Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2021shares | |
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, 2021 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
ICFR Auditor Attestation Flag | true |
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 $0.001 per share |
Security Exchange Name | NASDAQ |
Entity Interactive Data Current | Yes |
Document Accounting Standard | U.S. GAAP |
Auditor Firm ID | 2388 |
Auditor Name | Wei, Wei & Co., LLP |
Auditor Location | New York |
Entity Address, Postal Zip Code | 00000 |
Business Contact | |
Document Information Line Items | |
Entity Address, Address Line One | 99 Danba Rd |
Entity Address, Address Line Two | Bldg C9Putuo District |
Entity Address, City or Town | Shanghai |
Entity Address, Country | CN |
Contact Personnel Name | Changjuan Liang |
Local Phone Number | 8689-5678 |
City Area Code | 86-577 |
Contact Personnel Email Address | liangchangjuan@cnisun.com |
Entity Address, Postal Zip Code | 00000 |
Class A Common Stock | |
Document Information Line Items | |
Entity Common Stock, Shares Outstanding | 32,752,629 |
Class B Common Stock | |
Document Information Line Items | |
Entity Common Stock, Shares Outstanding | 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 91,447,620 | $ 22,135,310 |
Restricted cash | 179,421 | 62,947 |
Short-term investments | 40,666,617 | 4,680,843 |
Accounts receivable, net | 18,516,150 | 4,939,912 |
Advance to suppliers, net | 9,213,279 | |
Receivables from supply chain solutions | 59,792,613 | 10,741,981 |
Inventories | 3,979,653 | |
Prepaid expenses and other current assets | 4,002,675 | 971,839 |
Loans to third parties - current portion | 1,915,709 | |
Receivable from sale of discontinued operations | 14,950,730 | |
TOTAL CURRENT ASSETS | 227,798,028 | 60,399,271 |
NON-CURRENT ASSETS: | ||
Property and equipment, net | 464,156 | 655,643 |
Intangible assets, net | 2,850,853 | 3,726,602 |
Right-of-use assets, net | 479,473 | 1,464,745 |
Equity investments | 404,022 | 484,864 |
Investment in limited partnership and other investments | 16,207,152 | 15,736,927 |
Goodwill | 25,774,402 | 25,172,407 |
Deferred tax assets, net | 456,370 | |
TOTAL NON-CURRENT ASSETS | 46,180,058 | 47,697,558 |
TOTAL ASSETS | 273,978,086 | 108,096,829 |
CURRENT LIABILITIES: | ||
Accounts payable | 34,997,401 | 1,312,560 |
Short-term bank loans | 784,609 | |
Accrued expenses and other current liabilities | 3,575,836 | 2,001,031 |
Operating lease liabilities - current | 337,698 | 736,854 |
Payables to supply chain solutions | 25,922,931 | |
Advances from customer | 3,429,103 | 11,624 |
Taxes payable | 8,851,898 | 3,133,038 |
Loan from related party | 10,528,965 | 10,528,965 |
Due to related parties - current | 295,336 | 2,071,309 |
Purchase price payable for acquisition of NAMI | 7,007,905 | |
TOTAL CURRENT LIABILITIES | 88,723,777 | 26,803,286 |
Operating lease liabilities – non-current | 148,988 | 680,130 |
Deferred tax liabilities | 504,033 | 676,015 |
TOTAL LIABILITIES | 89,376,798 | 28,159,431 |
SHAREHOLDERS’ EQUITY: | ||
Class A common stock, $0.001 par value, 40,000,000 shares authorized, 39,812,629 and 20,555,129 shares issued and outstanding as of December 31, 2021 and 2020, respectively | 39,813 | 20,555 |
Class B common stock, $0.001 par value, 10,000,000 shares authorized, no shares issued and outstanding as of December 31, 2021 and 2020 | ||
Additional paid-in capital | 130,318,637 | 59,472,255 |
Retained earnings | 37,819,226 | 9,629,712 |
Statutory reserves | 6,942,111 | 4,751,264 |
Unearned compensation | (125,630) | (624,455) |
Accumulated other comprehensive income | 5,632,199 | 3,593,188 |
COMMON SHAREHOLDERS’ EQUITY | 180,626,356 | 76,842,519 |
Non-controlling interests | 3,974,932 | 3,094,879 |
TOTAL SHAREHOLDERS’ EQUITY | 184,601,288 | 79,937,398 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 273,978,086 | $ 108,096,829 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
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 | 39,812,629 | 20,555,129 |
Common stock, shares outstanding | 39,812,629 | 20,555,129 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue generated from services: | |||
Small and Medium Enterprise financing solutions | $ 87,133,963 | $ 40,779,794 | $ 2,522,143 |
Supply Chain financing solutions | 4,930,289 | 1,369,859 | |
Other financing solutions | 3,222 | 40,538 | 3,381 |
Total revenue generated from services | 92,067,474 | 42,190,191 | 2,525,524 |
Revenue generated from sales: | |||
Supply chain trading business | 68,132,237 | ||
Total revenues | 160,199,711 | 42,190,191 | 2,525,524 |
COST OF REVENUE: | |||
Cost of revenue - services | (37,989,001) | (19,740,267) | |
Cost of revenue - sales | (67,628,806) | ||
Business and sales related taxes | (533,760) | (233,389) | (19,492) |
GROSS PROFIT | 54,048,144 | 22,216,535 | 2,506,032 |
OPERATING EXPENSES: | |||
Selling expenses | 2,323,403 | 3,181,810 | 93,620 |
General and administrative expenses | 11,936,103 | 8,188,736 | 1,082,631 |
Research and development expenses | 1,599,728 | 817,770 | 155,216 |
Total operating expenses | 15,859,234 | 12,188,316 | 1,331,467 |
INCOME FROM OPERATIONS | 38,188,910 | 10,028,219 | 1,174,565 |
OTHER INCOME (EXPENSE): | |||
Interest and investment income | 2,122,903 | 585,177 | |
Other income (expense), net | 464,210 | 244,274 | 1,371 |
Total other income (expense), net | 2,587,113 | 829,451 | 1,371 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 40,776,023 | 10,857,670 | 1,175,936 |
PROVISION (BENEFIT) FOR INCOME TAXES | 10,269,501 | 941,064 | (55,731) |
NET INCOME FROM CONTINUING OPERATIONS | 30,506,522 | 9,916,606 | 1,231,667 |
DISCONTINUED OPERATIONS: | |||
(Loss) income from discontinued operations, net of tax | (23,107,066) | 1,508,323 | |
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 | |
NET INCOME (LOSS) | 30,506,522 | (13,054,410) | 2,739,990 |
Net income attributable to non-controlling interests | 126,161 | 37,380 | |
NET INCOME (LOSS) | 30,380,361 | (13,091,790) | 2,739,990 |
OTHER COMPREHENSIVE INCOME (LOSS) | |||
Foreign currency translation income (loss) | 2,039,011 | 5,507,420 | (561,091) |
COMPREHENSIVE INCOME (LOSS) | 32,419,372 | (7,584,370) | 2,178,899 |
Comprehensive loss attributable to non-controlling interests | (2,051) | (2,172) | |
COMPREHENSIVE INCOME (LOSS) | $ 32,421,423 | $ (7,582,198) | $ 2,178,899 |
BASIC AND DILUTED EARNINGS (LOSS) PER COMMON SHARE: | |||
Income from continuing operations (in Dollars per share) | $ 1.41 | $ 0.53 | $ 0.08 |
Income (loss) from discontinued operations (in Dollars per share) | (1.24) | 0.09 | |
TOTAL EARNINGS (LOSS) PER COMMON SHARE (in Dollars per share) | $ 1.41 | $ (0.71) | $ 0.17 |
Weighted average number of shares outstanding-basic and diluted (in Shares) | 21,506,828 | 18,587,674 | 16,269,577 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders’ Equity - USD ($) | Class ACommon Stock | Class BCommon Stock | Additional paid in capital | Unearned Compensation | Retained Earnings | Statutory reserves | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interests | Total |
Balance at Dec. 31, 2018 | $ 8,491 | $ 7,778 | $ 13,361,447 | $ 24,717,707 | $ 15,069 | $ (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 contributed 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 | ||||||||
Statutory reserves | (501,124) | 501,124 | |||||||
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 | 26,956,573 | 516,193 | (1,914,232) | (9,807) | 53,935,513 | ||
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 contributed 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 | |||||||
Statutory reserves | (4,235,071) | 4,235,071 | |||||||
Balance at Dec. 31, 2020 | $ 20,555 | 59,472,255 | (624,455) | 9,629,712 | 4,751,264 | 3,593,188 | 3,094,879 | 79,937,398 | |
Balance (in Shares) at Dec. 31, 2020 | 20,555,129 | ||||||||
Net income (loss) | 30,380,361 | 126,161 | 30,506,522 | ||||||
Foreign currency translation adjustment | 2,039,011 | 2,051 | 2,041,062 | ||||||
Capital contribution from non-controlling interest | 751,841 | 751,841 | |||||||
Statutory reserves | (2,190,847) | 2,190,847 | |||||||
Balance at Dec. 31, 2021 | $ 39,813 | 130,318,637 | (125,630) | 37,819,226 | 6,942,111 | 5,632,199 | $ 3,974,932 | 184,601,288 | |
Balance (in Shares) at Dec. 31, 2021 | 39,812,629 | ||||||||
Issuance of common shares and pre-funded warrants | $ 19,250 | 70,775,215 | 70,794,465 | ||||||
Issuance of common shares and pre-funded warrants (in Shares) | 19,250,000 | ||||||||
Shares issued for board compensation | $ 8 | $ 71,167 | 71,175 | ||||||
Shares issued for board compensation (in Shares) | 7,500 | ||||||||
Amortization of share-based compensation | $ 498,825 | $ 498,825 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $ 30,506,522 | $ (13,054,410) | $ 2,739,990 |
Net (loss) income from discontinued operations | (22,971,016) | 1,508,323 | |
Net income from continuing operations | 30,506,522 | 9,916,606 | 1,231,667 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 2,180,038 | 1,686,518 | 242,409 |
Stock-based compensation | 498,825 | 1,097,415 | |
Shares issued for compensation | 71,175 | ||
Provision for doubtful accounts | 294,536 | ||
Loss on disposition of property and equipment | 190,301 | 42,534 | |
(Income) from investments | (808,464) | (169,720) | |
Deferred tax expense (benefit) | 275,749 | (584,760) | (55,731) |
Changes in operating assets and liabilities: | |||
Accounts receivable | (13,294,924) | 573,418 | (815,534) |
Advance to suppliers | (9,213,279) | ||
Prepaid expenses and other current assets | (3,464,939) | 16,009 | (108,150) |
(Increase) in operating lease right-of-use assets | (56,831) | ||
Receivables from supply chain solutions | (48,202,128) | (10,741,981) | |
Inventories | (3,931,400) | ||
Accounts payable | 33,620,611 | 1,014,227 | |
Advance from customers | 3,375,769 | (17,977) | |
Taxes payable | 5,575,502 | 1,609,498 | 54,474 |
Other payables | 2,576,570 | (2,112,886) | |
Payable to supply chain solutions | 25,608,622 | ||
Operating lease liabilities | (952,495) | (523,797) | |
Accrued expenses and other current liabilities | (1,049,489) | 502,100 | 49,574 |
Net cash provided by operating activities from continuing operations | 23,857,102 | 2,250,373 | 598,709 |
Net cash provided by (used in) operating activities from discontinued operations | 436,389 | (263,476) | |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 23,857,102 | 2,686,762 | 335,233 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Acquisition of property and equipment | (186,705) | (204,904) | (237,548) |
Purchase of intangible asset | (18,281) | (94,400) | |
Proceeds from disposal of equipment | 41,688 | ||
Cash (paid) received in connection with Nami acquisition | (7,007,905) | 4,990,754 | 2,043,176 |
Investment in limited partnership and other investments | (15,589,966) | ||
Cash received on disposal of discontinued operations | 14,950,730 | ||
Proceeds from sale of short-term investments | 4,894,270 | ||
Purchase of short-term investments | (39,526,099) | (3,065,134) | |
Collection of loans to third parties | 1,643,203 | 11,019,545 | |
Loans to third parties | (1,810,495) | (3,611,682) | |
Net cash (used in) investing activities from continuing operations | (25,250,787) | (4,712,912) | (1,806,054) |
Net cash (used in) investing activities from discontinued operations | (6,713) | (157,440) | |
NET CASH (USED IN) INVESTING ACTIVITIES | (25,250,787) | (4,719,625) | (1,963,494) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from short-term bank loans | 784,609 | ||
Proceeds from issuance of common shares and pre-funded warrants | 70,794,465 | ||
Proceeds from private placement | 6,503,378 | ||
Repayment to related party | (1,803,374) | (6,803,115) | |
Advances from related parties | 1,303,556 | 566,360 | |
Loan from related parties | 10,528,965 | ||
Capital contribution from non-controlling interest | 751,841 | 3,065,134 | |
Capital contribution by shareholder | 4,550,000 | 3,582,781 | |
Net cash provided by financing activities from continuing operations | 70,527,541 | 19,147,918 | 4,149,141 |
Net cash (used in) financing activities from discontinued operations | (788,599) | (996,355) | |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 70,527,541 | 18,359,319 | 3,152,786 |
EFFECT OF EXCHANGE RATE CHANGE ON CASH AND CASH EQUIVALENTS | 294,928 | 2,806,981 | (184,449) |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 69,428,784 | 19,133,437 | 1,340,076 |
Less: (decrease) in cash and cash equivalents from discontinued operations | (283,314) | (1,440,823) | |
NET INCREASE IN CASH AND CASH EQUIVALENTS FROM CONTINUING OPERATIONS | 69,428,784 | 19,416,751 | 2,780,899 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CAS FROM CONTINUING OPERATIONS-BEGINNING | 22,198,257 | 2,781,506 | 607 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CAS FROM CONTINUING OPERATIONS-ENDING | 91,627,041 | 22,198,257 | 2,781,506 |
SUPPLEMENTAL CASH FLOW DISCLOSURES: | |||
Cash paid for income taxes | 5,546,082 | 552,783 | 5,158 |
Cash paid for interest | 370,356 | 124,778 | 147,900 |
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 | 71,175 | 1,721,870 | |
CASH AND CASH EQUIVALENTS FROM CONTINUING OPERATIONS ARE COMPRISED OF THE FOLLOWING: | |||
Cash and cash equivalents | 91,447,620 | 22,135,310 | 2,756,490 |
Restricted cash | 179,421 | 62,947 | 25,016 |
Total cash, cash equivalents and restricted cash | $ 91,627,041 | $ 22,198,257 | $ 2,781,506 |
Organization and Business Descr
Organization and Business Description | 12 Months Ended |
Dec. 31, 2021 | |
Organization and Business Description [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 and supply chain solutions 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 Company began to conduct its financial services business in 2019 through the Group’s subsidiaries and VIEs, Fintech (Shanghai) Digital Technology Co., Ltd. (“Fintech”), Beijing Hengtai Puhui Information services Co., Ltd. (“Hengtai”), Nami Shanghai Financial Consulting Co., Ltd (“Nami Shanghai”) and their subsidiaries. The Company provides a set of technology-driven customized financing solutions to small-and mid-size enterprises (“SME’s”) through Hengpu, Fintech, Nami and their subsidiaries. Hengpu and Fintech provide comprehensive financing solutions for SMEs, while Nami facilitates the matching of investors and SMEs. The Company commenced a technology-driven integrated supply chain solution through Fintech and its subsidiaries in January 2020 by involving the sales transactions. The Group commenced a technology-driven integrated supply chain solution through Fintech and its subsidiaries in January 2020 by involving the sales transactions. The Company launched supply chain trading business in July 2021 after generating high-quality customer and resources through its supply chain solution business. On November 30, 2020, the Company completed the previously announced disposition of its valve manufacturing and installation business. The Company sold all equity interests in its subsidiary, Hong Kong Xibolun Technology Co., Ltd. (“Hebron HK”), pursuant to the terms of an agreement (the “Equity Transfer Agreement”), dated November 30, 2020, to Wise Metro Development Co., Ltd. for approximately $13.9 million (RMB98.3 million), to be paid in cash. Through the Hebron HK Equity Transfer, the Company 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 operation (“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. After the Spring of 2020, the COVID outbreak in China has gradually been controlled and we returned to normal operations. The COVID-19 pandemic did not have a material negative impact on the Company’s financial services and supply chain solution business for the year ended December 31, 2021. In March 2022, due to the spread of new variants and subvariants of COVID-19, which may spread faster than the original COVID-19 variant in Shanghai and some other cities in China, some local government in China has imposed strict movement restrictions. In the mid-March 2022, the Shanghai authorities issued strict lock-downs and shut-down orders in response to the pandemic. As a result, the employees of the PRC operating entities located in Shanghai started to work from home. As the employees are equipped and prepared for the remote work situations, and the PRC operating entities are able to continue to provide services with the customers remotely with minimum interruption. The management of the PRC operating entities do not believe the lock-down restrictions in Shanghai will have a materially negative impact to the business, operations, and financial results. However, the pandemic could adversely affect our business and financial results in 2022 if the virus’s resurgence causes significant disruptions to our operations or the business of our supply chain customers, logistics and service providers, and has a negative impact to the pricing of our products. We cannot predict the severity and duration of the impact from such resurgence, if any. Any of these factors and other factors beyond our control could have an adverse effect on the overall business environment, cause uncertainties in the regions where we conduct business, and could materially and adversely impact our business, financial condition, and results of operations. As of December 31, 2021, the Company’s subsidiaries and consolidated VIEs are as follows: Date of Place of Percentage 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 % NiSun Ocean (Qingdao) Supply Chain Investment Co., Ltd.(“Nisun Ocean”) July 30, 2021 PRC 100 % Zhumadian NiSun Supply Chain Management Co., Ltd.(“Nisun ZMD”) December 29, 2021 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 100 % Jilin Province Lingang Hengda Supply Chain Management Co., Ltd. (“Lingang Hengda”) August 18, 2020 PRC 100 % Fintech Supply Chain Management (Ningbo) Co., Ltd. (“Fintech Ningbo”) January 25, 2021 PRC 100 % Inner Mongolia Fintech Supply Chain Management Co., Ltd. (“Fintech Mongolia”) January 15, 2021 PRC 70 % Jiangxi Fintech Supply Chain Management Co., Ltd. (“Fintech Jiangxi”) May 10, 2021 PRC 100 % Fintech Supply Chain Management (Shanxi) Co., Ltd. (“Fintech SX”) May 6, 2021 PRC 100 % Liaogang NiSun (Yingkou) Supply Chain Management Co., Ltd.(“Liaogang Yingkou”) September 03, 2018 PRC 51 % Liaogang NiSun (Shanghai) Supply Chain Management Co., Ltd.(“Liaogang SH”) September 30, 2021 PRC 51 % Fintech (Zibo) Supply Chain Management Co., Ltd. (“Fintech Zibo”) October 26,2021 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, 2021, 2020 and 2019. ** The entity was deregistered on June 04, 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, 2021, 2020 and 2019. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Organization and Business Description [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. The Pledges were registered with the competent branch of the State Administration for Industry and Commerce. 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 $ 159,234,732 $ 43,832,012 Total assets $ 160,885,760 $ 47,223,358 Total current liabilities $ 90,440,038 $ 11,146,286 Total liabilities $ 90,589,026 $ 11,826,417 For the year ended December 31, For the year ended Revenue generated from service $ 92,067,474 $ 42,190,191 Revenue generated from sales 68,132,237 - Total revenue $ 160,199,711 $ 42,190,191 Net income $ 33,612,404 $ 11,583,787 For the year ended December 31, For the year ended Net cash provided by operating activities $ 525,753 $ 2,560,400 Net cash provided by (used in) investing activities $ 569,301 $ (13,321,524 ) Net cash (used in) provided by financing activities $ (919,642 ) $ 4,051,162 As of December 31, 2021, 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 17 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 statements of operations and other comprehensive income (loss) are attributed to controlling and non-controlling interests. As of December 31, 2021, non-controlling interest primarily relates to the 20% equity interest in Taiding and 49% equity interest in 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 follows FASB ASC Topic 606 Revenue from Contracts with Customers (“ASC 606”). Under ASC 606, revenue is recognized when control of promised goods or services is transferred to the Company’s customers in an amount of consideration to which an entity expects to be entitled to in exchange for those goods or services. All of the Company’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. Net Financial services SMEs financing solutions: 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 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 on the PRC provincial or national asset exchanges or other designated markets. Revenue is calculated at a fixed charge rate with the amount of the offering (prorated by the period length). The Group believes such arrangement represents a performance obligation that is satisfied at a point in time, therefore, the underwriting related advisory fees are recognized as revenue upon the closing of the offerings. Recurring service fees: Supply chain solutions: Disaggregation of revenue from financial service 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 year ended December 31, 2021, 2020 and 2019: For the year ended 2021 2020 2019 One-time commission fees $ 90,853,014 $ 42,082,585 $ 2,525,524 Recurring service fees 1,214,460 107,606 - Total $ 92,067,474 $ 42,190,191 $ 2,525,524 Net Product Sales Revenues In accordance with ASC 606, the Group evaluates whether it is appropriate to record the gross amount of product sales and related costs or the net amount earned as commissions. When the Group is a principal, that the Group obtains control of the specified goods or services before they are transferred to the customers, the revenues should be recognized in the gross amount of consideration to which it expects to be entitled in exchange for the specified goods or services transferred. When the Group is an agent and its obligation is to facilitate third parties in fulfilling their performance obligation for specified goods or services, the revenues should be recognized in the net amount for the amount of commission which the Group earns in exchange for arranging for the specified goods or services to be provided by other parties. Revenues are recorded net of value-added taxes. For the year ended December 31, 2021, the Group commenced a supply chain trading business, which involves acquiring products, primarily agriculture and chemical products, from suppliers at customers’ requests in most cases and selling them directly to customers. Sales contracts are entered into with each individual customer. The Group recognizes the product sales revenues from the supply chain trading business on a gross basis as the Group is acting as a principal in these transactions as the Group (i) is responsible for fulfilling the promise to provide the specified goods, (ii) is responsible for inventory risks and (iii) has discretion in establishing price. Revenues are recorded net of value-added taxes, or VAT. Revenue from the sales of goods is recognized when the products are delivered and title passes to customers. Practical expedience 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 equivalents 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 $179,421 and $62,947 at December 31, 2021 and December 31, 2020, 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 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. Credit losses In 2016, the FASB issued ASC Topic 326, which amends previously issued guidance regarding the impairment of financial instruments by creating an impairment model that is based on expected losses. The guidance is applicable to accounts receivable and the Group adopted ASC Topic 326 on January 1, 2020. Accounts receivable are recorded at the original amounts less an allowance for any potential uncollectible amounts. The Group makes estimates of expected credit and collectability trends for the allowance for credit losses based upon assessment of various factors, including historical experience, the age of the accounts receivable balances, credit-worthiness of the customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect its ability to collect from the customers. The Group also provides specific provisions for allowance when facts and circumstances indicate that the receivable is unlikely to be collected. Expected credit losses for accounts receivable are recorded as general and administrative expenses on the consolidated statements of comprehensive income. The initial impact of applying ASC Topic 326 on the consolidated financial statements is immaterial to the Group’s retained earnings as of January 1, 2020. 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 sheet for cash, accounts receivable, receivables from supplier chain financing, bank acceptance notes receivable, prepayments and advances to suppliers, loans to third parties, accounts payable, bank acceptance notes payable, advances from customers, payables to supply chain financing, taxes payable, due to related party 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 short-term loans approximate fair value based on the terms of the borrowings and current market rates as the rates of the borrowings are reflective of the current market rate. 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, 2021 and 2020. Fair value measurements on a recurring basis As of December 31, 2021, the financial instruments measured at fair value on a recurring basis are as follows: Fair value Fair value measurement at reporting date Description 2021 (Level 1) (Level 2) (Level 3) Short-term investments: Wealth management products and structure deposits $ 40,666,617 $ - $ 40,666,617 - 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 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. Inventories Inventories are stated at the lower of cost and net realizable value. Cost of inventories is determined using the weighted average cost method. Adjustments to reduce the cost of inventories to its net realizable value for slow-moving merchandise and damaged goods are recorded in cost of goods sold. The Group considers factors such as historical and forecasted consumer demand when estimating the net realizable value. The Group takes ownership and risks of the products purchased. Investment in limited partnership and other investments The Group’s has an investment in a limited partnership that invests in debt securities, which has a stated maturity within five years and pays a prospective fixed rate of return. The Group classifies the investment in this limited partnership as held-to-maturity because it has both the positive intent and ability to hold it until maturity. This investment is recorded at amortized cost and is classified as long-term based on its contractual maturity. 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 reported in other comprehensive income. Stock-based compensation The Company 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 Company’s current and expected dividend policy. 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. Equity investments without readily determinable fair values 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 investments 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, 2021 and 2020 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 years ended December 31, 2021, 2020 and 2019, the Group did not receive any dividends from this investment. For the years ended December 31, 2021, 2020 and 2019, the Group recognized its share of loss in Jinda of $41,379, $46,659, and nil Property and equipment, net Property and equipment are recorded at cost. Depreciation and amortization is provided in amounts sufficient to recognize 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 are capitalized. Intangible assets, net Intangible assets acquired are rec |
Short-Term Investments
Short-Term Investments | 12 Months Ended |
Dec. 31, 2021 | |
Short-Term Investments [Abstract] | |
SHORT-TERM INVESTMENTS | Note 3 — SHORT-TERM INVESTMENTS The following table summarizes the Company’s short-term investments as of December 31, 2021 and 2020: December 31, December 31, Wealth management products, cost $ 10,034,523 $ 4,597,701 Structured deposits 29,815,146 - Add: Accrued interest receivable 816,948 83,142 Total short-term investments $ 40,666,617 $ 4,680,843 As of December 31, 2021, short-term investments consist of investments in wealth management products issued by financial institutions of which the underlying assets are loans receivable or capital lease receivables and investments in structured deposits issued by a commercial bank. As of December 31, 2020, the short-term investment primarily consists of investments in wealth management products issued by financial institutions of which the underlying assets are loans receivable or capital lease receivables. All the short investments have a stated maturity within 12 months and pay the prospective rates of return in the range from 1.8% to 9%. The Company recorded investment income on the products of $816,948, $83,142 and nil |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2021 | |
Credit Loss, Additional Improvements [Abstract] | |
ACCOUNTS RECEIVABLE, NET | Note 4 — ACCOUNTS RECEIVABLE, NET The accounts receivable consists of the following: December 31, December 31, Account receivable from services $ 11,592,952 $ 5,018,839 Account receivable from sales 7,004,013 - Total 18,596,965 5,018,839 Less: allowance for doubtful accounts (80,815 ) (78,927 ) Accounts receivable, net $ 18,516,150 $ 4,939,912 |
Receivables from Supply Chain S
Receivables from Supply Chain Solutions | 12 Months Ended |
Dec. 31, 2021 | |
Receivable Related To Supply Chain Business [Abstract] | |
RECEIVABLES FROM SUPPLY CHAIN SOLUTIONS | Note 5 — RECEIVABLES FROM SUPPLY CHAIN SOLUTIONS As of December 31, 2021, and 2020, the balance of receivables from supply chain solutions amounted to $59,792,613 and $10,741,981, respectively. 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, 2021 and 2020. As of the date of this report, the Group has collected approximately 44.3 million of this receivable. |
Loans to Third Parties
Loans to Third Parties | 12 Months Ended |
Dec. 31, 2021 | |
Loans To Third Parties [Abstract] | |
LOANS TO THIRD PARTIES | Note 6 — LOANS TO THIRD PARTIES Loans to third parties consist of the following: December 31, December 31, Sichuan Jingpin Construction Decoration Engineering Co., Ltd (1) $ 298,151 $ 306,514 Henan Tianxia Kang Trading Co., Ltd (2) - 1,609,195 Total loan to third parties 298,151 1,915,709 Less: allowance for doubtful account 298,151 - Loan to third parties, net $ - $ 1,915,709 (1) The Group made a loan to Sichuan Jingpin Construction Decoration Engineering Co., Ltd (“Jingpin”) on February 10, 2020. The loan was to earn interest of 18% and its principal and interest were due on February 10, 2021. Jingpin repaid $15,502 (RMB 100,000). The Company recorded a $298,151 allowance for the outstanding balance as of December 31, 2021 due to that management estimated collection of amounts due are at risk. (2) The Group made a loan to Henan Tianxia Kang Trading Co., Ltd (“Tianxia Kang”) on December 28, 2020. The loan was interest free due to the short term and due on January 28, 2021. The loan was repaid on January 13, 2021. On January13, 2021, the Group provided a new interest-free loan of $1,627,352 (or RMB 10.5 million) to Tianxia Kang due on July 13, 2021, which was repaid on July 9, 2021. The Group classifies loans to third parties as held-to-maturity investments, because the loans have a stated maturity. 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 maturities. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment, Net [Abstract] | |
PROPERTY AND EQUIPMENT, NET | Note 7 — PROPERTY AND EQUIPMENT, NET Property and equipment, net, consists of the following: December 31, December 31, Transportation equipment $ 663,424 $ 505,423 Office equipment 85,565 258,420 Electronic equipment 84,126 375,991 Leasehold improvements 417,092 388,792 Subtotal 1,250,207 1,528,626 Less: accumulated depreciation and amortization (786,051 ) (872,983 ) Property, plant and equipment, net $ 464,156 $ 665,643 Depreciation expense was $200,655, $211,796 and $15,551 for the years ended December 31, 2021, 2020 and 2019, respectively. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | Note 8 — INTANGIBLE ASSETS, NET The following is a summary of intangible assets as of December 31, 2021 and 2020: December 31, 2021 December 31, Software $ 508,961 $ 479,000 Technology 4,660,578 4,551,724 Total intangible assets 5,169,539 5,030,724 Less: accumulated amortization (2,318,686 ) (1,304,122 ) Intangible assets, net $ 2,850,853 $ 3,726,602 Amortization expense was $ 971,453, $945,744 and $266,858 for the years ended December 31, 2021, 2020 and 2019, respectively. |
Investment in Limited Partnersh
Investment in Limited Partnership and Other Investments | 12 Months Ended |
Dec. 31, 2021 | |
Investment In Debt Security [Abstract] | |
INVESTMENT IN LIMITED PARTNERSHIP AND OTHER INVESTMENTS | Note 9 — INVESTMENT IN LIMITED PARTNERSHIP AND OTHER INVESTMENTS During the year end December 31, 2020, the Group invested, as a limited partner, $15,962,799 (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 debt contractual maturities. As of December 31, 2021, the carrying value of this investment was $16,207,152, consisting of the principal balance of $15,962,799 and interest receivable of $244,353. As of December 31, 2020, the carrying value of this investment was $15,736,927, consisting of the principal balance of $15,589,966 (or RMB101,724,531) and interest receivable of $146,961. For the year ended December 31, 2021 and 2020, the Group recognized interest income from investment $892,308 and $146,961, respectively. For the years ended December 31, 2021 and 2020, the Group received cash distributions of $799,569 and nil |
Short Term Bank Loans
Short Term Bank Loans | 12 Months Ended |
Dec. 31, 2021 | |
Short Term Bank Loans [Member] | |
SHORT TERM BANK LOANS | Note 10 — SHORT TERM BANK LOANS Short-term bank loans consisted of the following loans: Lender December 31, Term Effective China Everbright Bank $ 470,765 March 30, 2021 to March 29, 2022 4.35 % Zhejiang Tailing Bank 313,844 February 08, 2021 to February 08, 2022 5.88 % Total 784,609 Less: current portion 784,609 Long term portion $ - All principal of the above loans as of December 31, 2021 are due upon maturity and interest payments are due on a quarterly or monthly basis. The Group repaid $313,844 to Zhejiang Tailong Bank on February 08, 2022, and $470,765 to China Everbright Bank on March 25, 2022 Interest expense for these loans was $ 31,355, nil nil |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [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 are principally for 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 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, 2021, the weighted average remaining lease term was 1.21 years and the weighted average discount rate was 4.65% 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, 2021, the lease cost amounted to $680,033. 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, 2021: Year ended December 31, Amount 2022 $ 343,408 2023 158,177 2024 - 2025 - 2026 - thereafter - Total undiscounted future minimum lease payments 501,585 Less: Amounts representing interest 14,899 Total present value of operating lease liabilities 486,686 Less: current portion of operating lease liabilities 337,698 Non-current portion of operating lease liabilities $ 148,988 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | Note 12 — INCOME TAXES Taxes payable consisted of the following: December 31, December 31, Income tax payable $ 6,654,091 $ 2,045,559 Value added tax payable 1,971,625 889,257 Business tax payable 139,137 43,704 Withholding taxes payable 2,720 112,113 Other taxes payable 84,325 42,405 Total taxes payable $ 8,851,898 $ 3,133,038 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 the companies registered in Hong Kong and subject to a corporate income tax rate of 16.5% if revenue is generated in Hong Kong. No revenue was generated in Hong Kong for the years ended December 31, 2021 and 2020. 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, 2020, Fintech qualified as a High-technology Company and is subject to a favorable income tax rate of 15%. Fintech’s High-technology certificate is valid for three years starting from November 2020 and subject to renewal. 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 entity shall be exempt from the enterprise income tax 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 tax is eligible to be exempt for five years starting from the year ended December 31, 2019. For the year ended December 31, 2021, Jilin Lingang, Jilin Lingang Hengda, Liaogang SH, Fintech Zibo, Fintech Mongolia, Fintech Shanxi, Fintech SX, Fintech Ningbo, Fintech Shandong, Nisun Gold, and Fintech Jiangxi are subject to a favorable income tax rate of 2.5% due to being small-scale taxpayers. The remaining Group’s subsidiaries, VIEs and VIEs’ subsidiaries from the financial services business are subject to corporate income tax at the PRC unified rate of 25%. 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 $ 9,996,987 $ 1,525,824 $ - Deferred tax provision (benefit) 272,514 (584,760 ) (55,731 ) Total $ 10,269,501 $ 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: December 31, December 31, Deferred tax assets Provision for doubtful accounts $ 624,905 $ 368,165 Operating loss carryforwards - 456,370 Total deferred tax assets 624,905 824,535 Less: valuation allowance (624,905 ) (368,165 ) Net deferred tax assets $ - $ 456,370 The change in valuation allowance for the years ended December 31, 2021, and 2020 amounted to $ 256,740, and $973,712, respectively. December 31, December 31, Deferred tax liabilities Intangible assets acquired from business combinations $ 504,033 $ 676,015 Total deferred tax liabilities $ 504,033 $ 676,015 As the PRC does not allow the filing of consolidated tax returns, the deferred taxes relate to separate entities that file their own tax returns and therefore could not be offset with each other. The following table reconciles the China statutory rates to the Group’s effective tax rate for the years ended, 2021, 2020 and 2019: For the year ended For the year ended For the year ended China Income tax statutory rate 25.0 % 25.0 % 25.0 % Effect of favorable income tax rates (8.3 )% (23.8 )% (25.0 )% Effect of temporary differences 0.6 % 1.2 % (4.7 )% Effect of non-deductible expenses 7.7 % 10.1 % - Effect of previous year net operating loss - (3.8 )% - Effective tax rate for the continuing operation 25.0 % 8.7 % (4.7 )% The Group continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings. As of December 31, 2021, the tax years ended December 31, 2019 through December 31, 2021 for the Group’s PRC subsidiaries, VIEs and the subsidiaries of VIEs remain open for statutory examination by PRC tax authorities. The per share effect of favorable income tax rates for the years ended December 31, 2021, and 2020 were $0.16, and $ 0.14, respectively. |
Concentration of Major Customer
Concentration of Major Customers | 12 Months Ended |
Dec. 31, 2021 | |
Major Customers And Suppliers [Abstract] | |
CONCENTRATION OF MAJOR CUSTOMERS | Note 13 — CONCENTRATION OF MAJOR CUSTOMERS Substantially all of the Group’s revenue from financial services and the supply chain trading business 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, 2021, two customer accounts for 37% and 15% of the Group’s total revenue from the financial services business and two customers accounted for 71% and 10% of the Group’s total revenue from its supply chain trading business. For the year ended December 31, 2020, three customers accounting for 31%, 21% and 12% of the Group’s total revenue. As of December 31, 2021, two customers accounted for approximately 31% and 29% of the Group’s total accounts receivable balance. As of December 31, 2020, three customers accounted for approximately 45%, 20% and 17%, of the Group’s total accounts receivable balance. |
Shareholders_ Equity
Shareholders’ Equity | 12 Months Ended |
Dec. 31, 2021 | |
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 39,812,629 and 20,555,129 Class A common shares were issued and outstanding as of December 31, 2021 and December 31, 2020, respectively. No class B common shares are outstanding as of December 31, 2021 and 2020. On June 14, 2019, the Shareholders of the Company approved a share transfer transaction with 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. The Class A 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. 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 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 the employees, directors, officers and consultants to purchase the Company’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 initially granted an aggregate of 300,000 restricted Class A common shares to the Group’s CFO and two officers of which subsequently 67,000 shares were 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 common shares of restricted stock vested 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, 2021, and 2020, the Group recognized share-based compensation of $498,825 and $1,097,415, respectively. As of December 31, 2021, the Group had unrecognized share-based compensation of $125,630 which is expected to be recognized in the quarter ending March 31, 2022. On September 24, 2021, the Board initially granted an aggregate of 7,500 Class A common shares to three non-employee directors. The fair value of these Class A common shares was $71,175, determined using the closing price of $9.49 on September 24, 2021. On September 4, 2020, the Company entered into certain engagement letter with three employee directors. Pursuant to the agreement, each of the Directors will have served the Company for a full year and on September 4, 2021, the anniversary date of their appointment as a director, and be entitled to receive such agreed-upon compensation pursuant to their respective Engagement Letters. Public and registered direct offerings On December 13, 2021, the Company completed an underwritten public offering of approximately $77 million, before deducting underwriting discounts, commissions and other offering expenses. The offering consisted of ((i) 12,190,000 shares of Class A common shares and (the “December 2021 Common shares”) (ii) pre-funded warrants to purchase 7,060,000 Class A Common Shares (the “Pre-Funded Warrants”). Each Pre-funded Warrants entitles the holder to purchase one Class A Common Share at an exercise price of $0.001 per share until the Pre-funded Warrants are exercised in full, subject to adjustment as provided in the Prefunded Warrant. The Pre-Funded Warrants are exercisable at any time after the date of issuance upon payment of the exercise price. Management determined that the Pre-Funded Warrants meet the requirements for equity classification under ASC 815-40 because they are indexed to its own stock. The warrants were recorded at their fair value on the date of issuance as a component of shareholders’ equity. In addition, since these warrants are exercisable for a nominal amount, they have been shown as exercised when issued and as outstanding common stock in the accompanying financial statements and earnings per share calculations. As of December 31, 2021, none of 7,060,000 Pre-Funded Warrants have been exercised. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
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 Nisun International Enterprise Management Group Co., Ltd (“Nisun Cayman”) A shareholder who owns 23.75% 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 $136,532, $127,565 and $63,749 of rent expense for the years ended December 31, 2021, 2020 and 2019, respectively. (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 owning to Mr. Bodang Liu. The Group repaid Mr. Liu during the year ended December 31, 2021. For the year ended December 31, 2020, the Group paid approximately $6.5 million (RMB 45.9 million) 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, 2021, the Group had a due from related party balance of $10,662 from Nisun Shanghai, an affiliated entity controlled by our controlling shareholder. As of December 31, 2020, the Group had a due to related party balance of $1,379,310 to Nisun Shanghai. The due to related party balance was non-interest bearing and was repaid on March 09, 2021 and February 26, 2021 As of December 31, 2021 and 2020, the Group had a due to related party balance of $295,336 and $298,851, 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. 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. The receivable from the sale of the discontinued operations was fully collected in April 2021. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
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 as of December 31, 2021. 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. On September 22, 2021, the Court dismissed the Class Action in its entirety, and the case was closed. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | Note 17 — SUBSEQUENT EVENTS Authorization of Common Shares On January 13, 2022, the Company adopted the Amended and Restated Memorandum and Articles of Association of the Company to increase the authorized number of Class A common shares, par value of $0.001 each. On February 2, 2022, the Company filed the Amended M&A with the British Virgin Islands Registrar of Corporate Affairs. Pursuant to the Amended M&A, the Company is authorized to issue a maximum of 310,000,000 Common Shares divided into (i) 300,000,000 Class A Common Shares, and (ii) 10,000,000 Class B Common Shares of par value of $0.001 each. Acquisition of Youjiatian On January 14, 2022, the Group entered into a share acquisition agreement with Henan Youjiatian Agricultural Technology Co., Ltd (“Youjiatian”) and its sole shareholder to acquire a 51% equity interest in Youjiatian for cash consideration of RMB 0.51 million (approximately $80,280) and closed the acquisition on January 31, 2022 (the “closing date”). Upon completion of the acquisition, Youjiatian became a subsidiary of Fintech Henan, a subsidiary of a VIE of the Group. Youjiatian is an agricultural supply chain management company based in the PRC. The Group expects to achieve significant synergies from such acquisition which it plans will complement its supply chain financing business. |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Dec. 31, 2021 | |
Restricted Net Assets [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 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. Therefore, 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, 2021 and 2020 the statutory reserve balance for the Group's entities established in the PRC was $6,942,111 and $2,190,847, respectively. |
Condensed Financial Information
Condensed Financial Information of the Parent Company | 12 Months Ended |
Dec. 31, 2021 | |
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 $64.6 million, or 35.0% of the Group’s total consolidated net assets, as of December 31, 2021. 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, 2021 and 2020. ADDITIONAL FINANCIAL INFORMATION OF PARENT COMPANY a) Condensed parent company balance sheets: December 31, December 31, Assets: Cash and cash equivalents $ 68,296,949 $ 2,426 Due from intercompany and others 7,582,199 14,951,086 TOTAL CURRENT ASSETS 75,879,148 14,953,512 Other non-current asset - - Investment in subsidiaries, VIE, and VIEs’ subsidiaries 115,680,581 80,260,786 TOTAL ASSETS $ 191,559,729 $ 95,214,298 LIABILITIES CURRENT LIABILITIES Accrued expenses and other liabilities $ 10,933,373 $ 18,371,779 TOTAL CURRENT LIABILITIES 10,933,373 18,371,779 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. 39,813 20,555 Class B common stock, $0.001 par value, 10,000,000 shares authorized, no shares issued and - - Additional paid-in capital 130,318,637 59,472,255 Unearned compensation (125,630 ) (624,455 ) Retained earnings 37,819,226 9,629,712 Statutory reserve 6,942,111 4,751,264 Accumulated other comprehensive income 5,632,199 3,593,188 Total shareholders’ equity 180,626,356 76,842,519 Total liabilities and shareholders’ equity $ 191,559,729 $ 95,214,298 b) Condensed statements of comprehensive income (loss) For the year ended December 31, 2021 2020 2019 Selling and marketing $ - $ $ (15,005 ) Administrative (3,071,681 ) (1,098,668 ) (408,656 ) Other income (expense) - (820 ) Share of profit (loss) in subsidiaries, VIEs and VIEs’ subsidiaries 33,452,042 (11,993,122 ) 3,164,471 Net income (loss) 30,380,361 (13,091,790 ) 2,739,990 Other comprehensive income Foreign currency translation adjustment 2,039,011 5,507,420 (561,091 ) Comprehensive income (loss) 32,419,372 (7,584,370 ) 2,178,899 Comprehensive loss attributable to non-controlling interests (2,051 ) (2,172 ) - Comprehensive (loss) income attributable to shareholders $ 32,421,423 $ (7,582,198 ) $ 2,178,899 c) Condensed statement of cash flows For the year ended December 31, 2021 2020 2019 Cash flows from operating activities: Net income (loss) $ 30,380,361 $ (13,091,790 ) $ 2,739,990 Adjustments to reconcile net income (loss) to net cash used in operating activities Share of profit (loss) in subsidiaries, VIEs and VIEs’ subsidiaries (33,449,939 ) 11,991,588 (3,164,471 ) Shares-based compensation 570,000 1,097,415 - Due from intercompany and others (364 ) - (38,561 ) Accrued expenses and other current liabilities - - 467,648 Net cash (used in) provided by operating activities (2,499,942 ) (2,787 ) 4,606 Cash flows from financing activities: Proceeds from issuance of shares and warrants 70,794,465 - - Net cash provided by financing activities 70,794,465 - - Net increase (decrease) in cash and cash equivalents 68,294,523 (2,787 ) 4,606 Cash and cash equivalents at beginning of the year 2,426 5,213 607 Cash and cash equivalents at end of the year $ 68,296,949 $ 2,426 $ 5,213 ADDITIONAL FINANCIAL INFORMATION OF PARENT COMPANY 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, 2021 | |
Organization and Business Description [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. The Pledges were registered with the competent branch of the State Administration for Industry and Commerce. 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 $ 159,234,732 $ 43,832,012 Total assets $ 160,885,760 $ 47,223,358 Total current liabilities $ 90,440,038 $ 11,146,286 Total liabilities $ 90,589,026 $ 11,826,417 For the year ended December 31, For the year ended Revenue generated from service $ 92,067,474 $ 42,190,191 Revenue generated from sales 68,132,237 - Total revenue $ 160,199,711 $ 42,190,191 Net income $ 33,612,404 $ 11,583,787 For the year ended December 31, For the year ended Net cash provided by operating activities $ 525,753 $ 2,560,400 Net cash provided by (used in) investing activities $ 569,301 $ (13,321,524 ) Net cash (used in) provided by financing activities $ (919,642 ) $ 4,051,162 As of December 31, 2021, 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 17 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 statements of operations and other comprehensive income (loss) are attributed to controlling and non-controlling interests. As of December 31, 2021, non-controlling interest primarily relates to the 20% equity interest in Taiding and 49% equity interest in |
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 follows FASB ASC Topic 606 Revenue from Contracts with Customers (“ASC 606”). Under ASC 606, revenue is recognized when control of promised goods or services is transferred to the Company’s customers in an amount of consideration to which an entity expects to be entitled to in exchange for those goods or services. All of the Company’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. Net Financial services SMEs financing solutions: 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 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 on the PRC provincial or national asset exchanges or other designated markets. Revenue is calculated at a fixed charge rate with the amount of the offering (prorated by the period length). The Group believes such arrangement represents a performance obligation that is satisfied at a point in time, therefore, the underwriting related advisory fees are recognized as revenue upon the closing of the offerings. Recurring service fees: Supply chain solutions: |
Disaggregation of revenue from financial service | Disaggregation of revenue from financial service 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 year ended December 31, 2021, 2020 and 2019: For the year ended 2021 2020 2019 One-time commission fees $ 90,853,014 $ 42,082,585 $ 2,525,524 Recurring service fees 1,214,460 107,606 - Total $ 92,067,474 $ 42,190,191 $ 2,525,524 Net Product Sales Revenues In accordance with ASC 606, the Group evaluates whether it is appropriate to record the gross amount of product sales and related costs or the net amount earned as commissions. When the Group is a principal, that the Group obtains control of the specified goods or services before they are transferred to the customers, the revenues should be recognized in the gross amount of consideration to which it expects to be entitled in exchange for the specified goods or services transferred. When the Group is an agent and its obligation is to facilitate third parties in fulfilling their performance obligation for specified goods or services, the revenues should be recognized in the net amount for the amount of commission which the Group earns in exchange for arranging for the specified goods or services to be provided by other parties. Revenues are recorded net of value-added taxes. For the year ended December 31, 2021, the Group commenced a supply chain trading business, which involves acquiring products, primarily agriculture and chemical products, from suppliers at customers’ requests in most cases and selling them directly to customers. Sales contracts are entered into with each individual customer. The Group recognizes the product sales revenues from the supply chain trading business on a gross basis as the Group is acting as a principal in these transactions as the Group (i) is responsible for fulfilling the promise to provide the specified goods, (ii) is responsible for inventory risks and (iii) has discretion in establishing price. Revenues are recorded net of value-added taxes, or VAT. Revenue from the sales of goods is recognized when the products are delivered and title passes to customers. |
Practical expedience | Practical expedience 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 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 $179,421 and $62,947 at December 31, 2021 and December 31, 2020, 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 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. |
Credit losses | Credit losses In 2016, the FASB issued ASC Topic 326, which amends previously issued guidance regarding the impairment of financial instruments by creating an impairment model that is based on expected losses. The guidance is applicable to accounts receivable and the Group adopted ASC Topic 326 on January 1, 2020. Accounts receivable are recorded at the original amounts less an allowance for any potential uncollectible amounts. The Group makes estimates of expected credit and collectability trends for the allowance for credit losses based upon assessment of various factors, including historical experience, the age of the accounts receivable balances, credit-worthiness of the customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect its ability to collect from the customers. The Group also provides specific provisions for allowance when facts and circumstances indicate that the receivable is unlikely to be collected. Expected credit losses for accounts receivable are recorded as general and administrative expenses on the consolidated statements of comprehensive income. The initial impact of applying ASC Topic 326 on the consolidated financial statements is immaterial to the Group’s retained earnings as of January 1, 2020. |
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 sheet for cash, accounts receivable, receivables from supplier chain financing, bank acceptance notes receivable, prepayments and advances to suppliers, loans to third parties, accounts payable, bank acceptance notes payable, advances from customers, payables to supply chain financing, taxes payable, due to related party 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 short-term loans approximate fair value based on the terms of the borrowings and current market rates as the rates of the borrowings are reflective of the current market rate. 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, 2021 and 2020. Fair value measurements on a recurring basis As of December 31, 2021, the financial instruments measured at fair value on a recurring basis are as follows: Fair value Fair value measurement at reporting date Description 2021 (Level 1) (Level 2) (Level 3) Short-term investments: Wealth management products and structure deposits $ 40,666,617 $ - $ 40,666,617 - 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 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. |
Inventories | Inventories Inventories are stated at the lower of cost and net realizable value. Cost of inventories is determined using the weighted average cost method. Adjustments to reduce the cost of inventories to its net realizable value for slow-moving merchandise and damaged goods are recorded in cost of goods sold. The Group considers factors such as historical and forecasted consumer demand when estimating the net realizable value. The Group takes ownership and risks of the products purchased. |
Investment in limited partnership and other investments | Investment in limited partnership and other investments The Group’s has an investment in a limited partnership that invests in debt securities, which has a stated maturity within five years and pays a prospective fixed rate of return. The Group classifies the investment in this limited partnership as held-to-maturity because it has both the positive intent and ability to hold it until maturity. This investment is recorded at amortized cost and is classified as long-term based on its contractual maturity. 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 reported in other comprehensive income. |
Stock-based compensation | Stock-based compensation The Company 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 Company’s current and expected dividend policy. |
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. Equity investments without readily determinable fair values 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 investments 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, 2021 and 2020 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 years ended December 31, 2021, 2020 and 2019, the Group did not receive any dividends from this investment. For the years ended December 31, 2021, 2020 and 2019, the Group recognized its share of loss in Jinda of $41,379, $46,659, and nil |
Property and equipment, net | Property and equipment, net Property and equipment are recorded at cost. Depreciation and amortization is provided in amounts sufficient to recognize 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 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 recognize the cost of the related assets over their useful lives using the straight-line method, as follows: Useful life Software 3-5 years Trademarks 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 remaining 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, 2021, 2020 and 2019. |
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 segment, or one level below that operating segment (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 years ended December 31, 2021, 2020 and 2019, 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 loan 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. |
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. Research and development expense were $1,599,728, $817,770, and $155,216 for the years ended December 31, 2021, 2020 and 2019, respectively. |
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 years ended December 31, 2021, 2020 and 2019. 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 $624,905 and $368,165 on the net deferred tax assets as of December 31, 2021 and 2020, 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, 2021, 2020 and 2019. As of December 31, 2021, the tax years ended December 31, 2019 through December 31, 2021 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, December 31, December 31, Balance sheet items, except for equity accounts US$1=RMB 6.3726 US$1=RMB 6.5250 US$1=RMB 6.9618 Items in the statements of income and cash flows US$1=RMB 6.4508 US$1=RMB 6.9042 US$1=RMB 6.9081 Balance sheet items, except for equity accounts US$1=HKD 7.7996 US$1=HKD 7.7534 US$1=HKD 7.7894 Items in the statements of income and cash flows US$1=HKD 7.7727 US$1=HKD 7.7559 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 concentrations | Credit risk and concentrations Financial instruments that potentially subject the Group to significant concentrations of credit risk consist primarily of cash and accounts receivable. As of December 31, 2021, and 2020, $91,627,041 and $22,198,257 of the Group’s cash and cash equivalents and restricted cash from continuing operations was on deposit at financial institutions in the PRC and Hong Kong, 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. In Hong Kong, the DPS is established under the Deposit Protection Scheme Ordinance (DPS Ordinance). In case a member bank of DPS (a Scheme member) fails, the DPS will pay compensation up to a maximum of HK$500,000 (approximately US$64,000) to each depositor of the failed Scheme member. Balances in excess of the insured amount as of December 31, 2021 was approximately $89,804,000. 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. |
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 (including pre-funded warrants) 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, 2021, 2020, and 2019, no dilutive outstanding instruments were included in the computation of diluted EPS. |
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 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, 2021 | |
Organization and Business Description [Abstract] | |
Schedule of the subsidiaries and consolidated VIEs | Date of Place of Percentage 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 % NiSun Ocean (Qingdao) Supply Chain Investment Co., Ltd.(“Nisun Ocean”) July 30, 2021 PRC 100 % Zhumadian NiSun Supply Chain Management Co., Ltd.(“Nisun ZMD”) December 29, 2021 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 100 % Jilin Province Lingang Hengda Supply Chain Management Co., Ltd. (“Lingang Hengda”) August 18, 2020 PRC 100 % Fintech Supply Chain Management (Ningbo) Co., Ltd. (“Fintech Ningbo”) January 25, 2021 PRC 100 % Inner Mongolia Fintech Supply Chain Management Co., Ltd. (“Fintech Mongolia”) January 15, 2021 PRC 70 % Jiangxi Fintech Supply Chain Management Co., Ltd. (“Fintech Jiangxi”) May 10, 2021 PRC 100 % Fintech Supply Chain Management (Shanxi) Co., Ltd. (“Fintech SX”) May 6, 2021 PRC 100 % Liaogang NiSun (Yingkou) Supply Chain Management Co., Ltd.(“Liaogang Yingkou”) September 03, 2018 PRC 51 % Liaogang NiSun (Shanghai) Supply Chain Management Co., Ltd.(“Liaogang SH”) September 30, 2021 PRC 51 % Fintech (Zibo) Supply Chain Management Co., Ltd. (“Fintech Zibo”) October 26,2021 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, 2021, 2020 and 2019. ** The entity was deregistered on June 04, 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, 2021, 2020 and 2019. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization and Business Description [Abstract] | |
Schedule of consolidated financial statements | December 31, December 31, Total current asset $ 159,234,732 $ 43,832,012 Total assets $ 160,885,760 $ 47,223,358 Total current liabilities $ 90,440,038 $ 11,146,286 Total liabilities $ 90,589,026 $ 11,826,417 For the year ended December 31, For the year ended Revenue generated from service $ 92,067,474 $ 42,190,191 Revenue generated from sales 68,132,237 - Total revenue $ 160,199,711 $ 42,190,191 Net income $ 33,612,404 $ 11,583,787 For the year ended December 31, For the year ended Net cash provided by operating activities $ 525,753 $ 2,560,400 Net cash provided by (used in) investing activities $ 569,301 $ (13,321,524 ) Net cash (used in) provided by financing activities $ (919,642 ) $ 4,051,162 |
Schedule of revenue from financial services disaggregated by nature | For the year ended 2021 2020 2019 One-time commission fees $ 90,853,014 $ 42,082,585 $ 2,525,524 Recurring service fees 1,214,460 107,606 - Total $ 92,067,474 $ 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 2021 (Level 1) (Level 2) (Level 3) Short-term investments: Wealth management products and structure deposits $ 40,666,617 $ - $ 40,666,617 - 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 property and equipment | 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 intangible assets, net | Useful life Software 3-5 years Trademarks 3-5 years Technology 5-10 years |
Schedule of currency exchange rates | December 31, December 31, December 31, Balance sheet items, except for equity accounts US$1=RMB 6.3726 US$1=RMB 6.5250 US$1=RMB 6.9618 Items in the statements of income and cash flows US$1=RMB 6.4508 US$1=RMB 6.9042 US$1=RMB 6.9081 Balance sheet items, except for equity accounts US$1=HKD 7.7996 US$1=HKD 7.7534 US$1=HKD 7.7894 Items in the statements of income and cash flows US$1=HKD 7.7727 US$1=HKD 7.7559 US$1=HKD 7.8351 |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Short-Term Investments [Abstract] | |
Schedule of short-term investment | December 31, December 31, Wealth management products, cost $ 10,034,523 $ 4,597,701 Structured deposits 29,815,146 - Add: Accrued interest receivable 816,948 83,142 Total short-term investments $ 40,666,617 $ 4,680,843 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Credit Loss, Additional Improvements [Abstract] | |
Schedule of accounts receivable | December 31, December 31, Account receivable from services $ 11,592,952 $ 5,018,839 Account receivable from sales 7,004,013 - Total 18,596,965 5,018,839 Less: allowance for doubtful accounts (80,815 ) (78,927 ) Accounts receivable, net $ 18,516,150 $ 4,939,912 |
Loans to Third Parties (Tables)
Loans to Third Parties (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Loans To Third Parties [Abstract] | |
Schedule of loans to third parties | December 31, December 31, Sichuan Jingpin Construction Decoration Engineering Co., Ltd (1) $ 298,151 $ 306,514 Henan Tianxia Kang Trading Co., Ltd (2) - 1,609,195 Total loan to third parties 298,151 1,915,709 Less: allowance for doubtful account 298,151 - Loan to third parties, net $ - $ 1,915,709 (1) The Group made a loan to Sichuan Jingpin Construction Decoration Engineering Co., Ltd (“Jingpin”) on February 10, 2020. The loan was to earn interest of 18% and its principal and interest were due on February 10, 2021. Jingpin repaid $15,502 (RMB 100,000). The Company recorded a $298,151 allowance for the outstanding balance as of December 31, 2021 due to that management estimated collection of amounts due are at risk. (2) The Group made a loan to Henan Tianxia Kang Trading Co., Ltd (“Tianxia Kang”) on December 28, 2020. The loan was interest free due to the short term and due on January 28, 2021. The loan was repaid on January 13, 2021. On January13, 2021, the Group provided a new interest-free loan of $1,627,352 (or RMB 10.5 million) to Tianxia Kang due on July 13, 2021, which was repaid on July 9, 2021. |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment, Net [Abstract] | |
Schedule of property and equipment, net | December 31, December 31, Transportation equipment $ 663,424 $ 505,423 Office equipment 85,565 258,420 Electronic equipment 84,126 375,991 Leasehold improvements 417,092 388,792 Subtotal 1,250,207 1,528,626 Less: accumulated depreciation and amortization (786,051 ) (872,983 ) Property, plant and equipment, net $ 464,156 $ 665,643 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | December 31, 2021 December 31, Software $ 508,961 $ 479,000 Technology 4,660,578 4,551,724 Total intangible assets 5,169,539 5,030,724 Less: accumulated amortization (2,318,686 ) (1,304,122 ) Intangible assets, net $ 2,850,853 $ 3,726,602 |
Short Term Bank Loans (Tables)
Short Term Bank Loans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Short Term Bank Loans [Member] | |
Schedule of short term bank loans | Lender December 31, Term Effective China Everbright Bank $ 470,765 March 30, 2021 to March 29, 2022 4.35 % Zhejiang Tailing Bank 313,844 February 08, 2021 to February 08, 2022 5.88 % Total 784,609 Less: current portion 784,609 Long term portion $ - |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Text Block [Abstract] | |
Schedule of future undiscounted aggregate minimum lease payments | Year ended December 31, Amount 2022 $ 343,408 2023 158,177 2024 - 2025 - 2026 - thereafter - Total undiscounted future minimum lease payments 501,585 Less: Amounts representing interest 14,899 Total present value of operating lease liabilities 486,686 Less: current portion of operating lease liabilities 337,698 Non-current portion of operating lease liabilities $ 148,988 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of taxes payable | December 31, December 31, Income tax payable $ 6,654,091 $ 2,045,559 Value added tax payable 1,971,625 889,257 Business tax payable 139,137 43,704 Withholding taxes payable 2,720 112,113 Other taxes payable 84,325 42,405 Total taxes payable $ 8,851,898 $ 3,133,038 |
Schedule of components of income tax provision (benefit) | For the year ended For the year ended For the year ended Current tax provision $ 9,996,987 $ 1,525,824 $ - Deferred tax provision (benefit) 272,514 (584,760 ) (55,731 ) Total $ 10,269,501 $ 941,064 $ (55,731 ) |
Schedule of 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 $ 624,905 $ 368,165 Operating loss carryforwards - 456,370 Total deferred tax assets 624,905 824,535 Less: valuation allowance (624,905 ) (368,165 ) Net deferred tax assets $ - $ 456,370 December 31, December 31, Deferred tax liabilities Intangible assets acquired from business combinations $ 504,033 $ 676,015 Total deferred tax liabilities $ 504,033 $ 676,015 |
Schedule of effective tax rate for the years | For the year ended For the year ended For the year ended China Income tax statutory rate 25.0 % 25.0 % 25.0 % Effect of favorable income tax rates (8.3 )% (23.8 )% (25.0 )% Effect of temporary differences 0.6 % 1.2 % (4.7 )% Effect of non-deductible expenses 7.7 % 10.1 % - Effect of previous year net operating loss - (3.8 )% - Effective tax rate for the continuing operation 25.0 % 8.7 % (4.7 )% |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of forth major 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 Nisun International Enterprise Management Group Co., Ltd (“Nisun Cayman”) A shareholder who owns 23.75% 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, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of condensed balance sheets | December 31, December 31, Assets: Cash and cash equivalents $ 68,296,949 $ 2,426 Due from intercompany and others 7,582,199 14,951,086 TOTAL CURRENT ASSETS 75,879,148 14,953,512 Other non-current asset - - Investment in subsidiaries, VIE, and VIEs’ subsidiaries 115,680,581 80,260,786 TOTAL ASSETS $ 191,559,729 $ 95,214,298 LIABILITIES CURRENT LIABILITIES Accrued expenses and other liabilities $ 10,933,373 $ 18,371,779 TOTAL CURRENT LIABILITIES 10,933,373 18,371,779 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. 39,813 20,555 Class B common stock, $0.001 par value, 10,000,000 shares authorized, no shares issued and - - Additional paid-in capital 130,318,637 59,472,255 Unearned compensation (125,630 ) (624,455 ) Retained earnings 37,819,226 9,629,712 Statutory reserve 6,942,111 4,751,264 Accumulated other comprehensive income 5,632,199 3,593,188 Total shareholders’ equity 180,626,356 76,842,519 Total liabilities and shareholders’ equity $ 191,559,729 $ 95,214,298 |
Schedule of condensed statements of comprehensive income (loss) | For the year ended December 31, 2021 2020 2019 Selling and marketing $ - $ $ (15,005 ) Administrative (3,071,681 ) (1,098,668 ) (408,656 ) Other income (expense) - (820 ) Share of profit (loss) in subsidiaries, VIEs and VIEs’ subsidiaries 33,452,042 (11,993,122 ) 3,164,471 Net income (loss) 30,380,361 (13,091,790 ) 2,739,990 Other comprehensive income Foreign currency translation adjustment 2,039,011 5,507,420 (561,091 ) Comprehensive income (loss) 32,419,372 (7,584,370 ) 2,178,899 Comprehensive loss attributable to non-controlling interests (2,051 ) (2,172 ) - Comprehensive (loss) income attributable to shareholders $ 32,421,423 $ (7,582,198 ) $ 2,178,899 |
Schedule of condensed statement of cash flows | For the year ended December 31, 2021 2020 2019 Cash flows from operating activities: Net income (loss) $ 30,380,361 $ (13,091,790 ) $ 2,739,990 Adjustments to reconcile net income (loss) to net cash used in operating activities Share of profit (loss) in subsidiaries, VIEs and VIEs’ subsidiaries (33,449,939 ) 11,991,588 (3,164,471 ) Shares-based compensation 570,000 1,097,415 - Due from intercompany and others (364 ) - (38,561 ) Accrued expenses and other current liabilities - - 467,648 Net cash (used in) provided by operating activities (2,499,942 ) (2,787 ) 4,606 Cash flows from financing activities: Proceeds from issuance of shares and warrants 70,794,465 - - Net cash provided by financing activities 70,794,465 - - Net increase (decrease) in cash and cash equivalents 68,294,523 (2,787 ) 4,606 Cash and cash equivalents at beginning of the year 2,426 5,213 607 Cash and cash equivalents at end of the year $ 68,296,949 $ 2,426 $ 5,213 |
Organization and Business Des_3
Organization and Business Description (Details) - May 30, 2020 ¥ in Millions, $ in Millions | USD ($) | CNY (¥) |
Nami Holding (Cayman) Co., Ltd (“Nami Cayman”) [Member] | ||
Organization and Business Description (Details) [Line Items] | ||
Cash | $ 13.9 | ¥ 98.3 |
Organization and Business Des_4
Organization and Business Description (Details) - Schedule of the subsidiaries and consolidated VIEs | 12 Months Ended | |
Dec. 31, 2021 | ||
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 | [1] |
Place of incorporation | PRC | [1] |
Percentage of direct or indirect economic interest | 100.00% | [1] |
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 | [2] |
Place of incorporation | PRC | [2] |
Percentage of direct or indirect economic interest | 100.00% | [2] |
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 | 100.00% | |
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% | |
Fintech Supply Chain Management (Ningbo) Co., Ltd. (“Fintech Ningbo”) [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | Jan. 25, 2021 | |
Place of incorporation | PRC | |
Percentage of direct or indirect economic interest | 100.00% | |
Inner Mongolia Fintech Supply Chain Management Co., Ltd. (“Fintech Mongolia”) [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | Jan. 15, 2021 | |
Place of incorporation | PRC | |
Percentage of direct or indirect economic interest | 70.00% | |
Jiangxi Fintech Supply Chain Management Co., Ltd. (“Fintech Jiangxi”) [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | May 10, 2021 | |
Place of incorporation | PRC | |
Percentage of direct or indirect economic interest | 100.00% | |
Fintech Supply Chain Management (Shanxi) Co., Ltd. (“Fintech SX”) [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | May 6, 2021 | |
Place of incorporation | PRC | |
Percentage of direct or indirect economic interest | 100.00% | |
Liaogang NiSun (Yingkou) Supply Chain Management Co., Ltd.(“Liaogang Yingkou”) [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | Sep. 3, 2018 | |
Place of incorporation | PRC | |
Percentage of direct or indirect economic interest | 51.00% | |
Liaogang NiSun (Shanghai) Supply Chain Management Co., Ltd.(“Liaogang SH”) [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | Sep. 30, 2021 | |
Place of incorporation | PRC | |
Percentage of direct or indirect economic interest | 51.00% | |
Fintech (Zibo) Supply Chain Management Co., Ltd. (“Fintech Zibo”) [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | Oct. 26, 2021 | |
Place of incorporation | PRC | |
Percentage of direct or indirect economic interest | 100.00% | |
Subsidiaries [Member] | NiSun International Enterprise Management Group (British Virgin Islands) Co., Ltd.(“NiSun BVI”) [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | Jul. 12, 2019 | |
Place of incorporation | BVI | |
Percentage of direct or indirect economic interest | 100.00% | |
Subsidiaries [Member] | NiSun International Enterprise Management Group (Hong Kong) Co., Limited (NiSun HK) [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | Jul. 12, 2019 | |
Place of incorporation | Hong Kong | |
Percentage of direct or indirect economic interest | 100.00% | |
Subsidiaries [Member] | Nisun (Shandong) Industrial Development Co., Ltd (“Nisun Shandong” or “WOFE”) [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | Dec. 15, 2020 | |
Place of incorporation | PRC | |
Percentage of direct or indirect economic interest | 100.00% | |
Subsidiaries [Member] | NingChen (Shanghai) Enterprise Management Co., Ltd.(“NingChen”) [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | Jul. 12, 2019 | |
Place of incorporation | PRC | |
Percentage of direct or indirect economic interest | 100.00% | |
Subsidiaries [Member] | Shandong Taiding International Investment Co., Ltd ("Taiding") [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | Nov. 12, 2019 | |
Place of incorporation | PRC | |
Percentage of direct or indirect economic interest | 80.00% | |
Subsidiaries [Member] | Nami Holding (Cayman) Co., Ltd (“Nami Cayman”) [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | Apr. 9, 2019 | |
Place of incorporation | Cayman Islands | |
Percentage of direct or indirect economic interest | 100.00% | |
Subsidiaries [Member] | Nami Holding (Hong Kong) Co., Limited (“Nami HK”) [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | May 2, 2019 | |
Place of incorporation | Hong Kong | |
Percentage of direct or indirect economic interest | 100.00% | |
Subsidiaries [Member] | Shanghai Naqing Enterprise Management Co., Ltd (“Naqing” or “WOFE”) [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | Apr. 10, 2019 | |
Place of incorporation | PRC | |
Percentage of direct or indirect economic interest | 100.00% | |
Subsidiaries [Member] | NiSun Ocean (Qingdao) Supply Chain Investment Co., Ltd.(“Nisun Ocean”) [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | Jul. 30, 2021 | |
Place of incorporation | PRC | |
Percentage of direct or indirect economic interest | 100.00% | |
Subsidiaries [Member] | Zhumadian NiSun Supply Chain Management Co., Ltd.(“Nisun ZMD”) [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | Dec. 29, 2021 | |
Place of incorporation | PRC | |
Percentage of direct or indirect economic interest | 100.00% | |
Variable Interest Entity, Primary Beneficiary [Member] | Fintech (Shanghai) Digital Technology Co., Ltd. (“Fintech Shanghai”) [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | Jul. 12, 2019 | |
Place of incorporation | PRC | |
Percentage of direct or indirect economic interest | 100.00% | |
Variable Interest Entity, Primary Beneficiary [Member] | Beijing Hengtai Puhui Information Services Co., Ltd ("Hengpu") [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | Dec. 31, 2019 | |
Place of incorporation | PRC | |
Percentage of direct or indirect economic interest | 100.00% | |
Consolidated Entity, Excluding Consolidated VIE [Member] | Nami Shanghai Financial Consulting Co., Ltd (“Nami Shanghai”) [Member] | ||
Subsidiaries | ||
Date of incorporation/ acquisition | Jun. 4, 2015 | |
Place of incorporation | PRC | |
Percentage of direct or indirect economic interest | 100.00% | |
[1] | The entity was deregistered on June 04, 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, 2021, 2020 and 2019. | |
[2] | 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, 2021, 2020 and 2019 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | May 01, 2015USD ($) | May 01, 2015CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2021HKD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Equity interest percentage | 49.00% | 23.08% | |||||
Restricted cash | $ 179,421 | $ 62,947 | |||||
Short-term investments, maturity term | 1 year | 1 year | |||||
Maturity term | 5 years | 5 years | |||||
Share of loss | $ 40,776,023 | 10,857,670 | $ 1,175,936 | ||||
Research and development expense | 1,599,728 | 817,770 | 155,216 | ||||
Valuation allowance | $ 624,905 | 368,165 | |||||
Tax benefit realized on examination | 50.00% | 50.00% | |||||
Income tax is payable by enterprises at a rate | 25.00% | 25.00% | |||||
Tax authorities term | 5 years | 5 years | |||||
Cash and cash equivalents and restricted cash from continuing operations | $ 91,627,041 | $ 22,198,257 | 2,781,506 | $ 607 | |||
Deposit insurance for deposits | $ 72,000 | ¥ 500,000 | |||||
Pay compensation | $ 64,000 | $ 500,000 | |||||
Minimum [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Equity interest percentage | 20.00% | ||||||
VAT rate percentage | 6.00% | 6.00% | |||||
Maximum [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Equity interest percentage | 49.90% | ||||||
VAT rate percentage | 13.00% | 13.00% | |||||
Taiding [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Non-controlling interest percentage | 20.00% | 20.00% | |||||
Jinda [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Share of loss | $ 41,379 | $ 46,659 | |||||
Wenzhou Jinda Holding Co., Ltd [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Equity interest percentage | 23.08% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of consolidated financial statements - VIEs [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Condensed Financial Statements, Captions [Line Items] | ||
Total current asset | $ 159,234,732 | $ 43,832,012 |
Total assets | 160,885,760 | 47,223,358 |
Total current liabilities | 90,440,038 | 11,146,286 |
Total liabilities | 90,589,026 | 11,826,417 |
Revenue generated from service | 92,067,474 | 42,190,191 |
Revenue generated from sales | 68,132,237 | |
Total revenue | 160,199,711 | 42,190,191 |
Net income | 33,612,404 | 11,583,787 |
Net cash provided by operating activities | 525,753 | 2,560,400 |
Net cash provided by (used in) investing activities | 569,301 | (13,321,524) |
Net cash (used in) provided by financing activities | $ (919,642) | $ 4,051,162 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of revenue from financial services disaggregated by nature - Disaggregated by Nature [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Summary of Significant Accounting Policies (Details) - Schedule of revenue from financial services disaggregated by nature [Line Items] | |||
Total revenue | $ 92,067,474 | $ 42,190,191 | $ 2,525,524 |
One-time commission fees [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of revenue from financial services disaggregated by nature [Line Items] | |||
Total revenue | 90,853,014 | 42,082,585 | $ 2,525,524 |
Recurring service fees [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of revenue from financial services disaggregated by nature [Line Items] | |||
Total revenue | $ 1,214,460 | $ 107,606 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of financial instruments measured at fair value on a recurring basis - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Short-term investments: | ||
Wealth management products and structure deposits | $ 40,666,617 | $ 4,680,843 |
Level 1 [Member] | ||
Short-term investments: | ||
Wealth management products and structure deposits | ||
Level 2 [Member] | ||
Short-term investments: | ||
Wealth management products and structure deposits | 40,666,617 | 4,680,843 |
Level 3 [Member] | ||
Short-term investments: | ||
Wealth management products and structure deposits |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details) - Schedule of property and equipment | 12 Months Ended |
Dec. 31, 2021 | |
Transportation equipment [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Useful life | 4 years |
Office equipment [Member] | Minimum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Office equipment [Member] | Maximum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Electronic equipment [Member] | Minimum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Electronic equipment [Member] | Maximum [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Leasehold improvements [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Useful life | Shorter of remaining lease term or life of assets |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Details) - Schedule of intangible assets, net | 12 Months Ended |
Dec. 31, 2021 | |
Software [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of intangible assets, net [Line Items] | |
Useful life | 3 years |
Software [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of intangible assets, net [Line Items] | |
Useful life | 5 years |
Trademarks [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of intangible assets, net [Line Items] | |
Useful life | 3 years |
Trademarks [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of intangible assets, net [Line Items] | |
Useful life | 5 years |
Technology [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of intangible assets, net [Line Items] | |
Useful life | 5 years |
Technology [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of intangible assets, net [Line Items] | |
Useful life | 10 years |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Details) - Schedule of currency exchange rates | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Balance sheet items, except for equity accounts [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of currency exchange rates [Line Items] | |||
Currency exchange rates | 6.3726 | 6.525 | 6.9618 |
Balance sheet items, except for equity accounts [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of currency exchange rates [Line Items] | |||
Currency exchange rates | 7.7996 | 7.7534 | 7.7894 |
Items in the statements of income and cash flows [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of currency exchange rates [Line Items] | |||
Currency exchange rates | 6.4508 | 6.9042 | 6.9081 |
Items in the statements of income and cash flows [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of currency exchange rates [Line Items] | |||
Currency exchange rates | 7.7727 | 7.7559 | 7.8351 |
Short-Term Investments (Details
Short-Term Investments (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Short-Term Investments (Details) [Line Items] | |||
Investment income | $ 816,948 | $ 83,142 | |
Minimum [Member] | |||
Short-Term Investments (Details) [Line Items] | |||
Investment interest rate | 1.80% | ||
Maximum [Member] | |||
Short-Term Investments (Details) [Line Items] | |||
Investment interest rate | 9.00% |
Short-Term Investments (Detai_2
Short-Term Investments (Details) - Schedule of short-term investment - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of short-term investment [Abstract] | ||
Wealth management products, cost | $ 10,034,523 | $ 4,597,701 |
Structured deposits | 29,815,146 | |
Add: Accrued interest receivable | 816,948 | 83,142 |
Total short-term investments | $ 40,666,617 | $ 4,680,843 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - Schedule of accounts receivable - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of accounts receivable [Abstract] | ||
Account receivable from services | $ 11,592,952 | $ 5,018,839 |
Account receivable from sales | 7,004,013 | |
Total | 18,596,965 | 5,018,839 |
Less: allowance for doubtful accounts | (80,815) | (78,927) |
Accounts receivable, net | $ 18,516,150 | $ 4,939,912 |
Receivables from Supply Chain_2
Receivables from Supply Chain Solutions (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Receivable Related To Supply Chain Business [Abstract] | ||
Receivables from supply chain solution | $ 59,792,613 | $ 10,741,981 |
Supply Receivable | $ 44,300,000 |
Loans to Third Parties (Details
Loans to Third Parties (Details) | 12 Months Ended | ||||
Dec. 31, 2021USD ($) | Dec. 31, 2021CNY (¥) | Jul. 31, 2021USD ($) | Jul. 31, 2021CNY (¥) | Feb. 10, 2021 | |
Sichuan Jingpin Construction Decoration Engineering Co., Ltd [Member] | |||||
Loans to Third Parties (Details) [Line Items] | |||||
Loans earning interest percentage | 18.00% | ||||
Repaid | $ 15,502 | ¥ 100,000 | |||
Provision of allowance | $ 298,151 | ||||
Henan Tianxia Kang Trading Co., Ltd [Member] | |||||
Loans to Third Parties (Details) [Line Items] | |||||
Interest free loan | $ 1,627,352 | ¥ 10,500,000 |
Loans to Third Parties (Detai_2
Loans to Third Parties (Details) - Schedule of loans to third parties - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | |
Loans to Third Parties (Details) - Schedule of loans to third parties [Line Items] | |||
Total | $ 298,151 | $ 1,915,709 | |
Less: allowance for doubtful account | 298,151 | ||
Loan to third parties, net | 1,915,709 | ||
Sichuan Jingpin Construction Decoration Engineering Co., Ltd [Member] | |||
Loans to Third Parties (Details) - Schedule of loans to third parties [Line Items] | |||
Total | [1] | 298,151 | 306,514 |
Henan Tianxia Kang Trading Co., Ltd [Member] | |||
Loans to Third Parties (Details) - Schedule of loans to third parties [Line Items] | |||
Total | [2] | $ 1,609,195 | |
[1] | The Group made a loan to Sichuan Jingpin Construction Decoration Engineering Co., Ltd (“Jingpin”) on February 10, 2020. The loan was to earn interest of 18% and its principal and interest were due on February 10, 2021. Jingpin repaid $15,502 (RMB 100,000). The Company recorded a $298,151 allowance for the outstanding balance as of December 31, 2021 due to that management estimated collection of amounts due are at risk. | ||
[2] | The Group made a loan to Henan Tianxia Kang Trading Co., Ltd (“Tianxia Kang”) on December 28, 2020. The loan was interest free due to the short term and due on January 28, 2021. The loan was repaid on January 13, 2021. On January13, 2021, the Group provided a new interest-free loan of $1,627,352 (or RMB 10.5 million) to Tianxia Kang due on July 13, 2021, which was repaid on July 9, 2021. |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment, Net [Abstract] | |||
Depreciation expense | $ 200,655 | $ 211,796 | $ 15,551 |
Property and Equipment, Net (_2
Property and Equipment, Net (Details) - Schedule of property and equipment, net - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 1,250,207 | $ 1,528,626 |
Less: accumulated depreciation and amortization | (786,051) | (872,983) |
Property, plant and equipment, net | 464,156 | 665,643 |
Transportation equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 663,424 | 505,423 |
Office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 85,565 | 258,420 |
Electronic equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 84,126 | 375,991 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 417,092 | $ 388,792 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 971,453 | $ 945,744 | $ 266,858 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details) - Schedule of intangible assets - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 5,169,539 | $ 5,030,724 |
Less: accumulated amortization | (2,318,686) | (1,304,122) |
Intangible assets, net | 2,850,853 | 3,726,602 |
Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 508,961 | 479,000 |
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 4,660,578 | $ 4,551,724 |
Investment in Limited Partner_2
Investment in Limited Partnership and Other Investments (Details) | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | |
Investment In Debt Security [Abstract] | |||
Invested amount | $ 15,962,799 | ¥ 101,724,531 | |
Investment interest rate | 8.00% | ||
Investment interest term | 5 years | ||
Accrued interest income | $ 16,207,152 | 15,736,927 | |
Investment principal balance | 15,962,799 | 15,589,966 | |
Interest receivable | 244,353 | 146,961 | |
Principal balance (in Yuan Renminbi) | ¥ | ¥ 101,724,531 | ||
Investment in debt security | 892,308 | 146,961 | |
Received cash distribution | $ 799,569 |
Short Term Bank Loans (Details)
Short Term Bank Loans (Details) - USD ($) | Feb. 08, 2022 | Mar. 25, 2022 | Dec. 31, 2021 | Dec. 31, 2019 | Dec. 31, 2020 |
Short Term Bank Loans (Details) [Line Items] | |||||
Loans interest expense | $ 31,355 | ||||
Short-Term Debt, Percentage Bearing Variable Interest Rate | |||||
Zhejiang Tailong Bank [Member] | |||||
Short Term Bank Loans (Details) [Line Items] | |||||
Cash paid | $ 313,844 | ||||
China Everbright Bank [Member] | |||||
Short Term Bank Loans (Details) [Line Items] | |||||
Cash paid | $ 470,765 |
Short Term Bank Loans (Detail_2
Short Term Bank Loans (Details) - Schedule of short term bank loans | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Debt Instrument [Line Items] | |
Short-term bank loans | $ 784,609 |
Less: current portion | 784,609 |
Long term portion | |
China Everbright Bank [Member] | |
Debt Instrument [Line Items] | |
Short-term bank loans | $ 470,765 |
Short-term bank loans, Term | March 30, 2021 to March 29, 2022 |
Short-term bank loans, Effective Interest Rate | 4.35% |
Zhejiang Tailing Bank [Member] | |
Debt Instrument [Line Items] | |
Short-term bank loans | $ 313,844 |
Short-term bank loans, Term | February 08, 2021 to February 08, 2022 |
Short-term bank loans, Effective Interest Rate | 5.88% |
Leases (Details)
Leases (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Text Block [Abstract] | |||
Weighted average remaining lease term | 1 year 2 months 15 days | 1 year 11 months 26 days | 3 years 9 months |
Weighted average discount rate | 4.65% | 4.75% | 4.75% |
Lease cost amount | $ 680,033 | $ 578,689 | $ 63,749 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of future undiscounted aggregate minimum lease payments | Dec. 31, 2021USD ($) |
Schedule of future undiscounted aggregate minimum lease payments [Abstract] | |
2022 | $ 343,408 |
2023 | 158,177 |
2024 | |
2025 | |
2026 | |
thereafter | |
Total undiscounted future minimum lease payments | 501,585 |
Less: Amounts representing interest | 14,899 |
Total present value of operating lease liabilities | 486,686 |
Less: current portion of operating lease liabilities | 337,698 |
Non-current portion of operating lease liabilities | $ 148,988 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
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, 2020, Fintech qualified as a High-technology Company and is subject to a favorable income tax rate of 15%. Fintech’s High-technology certificate is valid for three years starting from November 2020 and subject to renewal. 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 entity shall be exempt from the enterprise income tax 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 tax is eligible to be exempt for five years starting from the year ended December 31, 2019. For the year ended December 31, 2021, Jilin Lingang, Jilin Lingang Hengda, Liaogang SH, Fintech Zibo, Fintech Mongolia, Fintech Shanxi, Fintech SX, Fintech Ningbo, Fintech Shandong, Nisun Gold, and Fintech Jiangxi are subject to a favorable income tax rate of 2.5% due to being small-scale taxpayers. The remaining Group’s subsidiaries, VIEs and VIEs’ subsidiaries from the financial services business are subject to corporate income tax at the PRC unified rate of 25%. | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 256,740 | $ 973,712 |
Effect income tax rates per share | $ 0.16 | $ 0.14 |
Hong Kong [Member] | ||
Income Taxes (Details) [Line Items] | ||
Income tax rate | 16.50% |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of taxes payable - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of taxes payable [Abstract] | ||
Income tax payable | $ 6,654,091 | $ 2,045,559 |
Value added tax payable | 1,971,625 | 889,257 |
Business tax payable | 139,137 | 43,704 |
Withholding taxes payable | 2,720 | 112,113 |
Other taxes payable | 84,325 | 42,405 |
Total taxes payable | $ 8,851,898 | $ 3,133,038 |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of components of income tax provision (benefit) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of components of income tax provision (benefit) [Abstract] | |||
Current tax provision | $ 9,996,987 | $ 1,525,824 | |
Deferred tax provision (benefit) | 272,514 | (584,760) | (55,731) |
Total | $ 10,269,501 | $ 941,064 | $ (55,731) |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of deferred tax assets resulting from differences between financial accounting basis and tax basis of assets and liabilities - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets | ||
Provision for doubtful accounts | $ 624,905 | $ 368,165 |
Operating loss carryforwards | 456,370 | |
Total deferred tax assets | 624,905 | 824,535 |
Less: valuation allowance | (624,905) | (368,165) |
Net deferred tax assets | 456,370 | |
Deferred tax liabilities | ||
Intangible assets acquired from business combinations | 504,033 | 676,015 |
Total deferred tax liabilities | $ 504,033 | $ 676,015 |
Income Taxes (Details) - Sche_4
Income Taxes (Details) - Schedule of effective tax rate for the years - CHINA | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes (Details) - Schedule of effective tax rate for the years [Line Items] | |||
China Income tax statutory rate | 25.00% | 25.00% | 25.00% |
Effect of favorable income tax rates | (8.30%) | (23.80%) | (25.00%) |
Effect of temporary differences | 0.60% | 1.20% | (4.70%) |
Effect of non-deductible expenses | 7.70% | 10.10% | |
Effect of previous year net operating loss | (3.80%) | ||
Effective tax rate for the continuing operation | 25.00% | 8.70% | (4.70%) |
Concentration of Major Custom_2
Concentration of Major Customers (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue Benchmark [Member] | ||
Concentration of Major Customers (Details) [Line Items] | ||
Number of customers | 2 | 3 |
Revenue Benchmark [Member] | Major Customer Two [Member] | ||
Concentration of Major Customers (Details) [Line Items] | ||
Concentration risk percentage | 29.00% | 21.00% |
Revenue Benchmark [Member] | Major Customer Three [Member] | ||
Concentration of Major Customers (Details) [Line Items] | ||
Concentration risk percentage | 12.00% | |
Revenue Benchmark [Member] | Major Customer One [Member] | ||
Concentration of Major Customers (Details) [Line Items] | ||
Concentration risk percentage | 31.00% | 31.00% |
Revenue Benchmark [Member] | Financial Services Sector [Member] | ||
Concentration of Major Customers (Details) [Line Items] | ||
Number of customers | 2 | |
Revenue Benchmark [Member] | Financial Services Sector [Member] | Major Customer Two [Member] | ||
Concentration of Major Customers (Details) [Line Items] | ||
Concentration risk percentage | 37.00% | |
Revenue Benchmark [Member] | Financial Services Sector [Member] | Major Customer Three [Member] | ||
Concentration of Major Customers (Details) [Line Items] | ||
Concentration risk percentage | 15.00% | |
Revenue Benchmark [Member] | Chain Trading Business [Member] | ||
Concentration of Major Customers (Details) [Line Items] | ||
Number of customers | 2 | |
Revenue Benchmark [Member] | Chain Trading Business [Member] | Major Customer Two [Member] | ||
Concentration of Major Customers (Details) [Line Items] | ||
Concentration risk percentage | 71.00% | |
Revenue Benchmark [Member] | Chain Trading Business [Member] | Major Customer Three [Member] | ||
Concentration of Major Customers (Details) [Line Items] | ||
Concentration risk percentage | 10.00% | |
Accounts Receivable [Member] | ||
Concentration of Major Customers (Details) [Line Items] | ||
Number of customers | 3 | |
Accounts Receivable [Member] | Major Customer Two [Member] | ||
Concentration of Major Customers (Details) [Line Items] | ||
Concentration risk percentage | 20.00% | |
Accounts Receivable [Member] | Major Customer Three [Member] | ||
Concentration of Major Customers (Details) [Line Items] | ||
Concentration risk percentage | 17.00% | |
Accounts Receivable [Member] | Major Customer One [Member] | ||
Concentration of Major Customers (Details) [Line Items] | ||
Concentration risk percentage | 45.00% |
Shareholders_ Equity (Details)
Shareholders’ Equity (Details) - USD ($) | Dec. 13, 2021 | May 01, 2020 | Apr. 06, 2020 | Dec. 06, 2019 | Jun. 14, 2019 | Sep. 24, 2021 | Jun. 30, 2020 | May 31, 2020 | Nov. 20, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Shareholders’ Equity (Details) [Line Items] | ||||||||||||
Common stock. shares authorized | 50,000,000 | |||||||||||
Common stock, par value (in Dollars per share) | $ 0.001 | |||||||||||
Common stock, shares issued | 39,812,629 | |||||||||||
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 common shares of restricted stock vested 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) | 498,825 | $ 1,097,415 | ||||||||||
Unrecognized share-based compensation (in Dollars) | $ 125,630 | |||||||||||
Underwritten public offering (in Dollars) | $ 77,000,000 | |||||||||||
Pre-Funded Warrants [Member] | ||||||||||||
Shareholders’ Equity (Details) [Line Items] | ||||||||||||
Pre-funded warrants shares | 7,060,000 | |||||||||||
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 | 39,812,629 | 20,555,129 | ||||||||||
Common stock, shares outstanding | 39,812,629 | 20,555,129 | ||||||||||
Fair value (in Dollars) | $ 1,721,870 | $ 71,175 | ||||||||||
Closing price per share (in Dollars per share) | $ 7.39 | $ 9.49 | ||||||||||
Offering consisted shares, description | The offering consisted of ((i) 12,190,000 shares of Class A common shares and (the “December 2021 Common shares”) (ii) pre-funded warrants to purchase 7,060,000 Class A Common Shares (the “Pre-Funded Warrants”). | |||||||||||
Class A Common Stock [Member] | Pre-Funded Warrants [Member] | ||||||||||||
Shareholders’ Equity (Details) [Line Items] | ||||||||||||
Warrant, Exercise Price, Increase (in Dollars per share) | $ 0.001 | |||||||||||
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 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 | ||||||||||||
Board [Member] | Class A Common Stock [Member] | ||||||||||||
Shareholders’ Equity (Details) [Line Items] | ||||||||||||
Restricted common stock | 300,000 | 7,500 | ||||||||||
Two Officers [Member] | Class A Common Stock [Member] | ||||||||||||
Shareholders’ Equity (Details) [Line Items] | ||||||||||||
Shares forfeited and cancelled | 67,000 | |||||||||||
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. | |||||||||||
Nami [Member] | Class A Common Stock [Member] | ||||||||||||
Shareholders’ Equity (Details) [Line Items] | ||||||||||||
Number of shares issuance | 1,562,726 | |||||||||||
Fair value of purchase consideration (in Dollars) | $ 18,330,776 |
Related Party Transactions (Det
Related Party Transactions (Details) | 12 Months Ended | ||||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2020CNY (¥) | |
Related Party Transactions (Details) [Line Items] | |||||
Rent expense | $ 136,532 | $ 127,565 | $ 63,749 | ||
Advanced as loan | 10,528,965 | ¥ 69,883,631 | |||
Purchase price payable for acquisition (in Yuan Renminbi) | $ 7,007,905 | ||||
Equity interest | 49.00% | 23.08% | 23.08% | ||
Payment of related party | $ 15,000,000 | ¥ 98,300,000 | |||
Mr. Bodang Liu [Member] | |||||
Related Party Transactions (Details) [Line Items] | |||||
Due to related party balance | 393,148 | ||||
Nisun BVI [Member] | |||||
Related Party Transactions (Details) [Line Items] | |||||
Due to related party balance | 6,500,000 | ||||
Purchase price payable for acquisition (in Yuan Renminbi) | ¥ | ¥ 45,900,000 | ||||
Nisun Shanghai [Member] | |||||
Related Party Transactions (Details) [Line Items] | |||||
Due to related party balance | $ 10,662 | 1,379,310 | |||
Mr. Jian Lin [Member] | |||||
Related Party Transactions (Details) [Line Items] | |||||
Due to related party balance | $ 295,336 | $ 298,851 |
Related Party Transactions (D_2
Related Party Transactions (Details) - Schedule of forth major related parties | 12 Months Ended |
Dec. 31, 2021 | |
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 |
Nisun International Enterprise Management Group Co., Ltd (“Nisun Cayman”) [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Group | A shareholder who owns 23.75% 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 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] $ / shares in Units, ¥ in Thousands | Feb. 02, 2022$ / sharesshares | Jan. 14, 2022USD ($) | Jan. 14, 2022CNY (¥) | Jan. 13, 2022$ / shares |
Subsequent Events (Details) [Line Items] | ||||
Cash consideration | $ 80,280 | ¥ 510 | ||
Class A Common Stock [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Common stock with a par value (in Dollars per share) | $ / shares | $ 0.001 | |||
Common stock, shares authorized | 310,000,000 | |||
Common shares divided | 300,000,000 | |||
Class B Common Stock [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Common stock with a par value (in Dollars per share) | $ / shares | $ 0.001 | |||
Common shares divided | 10,000,000 | |||
Henan Youjiatian Agricultural Technology Co., Ltd [Member] | ||||
Subsequent Events (Details) [Line Items] | ||||
Equity interest | 51.00% | 51.00% |
Restricted Net Assets (Details)
Restricted Net Assets (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure Text Block Supplement [Abstract] | ||
Net after-tax profits, percentage | 10.00% | |
Reserve reaches | 50.00% | |
Statutory reserve balance | $ 6,942,111 | $ 2,190,847 |
Condensed Financial Informati_3
Condensed Financial Information of the Parent Company (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Restricted net assets description | Such restricted net assets amounted to approximately $64.6 million, or 35.0% of the Group’s total consolidated net assets, as of December 31, 2021. |
Condensed Financial Informati_4
Condensed Financial Information of the Parent Company (Details) - Schedule of condensed balance sheets - VIE's [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Assets: | ||
Cash and cash equivalents | $ 68,296,949 | $ 2,426 |
Due from intercompany and others | 7,582,199 | 14,951,086 |
TOTAL CURRENT ASSETS | 75,879,148 | 14,953,512 |
Other non-current asset | ||
Investment in subsidiaries, VIE, and VIEs’ subsidiaries | 115,680,581 | 80,260,786 |
TOTAL ASSETS | 191,559,729 | 95,214,298 |
CURRENT LIABILITIES | ||
Accrued expenses and other liabilities | 10,933,373 | 18,371,779 |
TOTAL CURRENT LIABILITIES | 10,933,373 | 18,371,779 |
Commitments and contingencies | ||
Shareholders’ equity | ||
Additional paid-in capital | 130,318,637 | 59,472,255 |
Unearned compensation | (125,630) | (624,455) |
Retained earnings | 37,819,226 | 9,629,712 |
Statutory reserve | 6,942,111 | 4,751,264 |
Accumulated other comprehensive income | 5,632,199 | 3,593,188 |
Total shareholders’ equity | 180,626,356 | 76,842,519 |
Total liabilities and shareholders’ equity | 191,559,729 | 95,214,298 |
Class A Common Stock | ||
Shareholders’ equity | ||
Common stock, value | 39,813 | 20,555 |
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) - VIE's [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Statement of Income Captions [Line Items] | |||
Selling and marketing | $ (15,005) | ||
Administrative | (3,071,681) | $ (1,098,668) | (408,656) |
Other income (expense) | (820) | ||
Share of profit (loss) in subsidiaries, VIEs and VIEs’ subsidiaries | 33,452,042 | (11,993,122) | 3,164,471 |
Net income (loss) | 30,380,361 | (13,091,790) | 2,739,990 |
Foreign currency translation adjustment | 2,039,011 | 5,507,420 | (561,091) |
Comprehensive income (loss) | 32,419,372 | (7,584,370) | 2,178,899 |
Comprehensive loss attributable to non-controlling interests | (2,051) | (2,172) | |
Comprehensive (loss) income attributable to shareholders | $ 32,421,423 | $ (7,582,198) | $ 2,178,899 |
Condensed Financial Informati_6
Condensed Financial Information of the Parent Company (Details) - Schedule of condensed statement of cash flows - VIE's [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 30,380,361 | $ (13,091,790) | $ 2,739,990 |
Adjustments to reconcile net income (loss) to net cash used in operating activities | |||
Share of profit (loss) in subsidiaries, VIEs and VIEs’ subsidiaries | (33,449,939) | 11,991,588 | (3,164,471) |
Shares-based compensation | 570,000 | 1,097,415 | |
Due from intercompany and others | (364) | (38,561) | |
Accrued expenses and other current liabilities | 467,648 | ||
Net cash (used in) provided by operating activities | (2,499,942) | (2,787) | 4,606 |
Cash flows from financing activities: | |||
Proceeds from issuance of shares and warrants | 70,794,465 | ||
Net cash provided by financing activities | 70,794,465 | ||
Net increase (decrease) in cash and cash equivalents | 68,294,523 | (2,787) | 4,606 |
Cash and cash equivalents at beginning of the year | 2,426 | 5,213 | 607 |
Cash and cash equivalents at end of the year | $ 68,296,949 | $ 2,426 | $ 5,213 |