terms of the investments and current market rates as the interest rates are reflective of the current market rates. Transfers into or out of the fair value hierarchy classifications are made if the significant inputs used in the financial models measuring the fair value of the assets and liabilities became unobservable or observable in the current marketplace. These transfers are considered to be effective as of the beginning of the period in which they occur. The Group did not transfer any assets or liabilities in or out of Level 2 and Level 3 during the years ended December 31, 2020 and 2019. Fair value measurements on a recurring basis As of December 31, 2019, the Group did not have any financial instruments measured at fair value on a recurring basis. As of December 31, 2020, the financial instruments measured at fair value on a recurring basis are as follows: Fair value Fair value measurement at reporting date Description 2020 (Level 1) (Level 2) (Level 3) Short-term investments: Wealth management products $ 4,680,843 $ - $ 4,680,843 $ - |
Accounts receivable | Accounts receivable Accounts receivable is stated at the historical carrying amount net of an allowance for uncollectible accounts. An allowance for uncollectable accounts is established based on the management’s assessment of the recoverability of accounts and other receivables. Judgment is required in assessing the realizability of these receivables, including the current credit worthiness of each customer and the related aging analysis. An allowance is provided for accounts when management has determined that the likelihood of collection is doubtful. The Group writes off accounts and contract receivables against the allowance when a balance is determined to be uncollectible. |
Investment in debt securities | Investment in debt securities The Group’s investments in debt securities that have a stated maturity and normally pay a prospective fixed rate of return. The Group classifies the investments in debt securities as held-to-maturity when it has both the positive intent and ability to hold them until maturity. Held-to-maturity investments are recorded at amortized cost and are classified as long-term or short-term according to their contractual maturity. Long-term investments are reclassified as short-term when their contractual maturity date is less than one year. Investments that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and are reported at fair value with changes in fair value recognized in earnings. Investments that do not meet the criteria of held-to-maturity or trading securities are classified as available-for-sale, and are reported at fair value with changes in fair value deferred in other comprehensive income. |
Long term investments | Long term investments FASB ASU 2016-01 (“ASU 2016-01”), Recognition and Measurement of Financial Assets and Financial Liabilities amends certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The main provisions require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value through earnings, unless they qualify for a measurement alternative. The Group adopted the new financial instruments accounting standard on January 1, 2019. Prior to January 1, 2019, the Group did not have any long-term investments, so the adoption of ASU 20106-01 did not have any material impact to the Group’s consolidated financial statements upon adoption. Equity investments without readily determinable fair values After the adoption of this new accounting standard, the Group elected to record equity investments without readily determinable fair values and not accounted for under the equity method at cost, less impairment, adjusted for subsequent observable price changes on a nonrecurring basis, and report changes in the carrying value of the equity investment in current earnings. Changes in the carrying value of the equity investment are required to be made whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. Reasonable efforts are be made to identify price changes that are known or that can reasonably be known. Equity investments with readily determinable fair values Equity investments with readily determinable fair values are measured and recorded at fair value using the market approach based on the quoted prices in active markets at the reporting date. Equity investments accounted for using the equity method The Group accounts for its equity investments over which it has significant influence (usually 20% to 49.9%) but does not own a majority equity interest or otherwise control, using the equity method. The Group adjusts the carrying amount of the investment and recognizes investment income or loss for its share of the earnings or loss of the investee after the date of investment. The Group assesses its equity investment for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, operating performance of the entity, including current earnings trends and undiscounted cash flows, and other entity-specific information. The fair value determination, particularly for investments in a privately held entity, requires judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investment and determination of whether any identified impairment is other-than-temporary. The investment held by the Group as of December 31, 2020 and 2019 represented the Group’s 23.08% equity interest in Wenzhou Jinda Holding Co., Ltd (“Jinda”). The Group considers it has significant influence over Jinda due to the level of ownership and its participation in their significant business operating and strategic decisions. Accordingly, the Group accounts for the investment using the equity method. For the year ended December 31, 2020, the Group did not receive any dividends from this investment. For the years ended December 31, 2020 and 2019, the Group recognized its share of loss in Jinda of $46,659 and $0, respectively. |
Property and equipment, net | Property and equipment, net Property and equipment are recorded at cost. Depreciation is provided in amounts sufficient to amortize the cost of the related assets over their useful lives using the straight-line method, as follows: Useful life Transportation equipment 4 years Office equipment 3 - 5 years Electronic equipment 3 - 5 years Leasehold improvements Shorter of remaining lease term or life of assets The Group charges maintenance, repairs and minor renewals directly to expense as incurred; major additions and betterments to equipment are capitalized. |
Intangible assets, net | Intangible assets, net Intangible assets acquired are recorded at cost less accumulated amortization. Amortization is provided in amounts sufficient to amortize the cost of the related assets over their useful lives using the straight-line method, as follows: Useful life Software 3 - 5 years Trademark 3-5 years Technology 5-10 years The estimated useful lives of amortizable intangible assets are reassessed if circumstances occur that indicate the original estimated useful lives have changed. |
Impairment of long-lived assets | Impairment of long-lived assets Long-lived assets are evaluated for impairment whenever events or changes in circumstances (such as significant adverse changes to market conditions that will impact the future use of the assets) indicate that the carrying amount may not be fully recoverable or that the useful life is shorter than the Group had originally estimated. When these events occur, the Group evaluates the impairment by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Group recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. No impairment charge was recognized for the years ended December 31, 2020, 2019 and 2018. |
Goodwill | Goodwill Goodwill represents the excess of the consideration over the fair value of the identifiable assets and liabilities acquired at the date of acquisition. In January 2017, the FASB issued ASU 2017-04, “Intangibles—Goodwill and Other (Topic 350), simplifying the test for goodwill impairment”. The guidance removes Step 2 of the goodwill impairment test, which required a hypothetical purchase price allocation. Goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value. The ASU is applicable for the annual or any interim goodwill impairment tests beginning after December 15, 2019. The adoption of this standard did not have a material impact on the Group’s consolidated financial statements. The Group tests goodwill at least annually for impairment at the reporting unit level. A reporting unit is the operating service, or one level below that operating service (the component level) if discrete financial information is prepared and regularly reviewed by management. However, components are aggregated as a single reporting unit if they have similar economic characteristics. The Group recognizes an impairment charge if the carrying amount of a reporting unit exceeds its fair value and the carrying amount of the reporting unit’s goodwill exceeds the implied fair value of that goodwill. When a portion of a reporting unit is disposed, goodwill is allocated to the gain or loss on disposition based on the relative fair values of the business or businesses disposed and the portion of the reporting unit that will be retained. For the year ended December 31, 2020, 2019 and 2018, the Group did not recognize any goodwill impairment charges. |
Leases | Leases The Group adopted FASB ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”) on January 1, 2019 by using the modified retrospective method and did not restate the prior periods. The Group has elected the package of practical expedients, which allows the Group not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption date and (3) initial direct costs for any expired or existing leases as of the adoption date. The Group also elected the practical expedient not to separate lease and non-lease components of contracts, Lastly, the Group elected the short-term lease exemption for all contracts with lease terms of 12 months or less. The Group determines if an arrangement is a lease or contains a lease at lease inception. For operating leases, the Group recognizes a “right of use” asset (“ROU”) and a lease liability based on the present value of the lease payments over the lease term on the consolidated balance sheets at commencement date. For finance leases, assets are included in property and equipment on the consolidated balance sheets. As most of the Group’s leases do not provide an implicit rate, the Group estimates its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in the economic environment where the leased asset is located. The Group’s leases often include options to extend and lease terms include such extended terms when the Group is reasonably certain to exercise those options. Lease terms also include periods covered by options to terminate the leases when the Group is reasonably certain not to exercise those options. Lease expense is recorded on a straight-line basis over the lease term. The Group recognized ROU assets and total lease liabilities (including current and non-current) for operating leases as of January 1, 2019 upon adoption. |
Stock-based compensation | Stock-based compensation The Group recognizes share based compensation based on the fair value of equity awards on the date of the grant, with compensation expense recognized using a straight-line vesting method over the requisite service periods of the awards, which is generally the vesting period. The expected life assumption is primarily based on historical exercise patterns and employee post-vesting termination rates. The risk-free interest rate for the expected term of an option is based on the U.S. Treasury yield curve in effect at the time of grant. The expected dividend yield is based on the Group’s current and expected dividend policy. |
Research and development expenses | Research and development expenses Research and development expenses mainly consist of salary and welfare benefits and bandwidth costs incurred for the development and enhancement to the Group’s websites and platform applications. Research and development expenditures are expensed as incurred. |
Income taxes | Income taxes The Group’s subsidiaries in China are subject to the income tax laws of the PRC and Hong Kong. No taxable income was generated outside the PRC and Hong Kong for the year ended December 31, 2020, 2019 and 2018. The Group accounts for income tax under FASB ASC Section 740 which utilizes the asset and liability method, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of the differences between financial statement carrying amounts of assets and liabilities versus the tax basis of assets and liabilities. Deferred tax assets are also provided for carryforward losses which can be used to offset future taxable income. Deferred income taxes will be recognized if significant temporary differences between tax and financial statements occur. A valuation allowance is established against net deferred tax assets when it is more likely than not that some portion or all of the net deferred tax asset will not be realized. The Group provided a valuation allowance of $368,165 and $1,341,877 on the net deferred tax assets as of December 31, 2020 and 2019, respectively. The Group continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings. An uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that has a greater than 50% likelihood of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest related to underpayment of income taxes for uncertain tax positions are classified as income tax expense in the period incurred. No penalties or interest relating to uncertain tax positions has been incurred during the years ended December 31, 2020, 2019 and 2018. As of December 31, 2020, the tax years ended December 31, 2018 through December 31, 2020 for the Group’s PRC subsidiaries remain open for statutory examination by PRC tax authorities. Under the Provisional Regulations of the PRC Concerning Income Tax on Enterprises promulgated by the PRC, income tax is payable by enterprises at a rate of 25% of their taxable income determined under PRC accounting rules. The Group believes that it has provided the best estimates of its accrued tax liabilities because those accruals are based on the prevailing tax rates stipulated under the laws. |
Value added tax (“VAT”) | Value added tax (“VAT”) Revenue represents the invoiced value of goods and services, net of VAT. VAT is based on the gross sales price and VAT rates range from 6% to 13%, depending on the type of goods or service provided. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. The net VAT balance between input VAT and output VAT is recorded in taxes payable. All of the VAT returns filed by the Group’s subsidiaries in China, have been and remain subject to examination by the tax authorities for five years from the date of filing. |
Foreign currency translation | Foreign currency translation Since the Group operates primarily in the PRC, the Group’s functional currency is the Chinese Yuan (“RMB”). The Group’s financial statements have been translated into the reporting currency of the United States Dollar. Assets and liabilities of the Group are translated at the exchange rate at each reporting period end date. Equity is translated at the historical exchange rate when the transaction occurred. Income and expense accounts are translated at the average rate of exchange during the reporting period. The resulting translation adjustments are reported under other comprehensive income (loss). Gains and losses resulting from the translation of foreign currency transactions and balances are reflected in the results of operations. The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into USDs at the rates used in translation. The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report: December 31, November 31, December 31, Balance sheet items, except for equity accounts US$1=RMB 6.5250 US$1=RMB 6.5760 US$1=RMB 6.9618 Items in the statements of operations and cash flows US$1=RMB 6.9042 US$1=RMB 6.9377 US$1=RMB 6.9081 Balance sheet items, except for equity accounts US$1=HKD 7.7534 US$1=HKD 7.7522 US$1=HKD 7.7894 Items in the statements of operations and cash flows US$1=HKD 7.7559 US$1=HKD 7.7563 US$1=HKD 7.8351 |
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 U.S. GAAP are recorded as an element of shareholders’ equity but are excluded from net income (loss). Other comprehensive income (loss) consists of foreign currency translation adjustments resulting from the Group not using the U.S. dollar as its functional currencies. |
Credit risk and concentration | Credit risk and concentration Financial instruments that potentially subject the Group to significant concentrations of credit risk consist primarily of cash and accounts receivable. As of December 31, 2020, and 2019, $22,198,257 and $2,781,506 of the Group’s cash and cash equivalents and restricted cash from continuing operations was on deposit at financial institutions in the PRC, which the management believes are of high credit quality. On May 1, 2015, China’s new Deposit Insurance Regulation came into effect, pursuant to which banking financial institutions, such as commercial banks, established in China are required to purchase deposit insurance for deposits in RMB and in foreign currency placed with them for up RMB 500,000 (USD $72,000). Such Deposit Insurance Regulations would not be effective in providing complete protection for the Group’s accounts, as its aggregate deposits are much higher than the coverage limit. However, the Group believes that the risk of failure of any of these Chinese banks is remote. Bank failure is uncommon in China and the Group believes that those Chinese banks that hold the Group’s cash and cash equivalents, restricted cash and short-term investments are financially sound based on public available information. Balances in excess of the insured amount at December 31, 2020 was approximately $24,628,000. Accounts receivable is typically unsecured and derived from revenue earned from customers, and is thereby exposed to credit risk. The risk is mitigated by the Group’s assessment of its customers’ creditworthiness and its ongoing monitoring of outstanding balances. Substantially all of the Group’s revenues are derived from customers that are located primarily in China. The Group has a concentration of its revenues with specific customers. For the year ended December 31, 2020, three customers accounted for 31%, 21% and 12%, of the Group’s total revenue from the financial service business. For the year ended December 31, 2019, one customer accounted for almost all of the Group’s total revenue from the financial services business. |
Earnings (loss) per share | Earnings (loss) per share The Group computes earnings (loss) per share (“EPS”) in accordance with FASB ASC 260, “Earnings per Share” (“ASC 260”). Basic EPS is measured as net income (loss) 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. For the years ended December 31, 2020, 2019, and 2018, no dilutive outstanding instruments were included in the computation of diluted EPS. |
Statements of cash flows | Statements of cash flows In accordance with FASB ASC Topic 230, Statement of Cash Flows, cash flows from the Group are calculated based upon the local currencies and translated at the average exchange rates during the reporting period. As a result, amounts related to assets and liabilities reported on the Group’s statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets. |
Reclassifications | Reclassifications Certain reclassifications have been made to prior year amounts to conform with current year presentation of discontinued operations. |
Recent accounting pronouncements | Recent accounting pronouncements The Group considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This guidance removes certain exceptions to the general principles in Topic 740 and enhances and simplifies various aspects of the income tax accounting guidance, including requirements such as tax basis step-up in goodwill obtained in a transaction that is not a business combination, ownership changes in investments, and interim-period accounting for enacted changes in tax laws. This standard is effective for the Group for the annual reporting periods beginning January 1, 2022 and interim periods beginning January 1, 2023. Early adoption is permitted. The Group does not expect any material impact on the Group’s consolidated financial statements. In January 2020, the FASB issued ASU 2020-01, Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) - Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. This guidance addresses accounting for the transition into and out of the equity method and provides clarification of the interaction of rules for equity securities, the equity method of accounting, and forward contracts and purchase options on certain types of securities. This standard is effective for the Group beginning January 1, 2022 including interim periods within the fiscal year. Early adoption is permitted. The Group does not expect any material impact on the Group’s consolidated financial statements. Except for the above-mentioned pronouncements, there are no other recently issued accounting standards that should have a material impact on the Group’s consolidated financial position, statements of operations and cash flows. |
Organization and Business Des_2
Organization and Business Description (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of the Group’s subsidiaries and consolidated VIEs | Date of incorporation/ acquisition Place of incorporation Percentage of direct or indirect economic interest Subsidiaries NiSun International Enterprise Management Group (British Virgin Islands) Co., Ltd. (“NiSun BVI”) July 12, 2019 BVI 100 % NiSun International Enterprise Management Group (Hong Kong) Co., Limited (“NiSun HK”) July 12, 2019 Hong Kong 100 % Nisun (Shandong) Industrial Development Co., Ltd (“Nisun Shandong” or “WOFE”) December 15, 2020 PRC 100 % NingChen (Shanghai) Enterprise Management Co., Ltd.(“NingChen”) July 12, 2019 PRC 100 % Shandong Taiding International Investment Co., Ltd. (“Taiding”) November 12, 2019 PRC 80 % Nami Holding (Cayman) Co., Ltd (“Nami Cayman”) April 09, 2019 Cayman Islands 100 % Nami Holding (Hong Kong) Co., Limited (“Nami HK”) May 02, 2019 Hong Kong 100 % Shanghai Naqing Enterprise Management Co., Ltd (“Naqing” or “WOFE”) April 10, 2019 PRC 100 % VIEs , Fintech (Shanghai) Digital Technology Co., Ltd. (“Fintech Shanghai”) July 12, 2019 PRC 100 % Beijing Hengtai Puhui Information Services Co., Ltd (“Hengpu”) December 31, 2019 PRC 100 % Nami Shanghai Financial Consulting Co., Ltd (“Nami Shanghai”) June 04, 2015 PRC 100 % Subsidiaries of the VIEs Khorgos Fintech Network Technology Co., Ltd. (“Khorgos”) July 12, 2019 PRC 100 % Jilin Lingang Supply Chain Management Co., Ltd (“Lingang”) November 27, 2019 PRC 100 % NiSun Family Office (Guangzhou) Co., Ltd. (“Guangzhou”) October 29, 2019 PRC 100 % Hangzhou Fengtai Supply Chain Management Co., Ltd. (“Fengtai”) December 31, 2019 PRC 100 % Dunhua Midtown Asset Management Registration Center Co., Ltd. (“Midtown”)* December 31, 2019 PRC 100 % Nanjing Nisun Gold Co., Ltd. (“Nisun Gold”) December 10, 2020 PRC 100 % Fintech (Henan) Supply Chain Management Co., Ltd. (“Fintech Henan”) August 26, 2020 PRC 100 % Fintech (Jiangsu) Supply Chain Management Co., Ltd. (“Fintech Jiangsu”) November 06, 2020 PRC 100 % Fintech (Shandong) Supply Chain Management Co., Ltd. (“Fintech Shandong”) November 04, 2020 PRC 100 % Fanlunke Supply Chain Management (Shanghai) Co., Ltd. (“Fanlunke Shanghai”) December 29, 2020 PRC 100 % Shanxi Fintech Supply Chain Management Co., Ltd (“Fintech Shanxi”) December 30, 2020 PRC 80 % Jilin Province Lingang Hengda Supply Chain Management Co., Ltd. (“Lingang Hengda”) August 18, 2020 PRC 100 % * The entity was deregistered on February 19, 2021. Since the entity did not have significant operations, the deregistration did not have a material impact to the Group’s consolidated financial statements for the years ended December 31, 2020, 2019 and 2018. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of consolidated financial statements of VIEs and their subsidiaries | December 31, December 31, Total current asset $ 43,832,012 $ 5,988,899 Total assets $ 47,223,358 $ 9,793,910 Total current liabilities $ 11,146,286 $ 1,295,055 Total liabilities $ 11,826,417 $ 1,295,055 For the year ended December 31, 2020 For the year ended December 31, 2019 Financial services revenue $ 42,190,191 $ 2,525,524 Net income $ 11,583,787 $ 1,600,661 For the year ended December 31, 2020 For the year ended December 31, 2019 Net cash provided by operating activities $ 2,560,400 $ 824,462 Net cash (used in) investing activities $ (13,321,524 ) $ (3,132,684 ) Net cash provided by financing activities $ 4,051,162 $ 3,044,235 |
Schedule of revenue from financial service disaggregated by nature | For the year ended December 31 For the year ended December 31, 2019 One-time commission fees $ 42,082,585 $ 2,522,143 Recurring service fees 107,606 3,381 Total revenue $ 42,190,191 $ 2,525,524 |
Schedule of revenue from financial services disaggregated by revenue line | For the year ended December 31 For the year ended December 31, Small and medium enterprise financing solutions $ 40,779,794 $ 2,522,143 Supply chain financing solutions 1,369,859 Other financing solutions 40,538 3,381 Total revenue $ 42,190,191 $ 2,525,524 |
Schedule of financial instruments measured at fair value on a recurring basis | Fair value Fair value measurement at reporting date Description 2020 (Level 1) (Level 2) (Level 3) Short-term investments: Wealth management products $ 4,680,843 $ - $ 4,680,843 $ - |
Schedule of amortize cost of related assets over their useful lives | Useful life Transportation equipment 4 years Office equipment 3 - 5 years Electronic equipment 3 - 5 years Leasehold improvements Shorter of remaining lease term or life of assets |
Schedule of amortize cost of intangible assets over their useful lives | Useful life Software 3 - 5 years Trademark 3-5 years Technology 5-10 years |
Schedule of consolidated financial statements | December 31, November 31, December 31, Balance sheet items, except for equity accounts US$1=RMB 6.5250 US$1=RMB 6.5760 US$1=RMB 6.9618 Items in the statements of operations and cash flows US$1=RMB 6.9042 US$1=RMB 6.9377 US$1=RMB 6.9081 Balance sheet items, except for equity accounts US$1=HKD 7.7534 US$1=HKD 7.7522 US$1=HKD 7.7894 Items in the statements of operations and cash flows US$1=HKD 7.7559 US$1=HKD 7.7563 US$1=HKD 7.8351 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of fair value of the identifiable assets acquired and liabilities | May 31, Cash and cash equivalents acquired $ 4,990,754 Short-term investments 1,402,632 Accounts receivable, net 3,869.453 Prepayments and other current assets 621,735 Loans to third parties 5,484,531 Right-of-use assets 1,305,961 Property and equipment, net 407,678 Intangible assets, net 144,153 Accounts payable (322 ) Advance from customers and other payables (1,839,558 ) Salary payable (891,347 ) Taxes payable (1,172,980 ) Operating lease liabilities (1,308,864 ) Goodwill 12,324,856 Total consideration $ 25,338,682 |
Schedule of indicative of future operating results | For the Year Ended December 31, For the Year Ended December 31, Revenue from continuing operations $ 21,436,553 $ 11,407,879 Net income (loss) from continuing operations 4,686,302 (6,289,702 ) |
Discontinuued Operations (Table
Discontinuued Operations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of discontinued operations | For the Year Ended For the Year Ended For the Year Ended 2020 2019 2018 REVENUE Installation service $ 876,972 $ 10,490,191 $ 17,297,212 Fluid equipment sales 3,344,328 8,087,399 7,992,848 4,221,300 18,577,590 25,290,060 COST OF REVENUE Cost of revenue (3,439,279 ) (12,882,094 ) (17,458,252 ) Business and sales related taxes (22,759 ) (144,907 ) (253,856 ) GROSS PROFIT 759,262 5,550,589 7,577,952 OPERATING EXPENSES: General and administrative expenses 1,226,966 1,484,200 2,127,288 Selling and marketing expenses 161,389 891,632 1,337,321 Bad debt expenses 22,376,509 2,079,837 6,990,348 Research and development expenses - 337,480 358,411 Total operating expenses 23,764,864 4,793,149 10,813,368 (LOSS) INCOME FROM OPERATIONS (23,005,602 ) 757,440 (3,235,416 ) OTHER INCOME (EXPENSES) Other expenses, net 72,170 1,253,778 (426,585 ) Interest (expenses) (59,517 ) (158,119 ) (208,306 ) (Loss) income from investments (90,541 ) 153,554 168,534 Total other (expense), net (77,888 ) 1,249,213 (466,357 ) (Loss) income (Loss) before income taxes (23,083,490 ) 2,006,653 (3,701,773 ) Income tax expense (benefit) 23,576 498,330 (651,052 ) Net loss from discontinued operations $ (23,107,066 ) $ 1,508,323 $ (3,050,721 ) December 31, CURRENT ASSETS: $ Cash and cash equivalents 696,157 Restricted cash 934,656 Contracts receivable, net 30,120,533 Accounts receivable, net 1,791,493 Bank acceptance notes receivable 22,660 Inventories 635,989 Other receivables, net 415,496 Prepaid expenses and other current assets 2,368,795 TOTAL CURRENT ASSETS OF DISCONTINUED OPERATIONS $ 36,985,779 Property and equipment at cost, net of accumulated depreciation $ 11,602,316 Intangible asset, net 934,914 Retainage receivables, net 2,408,070 Operating lease right-of-use assets, net 1,412,907 Rent and other deposits 82,517 Equity investments 3,207,644 Deferred tax assets, net 1,988,133 TOTAL NON-CURRENT ASSETS OF DISCONTINUED OPERATIONS $ 21,636,501 CURRENT LIABILITIES: Short-term loans $ 861,846 Bank acceptance notes Payable 929,148 Accounts payable 2,162,016 Accrued expenses and other current liabilities 3,050,980 Operating lease liabilities 50,424 Advances from customers 1,282,276 Taxes payable 10,777,326 Due to Nisun International 9,201,432 TOTAL CURRENT LIABILITIES OF DISCONTINUED OPERATIONS $ 28,472,022 Loan payable – long-term 54,726 Operating lease liabilities - non-current 1,401,908 TOTAL NON-CURRENT LIABILITIES OF DISCONTINUED OPERATIONS 1,456,634 |
Accounts Receivables, Net (Tabl
Accounts Receivables, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Credit Loss, Additional Improvements [Abstract] | |
Schedule of accounts receivable | December 31 December 31, Accounts receivable $ 5,018,839 $ 1,307,013 Less: allowance for doubtful accounts (78,927 ) (73,975 ) Accounts receivable, net $ 4,939,912 $ 1,233,038 |
Receivables from Supply Chain_2
Receivables from Supply Chain Financing (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivable Related To Supply Chain Business [Abstract] | |
Schedule of receivable from supply chain financing | December 31, 2020 December 31, Receivables related to supply chain financing $ 10,741,981 $ - Less: allowance for doubtful accounts - - Receivables related to supply chain financing business, net $ 10,741,981 $ - |
Loans to Third Parties (Tables)
Loans to Third Parties (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Loans To Third Parties [Abstract] | |
Schedule of loans to third parties | December 31, December 31, Jianuo Finance Lease (Shanghai) Co., Ltd. (“Jianuo”) (1) $ - $ 1,723,692 Shandong Daohong Industry and Trade Co., Ltd (2) - 711,023 Qingdao Manster Digital Technology Co., Ltd (3) - 2,872,820 Sichuan Jingpin Construction Decoration Engineering Co., Ltd (4) 306,514 - Henan Tianxia Kang Trading Co., Ltd (5) 1,609,195 - Total 1,915,709 5,307,535 Less: current portion 1,915,709 2,434,715 Loans to third parties – noncurrent portion $ - $ 2,872,820 (1) Hengpu had a loan receivable of $1,723,692 (or RMB 12 million) from Jianuo Finance Lease (Shanghai) Co., Ltd.(“Jianuo”) The loan earned interest of 1.2% and its principal and interest matured on January 10, 2020. The Group fully collected the loan receivable on January 9, 2020. (2) Taiding, a subsidiary of the Group, made a loan of $711,023 (or RMB 4.95 million) to Shandong Daohong industry and Trade Co., Ltd. (“Daohong”) on December 26, 2019. The loan earned interest of 7% and its principal and interest matured on December 25, 2020. The Group fully collected the loan receivable on December 24, 2020. (3) Fintech, had a loan receivable of $2,872,820 (or RMB 20 million) from Qingdao Manster Digital Technology Co., Ltd (“Manster”) that earned interest of 4.8%. The principal of the loan was due on December 9, 2024 and the interest was due on an annual basis. The Group fully collected the loan receivable on December 16, 2020. (4) Hengpu, made a loan of $306,514 (or RMB 2 million) to Sichuan Jingpin Construction Decoration Engineering Co., Ltd (“Jingpin”) on February 10, 2020. The loan earns interest of 18% and its principal and interest are due on February 10, 2021, which was subsequently extended to June 10, 2021. (5) Taiding made a loan of $1,609,195 (or RMB 10.5 million) to Henan Tianxia Kang Trading Co., Ltd (“Tianxia Kang”) on December 28, 2020. The loan is interest free due to the short term and due on January 28, 2021. The loan was repaid on January 13, 2021. |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment, Net [Abstract] | |
Schedule of property and equipment, net | December 31, December 31, Transportation equipment $ 505,423 $ 284,922 Office equipment 258,420 13,716 Electronic equipment 375,991 59,473 Leasehold improvements 388,792 18,244 Subtotal 1,528,626 376,355 Less: accumulated depreciation (872,983 ) (89,298 ) Property, plant and equipment, net $ 665,643 $ 287,057 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | December 31, 2020 December 31, Software $ 479,000 $ 185,215 Technology 4,551,724 4,266,138 Total intangible assets 5,030,724 4,451,353 Less: accumulated amortization (1,304,122 ) (262,003 ) Intangible assets, net $ 3,726,602 $ 4,189,350 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
ASU 2016-02 Transition [Abstract] | |
Schedule of lease cost | Year ended December 31, 2020 Amount 2021 $ 783,955 2022 539,558 2023 154,367 2024 11,723 2025 - thereafter - Total undiscounted future minimum lease payments 1,489,603 Less: Amounts representing interest (72,619 ) Total present value of operating lease liabilities 1,416,984 Less: current portion of operating lease liabilities (736,854 ) Non-current portion of operating lease liabilities $ 680,130 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of taxes payable | December 31, 2020 December 31, Income taxes payable $ 2,045,559 $ 57,761 Value added taxes payable 889,257 57,317 Business taxes payable 43,704 - Withholding taxes payable 112,113 - Other taxes payable 42,405 23,079 Total taxes payable $ 3,133,038 $ 138,157 |
Schedule of components of income tax provision (benefit) | For the year ended For the year ended For the year ended Current tax provision $ 1,525,824 $ - $ - Deferred tax provision (benefit) (584,760 ) (55,731 ) - Total $ 941,064 $ (55,731 ) $ - |
Schedule of summarizes deferred tax assets resulting from differences between financial accounting basis and tax basis of assets and liabilities | December 31, December 31, Deferred tax assets Provision for doubtful accounts $ 368,165 $ 346,864 Operating loss carryforwards 456,370 1,015,053 Total deferred tax assets 824,535 1,361,917 Less: valuation allowance (368,165 ) (1,341,877 ) Net deferred tax assets $ 456,370 $ 20,040 December 31, December 31, Deferred tax liabilities Intangible assets acquired from business combinations $ 676,015 $ 805,826 Total deferred tax liabilities $ 676,015 $ 805,826 |
Schedule of effective tax rate for the year | For the year ended For the year ended For the year ended China Income tax statutory rate 25.0 % 25.0 % - Effect of favorable income tax rates (23.8 )% (25 )% - Effect of temporary differences 1.2 % (4.7 )% - Effect of non-deductible expenses 10 % - - Effect of previous year net operating loss (3.8 )% - - Effective tax rate for the continuing operation 8.7 % (4.7 )% - * For the year ended December 31, 2018, all the Group business was related to the equipment and engineering businesses, which was disposed in November 2020 and included in discontinued operations. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of related parties | Entity or individual name Relationship with the Group Shanghai NiSun Enterprise Management Group Co., Ltd (“NiSun Shanghai”) An affiliated entity controlled by the ultimate controlling shareholder of the Group Huizhong Business Consulting (Beijing) Co., Ltd. (“Huizhong”) An affiliated entity controlled by the ultimate controlling shareholder of the Group Nisun International Enterprise Management Group Co., Ltd (“Nisun Cayman”) A shareholder who owns 37.8% equity interest of the Group Mr. Bodang Liu The ultimate controlling shareholder of the Group Mr. Anyuan Sun Former Chief executive officer of the Group Mr. Jian Lin The shareholder of Wenzhou Jinda Hong Kong Xibolun Technology Limited (“Hebron HK”) The entity disposed on November 30, 2020 |
Condensed Financial Informati_2
Condensed Financial Information of the Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of condensed balance sheets | December 31, December 31, Assets: Cash and cash equivalents $ 2,426 $ 5,213 Prepayments and advances, net - 38,221 Due from intercompany and others 14,951,086 6,147,054 TOTAL CURRENT ASSETS 14,953,512 6,190,488 Investment in subsidiaries, VIE, and VIEs’ subsidiaries 61,889,007 48,218,876 TOTAL ASSETS $ 76,842,519 $ 54,409,364 LIABILITIES CURRENT LIABILITIES Accrued expenses and other current liabilities $ - $ 464,044 TOTAL CURRENT LIABILITIES - 464,044 Commitments and contingencies Shareholders’ equity Class A common stock, $0.001 par value, 40,000,000 shares authorized, 20,555,129 and 17,710,471 shares issued and outstanding as of December 31, 2020 and 2019, respectively. 20,555 17,710 Class B common stock, $0.001 par value, 10,000,000 shares authorized, no shares issued and outstanding as of December 31, 2020 and 2019 - - Additional paid-in capital 59,472,255 28,369,076 Unearned compensation (624,455 ) - Retained earnings 14,380,976 27,472,766 Accumulated other comprehensive income (loss) 3,593,188 (1,914,232 ) Total shareholders’ equity 76,842,519 53,945,320 Total liabilities and shareholders’ equity $ 76,842,519 $ 54,409,364 |
Schedule of condensed statements of comprehensive income (loss) | For the year ended December 31, 2020 2019 2018 Selling and marketing $ $ (15,005 ) $ - Administrative (1,098,668 ) (408,656 ) (2,093,307 ) Other income (expense) (820 ) (686 ) Share of profit (loss) in subsidiaries, VIEs and VIEs’ subsidiaries (11,993,625 ) $ 3,164,471 $ (3,050,722 ) Net income (loss) (13,092,293 ) 2,739,990 (5,144,715 ) Other comprehensive income Foreign currency translation adjustment 5,507,420 (561,091 ) (1,755,528 ) Comprehensive income (loss) $ (7,584,873 ) $ 2,178,899 $ (6,900,243 ) |
Schedule of condensed statement of cash flows | For the years ended December 31, 2020 2019 2018 Cash flows from operating activities: Net income(loss) $ (13,092,293 ) $ 2,739,990 $ (5,144,715 ) Adjustments to reconcile net income to net cash used in operating activities Share of profit (loss) in subsidiaries, VIEs and VIEs’ subsidiaries 11,992,091 (3,164,471 ) 3,050,722 Shares-based compensation 1,097,415 - - Impairment charge recognized - - 923,094 Due from intercompany and others - (38,561 ) 1,170,749 Accrued expenses and other current liabilities - 467,648 - Net cash provided by (used in) operating activities (2,787 ) 4,606 (150 ) Net (decrease)/increase in cash and cash equivalents (2,787 ) 4,606 (150 ) Cash and cash equivalents at beginning of the year 5,213 607 757 Cash and cash equivalents at end of the year $ 2,426 $ 5,213 $ 607 |
Organization and Business Des_3
Organization and Business Description (Details) $ / shares in Units, $ in Thousands, ¥ in Millions | 1 Months Ended | |||||
Nov. 30, 2020USD ($) | Nov. 30, 2020CNY (¥) | May 31, 2020USD ($)$ / sharesshares | Dec. 31, 2020$ / shares | May 31, 2020CNY (¥)shares | Dec. 31, 2019$ / shares | |
Organization and Business Description (Details) [Line Items] | ||||||
Total consideration | $ 14,950 | ¥ 98.3 | ||||
Common Stock, Par or Stated Value Per Share (in Dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||||
Nami Holding (Cayman) Co., Ltd (“Nami Cayman”) [Member] | ||||||
Organization and Business Description (Details) [Line Items] | ||||||
Acquired percentage | 100.00% | 100.00% | ||||
Total consideration | $ | $ 25,340 | |||||
Cash | $ 7,010 | ¥ 50 | ||||
Common stock issued (in Shares) | shares | 1,562,726 | 1,562,726 | ||||
Common Stock, Par or Stated Value Per Share (in Dollars per share) | $ / shares | $ 11.73 | |||||
Comman stock value | $ | $ 18,330 |
Organization and Business Des_4
Organization and Business Description (Details) - Schedule of the Group’s subsidiaries and consolidated VIEs | 12 Months Ended | |
Dec. 31, 2020 | ||
NiSun International Enterprise Management Group (British Virgin Islands) Co., Ltd.(“NiSun BVI”) [Member] | Subsidiaries [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | Jul. 12, 2019 | |
Place of incorporation | BVI | |
Percentage of direct or indirect economic interest | 100.00% | |
NiSun International Enterprise Management Group (Hong Kong) Co., Limited (NiSun HK) [Member] | Subsidiaries [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | Jul. 12, 2019 | |
Place of incorporation | Hong Kong | |
Percentage of direct or indirect economic interest | 100.00% | |
Nisun (Shandong) Industrial Development Co., Ltd (“Nisun Shandong” or “WOFE”) [Member] | Subsidiaries [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | Dec. 15, 2020 | |
Place of incorporation | PRC | |
Percentage of direct or indirect economic interest | 100.00% | |
NingChen (Shanghai) Enterprise Management Co., Ltd.(“NingChen”) [Member] | Subsidiaries [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | Jul. 12, 2019 | |
Place of incorporation | PRC | |
Percentage of direct or indirect economic interest | 100.00% | |
Shandong Taiding International Investment Co., Ltd ("Taiding") [Member] | Subsidiaries [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | Nov. 12, 2019 | |
Place of incorporation | PRC | |
Percentage of direct or indirect economic interest | 80.00% | |
Nami Holding (Cayman) Co., Ltd (“Nami Cayman”) [Member] | Subsidiaries [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | Apr. 9, 2019 | |
Place of incorporation | Cayman Islands | |
Percentage of direct or indirect economic interest | 100.00% | |
Nami Holding (Hong Kong) Co., Limited (“Nami HK”) [Member] | Subsidiaries [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | May 2, 2019 | |
Place of incorporation | Hong Kong | |
Percentage of direct or indirect economic interest | 100.00% | |
Shanghai Naqing Enterprise Management Co., Ltd (“Naqing” or “WOFE”) [Member] | Subsidiaries [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | Apr. 10, 2019 | |
Place of incorporation | PRC | |
Percentage of direct or indirect economic interest | 100.00% | |
Fintech (Shanghai) Digital Technology Co., Ltd. (“Fintech Shanghai”) [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | Jul. 12, 2019 | |
Place of incorporation | PRC | |
Percentage of direct or indirect economic interest | 100.00% | |
Beijing Hengtai Puhui Information Services Co., Ltd ("Hengpu") [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | Dec. 31, 2019 | |
Place of incorporation | PRC | |
Percentage of direct or indirect economic interest | 100.00% | |
Nami Shanghai Financial Consulting Co., Ltd (“Nami Shanghai”) [Member] | Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | Jun. 4, 2015 | |
Place of incorporation | PRC | |
Percentage of direct or indirect economic interest | 100.00% | |
Khorgos Fintech Network Technology Co., Ltd. (“Khorgos”) [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | Jul. 12, 2019 | |
Place of incorporation | PRC | |
Percentage of direct or indirect economic interest | 100.00% | |
Jilin Lingang Supply Chain Management Co., Ltd (“Lingang”) [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | Nov. 27, 2019 | |
Place of incorporation | PRC | |
Percentage of direct or indirect economic interest | 100.00% | |
NiSun Family Office (Guangzhou) Co., Ltd. (“Guangzhou”) [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | Oct. 29, 2019 | |
Place of incorporation | PRC | |
Percentage of direct or indirect economic interest | 100.00% | |
Hangzhou Fengtai Supply Chain Management Co., Ltd. (“Fengtai”) [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | Dec. 31, 2019 | |
Place of incorporation | PRC | |
Percentage of direct or indirect economic interest | 100.00% | |
Dunhua Midtown Asset Management Registration Center Co., Ltd. (“Midtown”) [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | Dec. 31, 2019 | [1] |
Place of incorporation | PRC | [1] |
Percentage of direct or indirect economic interest | 100.00% | [1] |
Nanjing Nisun Gold Co., Ltd. (“Nisun Gold”) [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | Dec. 10, 2020 | |
Place of incorporation | PRC | |
Percentage of direct or indirect economic interest | 100.00% | |
Fintech (Henan) Supply Chain Management Co., Ltd. (“Fintech Henan”) [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | Aug. 26, 2020 | |
Place of incorporation | PRC | |
Percentage of direct or indirect economic interest | 100.00% | |
Fintech (Jiangsu) Supply Chain Management Co., Ltd. (“Fintech Jiangsu”) [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | Nov. 6, 2020 | |
Place of incorporation | PRC | |
Percentage of direct or indirect economic interest | 100.00% | |
Fintech (Shandong) Supply Chain Management Co., Ltd. (“Fintech Shandong”) [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | Nov. 4, 2020 | |
Place of incorporation | PRC | |
Percentage of direct or indirect economic interest | 100.00% | |
Fanlunke Supply Chain Management (Shanghai) Co., Ltd. (“Fanlunke Shanghai”) [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | Dec. 29, 2020 | |
Place of incorporation | PRC | |
Percentage of direct or indirect economic interest | 100.00% | |
Shanxi Fintech Supply Chain Management Co., Ltd (“Fintech Shanxi”) [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | Dec. 30, 2020 | |
Place of incorporation | PRC | |
Percentage of direct or indirect economic interest | 80.00% | |
Jilin Province Lingang Hengda Supply Chain Management Co., Ltd. (“Lingang Hengda”) [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | Aug. 18, 2020 | |
Place of incorporation | PRC | |
Percentage of direct or indirect economic interest | 100.00% | |
[1] | The entity was deregistered on February 19, 2021. Since the entity did not have significant operations, the deregistration did not have a material impact to the Group’s consolidated financial statements for the years ended December 31, 2020, 2019 and 2018. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 12 Months Ended | |||||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | ||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Restricted cash | $ 62,947 | $ 25,016 | [1] | |||
Short-term investments, maturity term | 1 year | 1 year | ||||
Long-term investments, maturity term | 1 year | 1 year | ||||
Equity interest | 23.08% | |||||
Equity method investment loss | $ 169,720 | |||||
Valuation allowance on net deferred tax assets | $ 368,165 | 1,341,877 | ||||
Tax benefit realized on examination | 50.00% | 50.00% | ||||
Tax rate on taxable income | 25.00% | 25.00% | ||||
Cash and cash equivalents and restricted cash from continuing operations | $ 22,198,257 | $ 2,781,506 | $ 607 | $ 757 | ||
Deposit insurance for deposits | 72,000 | ¥ 500,000 | ||||
Insured amount | $ 24,628,000 | |||||
Taiding [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Non controlling interest | 20.00% | |||||
Minimum [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Equity interest | 20.00% | |||||
Maximum [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Equity interest | 49.90% | |||||
Wenzhou Jinda Holding Co., Ltd [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Equity interest | 23.08% | 23.08% | ||||
Jinda [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Equity method investment loss | $ 46,659 | $ 0 | ||||
Major Customer One [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Concentration risk, percentage | 31.00% | 31.00% | ||||
Major Customer Two [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Concentration risk, percentage | 21.00% | 21.00% | ||||
Major Customer Three [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Concentration risk, percentage | 12.00% | 12.00% | ||||
[1] | The amounts have been reclassified to conform with the Group’s decision to classify Hebron HK as assets and liabilities of discontinued operations. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of consolidated financial statements of VIEs and their subsidiaries - Variable Interest Entity, Primary Beneficiary [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Summary of Significant Accounting Policies (Details) - Schedule of consolidated financial statements of VIEs and their subsidiaries [Line Items] | ||
Total current asset | $ 43,832,012 | $ 5,988,899 |
Total assets | 47,223,358 | 9,793,910 |
Total current liabilities | 11,146,286 | 1,295,055 |
Total liabilities | 11,826,417 | 1,295,055 |
Financial services revenue | 42,190,191 | 2,525,524 |
Net income | 11,583,787 | 1,600,661 |
Net cash provided by operating activities | 2,560,400 | 824,462 |
Net cash (used in) investing activities | (13,321,524) | (3,132,684) |
Net cash provided by financing activities | $ 4,051,162 | $ 3,044,235 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of revenue from financial service disaggregated by nature - Disaggregated by Nature [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Summary of Significant Accounting Policies (Details) - Schedule of revenue from financial service disaggregated by nature [Line Items] | ||
Total revenue | $ 42,190,191 | $ 2,525,524 |
One-time commission fees [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of revenue from financial service disaggregated by nature [Line Items] | ||
Total revenue | 42,082,585 | 2,522,143 |
Recurring service fees [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of revenue from financial service disaggregated by nature [Line Items] | ||
Total revenue | $ 107,606 | $ 3,381 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of revenue from financial services disaggregated by revenue line - Disaggregated by Revenue Line [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Summary of Significant Accounting Policies (Details) - Schedule of revenue from financial services disaggregated by revenue line [Line Items] | ||
Total revenue | $ 42,190,191 | $ 2,525,524 |
Small and medium enterprise financing solutions [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of revenue from financial services disaggregated by revenue line [Line Items] | ||
Total revenue | 40,779,794 | 2,522,143 |
Supply chain financing solutions [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of revenue from financial services disaggregated by revenue line [Line Items] | ||
Total revenue | 1,369,859 | |
Other financing solutions [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of revenue from financial services disaggregated by revenue line [Line Items] | ||
Total revenue | $ 40,538 | $ 3,381 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details) - Schedule of financial instruments measured at fair value on a recurring basis - USD ($) | Dec. 31, 2020 | Dec. 03, 2020 | Dec. 02, 2020 | Dec. 01, 2020 |
Short-term investments: | ||||
Wealth management products | $ 4,680,843 | |||
Level 1 [Member] | ||||
Short-term investments: | ||||
Wealth management products | ||||
Level 2 [Member] | ||||
Short-term investments: | ||||
Wealth management products | $ 4,680,843 | |||
Level 3 [Member] | ||||
Short-term investments: | ||||
Wealth management products |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Details) - Schedule of amortize cost of related assets over their useful lives | 12 Months Ended |
Dec. 31, 2020 | |
Transportation equipment [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of amortize cost of related assets over their useful lives [Line Items] | |
Useful life | 4 years |
Office equipment [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of amortize cost of related assets over their useful lives [Line Items] | |
Useful life | 3 years |
Office equipment [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of amortize cost of related assets over their useful lives [Line Items] | |
Useful life | 5 years |
Electronic equipment [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of amortize cost of related assets over their useful lives [Line Items] | |
Useful life | 3 years |
Electronic equipment [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of amortize cost of related assets over their useful lives [Line Items] | |
Useful life | 5 years |
Leasehold improvements [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of amortize cost of related assets over their useful lives [Line Items] | |
Useful life | Shorter of remaining lease term or life of assets |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Details) - Schedule of amortize cost of intangible assets over their useful lives | 12 Months Ended |
Dec. 31, 2020 | |
Software [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of amortize cost of intangible assets over their useful lives [Line Items] | |
Useful life | 3 years |
Software [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of amortize cost of intangible assets over their useful lives [Line Items] | |
Useful life | 5 years |
Trademarks [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of amortize cost of intangible assets over their useful lives [Line Items] | |
Useful life | 3 years |
Trademarks [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of amortize cost of intangible assets over their useful lives [Line Items] | |
Useful life | 5 years |
Technology [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of amortize cost of intangible assets over their useful lives [Line Items] | |
Useful life | 5 years |
Technology [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of amortize cost of intangible assets over their useful lives [Line Items] | |
Useful life | 10 years |
Summary of Significant Accou_10
Summary of Significant Accounting Policies (Details) - Schedule of consolidated financial statements | Dec. 31, 2020 | Nov. 30, 2020 | Dec. 31, 2019 |
Balance sheet items, except for equity accounts [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of consolidated financial statements [Line Items] | |||
Currency exchange rates | 6.5250 | 6.5760 | 6.9618 |
Balance sheet items, except for equity accounts [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of consolidated financial statements [Line Items] | |||
Currency exchange rates | 7.7534 | 7.7522 | 7.7894 |
Items in the statements of operations and cash flows [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of consolidated financial statements [Line Items] | |||
Currency exchange rates | 6.9042 | 6.9377 | 6.9081 |
Items in the statements of operations and cash flows [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of consolidated financial statements [Line Items] | |||
Currency exchange rates | 7.7559 | 7.7563 | 7.8351 |
Business Combinations (Details)
Business Combinations (Details) - Acquisition of Nami Cayman [Member] ¥ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||
May 31, 2020USD ($)shares | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | May 31, 2020CNY (¥)shares | |
Business Combinations (Details) [Line Items] | ||||
Ownership interest, percentage | 100.00% | 100.00% | ||
Purchase price | $ 7 | ¥ 50 | ||
Revenue | $ 16.2 | ¥ 114.3 | ||
Net income | $ 3 | ¥ 20.6 | ||
Class A Common Stock [Member] | ||||
Business Combinations (Details) [Line Items] | ||||
Shares issued for purchase consideration (in Shares) | shares | 1,562,726 | 1,562,726 | ||
Weighted average closing shares value | $ | $ 18.3 |
Business Combinations (Detail_2
Business Combinations (Details) - Schedule of fair value of the identifiable assets acquired and liabilities - Acquisition of Nami Cayman [Member] | May 31, 2020USD ($) |
Business Combinations (Details) - Schedule of fair value of the identifiable assets acquired and liabilities [Line Items] | |
Cash and cash equivalents acquired | $ 4,990,754 |
Short-term investments | 1,402,632 |
Accounts receivable, net | 3,869.453 |
Prepayments and other current assets | 621,735 |
Loans to third parties | 5,484,531 |
Right-of-use assets | 1,305,961 |
Property and equipment, net | 407,678 |
Intangible assets, net | 144,153 |
Accounts payable | (322) |
Advance from customers and other payables | (1,839,558) |
Salary payable | (891,347) |
Taxes payable | (1,172,980) |
Operating lease liabilities | (1,308,864) |
Goodwill | 12,324,856 |
Total consideration | $ 25,338,682 |
Business Combinations (Detail_3
Business Combinations (Details) - Schedule of indicative of future operating results - Acquisition of Nami Cayman [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Business Combinations (Details) - Schedule of indicative of future operating results [Line Items] | ||
Revenue from continuing operations | $ 21,436,553 | $ 11,407,879 |
Net income (loss) from continuing operations | $ 4,686,302 | $ (6,289,702) |
Discontinuued Operations (Detai
Discontinuued Operations (Details) ¥ in Millions | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2020USD ($) | Nov. 30, 2020CNY (¥) | Dec. 31, 2020USD ($) | |
Discontinuued Operations (Details) [Line Items] | |||
Cash consideration | $ 14,950,000 | ¥ 98.3 | |
Gain from disposition | $ 136,050 | ||
Hebron HK [Member] | |||
Discontinuued Operations (Details) [Line Items] | |||
Cash consideration | $ 15,000,000 | ¥ 98.3 |
Discontinuued Operations (Det_2
Discontinuued Operations (Details) - Schedule of discontinued operations - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
REVENUE | ||||
Installation service | $ 876,972 | $ 10,490,191 | $ 17,297,212 | |
Fluid equipment sales | 3,344,328 | 8,087,399 | 7,992,848 | |
Total revenue | 4,221,300 | 18,577,590 | 25,290,060 | |
COST OF REVENUE | ||||
Cost of revenue | (3,439,279) | (12,882,094) | (17,458,252) | |
Business and sales related taxes | (22,759) | (144,907) | (253,856) | |
GROSS PROFIT | 759,262 | 5,550,589 | 7,577,952 | |
OPERATING EXPENSES: | ||||
General and administrative expenses | 1,226,966 | 1,484,200 | 2,127,288 | |
Selling and marketing expenses | 161,389 | 891,632 | 1,337,321 | |
Bad debt expenses | 22,376,509 | 2,079,837 | 6,990,348 | |
Research and development expenses | 337,480 | 358,411 | ||
Total operating expenses | 23,764,864 | 4,793,149 | 10,813,368 | |
(LOSS) INCOME FROM OPERATIONS | (23,005,602) | 757,440 | (3,235,416) | |
OTHER INCOME (EXPENSES) | ||||
Other expenses, net | 72,170 | 1,253,778 | (426,585) | |
Interest (expenses) | (59,517) | (158,119) | (208,306) | |
(Loss) income from investments | (90,541) | 153,554 | 168,534 | |
Total other (expense), net | (77,888) | 1,249,213 | (466,357) | |
(Loss) income (Loss) before income taxes | (23,083,490) | 2,006,653 | (3,701,773) | |
Income tax expense (benefit) | 23,576 | 498,330 | (651,052) | |
Net loss from discontinued operations | (23,107,066) | 1,508,323 | $ (3,050,721) | |
CURRENT ASSETS: | ||||
Cash and cash equivalents | 696,157 | |||
Restricted cash | 934,656 | |||
Contracts receivable, net | 30,120,533 | |||
Accounts receivable, net | 1,791,493 | |||
Bank acceptance notes receivable | 22,660 | |||
Inventories | 635,989 | |||
Other receivables, net | 415,496 | |||
Prepaid expenses and other current assets | 2,368,795 | |||
TOTAL CURRENT ASSETS OF DISCONTINUED OPERATIONS | 36,985,779 | [1] | ||
Property and equipment at cost, net of accumulated depreciation | 11,602,316 | |||
Intangible asset, net | 934,914 | |||
Retainage receivables, net | 2,408,070 | |||
Operating lease right-of-use assets, net | 1,412,907 | |||
Rent and other deposits | 82,517 | |||
Equity investments | 3,207,644 | |||
Deferred tax assets, net | 1,988,133 | |||
TOTAL NON-CURRENT ASSETS OF DISCONTINUED OPERATIONS | 21,636,501 | |||
CURRENT LIABILITIES: | ||||
Short-term loans | 861,846 | |||
Bank acceptance notes Payable | 929,148 | |||
Accounts payable | 2,162,016 | |||
Accrued expenses and other current liabilities | 3,050,980 | |||
Operating lease liabilities | 50,424 | |||
Advances from customers | 1,282,276 | |||
Taxes payable | 10,777,326 | |||
Due to Nisun International | 9,201,432 | |||
TOTAL CURRENT LIABILITIES OF DISCONTINUED OPERATIONS | 28,472,022 | [1] | ||
Loan payable – long-term | 54,726 | |||
Operating lease liabilities - non-current | 1,401,908 | |||
TOTAL NON-CURRENT LIABILITIES OF DISCONTINUED OPERATIONS | $ 1,456,634 | |||
[1] | The amounts have been reclassified to conform with the Group’s decision to classify Hebron HK as assets and liabilities of discontinued operations. |
Accounts Receivables, Net (Deta
Accounts Receivables, Net (Details) - Schedule of accounts receivable - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of accounts receivable [Abstract] | ||
Accounts receivable | $ 5,018,839 | $ 1,307,013 |
Less: allowance for doubtful accounts | (78,927) | (73,975) |
Accounts receivable, net | $ 4,939,912 | $ 1,233,038 |
Receivables from Supply Chain_3
Receivables from Supply Chain Financing (Details) - Schedule of receivable from supply chain financing - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of receivable from supply chain financing [Abstract] | ||
Receivables related to supply chain financing | $ 10,741,981 | |
Less: allowance for doubtful accounts | ||
Receivables related to supply chain financing business, net | $ 10,741,981 |
Loans to Third Parties (Details
Loans to Third Parties (Details) ¥ in Millions | Feb. 10, 2020USD ($) | Dec. 28, 2020USD ($) | Dec. 16, 2020USD ($) | Dec. 26, 2019 | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 16, 2020CNY (¥) | Feb. 10, 2020CNY (¥) | Dec. 31, 2019USD ($) |
Loans to Third Parties (Details) [Line Items] | |||||||||
Loans to third parties | $ 10,500,000 | $ 1,915,709 | $ 5,307,535 | ||||||
Loan amount | 711,023 | ||||||||
Taiding [Member] | |||||||||
Loans to Third Parties (Details) [Line Items] | |||||||||
Loans to third parties | $ 306,514 | $ 1,609,195 | $ 1,723,692 | ¥ 12 | ¥ 2 | ||||
Loans earning interest percentage | 18.00% | 1.20% | 1.20% | 18.00% | |||||
Loans due date | Jun. 10, 2021 | Jan. 10, 2020 | |||||||
Taiding [Member] | |||||||||
Loans to Third Parties (Details) [Line Items] | |||||||||
Loans earning interest percentage | 7.00% | ||||||||
Loans due date | Dec. 28, 2020 | Dec. 25, 2020 | |||||||
Loan amount | $ 4,950,000 | ||||||||
Fintech [Member] | |||||||||
Loans to Third Parties (Details) [Line Items] | |||||||||
Loans to third parties | $ 2,872,820 | ¥ 20 | |||||||
Loans earning interest percentage | 4.80% | 4.80% | |||||||
Loans due date | Dec. 9, 2024 |
Loans to Third Parties (Detai_2
Loans to Third Parties (Details) - Schedule of loans to third parties - USD ($) | Dec. 31, 2020 | Dec. 28, 2020 | Dec. 31, 2019 | ||
Loans to Third Parties (Details) - Schedule of loans to third parties [Line Items] | |||||
Total | $ 1,915,709 | $ 10,500,000 | $ 5,307,535 | ||
Less: current portion | 1,915,709 | 2,434,715 | [1] | ||
Loans to third parties – noncurrent portion | 2,872,820 | [1] | |||
Jianuo Finance Lease (Shanghai) Co., Ltd. [Member] | |||||
Loans to Third Parties (Details) - Schedule of loans to third parties [Line Items] | |||||
Total | [2] | 1,723,692 | |||
Shandong Daohong Industry and Trade Co., Ltd [Member] | |||||
Loans to Third Parties (Details) - Schedule of loans to third parties [Line Items] | |||||
Total | [3] | 711,023 | |||
Qingdao Manster Digital Technology Co., Ltd [Member] | |||||
Loans to Third Parties (Details) - Schedule of loans to third parties [Line Items] | |||||
Total | [4] | 2,872,820 | |||
Sichuan Jingpin Construction Decoration Engineering Co., Ltd [Member] | |||||
Loans to Third Parties (Details) - Schedule of loans to third parties [Line Items] | |||||
Total | [5] | 306,514 | |||
Henan Tianxia Kang Trading Co., Ltd [Member] | |||||
Loans to Third Parties (Details) - Schedule of loans to third parties [Line Items] | |||||
Total | [6] | $ 1,609,195 | |||
[1] | The amounts have been reclassified to conform with the Group’s decision to classify Hebron HK as assets and liabilities of discontinued operations. | ||||
[2] | Hengpu had a loan receivable of $1,723,692 (or RMB 12 million) from Jianuo Finance Lease (Shanghai) Co., Ltd.(“Jianuo”) The loan earned interest of 1.2% and its principal and interest matured on January 10, 2020. The Group fully collected the loan receivable on January 9, 2020. | ||||
[3] | Taiding, a subsidiary of the Group, made a loan of $711,023 (or RMB 4.95 million) to Shandong Daohong industry and Trade Co., Ltd. (“Daohong”) on December 26, 2019. The loan earned interest of 7% and its principal and interest matured on December 25, 2020. The Group fully collected the loan receivable on December 24, 2020. | ||||
[4] | Fintech, had a loan receivable of $2,872,820 (or RMB 20 million) from Qingdao Manster Digital Technology Co., Ltd (“Manster”) that earned interest of 4.8%. The principal of the loan was due on December 9, 2024 and the interest was due on an annual basis. The Group fully collected the loan receivable on December 16, 2020. | ||||
[5] | Hengpu, made a loan of $306,514 (or RMB 2 million) to Sichuan Jingpin Construction Decoration Engineering Co., Ltd (“Jingpin”) on February 10, 2020. The loan earns interest of 18% and its principal and interest are due on February 10, 2021, which was subsequently extended to June 10, 2021. | ||||
[6] | Taiding made a loan of $1,609,195 (or RMB 10.5 million) to Henan Tianxia Kang Trading Co., Ltd (“Tianxia Kang”) on December 28, 2020. The loan is interest free due to the short term and due on January 28, 2021. The loan was repaid on January 13, 2021. |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment, Net [Abstract] | ||
Depreciation expense | $ 211,796 | $ 15,551 |
Property and Equipment, Net (_2
Property and Equipment, Net (Details) - Schedule of property and equipment, net - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 1,528,626 | $ 376,355 |
Less: accumulated depreciation | (872,983) | (89,298) |
Property, plant and equipment, net | 665,643 | 287,057 |
Transportation equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 505,423 | 284,922 |
Office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 258,420 | 13,716 |
Electronic equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 375,991 | 59,473 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 388,792 | $ 18,244 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 945,744 | $ 226,858 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details) - Schedule of intangible assets - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 5,030,724 | $ 4,451,353 |
Less: accumulated amortization | (1,304,122) | (262,003) |
Intangible assets, net | 3,726,602 | 4,189,350 |
Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 479,000 | 185,215 |
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 4,551,724 | $ 4,266,138 |
Investment in Limited Partner_2
Investment in Limited Partnership (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020CNY (¥) | |
Investment In Debt Security [Abstract] | |||
Invested amount | $ 15,589,966 | ¥ 101,724,531 | |
Investment interest rate | 8.00% | 8.00% | |
Long-term Debt, Term | 5 years | 5 years | |
Investment principal balance | $ 15,589,966 | ¥ 101,724,531 | |
Accrued interest income | $ 146,961 | ¥ 958,921 |
Leases (Details)
Leases (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
ASU 2016-02 Transition [Abstract] | ||
Weighted average remaining lease term | 1 year 11 months 26 days | 3 years 9 months |
Weighted average discount rate | 4.75% | 4.75% |
Lease cost amount | $ 578,689 | $ 63,749 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of lease cost - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | [1] |
Schedule of lease cost [Abstract] | |||
2021 | $ 783,955 | ||
2022 | 539,558 | ||
2023 | 154,367 | ||
2024 | 11,723 | ||
2025 | |||
thereafter | |||
Total undiscounted future minimum lease payments | 1,489,603 | ||
Less: Amounts representing interest | (72,619) | ||
Total present value of operating lease liabilities | 1,416,984 | ||
Less: current portion of operating lease liabilities | (736,854) | $ (138,133) | |
Non-current portion of operating lease liabilities | $ 680,130 | $ 368,019 | |
[1] | The amounts have been reclassified to conform with the Group’s decision to classify Hebron HK as assets and liabilities of discontinued operations. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes (Details) [Line Items] | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 973,712 | $ 1,341,877 |
Effect income tax rates per share | $ 0.14 | $ 0.02 |
HONG KONG | ||
Income Taxes (Details) [Line Items] | ||
Income tax rate | 17.50% | |
CHINA | ||
Income Taxes (Details) [Line Items] | ||
Income tax exempton related, description | the standard enterprise income tax rate for domestic enterprises and foreign invested enterprises is 25%. Starting from the year ended December 31, 2018, Hengpu was qualified as a High-technology Company and subject to a favorable income tax rate of 15%. Hengpu’s High-technology certificate is valid for three years starting from November 2018 and subject to renewal. Starting from the year ended December 31, 2020, Fintech was recognized as a High-technology Company by the Chinese government and is subject to a favorable income tax rate of 15%. In accordance with the implementation rules of the Income Tax Law of the PRC, for the enterprises newly established in the Horgos Development Zone within the scope of “preferential catalogue of income tax for key industries encouraged to develop in Xinjiang’s difficult areas”, the enterprise income tax shall be exempt for five years from the tax year of the first production and operations income. Khorgos is established in the Horgos Development Zone and its income is exempt for five years starting from 2019. The remaining Group’s subsidiaries VIEs and VIEs’ subsidiaries from the financial services business are subject to corporate income taxes at the PRC unified rate of 25%. |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of taxes payable - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of taxes payable [Abstract] | |||
Income taxes payable | $ 2,045,559 | $ 57,761 | |
Value added taxes payable | 889,257 | 57,317 | |
Business taxes payable | 43,704 | ||
Withholding taxes payable | 112,113 | ||
Other taxes payable | 42,405 | 23,079 | |
Total taxes payable | $ 3,133,038 | $ 138,157 | [1] |
[1] | The amounts have been reclassified to conform with the Group’s decision to classify Hebron HK as assets and liabilities of discontinued operations. |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of components of income tax provision (benefit) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of components of income tax provision (benefit) [Abstract] | |||
Current tax provision | $ 1,525,824 | ||
Deferred tax provision (benefit) | (584,760) | (55,731) | |
Total | $ 941,064 | $ (55,731) |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of summarizes deferred tax assets resulting from differences between financial accounting basis and tax basis of assets and liabilities - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred tax assets | |||
Provision for doubtful accounts | $ 368,165 | $ 346,864 | |
Operating loss carryforwards | 456,370 | 1,015,053 | |
Total deferred tax assets | 824,535 | 1,361,917 | |
Less: valuation allowance | (368,165) | (1,341,877) | |
Net deferred tax assets | 456,370 | 20,040 | [1] |
Deferred tax liabilities | |||
Intangible assets acquired from business combinations | 676,015 | 805,826 | |
Total deferred tax liabilities | $ 676,015 | $ 805,826 | |
[1] | The amounts have been reclassified to conform with the Group’s decision to classify Hebron HK as assets and liabilities of discontinued operations. |
Income Taxes (Details) - Sche_4
Income Taxes (Details) - Schedule of effective tax rate for the year - CHINA | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | [1] | |
Income Taxes (Details) - Schedule of effective tax rate for the year [Line Items] | ||||
China Income tax statutory rate | 25.00% | 25.00% | ||
Effect of favorable income tax rates | (23.80%) | (25.00%) | ||
Effect of temporary differences | 1.20% | (4.70%) | ||
Effect of non-deductible expenses | 10.00% | |||
Effect of previous year net operating loss | (3.80%) | |||
Effective tax rate for the continuing operation | 8.70% | (4.70%) | ||
[1] | For the year ended December 31, 2018, all the Group business was related to the equipment and engineering businesses, which was disposed in November 2020 and included in discontinued operations. |
Concentration of Major Custom_2
Concentration of Major Customers (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Sales Revenue, Net [Member] | ||
Concentration of Major Customers (Details) [Line Items] | ||
Number of customers | 3 | 1 |
Accounts Receivable [Member] | ||
Concentration of Major Customers (Details) [Line Items] | ||
Number of customers | 3 | 1 |
Major Customer One [Member] | Sales Revenue, Net [Member] | ||
Concentration of Major Customers (Details) [Line Items] | ||
Concentration risk, percentage | 31.00% | 100.00% |
Major Customer One [Member] | Accounts Receivable [Member] | ||
Concentration of Major Customers (Details) [Line Items] | ||
Concentration risk, percentage | 45.00% | 62.00% |
Major Customer Two [Member] | Sales Revenue, Net [Member] | ||
Concentration of Major Customers (Details) [Line Items] | ||
Concentration risk, percentage | 21.00% | |
Major Customer Two [Member] | Accounts Receivable [Member] | ||
Concentration of Major Customers (Details) [Line Items] | ||
Concentration risk, percentage | 20.00% | |
Major Customer Three [Member] | Sales Revenue, Net [Member] | ||
Concentration of Major Customers (Details) [Line Items] | ||
Concentration risk, percentage | 12.00% | |
Major Customer Three [Member] | Accounts Receivable [Member] | ||
Concentration of Major Customers (Details) [Line Items] | ||
Concentration risk, percentage | 17.00% |
Shareholders_ Equity (Details)
Shareholders’ Equity (Details) - USD ($) | May 01, 2020 | Apr. 06, 2020 | Dec. 06, 2019 | Jul. 14, 2019 | Jun. 30, 2020 | May 31, 2020 | Nov. 20, 2019 | Dec. 31, 2020 | Dec. 31, 2019 |
Shareholders’ Equity (Details) [Line Items] | |||||||||
Common stock. shares authorized | 50,000,000 | 50,000,000 | |||||||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 | |||||||
Capital contribution (in Dollars) | $ 4,550,000 | $ 3,582,781 | $ 4,550,000 | $ 3,582,781 | |||||
Net proceeds (in Dollars) | 6,503,378 | ||||||||
Restricted stocks, description | Pursuant to the agreement, one-third (33%) of the shares of restricted stock issued will vest on the date of the grant and the first anniversary of the date of grant; and the remaining 34% will vest on the second anniversary of the date of the grant. | ||||||||
Share based compensation (in Dollars) | 1,097,415 | $ 0 | |||||||
Unrecognized share-based compensation (in Dollars) | $ 624,455 | ||||||||
Share based compensation remaining term | 1 year 3 months | ||||||||
Wise Metro Development Co., Ltd [Member] | |||||||||
Shareholders’ Equity (Details) [Line Items] | |||||||||
Share transfer transaction, description | (i) Wise’s 1,800,000 Class B common shares of The Group and (ii) Sun Zhang’s 5,978,400 Class B common shares of The Group, which constituted approximately 47.8% of all of The Group’s outstanding common shares at the time of the Closing on a fully diluted basis (Wise’s and Sun Zhang’s Class B common shares are referred to as the “Shares”). The Shares were automatically converted into Class A common shares upon transfer from the Sellers to the Buyer, and upon such transfer the Group had no remaining issued and outstanding Class B common shares. Upon this conversion, the Shares are entitled to one vote per share. | ||||||||
Share Incentive Plan 2019 [Member] | |||||||||
Shareholders’ Equity (Details) [Line Items] | |||||||||
Stock incentive plan, description | The Board of directors approved the 2019 One Million Share Incentive Plan (the “2019 Plan”) on December 20, 2019, which permits the grant of restricted shares and options to employees, directors, officers and consultants to purchase the Group’s Class A common shares. The maximum aggregate number of Class A common shares, which may be issued pursuant to all awards under the 2019 Plan, is 1 million shares. The Plan is valid and effective for a term of ten years commencing from its adoption. | ||||||||
Class A Common Stock [Member] | |||||||||
Shareholders’ Equity (Details) [Line Items] | |||||||||
Common stock. shares authorized | 40,000,000 | 40,000,000 | |||||||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 | |||||||
Common stock, shares issued | 20,555,129 | 17,710,471 | |||||||
Common stock, shares outstanding | 20,555,129 | 17,710,471 | |||||||
Fair value (in Dollars) | $ 1,721,870 | ||||||||
Closing price per share (in Dollars per share) | $ 7.39 | ||||||||
Class A Common Stock [Member] | Hengpu [Member] | |||||||||
Shareholders’ Equity (Details) [Line Items] | |||||||||
Number of shares issuance | 1,440,894 | ||||||||
Fair value of purchase consideration (in Dollars) | $ 11,426,289 | ||||||||
Class A Common Stock [Member] | Nami [Member] | |||||||||
Shareholders’ Equity (Details) [Line Items] | |||||||||
Number of shares issuance | 1,562,726 | ||||||||
Fair value of purchase consideration (in Dollars) | $ 18,330,776 | ||||||||
Class A Common Stock [Member] | Private Placement [Member] | |||||||||
Shareholders’ Equity (Details) [Line Items] | |||||||||
Common stock, shares sold | 1,048,932 | ||||||||
Sale of stock price per share (in Dollars per share) | $ 6.21 | ||||||||
Net proceeds (in Dollars) | $ 6,503,378 | ||||||||
Class A Common Stock [Member] | Board [Member] | |||||||||
Shareholders’ Equity (Details) [Line Items] | |||||||||
Restricted common stock | 300,000 | ||||||||
Class A Common Stock [Member] | Two Officers [Member] | |||||||||
Shareholders’ Equity (Details) [Line Items] | |||||||||
Shares forfeited and cancelled | 67,000 | ||||||||
Class B Common Stock [Member] | |||||||||
Shareholders’ Equity (Details) [Line Items] | |||||||||
Common stock. shares authorized | 10,000,000 | 10,000,000 | |||||||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 | |||||||
Common stock, shares issued | |||||||||
Common stock, shares outstanding |
Related Party Transactions (Det
Related Party Transactions (Details) | 12 Months Ended | ||||
Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2020CNY (¥) | ||
Related Party Transactions (Details) [Line Items] | |||||
Rent expense | $ 127,565 | $ 63,749 | |||
Related party cost | 3,908,134 | ¥ 26,982,503 | |||
Advanced as loan | 10,528,965 | 69,883,631 | |||
Due to related party balance | 280,100 | ||||
Purchase price payable for acquisition | $ 7,007,905 | [1] | |||
Equity interest | 23.08% | 23.08% | |||
Due from discontinued operations | 9,201,432 | [1] | |||
Payment of related party | 15,000,000 | ¥ 98,300,000 | |||
Consideration receivable | 15,000,000 | ||||
Mr. Bodang Liu [Member] | |||||
Related Party Transactions (Details) [Line Items] | |||||
Due to related party balance | 393,148 | 7,345,399 | |||
Nisun BVI [Member] | |||||
Related Party Transactions (Details) [Line Items] | |||||
Purchase price payable for acquisition | 6,500,000 | 7,000,000 | ¥ 45,900,000 | ||
Nisun Shanghai [Member] | |||||
Related Party Transactions (Details) [Line Items] | |||||
Due to related party balance | 1,379,310 | 0 | |||
Mr. Anyuan Sun [Member] | |||||
Related Party Transactions (Details) [Line Items] | |||||
Due to related party balance | 0 | $ 414,044 | |||
Mr. Jian Lin [Member] | |||||
Related Party Transactions (Details) [Line Items] | |||||
Due to related party balance | $ 298,851 | ||||
[1] | The amounts have been reclassified to conform with the Group’s decision to classify Hebron HK as assets and liabilities of discontinued operations. |
Related Party Transactions (D_2
Related Party Transactions (Details) - Schedule of related parties | 12 Months Ended |
Dec. 31, 2020 | |
Shanghai NiSun Enterprise Management Group Co., Ltd (“NiSun Shanghai”) [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Group | An affiliated entity controlled by the ultimate controlling shareholder of the Group |
Huizhong Business Consulting (Beijing) Co., Ltd. (“Huizhong”) [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Group | An affiliated entity controlled by the ultimate controlling shareholder of the Group |
Nisun International Enterprise Management Group Co., Ltd (“Nisun Cayman”) [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Group | A shareholder who owns 37.8% equity interest of the Group |
Mr. Bodang Liu [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Group | The ultimate controlling shareholder of the Group |
Mr. Anyuan Sun [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Group | Former Chief executive officer of the Group |
Mr. Jian Lin [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Group | The shareholder of Wenzhou Jinda |
Hong Kong Xibolun Technology Limited (“Hebron HK”) [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Group | The entity disposed on November 30, 2020 |
Restricted Net Assets (Details)
Restricted Net Assets (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure Text Block Supplement [Abstract] | ||
Net after-tax profits, percentage | 10.00% | |
Statutory reserve percentage | 50.00% | |
Statutory reserve balance | $ 2,190,847 | $ 516,193 |
Condensed Financial Informati_3
Condensed Financial Information of the Parent Company (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Restricted net assets, description | Such restricted net assets amounted to approximately $46.5 million, or 60.5% of the Group’s total consolidated net assets, |
Condensed Financial Informati_4
Condensed Financial Information of the Parent Company (Details) - Schedule of condensed balance sheets - Parent Company [Member] - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets: | ||||
Cash and cash equivalents | $ 2,426 | $ 5,213 | $ 607 | $ 757 |
Prepayments and advances, net | 38,221 | |||
Due from intercompany and others | 14,951,086 | 6,147,054 | ||
TOTAL CURRENT ASSETS | 14,953,512 | 6,190,488 | ||
Investment in subsidiaries, VIE, and VIEs’ subsidiaries | 61,889,007 | 48,218,876 | ||
TOTAL ASSETS | 76,842,519 | 54,409,364 | ||
CURRENT LIABILITIES | ||||
Accrued expenses and other current liabilities | 464,044 | |||
TOTAL CURRENT LIABILITIES | 464,044 | |||
Commitments and contingencies | ||||
Shareholders’ equity | ||||
Additional paid-in capital | 59,472,255 | 28,369,076 | ||
Unearned compensation | (624,455) | |||
Retained earnings | 14,380,976 | 27,472,766 | ||
Accumulated other comprehensive income (loss) | 3,593,188 | (1,914,232) | ||
Total shareholders’ equity | 76,842,519 | 53,945,320 | ||
Total liabilities and shareholders’ equity | 76,842,519 | 54,409,364 | ||
Class A Common Stock | ||||
Shareholders’ equity | ||||
Common stock, value | 20,555 | 17,710 | ||
Class B Common Stock | ||||
Shareholders’ equity | ||||
Common stock, value |
Condensed Financial Informati_5
Condensed Financial Information of the Parent Company (Details) - Schedule of condensed statements of comprehensive income (loss) - Parent Company [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Statement of Income Captions [Line Items] | |||
Selling and marketing | $ (15,005) | ||
Administrative | $ (1,098,668) | (408,656) | $ (2,093,307) |
Other income (expense) | (820) | (686) | |
Share of profit (loss) in subsidiaries, VIEs and VIEs’ subsidiaries | (11,993,625) | 3,164,471 | (3,050,722) |
Net income (loss) | (13,092,293) | 2,739,990 | (5,144,715) |
Other comprehensive income | |||
Foreign currency translation adjustment | 5,507,420 | (561,091) | (1,755,528) |
Comprehensive income (loss) | $ (7,584,873) | $ 2,178,899 | $ (6,900,243) |
Condensed Financial Informati_6
Condensed Financial Information of the Parent Company (Details) - Schedule of condensed statement of cash flows - Parent Company [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net income(loss) | $ (13,092,293) | $ 2,739,990 | $ (5,144,715) |
Adjustments to reconcile net income to net cash used in operating activities | |||
Share of profit (loss) in subsidiaries, VIEs and VIEs’ subsidiaries | 11,992,091 | (3,164,471) | 3,050,722 |
Shares-based compensation | 1,097,415 | ||
Impairment charge recognized | 923,094 | ||
Due from intercompany and others | (38,561) | 1,170,749 | |
Accrued expenses and other current liabilities | 467,648 | ||
Net cash provided by (used in) operating activities | (2,787) | 4,606 | (150) |
Net (decrease)/increase in cash and cash equivalents | (2,787) | 4,606 | (150) |
Cash and cash equivalents at beginning of the year | 5,213 | 607 | 757 |
Cash and cash equivalents at end of the year | $ 2,426 | $ 5,213 | $ 607 |