Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2021shares | |
Document Information Line Items | |
Entity Registrant Name | POWERBRIDGE TECHNOLOGIES CO., LTD. |
Trading Symbol | PBTS |
Document Type | 20-F |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | 56,794,773 |
Amendment Flag | false |
Entity Central Index Key | 0001754323 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Non-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 | true |
Entity Shell Company | false |
Entity Ex Transition Period | false |
ICFR Auditor Attestation Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-38851 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 1st Floor |
Entity Address, Address Line Two | Building D2 |
Entity Address, Address Line Three | Southern Software Park |
Entity Address, City or Town | Zhuhai |
Entity Address, Postal Zip Code | 519080 |
Entity Address, Country | CN |
Title of 12(b) Security | Ordinary shares, par value $0.00166667 |
Security Exchange Name | NASDAQ |
Entity Interactive Data Current | Yes |
Document Accounting Standard | U.S. GAAP |
Auditor Name | Audit OneStop Assurance PAC |
Auditor Location | Singapore |
Auditor Firm ID | 6732 |
Business Contact | |
Document Information Line Items | |
Entity Address, Address Line One | 1st Floor |
Entity Address, Address Line Two | Building D2 |
Entity Address, Address Line Three | Southern Software Park |
Entity Address, City or Town | Zhuhai |
Entity Address, Postal Zip Code | 519080 |
Entity Address, Country | CN |
Contact Personnel Name | Stewart Lor |
Local Phone Number | 756-339-5666 |
City Area Code | 86 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
CURRENT ASSETS: | ||
Cash and cash equivalent | $ 6,960,996 | $ 8,389,704 |
Restricted cash | 95,252 | |
Accounts receivable, net | 24,217,737 | 14,314,985 |
Due from related parties | 1,496,093 | 652,873 |
Loans to third parties | 3,816,618 | 5,365,517 |
Contract costs | 4,041,585 | |
Prepayments, deposits and other current assets, net | 2,035,412 | 1,999,281 |
Total Current Assets | 38,622,108 | 34,763,945 |
Property and equipment, net | 10,262,418 | 7,184,101 |
Prepayments, deposits and other assets, net | 381,656 | 385,607 |
Loan receivable – long term | 64,951,511 | 63,434,483 |
Deferred tax assets | 601,271 | 415,131 |
Total Assets | 114,818,964 | 106,183,267 |
CURRENT LIABILITIES: | ||
Bank loans | 4,393,811 | 4,597,701 |
Accounts payable | 20,364,911 | 24,282,921 |
Accounts payable-Related party | 734,263 | |
Convertible loans | 2,251,832 | |
Customer deposits | 575,303 | 573,243 |
Deferred revenue | 1,344,637 | 1,095,279 |
Loan from third party | 470,765 | |
Accrued expenses and other current liabilities | 835,314 | 2,170,651 |
Due to related party | 218,862 | 71,020 |
Taxes payable | 730,924 | 698,935 |
Total Current Liabilities | 31,920,622 | 33,489,750 |
Total Liabilities | 31,920,622 | 33,489,750 |
COMMITMENTS AND CONTINGENCIES | ||
EQUITY: | ||
Ordinary shares, 0.00166667 par value; 300,000,000 shares authorized; 56,794,773 and 45,777,318 shares issued and outstanding as of December 31, 2021 and December 31, 2020 | 94,660 | 76,296 |
Additional Paid-in Capital | 117,937,928 | 100,149,397 |
Accumulated deficit | (37,575,834) | (28,234,492) |
Accumulated other comprehensive (loss) income | 2,698,884 | 814,343 |
Total Powerbridge Technologies Co., Ltd.’s Shareholders’ Equity | 83,155,638 | 72,805,544 |
Non-controlling interest | (257,296) | (112,027) |
Total Equity | 82,898,342 | 72,693,517 |
Total Liabilities and Equity | $ 114,818,964 | $ 106,183,267 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Ordinary Shares, par value (in Dollars per share) | $ 0.00166667 | $ 0.00166667 |
Ordinary Shares, shares authorized | 300,000,000 | 300,000,000 |
Ordinary Shares, shares issued | 56,794,773 | 45,777,318 |
Ordinary Shares, shares outstanding | 56,794,773 | 45,777,318 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive (Loss) Income - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
REVENUES: | ||||
Application development services | $ 20,323,422 | $ 21,985,214 | $ 15,720,676 | |
Consulting and technical support services | 4,555,352 | 3,797,354 | 3,307,662 | |
Subscription services | 936,913 | 881,443 | 1,066,720 | |
Trading revenue | 6,277,141 | |||
Total revenues | 32,092,828 | 26,664,011 | 20,095,058 | |
COST OF REVENUES | ||||
Cost of application development services | 12,785,491 | 15,320,446 | 12,553,556 | |
Cost of consulting and technical support services | 2,198,310 | 1,803,239 | 1,339,133 | |
Cost of subscription services | 156,113 | 147,631 | 137,658 | |
Cost of trading revenue | 6,237,601 | |||
Total cost of revenues | 21,377,515 | 17,271,316 | 14,030,347 | |
GROSS PROFIT | 10,715,313 | 9,392,695 | 6,064,711 | |
OPERATING EXPENSES | ||||
Sales and marketing | 2,775,526 | 2,675,028 | 3,562,425 | |
General and administrative | 6,004,186 | 5,559,426 | 5,945,576 | |
Provision for doubtful accounts | 1,100,606 | 191,148 | 3,293,600 | |
Research and development | 2,611,742 | 2,780,944 | 2,163,658 | |
Share based compensation | 6,335,246 | 1,473,976 | 2,351,890 | |
Total operating expenses | 18,827,306 | 12,680,522 | 17,317,149 | |
OPERATING LOSS | (8,111,993) | (3,287,827) | (11,252,438) | |
OTHER (EXPENSE) INCOME | ||||
Other (expense) income | (36,881) | 106,026 | 252,109 | |
Gain from disposition of a subsidiary | 714 | |||
Change in fair value of convertible debt | (1,508,229) | (15,258,333) | ||
Total other (expense) income | (1,544,396) | (15,152,307) | 252,109 | |
LOSS BEFORE INCOME TAXES | (9,656,389) | (18,440,134) | (11,000,329) | |
INCOME TAX BENEFITS | (173,941) | (80,532) | (213,347) | |
NET LOSS | (9,482,448) | (18,359,602) | (10,786,982) | |
Less: loss attributable to non-controlling interests | (141,106) | (105,945) | (145) | |
NET LOSS ATTRIBUTABLE TO POWERBRIDGE | (9,341,342) | (18,253,657) | (10,786,837) | |
OTHER COMPREHENSIVE (LOSS) INCOME | ||||
Foreign currency translation adjustment | 1,880,131 | 809,672 | (101,857) | |
COMPREHENSIVE LOSS | (7,602,317) | (17,549,930) | (10,888,839) | |
Less: comprehensive loss attributable to non-controlling interest | (145,516) | (112,103) | (144) | |
COMPREHENSIVE LOSS ATTRIBUTABLE TO POWERBRIDGE | $ (7,456,801) | $ (17,437,827) | $ (10,888,695) | |
WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES * | ||||
Basic and diluted (in Shares) | [1] | 49,264,375 | 16,150,065 | 8,388,481 |
LOSS PER SHARE | ||||
Basic and diluted (in Dollars per share) | $ (0.19) | $ (1.13) | $ (1.29) | |
[1] | Shares and per share data are presented on a retroactive basis to reflect the nominal share issuance and share split on August 18, 2018 and February 10, 2019. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) | Common Stock | Share subscription receivable | Additional Paid-in Capital | Retained Earnings (accumulated deficit) | Non-controlling interest | Accumulated other comprehensive income (loss) | Total | |
Balance at Dec. 31, 2018 | $ 11,509 | $ (11,509) | $ 5,519,507 | $ 806,002 | $ 100,371 | $ 6,425,880 | ||
Balance (in Shares) at Dec. 31, 2018 | [1] | 6,905,248 | ||||||
Issuance of shares – initial public offering, net of issuance costs | $ 3,354 | 11,509 | 8,007,124 | 8,021,987 | ||||
Issuance of shares – initial public offering, net of issuance costs (in Shares) | [1] | 2,012,500 | ||||||
Capital contribution by non-controlling shareholder | 129 | 129 | ||||||
Restricted shares issued for services | $ 83 | 18,347 | 18,430 | |||||
Restricted shares issued for services (in Shares) | [1] | 50,000 | ||||||
Options granted for services | 2,333,460 | 2,333,460 | ||||||
Net loss for the year | (10,786,837) | (145) | (10,786,982) | |||||
Foreign currency translation adjustment | 1 | (101,858) | (101,857) | |||||
Balance at Dec. 31, 2019 | $ 14,946 | 15,878,438 | (9,980,835) | (15) | (1,487) | 5,911,047 | ||
Balance (in Shares) at Dec. 31, 2019 | [1] | 8,967,748 | ||||||
Issuance of shares for private placement | $ 14,667 | 17,585,333 | 17,600,000 | |||||
Issuance of shares for private placement (in Shares) | [1] | 8,800,000 | ||||||
Conversion of convertible note | $ 46,297 | 65,212,036 | 65,258,333 | |||||
Conversion of convertible note (in Shares) | [1] | 27,777,776 | ||||||
Options granted | 986,629 | 986,629 | ||||||
Capital contribution by non-controlling shareholder | 91 | 91 | ||||||
Restricted shares issued for services | $ 386 | 486,961 | 487,347 | |||||
Restricted shares issued for services (in Shares) | [1] | 231,794 | ||||||
Net loss for the year | (18,253,657) | (105,945) | (18,359,602) | |||||
Foreign currency translation adjustment | (6,158) | 815,830 | 809,672 | |||||
Balance at Dec. 31, 2020 | $ 76,296 | 100,149,397 | (28,234,492) | (112,027) | 814,343 | 72,693,517 | ||
Balance (in Shares) at Dec. 31, 2020 | [1] | 45,777,318 | ||||||
Options granted | 5,873,566 | 5,873,566 | ||||||
Issuance shares at the market offering | $ 2,711 | 5,125,766 | 5,128,477 | |||||
Issuance shares at the market offering (in Shares) | [1] | 1,626,327 | ||||||
Conversion of convertible loans | $ 7,886 | 6,335,286 | 6,343,172 | |||||
Conversion of convertible loans (in Shares) | [1] | 4,731,028 | ||||||
Issuance of shares issued for services | $ 1,035 | 460,645 | 461,680 | |||||
Issuance of shares issued for services (in Shares) | [1] | 621,182 | ||||||
Issuance of shares issued for options exercised | $ 40 | (40) | ||||||
Issuance of shares issued for options exercised (in Shares) | [1] | 23,954 | ||||||
Issuance of reserve shares | $ 6,692 | (6,692) | ||||||
Issuance of reserve shares (in Shares) | 4,014,964 | |||||||
Capital contribution by non-controlling shareholder | 247 | 247 | ||||||
Net loss for the year | (9,341,342) | (141,106) | (9,482,448) | |||||
Foreign currency translation adjustment | (4,410) | 1,884,541 | 1,880,131 | |||||
Balance at Dec. 31, 2021 | $ 94,660 | $ 117,937,928 | $ (37,575,834) | $ (257,296) | $ 2,698,884 | $ 82,898,342 | ||
Balance (in Shares) at Dec. 31, 2021 | [1] | 56,794,773 | ||||||
[1] | Shares and per share data are presented on a retroactive basis to reflect the nominal share issuance and share split on August 18, 2018 and February 10, 2019. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net loss | $ (9,482,448) | $ (18,359,602) | $ (10,786,982) |
Adjustments to reconcile net income from operations to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 2,016,719 | 1,451,572 | 952,204 |
Provision for doubtful accounts | 1,100,606 | 191,148 | 3,293,600 |
Share based compensation | 6,335,246 | 1,473,976 | 2,351,890 |
Loss from disposal of property and equipment | 4,661 | 1,548 | 18,916 |
Deferred tax benefit | (174,076) | (80,641) | (224,511) |
Change in fair value of convertible debt | 1,508,229 | 15,258,333 | |
Accrued interest of convertible debt | 226,775 | ||
Gain from disposition of a subsidiary | (714) | ||
Changes in assets and liabilities: | |||
Notes receivable | 217,259 | 91,197 | |
Accounts receivable | (10,459,509) | (2,004,618) | 714,690 |
Contract costs | 4,088,073 | (795,174) | (3,022,727) |
Prepayments, deposits and other assets | (70,480) | (1,196,470) | 616,243 |
Accounts payable | (4,444,198) | 3,010,706 | 3,772,182 |
Accounts payable-related party | 725,362 | ||
Bills payable | (465,598) | ||
Accrued expenses and other current liabilities | (1,359,673) | 860,110 | 395,781 |
Prepaid expense – related parties | 813,038 | (812,579) | |
Taxes payable | 15,089 | (216,624) | 13,160 |
Deferred revenue | 220,459 | 158,474 | (312,305) |
Customer deposits | (11,507) | 268,706 | 144,245 |
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | (9,761,386) | 1,051,741 | (3,260,594) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Loans to third parties | 1,653,246 | (64,281,291) | (692,230) |
Purchases of property and equipment | (4,894,563) | (1,623,312) | (2,901,891) |
Proceeds from disposal of property and equipment | 1,907 | 70 | |
NET CASH USED IN INVESTING ACTIVITIES | (3,239,410) | (65,904,533) | (3,594,121) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from bank loans | 4,340,547 | 6,517,739 | 1,592,300 |
Repayments of bank loans | (4,650,586) | (3,765,757) | (1,519,955) |
Proceeds from Initial Public Offering | 10,062,500 | ||
Payment of Initial Public Offering costs | (2,040,513) | ||
Proceeds from private placement | 5,128,477 | 17,600,000 | |
Proceeds from issuance of convertible note | 6,860,000 | 50,000,000 | |
Payments to related parties | (681,473) | (308,284) | (370,000) |
Proceeds from related parties | 159,944 | ||
Loan from third party | 465,059 | ||
Capital contribution by non-controlling shareholder | 247 | 91 | 129 |
NET CASH PROVIDE BY FINANCING ACTIVITIES | 11,462,271 | 70,043,789 | 7,884,405 |
EFFECT OF EXCHANGE RATE CHANGES | 205,069 | (2,745,717) | (103,426) |
(DECREASE) NET INCREASE IN CASH AND RESTRICTED CASH | (1,333,456) | 2,445,280 | 926,264 |
CASH AND RESTRICTED CASH - beginning of year | 8,389,704 | 5,944,424 | 5,018,160 |
CASH AND RESTRICTED CASH - end of year | 7,056,248 | 8,389,704 | 5,944,424 |
Cash paid for: | |||
Interest | 211,197 | 203,289 | 123,278 |
Income taxes | 3,836 | 15,706 | 107,074 |
NON-CASH TRANSACTIONS OF INVESTING AND FINANCING ACTIVITIES | |||
Reclassification of deferred offering costs to additional paid in capital | 400,640 | ||
Warrants issued to placement agents in connection with the Company’s Initial Public Offering | 356,200 | ||
Conversion of convertible loans | 6,343,172 | ||
RECONCILIATION TO AMOUNTS ON CONSOLIDATED BALANCE SHEETS: | |||
Cash | 6,960,996 | 8,389,704 | 5,772,055 |
Restricted cash | 95,252 | 172,369 | |
Total cash and restricted cash | $ 7,056,248 | $ 8,389,704 | $ 5,944,424 |
Nature of Business and Organiza
Nature of Business and Organization | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Nature of business and organization | Note 1 — Nature of business and organization Powerbridge Technologies Co., Ltd. (“Powerbridge” or the “Company”), is a company that was established under the laws of the Cayman Islands on July 27, 2018 as a holding company. The Company, through its subsidiaries (collectively the “Company”), is a provider of software application and technology services to corporate and government customers engaged in global trade. Mr. Ban Lor, the Company’s Chairman of the Board and Chief Executive Officer (“CEO”), together with his brother, Mr. Stewart Lor, the Company’s Chief Financial Officer (“CFO”) are the ultimate Controlling Shareholders of the Company. Initial Public Offering On April 4, 2019, the Company consummated its initial public offering (“IPO”) of 2,012,500 Ordinary Shares at a price of $5.00 per shares including the exercise in full of the underwriters' over-allotment option of 262,500 ordinary shares at IPO price of $5.00 per share. The gross proceeds from the IPO were $10,062,500 and the net proceeds was $8,021,987. As a result of the IPO, the Ordinary Shares now trade on the Nasdaq Capital Market under the symbol “PBTS.” 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. The ongoing COVID-19 pandemic has resulted in a reduction in economic activity by adversely affecting production, creating supply chain and market disruption. Substantially most of our revenues and our workforce are concentrated in China. Consequently, the Company has experienced delayed customer payments and rescheduled customer orders. Since the COVID-19 pandemic has been gradually contained in China, our revenue and gross margin for the year ended December 31, 2020 and 2021 has not been adversely affected. However, any potential impact to the Company’s results will depend on, to a large extent, future developments and new information that may emerge regarding the duration and severity of the COVID-19 and the actions taken by government authorities and other entities to contain the COVID-19 or treat its impact, almost all of which are beyond the Company’s control. Reorganization A reorganization of the Company’s legal structure was completed on August 27, 2018. The reorganization involved the incorporation of Powerbridge, a Cayman Islands holding company, and its wholly owned subsidiaries, Powerbridge Technologies Co., Limited (“Powerbridge HK”), a holding company incorporated on July 27, 2018 under the laws of Hong Kong; and the transfer of all equity ownership of Zhuhai Powerbridge Technology Co., Ltd. (“Powerbridge Zhuhai”) to Powerbridge HK from the former shareholders of Powerbridge Zhuhai through an investment holding company. In consideration of the transfer, the Company issued 11,508,747 shares of the Company with par value 0.001 per share to the former shareholders of Powerbridge Zhuhai. On February 10, 2019, the board of directors approved a reverse stock split of the Company’s authorized number of Ordinary Shares at a ratio of 1-0.6. After the reverse stock split, the Company’s authorized number of Ordinary Shares was 300,000,000 shares with par value of $0.00166667 per share and 6,905,248 shares were issued and outstanding immediately after the reverse stock split. The Company has retroactively adjusted all shares and per share data for all the periods presented. Prior to the reorganization, Powerbridge Zhuhai’s equity interests were held by the former shareholders through an investment holding company, of which the Controlling Shareholders owned 84.9% of equity interest of Powerbridge Zhuhai. Powerbridge Zhuhai was incorporated on October 30, 1997 in Zhuhai, Guangdong province under the laws of the People’s Republic of China (the “PRC” or “China”). Powerbridge Zhuhai is an operating subsidiary that provides global trade software application and technology services to corporate and government customers located in the PRC. Beijing Powerbridge Technology Co., Ltd. (“Powerbridge Beijing”), a company conducting engineering and IT research and development activities, was incorporated on September 28, 2017 in Beijing under the laws of PRC, with Powerbridge Zhuhai owning 55% and Mr. Tianfei Feng owning 45% of equity interest. Since inception, Powerbridge Zhuhai and Mr. Tianfei Feng have only made nominal investments in Powerbridge Beijing and no substantial business operations have occurred; as a result, Powerbridge Zhuhai and Mr. Tianfei Feng agreed to deregister the entity. Mr. Tianfei Feng later became the Company’s Chief Research and Development Officer and the technology research and development activities originally conducted in Powerbridge Beijing are now conducted through the Beijing branch of Powerbridge Zhuhai. Powerbridge Beijing was deregistered on October 25, 2018. On August 7, 2018, the former shareholders transferred their 100% ownership interest in Powerbridge Zhuhai to Powerbridge HK, which is 100% owned by Powerbridge. After the reorganization, Powerbridge owns 100% equity interests of Powerbridge HK and Powerbridge Zhuhai. All shareholders have the same ownership interest in Powerbridge as in Powerbridge Zhuhai prior to the reorganization. Since the Company and its subsidiaries are effectively controlled by the same group of the shareholders before and after the reorganization, they are considered under common control. The above-mentioned transactions were accounted for as a recapitalization. The consolidation of the Company and its subsidiaries has been accounted for at historical cost and prepared on the basis as if the aforementioned transactions had become effective as of the beginning of the first period presented in the consolidated financial statements. For the year ended December 31, 2021, the details of the Company's principal subsidiaries are as follows: Major subsidiaries Percentage of Date of Place of Major Operation Powerbridge Technologies Co., Ltd. (“Powerbridge HK”) 100% by Powerbridge July 27, 2018 Hong Kong, PRC Investment holding Hongding Technology Co., Ltd (“Hongding”) 100% by Powerbridge July 28, 2020 Hong Kong, PRC Investment holding Powercrypto Holding Pte. Ltd. (“Powercrypto”) 100% by Powerbridge October 1, 2021 Singapore Management consultancy services Powerbridge Technologies Group Co., Ltd. (“Powerbridge Zhuhai”) 100% by Powerbridge HK October 30, 1997 the PRC software application and technology services Powerstream Supply Chain Co., Ltd. (“Powerstream”) 100% by Powerbridge HK August 17, 2021 the PRC Supply chain business Shenzhen Hongding Interconnect Technology Co., Ltd. 100% by Hongding October 21, 2020 the PRC software application and technology services Shantou Hongrui Information Technology Co., Ltd. (“Shantou Hongrui) * 38% by Powerbridge Zhuhai On August 19, 2019 the PRC software application and technology services Ningbo Powerbridge Pet Product Cross-border E-Commerce Service Co., Ltd. (“Ningbo Powerbridge”) (1) 60% by Powerbridge Zhuhai September 29, 2019 the PRC E-commerce Shenzhen Honghao Internet Technology Co., Ltd (“Honghao”) 100% by Hongding July 28, 2020 the PRC software application and technology services Wuhan Honggang Technology Co., Ltd (“Honggang”) 60% by Powerbridge Zhuhai June 21, 2019 the PRC software application and technology services Chongqing Powerbridge Zhixin Technology Co., Ltd* (“Zhixin”) 45% by Powerbridge Zhuhai September 2, 2019 the PRC software application and technology services Zhuhai Hongyang Supply Chain Co., Ltd. (“Zhuhai Hongyang”) 60% by Powerbridge Zhuhai July 21, 2021 the PRC Supply chain business Hunan Xinfei Digital Technology Co., Ltd. (“Hunan Xinfei”) 51% by Powerbridge Zhuhai August 2, 2021 the PRC software application and technology services Zhanjiang Hongqin Technology Co., Ltd. (“Zhanjiang Hongqin”) 51% by Powerbridge Zhuhai July 7, 2021 the PRC software application and technology services Ningbo Zhijing Tongfu Technology Co., Ltd. (“Ningbo Zhijing”) (2) 51% by Powerbridge Zhuhai April 25, 2021 the PRC software application and technology services (1) Certain third-party shareholders of Shantou Hongrui and Zhixin signed consents with the Company for the year ended December 31, 2021, which stated that the Company has the power and control to direct the activities that most significantly impact Shantou Hongrui and Zhixin and they unconditionally vote by consensus with the Company in all the board decisions. As such, the Company consolidates the financial results of Shantou Hongrui and Zhixin based on the voting power. On January 5, 2022, the Board approved to sell the Company’s 38% ownership interest in Shantou Hongrui to other shareholders for a price of $0. (2) On July 5, 2021, the Board approved to the sale of the Company’s 60% ownership interest to a third party of Ningbo Powerbridge for a cash consideration of $894. Management determined that this disposition did not represent a strategic shift and had no significant effect on the Company’s operations and financial results; therefore, no discontinued operations were presented. 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. The ongoing COVID-19 pandemic has resulted in a reduction in economic activity by adversely affecting production, creating supply chain and market disruption. Substantially most of our revenues and our workforce are concentrated in China. Consequently, the Company has experienced delayed customer payments and rescheduled customer orders. Since the COVID-19 pandemic has been gradually contained in China, our revenue and gross margin for the year ended December 31, 2021 has not been adversely affected. However, any potential impact to the Company’s results will depend on, to a large extent, future developments and new information that may emerge regarding the duration and severity of the COVID-19 and the actions taken by government authorities and other entities to contain the COVID-19 or treat its impact, almost all of which are beyond the Company’s control. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | Note 2 — Summary of significant accounting policies Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities Exchange Commission (“SEC”). Principles of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries. All intercompany transactions and balances are eliminated upon consolidation. All significant intercompany transactions and balances between the Company and its subsidiaries are eliminated upon consolidation. Subsidiaries are those entities 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. Non-controlling interest represents the portion of the net assets of a subsidiary attributable to interests that are not owned by the Company. The non-controlling interest is presented in the consolidated balance sheets, separately from equity attributable to the shareholders of the Company. Non-controlling interest’s operating result is presented on the face of the consolidated statements of income and comprehensive income as an allocation of the total income for the year between non-controlling shareholders and the shareholders of the Company. Liquidity For the year ended December 31, 2021, the Company had working capital of approximately $6.7 million and incurred a net loss of approximately $9.5 million. For fiscal 2021, the Company had negative operation cash flow of approximately $9.8 million. The Company has historically funded its working capital needs primarily from public offering, operations, bank loans, advance payments from customers and shareholders. The working capital requirements are affected by the efficiency of operations, the numerical volume and dollar value of revenue contracts, the progress or execution on customer contracts, and the timing of accounts receivable collections. In assessing its liquidity, the Company monitors and analyzes its cash on hand, its ability to generate sufficient revenue sources in the future and its operating and capital expenditure commitments. As of December 31, 2021, the Company had cash of approximately $7.0 million. On August 7, 2021, the Company entered into an amendment (the “Closing Statement”) to the securities purchase agreement initially entered into with YA on April 9, 2021 (the “Purchase Agreement”). Pursuant to the Purchase Agreement, YA agreed to purchase convertible notes (the “Notes”) in the aggregate principal amount of US$7,000,000 (the “Principal”), which shall be convertible into the Company’s ordinary shares par value $0.00166667 per share, and a warrant (the “Warrant”) to purchase 571,429 Ordinary Shares (the “Offering”), for gross proceeds of approximately US$6,790,000. The first closing of the offer and sale of the first Note (the “First Note”) in the principal amount of $4,000,000 was completed on April 9, 2021. Pursuant to the Closing Statement, the Company and YA agreed that, among other thing, (i) the Principal shall be increased to US$8,000,000; (ii) the principal amount of the second Note (the “Second Note”) is reduced from $3,000,000 to $2,000,000; (iii) the number of ordinary shares to be issued pursuant to the Warrant shall be increased from 571,429 to 653,061; and (iv) promptly after the Securities and Exchange Commission (the “SEC”) declares effective a registration statement to be filed by the Company pursuant to a registration rights agreement (the “Registration Rights Agreement”), YA agrees to purchase the third Note (the “Third Note”) in the principal amount of $2,000,000, which shall have identical terms as those of the Second Note. Except as expressly amended by the Closing Statement, the Second Note has essentially identical terms to the First Note. The closing of the second Note in the principal amount of $2,000,000 was completed on August 9, 2021. The Company believes that its cash on hand and financing cash flows will be sufficient to fund its operations over at least the next 12 months from the date of this report. However, the Company may need additional cash resources in the future if the Company experiences changed business conditions or other developments, and may also need additional cash resources in the future if the Company wishes to pursue opportunities for investment, acquisition, strategic cooperation or other similar actions. If it is determined that the cash requirements exceed the Company’s amounts of cash on hand, the Company may seek to issue debt or equity securities or obtain a credit facility. Use 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 disclosures of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Significant accounting estimates reflected in the Company’s consolidated financial statements include but not limited to the useful lives of property and equipment and capitalized development cost, impairment of long-lived assets, valuation of accounts receivables, valuation of convertible loans, loans to third parties, revenue recognition and realization of deferred tax assets and uncertain tax positions. Actual results could differ from these estimates. Foreign currency translation The functional currencies of the Company are the local currency of the county in which the subsidiaries operate. The Company’s financial statements are reported using U.S. Dollars. The results of operations and the consolidated statements of cash flows denominated in foreign currencies are translated at the average rates of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currencies is translated at the historical rates of exchange at the time of capital contributions. Because cash flows are translated based on the average translation rates, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive income (loss) included in consolidated statements of changes in equity. Gains and losses from foreign currency transactions are included in the consolidated statement of operations and comprehensive income (loss). Fair value measurement ASC 825-10 requires certain disclosures regarding the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: ● Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 — inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable and inputs derived from or corroborated by observable market data. ● Level 3 — inputs to the valuation methodology are unobservable. Unless otherwise disclosed, the fair value of the Company’s financial instruments including cash, notes and accounts receivable, due from related parties, prepayments, deposits and other current assets, notes and accounts payable, customer deposits, salaries and benefits payables, due to related party and taxes payable approximates their recorded values due to their short-term maturities. The fair value of the long-term prepayments, deposits and other assets and loans to third parties approximate their carrying amounts because the deposits were paid in cash. The Company elected the fair value option to account for its convertible loan. The Company engaged an independent valuation firm to perform the valuation. The fair value of the convertible loans is calculated using the binomial tree model. The convertible loans are classified as level 3 instruments as the valuation was determined based on unobservable inputs which are supported by little or no market activity and reflect the Company’s own assumptions in measuring fair value. Significant estimates used in developing the fair value of the convertible loans include time to maturity, risk-free interest rate, straight debt discount rate, probability to convert and expected timing of conversion. Refer to Note 9 for additional information. As the inputs used in developing the fair value for level 3 instruments are unobservable, and require significant management estimate, a change in these inputs could result in a significant change in the fair value measurement. The following is a reconciliation of the beginning and ending balances for convertible loans measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as of December 31, 2021 and 2020: December 31, December 31, 2021 2020 Opening balance $ - $ - Issuance of convertible loans 6,860,000 50,000,000 Loss on change in fair value of convertible loan 1,508,229 15,258,333 Accrued interest 226,775 - Conversion of convertible loan (6,343,172 ) (65,258,333 ) Total $ 2,251,832 $ - Cash and cash equivalent Cash and cash equivalent comprise cash at banks and on hand, which includes deposits with original maturities of three months or less with commercial banks in PRC. As of December 31, 2021 and 2020, cash balances were $6,960,996 and $8,389,704, respectively. Restricted cash Restricted cash mainly represents security deposits as required by certain customers on the Company’s projects. The deposits in restricted bank accounts cannot be withdrawn until the Company completes the related projects. Restricted cash is classified as either current or non-current based on when the funds will be released in accordance with the terms of the respective agreements. As of December 31, 2021 and 2020, restricted cash consists of cash equivalents of $95,252 and $ nil Accounts receivable, net Accounts receivable, net, is stated at the original invoiced amount net of write-offs and allowance for doubtful accounts. The Company reviews the accounts receivable on a periodic basis and makes allowances when there is doubt as to the collectability of individual balances. Past-due balances over 90 days are reviewed individually for collectability. In evaluating the collectability of individual accounts receivable balances, the Company considers several factors, including the age of the balance, the customer’s payment history, current credit-worthiness, and current economic trends. Accounts receivable balances are written off after all collection efforts have been exhausted. Typically, the Company includes unbilled receivables in accounts receivable for contracts on which revenue has been recognized, but for which the customer has not yet been billed. Unbilled receivables, substantially all of which are expected to be billed within one year are stated at their estimated realizable value and consist of costs and fees billable on contract completion or the occurrence of contractual payment phase. Prepayments, deposits and other assets, net Prepayment, deposit and other assets, net, primarily consists of advances to suppliers for purchasing goods or services that have not been received or provided; security deposits made to our customers; advances to employees and loan receivables from business partners. Prepayment, deposit and other assets are classified as either current or non-current based on the terms of the respective agreements. These advances are unsecured and are reviewed periodically to determine whether their carrying value has become impaired. Property and equipment, net Property and equipment, net, mainly comprise furniture and furniture, vehicles, computer and equipment are stated at cost less accumulated depreciation and impairment. Property and equipment are depreciated over the estimated useful lives of the assets on a straight-line basis, after considering the estimated residual value. The estimated useful lives are as follows: Useful Life Office equipment, fixtures and furniture 3-10 years Automobiles 5-8 years Capitalized development costs and software acquired 5-10 years Computer equipment 5 years Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and the related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is charged to the statement of income and comprehensive income. Capitalized development costs The Company follows the provisions of Accounting Standards Codification (“ASC”) 350-40, “Internal Use Software.” ASC 350-40 provides guidance on capitalization of the costs incurred for computer software developed or obtained for internal use in fiscal 2020. The Company follows the provisions of Accounting Standards Codification (“ASC”) 985-20, “Costs of Software to be Sold, Leased, or Marketed.” ASC 985-20 provides guidance on capitalization of the costs of software developed or obtained for sold, leased, or marketed in fiscal 2021.The Company expenses all costs incurred during the preliminary project stage of its development, and capitalizes costs incurred during the application development stage. Costs incurred relating to upgrades and enhancements to the application are capitalized if it is determined that these upgrades or enhancements add additional functionality to the application. The capitalized development cost is amortized on a straight-line basis over the estimated useful life, which is generally five years. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. Impairment for long-lived assets Long-lived assets, including property, equipment, furniture and fixtures and intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. When these events occur, the Company measures impairment by comparing the carrying values of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amounts of the assets, the Company would recognize an impairment loss based on the excess of the carrying value over the assessed discounted cash flow amount. For the years ended December 31, 2021, 2020 and 2019, the Company recognized nil Revenue recognition The Company adopted ASC Topic 606 Revenue from Contracts with Customers (“ASC 606”) on January 1, 2019 using the modified retrospective approach. Revenues for the year ended December 31, 2021, 2020 and 2019 were presented under ASC 606. There is no adjustment to the opening balance of retained earnings at January 1, 2019 since there was no change to the timing and pattern of revenue recognition upon adoption of ASC 606. Under ASC 606, revenue is recognized when control of promised goods or services is transferred to the Company’s customers in an amount of consideration to which an entity expects to be entitled to in exchange for those goods or services and is recorded net of value-added tax (“VAT”). To achieve that core principle, the Group applies the following steps: Step 1: Identify the contract (s) with a customer Step 2: Identify the performance obligations in the contract Step 3: Determine the transaction price Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation The Company derives its revenues from four sources: (1) revenue from application development services, (2) revenue from consulting and technical support services, (3) revenue from subscription services. All of the Company’s contracts with customer do not contain cancelable and refund-type provisions and (4) trading revenue. (1) Revenue from application development service The Company’s application development service contracts are primarily on a fixed-price basis, which require the Company to perform services including project planning, project design, application development and system integration based on customers’ specific needs. These services also require significant production and customization. Upon delivery of the services, customer acceptance is generally required. In the same contract, the Company is generally required to provide post-contract customer support (“PCS’) for a period from three months to three years (“PCS period”) after the customized application development services are delivered. The type of services for PCS clause is generally not specified in the contracts or as stand-ready services on when-and-if-available basis. The unspecified PCS is stand-ready service on when-and-if-available basis. It grants the customers on line and telephone access to technical support personnel during the term of the service. Specified PCS includes specified service term in the contract such as training. The Company’s application development service revenues are generated primarily from contracts with PRC government or related agencies and state-owned enterprises. The contracts contain negotiated billing terms which generally include multiple payment phases throughout the contract term and a significant portion (30% - 50%) of contract amount usually is billed upon the completion of the related projects. Pursuant to the contract terms, the Company has enforceable right on payments for the work performed. The Company sometimes provides a warranty for its application development service contracts. The warranty period is typically 12-36 months upon the completion of the application development service. In accordance with ASC 606-10-25-19, the Company believes the warranty provision in the contracts generally represents service-type warranty, which is a distinct performance obligation and the Company also provides the similar service on standalone basis and customers can benefit from the related service-type warranty service. For the service warranty component, the customer simultaneously receives and consumes the benefits provided by the company performance over the warranty term, therefore, the service warranty is satisfied over time. The revenue allocated to the service warranty is recognized over the warranty period. The Company assesses that application development service, PCS or specific service and service-type warranty service, if applicable, are distinct performance obligations in the application development service contracts. The Company provides these services on standalone basis and customers are able to benefit from each of the service on its own. In addition, the timing of delivery of these performance obligations can be separately identifiable in the contracts. The transaction price is allocated to these identified performance obligations based on the relative standalone selling prices. The transaction price allocated to PCS or unspecific service and service-type warranty, if applicable, on a straight-line method over the contractual period. Revenue allocated to specified PCS is recognized as the related services are rendered. The transaction price allocated to application development service is recognized over time as the Company’s performance creates or enhances the project controlled by the customer and the control is transferred continuously to our customers. The Company uses an input method based on cost incurred as the Company believes that this method most accurately reflects the Company’s progress toward satisfaction of the performance obligation, which usually takes less than one year. Under this method, the transaction price allocated to application development service is recognized as work is performed based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligations. Incurred costs include all direct material, labor and subcontract costs, and those indirect costs related to application development performance, such as indirect labor, supplies, and tools. Cost-based input method requires the Company to make estimates of revenues and costs to complete the construction. In making such estimates, significant judgment is required to evaluate assumptions related to the costs to complete the application development, including materials, labor, and other system costs. The Company’s estimates are based upon the professional knowledge and experience of our engineers and project managers to assess the contract’s schedule, performance, technical matters. The Company has adequate cost history and estimating experience, and with respect to which management believes it can reasonably estimate total development costs. If the estimated costs are greater than the related revenues, the Company recognizes the entire estimated loss in the period the loss becomes known and can be reasonably estimated. Changes in estimates for application development services include but not limited to cost forecast changes and change orders. The cumulative effect of changes in estimates is recorded in the period in which the revisions to estimates are identified and the amounts can be reasonably estimated. To date, the Company has not incurred a material loss on any contracts. However, as a policy, provisions for estimated losses on such engagements will be made during the period in which a loss becomes probable and can be reasonably estimated. If contract modifications result in additional goods or services that are distinct from those transferred before the modification, they are accounted for prospectively as if the Company entered into a new contract. If the goods or services in the modification are not distinct from those in the original contract, sales and gross profit are adjusted using the cumulative catch-up method for revisions in estimated total contract costs and contract values. In certain application development service arrangements, the Company sells and delivers IT equipment on standalone basis prior to the delivery of the services. In these cases, the Company controls the IT equipment before they are transferred to the customer. The Company has the right to direct the suppliers and control the goods or assets transferred to its customers. Thus, the Company considers it should recognize revenue as a principal in the gross amount of consideration to which it is entitled in exchange for the IT equipment delivered. The Company assesses the sale of equipment is separately identifiable from other promises in the contract and it is distinct performance obligation within the context of the contract. Accordingly, the revenue from the related IT equipment based on its relative standalone selling price is recognized upon customer acceptance after delivery. (2) Revenue from consulting and technical support services Revenue from consulting and technical support services is primarily comprised of fixed-fee contracts, which require the Company to provide professional consulting and technical support services over contract terms beginning on the commencement date of each contract, which is the date its service is made available to customers. Billings to the customers are generally on a monthly or quarterly basis over the contract term, which is typically 12 to 24 months. The consulting and technical support services contracts typically include a single performance obligation. The revenue from consulting and technical support services is recognized over the contract term on a straight-line basis as customers receive and consume benefits of such services. (3) Revenue from subscription services Revenue from subscription services is comprised of subscription fees from customers accessing the Company’s software-as-a-service applications for a subscribed period. The Company’s monthly or quarterly billing to customer is on the basis of number of uses or the actual usage by the customers. The subscription arrangements are considered service contracts because customers do not have the right to take possession of the software and can only benefit from the software when provided the right to access the software. Accordingly, the subscription services contracts typically include a single performance obligation. The revenue from subscription services is recognized over the contract term on a straight-line basis or based on the actual usage as customers receive and consume benefits of such services. (4) Trading revenue The Company started trading business (sales of consumables) for the year ended December 31, 2021 and recognized revenue at a point in time when control of such products transfers to the customer, which generally occurs upon shipment or delivery depending on the terms of the contracts with the customer. Product sale contracts typically include a single performance obligation and there are no rights of return. The transaction price is based on the fixed contractual price with the customer. Billings to the customer for the sale of products occur at the time the products are transferred to the customer. Revenue from trading business accounted less than 15% of the Company’s revenue for the year ended December 31, 2021. Revenue includes reimbursements of travel and out-of-pocket expense, with equivalent amounts of expense recorded in cost of revenue. The Company reports revenues net of value added tax (“VAT”). The Company’s subsidiaries in PRC are subject to a 6% to 13% value added tax (“VAT”) and related surcharges on the revenues earned from providing services or products. Practical Expedient and Exemptions The Company does not disclose the value of unsatisfied performance obligations within one year by applying the right to invoice practical expedient provided by ASC 606-10-55-18. Contract costs Contract costs include contract acquisition costs and contract fulfillment costs which are all recorded within prepayments, deposits, and other assets in the consolidated balance sheets. Contract acquisition costs consist of incremental costs incurred by the Company to originate contracts with customers. Contract acquisition costs, which generally include costs that are only incurred as a result of obtaining a contract, are capitalized when the incremental costs are expected to be recovered over the contract period. All other costs incurred regardless of obtaining a contract are expensed as incurred. Contract acquisition costs are amortized over the period the costs are expected to contribute directly or indirectly to future cash flows, which is generally over the contract term, on a basis consistent with the transfer of goods or services to the customer to which the costs relate. Contract fulfillments costs consist of costs incurred by the Company to fulfill a contract with a customer and are capitalized when the costs generate or enhance resources that will be used in satisfying future performance obligations of the contract and the costs are expected to be recovered. Capitalized contract fulfillment costs generally include contracted services, direct labor, materials, and allocable overhead directly related to resources required to fulfill the contract. Contract fulfillment costs are recognized in cost of revenue during the period that the related costs are expected to contribute directly or indirectly to future cash flows, which is generally over the contract term, on a basis consistent with the transfer of goods or services to the customer to which the costs are related. The contract fulfillment cost amounted to $ nil Contract balance The accounts receivable includes both unbilled accounts receivable and billed accounts receivable. The Company records unbilled accounts receivable for revenue that has been recognized in advance of billing the customer, which is common for application development service contracts. The unbilled accounts receivable represents the Company’s right to consideration in exchange for the service that the Company has performed to the customer before payment is due and the unbilled account receivable will be reclassified into billed accounts receivable when the Company has the right to invoice. Contract liabilities are presented as customer deposits and deferred revenue on the consolidated balance sheet. Contract liabilities relate to payments received in advance of completion of performance obligations under a contract. Contract liabilities are recognized as revenue upon the completion of performance obligations. As of December 31, 2021 and 2020, the balance of customer deposits amounted to $575,303 and $573,243, respectively. As of December 31, 2021 and 2020, the balance of deferred revenue amounted to $1,344,637 and $1,095,279, respectively. Government subsidies Government subsidies mainly represent amounts granted by local government authorities as an incentive for companies to promote development of the local technology industry. The Company receives government subsidies related to government sponsored projects, and records such government subsidies as a liability when it is received. The Company records government subsidies as other income when there is no further performance obligation. Advertising expenditures Advertising expenditures are expensed as incurred and such expenses were minimal for the periods presented. Advertising expenditures have been included as part of selling and marketing expenses. For the years ended December 31, 2021, 2020 and 2019, the advertising expense amounted to $279,979, $53,445 and 61,174, respectively. Operating leases A lease for which substantially all the benefits and risks incidental to ownership remain with the lessor is classified by the lessee as an operating lease. All leases of the Company are currently classified as operating leases. The Company records the total expenses on a straight-line basis over the lease term. Income taxes The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. 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. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. No significant penalties or interest relating to income taxes have been incurred during the years ended December 31, 2021, 2020 and 2019. All of the tax returns of the Company’s subsidia |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Accounts receivable, net | Note 3 — Accounts receivable, net Accounts receivable, net, consists of the following: As of December 31, 2021 2020 Accounts receivable $ 26,825,337 $ 15,896,127 Less: Allowance for doubtful accounts (2,607,600 ) (1,581,142 ) Total accounts receivable, net $ 24,217,737 $ 14,314,985 Unbilled accounts receivable included in accounts receivable above amounted to $13,067,528 and $7,526,282 as of December 31, 2021 and 2020, respectively. The unbilled accounts receivables as of December 31, 2021 are expected to be billed within one year and collected over one year. The billed accounts receivable is expected to be collected within one year. As of May 7, 2022, approximately $5.3 million (or 19.6%) of total accounts receivable as of December 31, 2021 was collected. It represented 31.4% of billed accounts receivable balance and 7.3% of unbilled accounts receivable balance as of December 31, 2021 were subsequently collected, respectively. Movement of allowance for doubtful accounts is as follows: As of December 31, 2021 2020 2019 Beginning balance $ 1,581,142 $ 1,669,658 $ 392,533 Provision (reverse) for doubtful accounts 1,011,760 - 3,276,200 Recovery - (189,286 ) - Written-off (34,879 ) - (1,984,244 ) Foreign currency translation adjustments 49,577 100,770 (14,831 ) Ending balance $ 2,607,600 $ 1,581,142 $ 1,669,658 |
Prepayments, Deposits and Other
Prepayments, Deposits and Other Assets, net | 12 Months Ended |
Dec. 31, 2021 | |
Prepayments Deposits And Other Assets Net [Abstract] | |
Prepayments, deposits and other assets, net | Note 4 — Prepayments, deposits and other assets, net Prepayments, deposits and other assets, net consisted of the following: As of December 31, 2021 2020 Security deposits (1) $ 381,813 $ 385,607 Advances to suppliers 1,483,084 1,508,022 Advances to employees 317,725 215,735 Prepaid expense 360,074 293,573 Others 188,216 288,464 2,730,912 2,691,401 Less: Long term portion (381,656 ) (385,607 ) Allowance for doubtful accounts (313,844 ) (306,513 ) Prepayments, deposits and other assets – current portion $ 2,035,412 $ 1,999,281 (1) Security deposits mainly represent contract fulfillment deposits required by customer for specific projects, rent deposits and etc. Movement of allowance for doubtful accounts is as follows: As of December 31, 2021 2020 2019 Beginning balance $ 306,513 $ 31,139 $ 14,047 Provision(recovery) for doubtful accounts 88,846 258,280 17,400 Write off (88,846 ) - - Foreign currency translation adjustments 7,331 17,094 (308 ) Ending balance $ 313,844 $ 306,513 $ 31,139 |
Loans to Third Parties
Loans to Third Parties | 12 Months Ended |
Dec. 31, 2021 | |
Loans To Third Parties [Abstract] | |
Loans to third parties | Note 5 — Loans to third parties Loans to third parties consisted of the following: As of December 31, 2021 2020 Unsecured loan receivable from third parties (1) $ 300,000 $ 704,981 Guaranteed loan receivable from media business (2) 68,468,129 68,095,019 68,768,129 68,800,000 Less: Long term portion (64,951,511 ) (63,434,483 ) Prepayments, deposits and other assets – current portion $ 3,816,618 $ 5,365,517 (1) As of December 31, 2020, the loan to third party amounted to $704,981 with annual interest rate approximately 8%, unsecured and within one year. The loan was collected upon maturity. As of December 31,2021, the loan to third party amounted to $300,000 with annual interest approximately 4.85% upon maturity, unsecured and due on March 7,2022. The interest rate raised to 10% after March 7, 2021. As of this filing date, the Company has not received any repayment from this loan. (2) Pursuant to the agreement with Shenzhen Kezhi Technology Co., Ltd.(“Kezhi”) on September 25, 2020 and a series of amendments entered during the period from September 25, 2020 to May 16, 2021, the Company intends to expand to media business through Kezhi. The Company originally planned to acquire certain media business assets from Kezhi, however, due to uncertainties in COVID-19, the Company and Kezhi ultimately reached into a final agreement (“Final agreement”) on May 16, 2021. Pursuant to the Final agreement, the Company agreed to extend a working capital support loan to Kezhi in aggregated of $69,723,504 (RMB444,320,000) with expected annual returns over two years and coupon interest rate of 5%. The company collected $1,255,375 (RMB8,000,000) in fiscal year 2021. As of December 31, 2021, the outstanding balance was $68,468,129 (RMB436,320,000). The expected annual return is as follows: Twelve months ending December 31, Expected 2022 $ 3,516,618 2023 64,951,511 Total return payments $ 68,468,129 The effective annual interest rate based on the expected annual return schedule was approximately 5%. The repayment of loan is guaranteed by a third-party company. As of December 31, 2021, based on the above repayment plan, the Company included $3,516,618 principal portion of the loan receivable in the current portion of loans to third parties and included $64,951,511 in the non-current portion of loans to third parties. The company collected $3,952,280 subsequently as of the date of this report. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, net | Note 6 — Property and equipment, net Property and equipment, net, consist of the following: As of December 31, 2021 2020 Computer equipment $ 544,972 $ 494,803 Office equipment, fixtures and furniture 2,133,433 2,084,615 Capitalized development cost and software acquired 10,464,573 8,081,105 Automobiles 224,713 165,149 Construction in Progress 2,656,120 - Subtotal 16,023,811 10,825,672 Less: accumulated depreciation and amortization (5,761,393 ) (3,641,571 ) Total $ 10,262,418 $ 7,184,101 Depreciation and amortization expense for the years ended December 31, 2021, 2020 and 2019 amounted to $324,367, $310,845 and $299,959, respectively. The Company capitalized development costs related to its core supporting modules of the global trade applications and solutions incurred during the application development stage. The amortization expense for the years ended December 31, 2021, 2020 and 2019 totaled $1,692,352, $1,140,727 and $652,245, respectively. In connection with the $1,569,218 short- term bank loan borrowed from Bank of Communication, the Company pledged its fixed assets of approximately $2.6 million as the collateral to secure the loan. The Company’s subsidiary Zhuhai Powerbridge had a capital project to purchase and decorate new offices, The total budget is approximately $5.6 million (RMB35.9 million), As of December 31, 2021, the Company has made total payment of approximately $3.4 million in connection with the project. This project is expected to be completed in August 2022. The estimated amortization of capitalized development cost is as follows: Twelve months ending December 31, Estimated 2022 $ 1,806,523 2023 1,620,236 2024 1,320,961 2025 787,770 2026 279,705 Total $ 5,815,195 |
Related Party Balances and Tran
Related Party Balances and Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related party balances and transactions | Note 7 — Related party balances and transactions Related party transactions and balances Name of Related Party Relationship to the Company Hengqin Baisheng Investment, GP Company has significant influence over with this entity. Guangzhou Powerbridge Blockchain Co., Ltd. a non-controlling shareholder of Powerbridge Ningbo Zongbo Jiang legal representative of Guangzhou Hongqiao Blockchain Co., Ltd, which the Company has significant influence over with Ban Lor CEO Stewart Lor CFO Hong Yu shareholder of Zhixin Ling Lor wife of CEO and director of the Company Hybridge Holding Limited Shareholder of the Company Guangodong Guangrui Network Technology Co., Ltd. (Guangdong Guangrui) Company has significant influence over with this entity. a Due from related parties: As of December 31, 2021 2020 Hengqin Baisheng Investment, GP (1) $ - $ 622,222 Guangzhou Powerbridge Blockchain Co., Ltd. (2) 132,345 129,254 Zongbo Jiang (3) - 30,651 Ling Lor (3) 8,661 - Ban Lor (3) 706,148 - Stewart Lor (3) 781,284 - Subtotal 1,628,438 782,127 Less: allowance for doubtful accounts (132,345 ) (129,254 ) Due from related parties, net $ 1,496,093 $ 652,873 (1) For the year ended December 31, 2019, the Company incurred consulting fee prepayment $685,167 to Hengqin Baisheng Investment, GP, which was a non-controlling shareholder of Powerbridge Ningbo. The balance of $622,222 as of December 31, 2020 was reclassified to due from related party in 2020. Hengqin Baisheng Investment, GP was no longer a related party along with the disposal of Ningbo Hongqiao on July 5, 2021. (2) The Company had consulting fee prepayment of $121,144 to Guangzhou Powerbridge Blockchain Co., Ltd. as of December 31, 2019, which the Company has significant influence over with. In 2020, both parties negotiated to terminate the consulting service. The balance of $129,254 as of December 31, 2020 was reclassified to due from related party and fully allowanced in 2020. (3) From time to time, the Company advances funds to senior management for business purpose. b Due to related party: As of December 31, 2021 2020 Hong Yu (1) $ 108,990 $ 62,165 Ling Lor (1) - 8,855 Hybridge Holding Limited (1) 109,872 - Subtotal $ 218,862 $ 71,020 (1) The above balances represent unpaid loan and expenses to these related parties. c Accounts payable-related party As of December 31, 2021 2020 Guangzhou Guangrui $ 734,263 $ - Subtotal $ 734,263 $ - d Purchase from related parties For the year ended 2021 2020 Guangzhou Guangrui $ 725,362 $ Subtotal $ 725,362 $ - |
Bank Loans
Bank Loans | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Bank loans | Note 8 — Bank loans Outstanding balance of short-term bank loans consisted of the following: December 31, December 31, Loan from Bank of Communication $ 1,569,218 $ 1,532,567 Loan from Bank of China 470,765 766,284 Loan from Guangfa Bank 2,353,828 2,298,850 $ 4,393,811 $ 4,597,701 On November 5, 2020, Powerbridge Zhuhai entered into a loan agreement with Bank of Communication to obtain a loan of $1,532,567 for a term of one year and at a fixed annual interest rate of 4.5675%. The bank loan was unsecured and guaranteed by a third party. The loan was fully repaid upon maturity. On November 4, 2021, Powerbridge Zhuhai entered into a loan agreement with Bank of Communication to obtain a loan of $880,239 for a term of one year and at a fixed annual interest rate of 4.5675%. The bank loan was unsecured and guaranteed by a third party. On November 11, 2021, Powerbridge Zhuhai entered into a loan agreement with Bank of Communication to obtain a loan of $688,979 for a term of one year and at a fixed annual interest rate of 4.5675%. The bank loan was unsecured and guaranteed by a third party. On March 4, 2020, Powerbridge Zhuhai entered into a loan agreement with Bank of China to obtain a loan of $459,770 for a term of one year and at a fixed annual interest rate of 4.55%. The bank loan was guaranteed by Mr. Ban Lor. The loan was fully repaid upon maturity. On December 14, 2020, Powerbridge Zhuhai entered into a loan agreement with Bank of China to obtain a loan of $306,514 for a term of one year and at a fixed annual interest rate of 4.50%. The bank loan was guaranteed by Mr. Ban Lor. The loan was fully repaid upon maturity. On March 9, 2021, Powerbridge Zhuhai entered into a loan agreement with Bank of China to obtain a loan of $470,765 for a term of one year and at a fixed annual interest rate of 4.50%. The bank loan was guaranteed by Mr. Ban Lor. The loan was fully repaid upon maturity subsequently. On January 2, 2020, Powerbridge Zhuhai entered into a loan agreement with Guangfa Bank to obtain a loan of $2,298,850 for a term of one year and at a fixed annual interest rate of 4.6%. The bank loan was guaranteed by Mr. Ban Lor and the company’s account receivable of some programs was pledged to secure the loan. The loan was fully repaid upon maturity. On March 10, 2021, Powerbridge Zhuhai entered into a loan agreement with Guangfa Bank to obtain a loan of $2,353,828 for a term of one year and at a fixed annual interest rate of 5.3%. The bank loan was guaranteed by Mr. Ban Lor and the company’s account receivable of some programs was pledged to secure the loan. The loan was fully repaid upon maturity subsequently. For the years ended December 31, 2021, 2020 and 2019, interest expense was $211,197, $203,289 and $123,278, respectively, with the weighted average interest rate of 5.0%, 4.7% and 4.9%, respectively. |
Convertible Note
Convertible Note | 12 Months Ended |
Dec. 31, 2021 | |
Convertible Debt [Abstract] | |
Convertible Note | Note 9 — Convertible Note On January 8, 2021, the Company entered into a securities purchase agreement (the “Purchase Agreement”) with Uptown Capital, LLC, a Utah limited liability company (the “Uptown”), pursuant to which the Company issued the Investor an unsecured promissory note on January 8, 2021 in the original principal amount of $1,650,000 (the “Note”), convertible into ordinary shares, par value $0.00166667 per share, of the Company, for $1,500,000 in gross proceeds. The transaction contemplated by the Purchase Agreement closed on January 8, 2021. The Note bears interest at a rate of 9% per annum compounding daily. All outstanding principal and accrued interest on the Note will become due and payable twelve months after the purchase price of the Note is delivered by Purchaser to the Company (the “Purchase Price Date”). The Note includes an original issue discount of $150,000 along with $20,000 for Uptown’s fees, costs and other transaction expenses incurred in connection with the purchase and sale of the Note. The Company may prepay all or a portion of the Note at any time by paying 120% of the outstanding balance elected for pre-payment. On April 9, 2021, the Company entered into certain securities purchase agreement with YA II PN, LTD. (“YA”), pursuant to which the Investor purchases convertible notes (the “Notes”) in the principal amount of US$7,000,000, which shall be convertible into the Company’s ordinary shares par value $0.00166667 per share, and a warrant to purchase 571,429 ordinary shares, for gross proceeds of approximately US$6,790,000. The Notes have a conversion price of the lower of (i) US$3.675 per ordinary shares (the “Fixed Conversion Price”), or (ii) 90% of the lowest daily VWAP (Volume-Weighted Average Price) during the 10 consecutive trading days immediately preceding the conversion date or other date of determination, but not lower than the floor price of US$1.50 per ordinary share. The principal will become due and payable 12 months from the date of closing (the “Maturity Date”) and bears an annual interest rate of 6% unless earlier converted or redeemed by the Company. At any time before the Maturity Date, YA may convert the Notes at its option into ordinary shares at the conversion price. On August 7, 2021, the Company entered into an amendment (the “Closing Statement”) to the securities purchase agreement initially entered into with YA on April 9, 2021 (the “Purchase Agreement”). Pursuant to the Purchase Agreement, YA agreed to purchase convertible notes (the “Notes”) in the aggregate principal amount of US$7,000,000 (the “Principal”), which shall be convertible into the Company’s ordinary shares par value $0.00166667 per share, and a warrant (the “Warrant”) to purchase 571,429 Ordinary Shares (the “Offering”), for gross proceeds of approximately US$6,790,000. The first closing of the offer and sale of the first Note (the “First Note”) in the principal amount of $4,000,000 was completed on April 9, 2021. Pursuant to the Closing Statement, the Company and YA agreed that, among other thing, (i) the Principal shall be increased to US$8,000,000; (ii) the principal amount of the second Note (the “Second Note”) is reduced from $3,000,000 to $2,000,000; (iii) the number of ordinary shares to be issued pursuant to the Warrant shall be increased from 571,429 to 653,061; and (iv) promptly after the Securities and Exchange Commission (the “SEC”) declares effective a registration statement to be filed by the Company pursuant to a registration rights agreement (the “Registration Rights Agreement”), YA agrees to purchase the third Note (the “Third Note”) in the principal amount of $2,000,000, which shall have identical terms as those of the Second Note. Except as expressly amended by the Closing Statement, the Second Note has essentially identical terms to the First Note. The first closing consists of offer and sale of a Note in the principal amount of $4,000,000. The first closing occurred on April 9, 2021.The second closing consists of offer and sale of a Note in principal amount of $2,000,000. The closing of the second Note in the principal amount of $2,000,000 was completed on August 9, 2021. Conversion of convertible note For the year ended December 31, 2021, Uptown delivered conversion notice for all convertible notes to the Company and the Company issued an aggregate of 1,676,437 restricted ordinary shares, par value $0.00166667 per share, of the Company, to Uptown. The fair value of the conversion note was assessed at $1,897,739 upon conversion based on the binomial model assessed by the independent valuation firm. July 14, 2021-September 8, 2021 Risk-free interest rate 0.05-0.06 % Expected life 0.33-0.49 year Discount rate 9.49-9.68 % Expected volatility 76.02-82.60 % Expected dividend yield 0 % Fair value $ 1,897,739 For the year ended December 31, 2021, YA delivered conversion notice for convertible notes in an aggregate of principle of $4,000,000 to the Company and the Company issued an aggregate of 3,054,591 restricted ordinary shares, par value $0.00166667 per share, of the Company, to YA. The fair value of the conversion note was assessed at $4,445,433 upon conversion based on the binomial model assessed by the independent valuation firm. The Company has elected to recognize the convertible loan at fair value and therefore there was no further evaluation of embedded features for bifurcation. The Company engaged third party valuation firm to perform the valuation of convertible loans. The fair value of the convertible loans is calculated using the binomial tree model based on probability of remaining as straight debt using discounted cash flow with the following assumptions April 9, 2021-August 13, 2021 Risk-free interest rate 0.05-0.07 % Expected life 0.65-0.99 year Discount rate 9.49-9.80 % Expected volatility 78.01-95.06 % Expected dividend yield 0 % Fair value $ 4,445,433 The convertible loans are classified as level 3 instruments as the valuation was determined based on unobservable inputs which are supported by little or no market activity and reflect the Group’s own assumptions in measuring fair value. Significant inputs used in developing the fair value of the convertible loans include time to maturity, risk-free interest rate, straight debt discount rate, probability to convert and expected timing of conversion. For the year ended December 31, 2021 and 2020, the Company recognized a loss of change in fair value of convertible loan of $1,508,229 and $15,258,333, respectively. Interest expense recognized for these convertible loans for the year ended December 31, 2021 and 2020 were $226,775 and $ nil |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Taxes | Note 10 — Taxes (a) Income tax Cayman Islands Powerbridge was incorporated in the Cayman Islands and is not subject to tax on income or capital gains under the laws of Cayman Islands. Additionally, the Cayman Islands does not impose a withholding tax on payments of dividends to shareholders. Hong Kong Powerbridge HK is established in Hong Kong. Under the Hong Kong tax laws, Powerbridge HK is exempted from income tax on its foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends. PRC Powerbridge Zhuhai is governed by the Enterprise Income Tax (“EIT”) laws of PRC. Under EIT laws of PRC, domestic enterprises and Foreign Investment Enterprises (the “FIE”) are usually subject to a unified 25% enterprise income tax rate while preferential tax rates, tax holidays and even tax exemption may be granted on case-by-case basis. EIT grants preferential tax treatment to certain High and New Technology Enterprises (“HNTEs”). Under this preferential tax treatment, HNTEs are entitled to an income tax rate of 15%, subject to a requirement that they re-apply for HNTE status every three years. Powerbridge Zhuhai, the Company’s operating subsidiary in PRC, has been approved as HNTEs in 2014 and successfully renewed it in 2020, which reduced its statutory income tax rate to 15%. The rest of the Company’s subsidiaries in PRC are subject to income tax rate of 25%. The impact of the preferred tax treatment noted above decreased income taxes by $89,850, $25,735 and $595,556 for the fiscal year 2021, 2020 and 2019, respectively. The benefit of the preferred tax treatment on net income per share (basic and diluted) was nil nil Significant components of the provision for income taxes are as follows: For the years ended December 31, 2021 2020 2019 Current $ 135 $ 109 $ 11,164 Deferred (174,076 ) (80,641 ) (224,511 ) Total income tax (benefits) expenses $ (173,941 ) $ (80,532 ) $ (213,347 ) The following table reconciles China statutory rates to the Company’s effective tax rate: For the years ended December 31, 2021 2020 2019 PRC statutory rates 25.0 % 25.0 % 25.0 % Preferential tax rates (25.8 )% (25.0 )% (16.9 )% R&D credits 3.0 % 1.7 % (3.4 )% Change in valuation allowance and others (0.4 )% (1.3 )% (2.8 )% Effective tax rate 1.8 % 0.4 % 1.9 % Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The significant components of the deferred tax assets are as follows: As of December 31, 2021 2020 Deferred tax assets: Provision for doubtful accounts $ 455,343 $ 302,536 Depreciation and amortization 145,928 112,595 Net operating loss carryforward 738,187 517,537 Valuation allowance (738,187 ) (517,537 ) Total deferred tax assets $ 601,271 $ 415,131 As of December 31, 2021, the Company has approximately $4.6 million net operating loss (“NOL”) carryforwards with expirations by 2026. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the cumulative earnings and projected future taxable income in making this assessment. Recovery of substantially all of the group’s deferred tax assets is dependent upon the generation of future income, exclusive of reversing taxable temporary differences. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are recoverable, management provided $738,187 and $517,537 valuation allowance against the deferred tax assets that the Company does not expect to realize at December 31, 2021 and 2020, respectively. (b) Value added tax Enterprises who sell goods in the PRC are subject to a value added tax in accordance with PRC laws. VAT standard rates are 6% to 13% of the gross sales price. A credit is available whereby VAT paid on the purchases of semi-finished products or raw materials used in the production of the Company’s finished products can be used to offset the VAT due on sales of the finished products and services. Powerbridge Zhuhai obtained a VAT preferential status for its technology development business, accordingly, the certain Company’s technology development business is exempted from VAT. (c) Tax payable Taxes payable consists of the following: As of December 31, 2021 2020 Income taxes payable $ 594,026 $ 565,506 VAT and other tax payable 136,898 133,429 Totals $ 730,924 $ 698,935 Uncertain tax positions The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated with the tax positions. As of December 31, 2021 and 2020, the Company did not have any significant unrecognized uncertain tax positions. The Company did not incur any interest and penalties related to potential underpaid income tax expenses for the years ended December 31, 2021 and 2020. The Company also does not anticipate any significant increases or decreases in unrecognized tax benefits in the next 12 months from December 31, 2021. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Equity | Note 11 — Equity Ordinary Shares Powerbridge was established under the laws of Cayman Islands on July 27, 2018. The original authorized number of Ordinary Shares was 500,000,000 shares with a par value of $0.0001 per share. On August 18, 2018, in order to optimize the Company’s share capital structure, the board of directors approved a reverse stock split of the Company’s authorized number of Ordinary Shares at a ratio of 10-1. After the reverse stock split, the Company’s authorized number of Ordinary Shares became 50,000,000 shares with par value of $0.001 per share and 11,508,747 shares were issued on August 27, 2018 at par value to the original shareholders of Powerbridge Zhuhai, the equivalent to share capital of $11,509. On February 10, 2019, the board of directors further approved a reverse stock split of the Company’s authorized number of Ordinary Shares at a ratio of 1-0.6. After the reverse stock split, the Company’s authorized number of Ordinary Shares was 300,000,000 shares with par value of $0.00166667 per share and 6,905,248 shares were issued and outstanding immediately after the reserve stock split. The Company believes it is appropriate to reflect these share issuances as nominal share issuance on a retroactive basis similar to stock split pursuant to ASC 260. The Company has retroactively adjusted all shares and per share data for all the periods presented. On September 30, 2020, the Company held its 2020 special general meeting of shareholders (the “Meeting”). At the Meeting, the Company’s shareholders approved the Company’s amended and restated Memorandum and Articles of Association (“A&R M&A”) to increase the authorized share capital. As a result, the Company’s authorized share capital is US$500,000 divided into 300,000,000 shares of a par value of US$0.00166667 each, with an increase of an additional 270,000,000 shares of a par value of US$0.00166667 each. The Company had 56,794,773 and 45,777,318 ordinary shares issued and outstanding as of December 31, 2021 and 2020, respectively. ● IPO On April 4, 2019, the Company consummated its initial public offering (“IPO”) of 2,012,500 Ordinary Shares at a price of $5.00 per shares including the exercise in full of the underwriters' over-allotment option of 262,500 ordinary shares at IPO price of $5.00 per share. The gross proceeds from the IPO were $10,062,500 and the net proceeds was $8,021,987. As a result of the IPO, the Ordinary Shares now trade on the Nasdaq Capital Market under the symbol “PBTS.” ● Public Offering Warrants In connection with the IPO on April 4, 2019, the Company issued warrants totaling 122,500 units to the placement agents (the “Public Offering Warrants”). The warrants carry a term of five years and shall be exercisable at $5.50 per share. Management determined that these warrants are equity instruments because the warrants are both a) indexed to its own stock; and b) classified in shareholders’ equity. The warrants were recorded at their fair value on the date of grant as a component of shareholders’ equity. No warrants were exercised for the year ended December 31, 2020 and 2019. As of December 31, 2021 and 2020, the total number of warrants outstanding was 122,500 with weighted average remaining life of 2.24 years and 3.25 years, respectively. No warrants were exercised as of December 31, 2021 and 2020. The fair value of this Public Offering Warrants was $356,200, which was considered a direct cost of IPO and included in additional paid-in capital. The fair value has been estimated using the Black-Scholes pricing model with the following weighted-average assumptions: market value of underlying share of $5.00, risk free rate of 2.2%; expected term of 5 years; exercise price of the warrants of $5.5, volatility of 71.9%; and expected future dividends of nil. ● Ordinary shares issued for consulting services On September 30, 2019, the Company entered into a marketing development service agreement with an external consultant for service term of three years and agreed to 50,000 restricted shares as compensation. On November 28, 2019, the Company entered into a marketing development service agreement with another external consultants for service term of three years and agreed to 57,540 restricted shares as compensation. The aggregated fair value of those restricted shares was assessed at $335,469 based on the stock price of contract dates. For the year ended December 31, 2019, the Company recorded a consulting fee expense of $18,430 included in the share-based compensation expense. As of December 31, 2019, there were unrecognized share-based compensation expense related to the restricted shares issued for consulting services amounted to $317,039. As of December 31, 2019, the Company issued 50,000 restricted shares and issued the remaining 57,450 restricted shares in January 2020. For the year ended December 31, 2019, the aggregated of 107,540 restricted shares was included in the calculation of basic earning per shares in accordance with ASC 260-10-45-13. On March 15, 2020, the Company signed a consulting agreement with an independent marketing professional with term of one year. Pursuant to the agreement, the Company agreed to pay total of 150,000 ordinary shares as compensation for the services after signing of the agreement. The Company issued 150,000 restricted ordinary shares on April 14, 2020. The fair value of those shares was assessed at approximately $332,100 based on the stock price of contract date. On July 30, 2020, the Company issued 24,254 ordinary shares as compensation to an advisory firm for the related investor relations advisory service during the period ended from January 2020 to July 2020. The fair value of those shares was assessed at approximately $65,001 based on the stock price of contract date. On September 26, 2020, the Company signed a consulting agreement with a third-party consultant. Pursuant to the agreement, the Company agreed to pay a total of 100,000 ordinary shares as compensation for new business segment strategic positioning and planning services. The Company has issued the above 100,000 shares as of December 31, 2021. On August 17, 2020, the Company signed a consulting agreement with a third-party consultant. Pursuant to the agreement, the Company agreed to pay a total of 10,000 ordinary shares as compensation for services. The Company has not issued the above 10,000 shares as of December 31, 2021. On October 19, 2021, the Company issued 21,182 ordinary shares as compensation to an advisory firm for the related investor relations advisory service . For the year ended December 31, 2021 and 2020, the Company recorded a consulting fee expense of $461,680 and $487,347 included in the share-based compensation expense. As of December 31, 2021 and 2020, there were unrecognized share-based compensation expense related to the restricted shares issued for consulting services amounted to $689,807 and $490,094. As of December 31, 2021, the aggregated of 10,000 shares legally issuable to the two third party consultants were included in the calculation of basic earning per shares in accordance with ASC 260-10-45-13. 2018 Stock option plan On August 18, 2018 and further amended on February 10, 2019, the Board of Directors (“Board”) approved an amended the 2018 Stock Option Plan (the “2018 Plan”). The Plan provides for discretionary grants of stock options to key employees, directors and consultants of the Company. The purpose of the Plan is to attract and retain the best available personnel and to promote the success of the Company’s business. The Board authorized that the maximum aggregate number of ordinary shares reserved and available pursuant to this Plan shall be the aggregate of (i) 1,035,787 shares, and (ii) on each January 1, starting with January 1, 2019, an additional number of shares equal to the lesser of (A) 2% of the outstanding number of ordinary shares (on a fully-diluted basis) on the immediately preceding December 31, and (B) such lower number of ordinary shares as may be determined by the Committee. The Plan shall become effective on the effective date of the Company’s contemplated initial public offering is completed, which was on April 4, 2019. The grants under the Plan generally have a maximum contractual term of ten years from the date of grant. Stock option awards granted under the plan at the determination of the Board shall be effective and exercisable after the Company’ completion of IPO of its securities. The terms of individual agreements for various grants under the Plan will be determined by the Board (or its Compensation Committee) and might contain both service and performance conditions. The Company believes the options contain an explicit service condition and a performance condition. On July 2, 2020, the Board approved to amend the 2018 Plan to adjust that the maximum aggregate number of ordinary shares reserved and available pursuant to the 2018 Plan shall not at any time exceed 20% of the total number of outstanding Ordinary Shares at the time of issuance, from time to time. Such amendment was approved during shareholders’ annual meeting on July 27, 2020. On April 4, 2019, the Board approved to issue 1,050,500 stock options to its employees under 2018 stock option plan with exercise price of $5.0 per share. These options generally have vesting periods of 1-3 years and will expire no later than April 3, 2024. On April 4, 2019, the Board approved to issue 300,000stock options to an external consultant under 2018 stock option plan with exercise price of $3.75 per share. These options were fully vested upon grant and will expire no later than April 3, 2029. On May 26, 2021, the Board approved to issue 7,604,964 stock options to its employees under 2018 stock option plan with exercise price of $1.22 per share. 4,014,964 of these stock options were fully vested upon grant; 3,590,000 of these stock options generally have vesting periods of 1-3 years. The options will expire no later than May 26, 2026. The fair value of stock options was determined at the date of grant using the Black-Scholes option pricing model. The Black-Scholes option model requires management to make various estimates and assumptions, including expected term, expected volatility, risk-free rate, and dividend yield. The expected term represents the period of time that stock-based compensation awards granted are expected to be outstanding and is estimated based on considerations including the vesting period, contractual term and anticipated employee exercise patterns. Expected volatility is based on the historical volatility of the Company’s stock. The risk-free rate is based on the U.S. Treasury yield curve in relation to the contractual life of stock-based compensation instruments. The dividend yield assumption is based on historical patterns and future expectations for the Company dividends. For the year ended December 31, 2021, assumptions used to estimate the fair value of stock options on the grant dates are as follows: Options Risk-free interest rate 0.81 % Expected life of the options 5 years Expected volatility 96.0 % Expected dividend yield - % Fair value $ 7,232,526 2018 Stock option plan A summary of activities of the stock options for the years ended December 31, 2020 and 2021 is presented as follows: Number of Weighted Weighted Aggregate US$ Year US$ Outstanding as of January 1, 2019 - - - - Granted 1,350,500 4.72 - - Expired, forfeited or cancelled - - - - Outstanding as of December 31, 2019 1,350,500 4.72 5.37 - Granted - - - - Expired, forfeited or cancelled - - - - Outstanding as of December 31, 2020 1,350,500 4.72 4.37 - Granted 7,604,964 1.22 4.40 Exercised (58,110 ) Outstanding as of December 31, 2021 8,897,354 1.74 4.23 - Exercisable as of December 31, 2021 5,034,334 1.93 4.21 - For the year ended December 31, 2021 and 2020, total share-based compensation expenses recognized for the share options granted were $5,873,566 and $986,629, respectively. As of December 31, 2021 and 2020, there were $2,415,370 and $1,056,410 unrecognized share-based compensation expenses related to the share options granted, respectively. 2020 Private placement On August 24, 2020, Company closed certain non-broker securities purchase agreements (the “SPAs”) with certain “non-U.S. Persons” (the “Purchasers”) as defined in Regulation S of the Securities Act of 1933, as amended (the “Securities Act”) pursuant to which the Company agreed to sell an aggregate of 8,800,000 ordinary shares, $0.00166667 par value per share of the Company (“Share”), at a per share purchase price of $2.00 (the “Offering”). The net proceeds to the Company from such Offering were $17.6 million. 2020 Conversion of convertible loan On November 16, 2020, the Company issued an aggregate of 27,777,776 restricted ordinary shares, par value $0.00166667 per share, of the Company, to the conversion note holders (Note 10). The fair value of the conversion note was assessed at $65,258,333 upon conversion based on the binomial model assessed by the independent valuation firm. 2021 Conversion of convertible loan On August 13, 2021, The Company issued an aggregate of 3,054,591 restricted ordinary shares, par value $0.00166667 per share, of the Company, to YA (Note 10). The fair value of the conversion note was assessed at $4,445,433 upon conversion based on the binomial model assessed by the independent valuation firm. On September 8 2021, Uptown delivered conversion notice for all convertible notes in an aggregate of principle of $1,650,000. The Company issued an aggregate of 1,676,437 restricted ordinary shares, par value $0.00166667 per share, of the Company, to Uptown. (Note 10). The fair value of the conversion note was assessed at $1,897,739 upon conversion based on the binomial model assessed by the independent valuation firm. Shares issued for reserve On August 5, 2021, the Company issued 4,014,964 ordinary shares held in an escrow account as reserve solely for potential stock options. As of December 31, 2021, no shares were transferred to the holders. 2021 At the market(“ATM”) offering On February 23, 2021, the Company entered into a Sales Agreement (the “Sales Agreement”) with A.G.P./Alliance Global Partners, as sales agent (the “Agent”), pursuant to which the Company may offer and sell, from time to time, through or to the Agent, as sales agent and/or principal (the “Offering”) up to $30,000,000 of its ordinary shares, par value $0.00166667 per share (the “Shares”). Any Shares offered and sold in the Offering will be issued pursuant to the Company’s Registration Statement on Form F-3 (the “Registration Statement”) filed with the Securities and Exchange Commission (the “SEC”) on February 23, 2021, and the sales agreement prospectus that forms a part of such Registration Statement, following such time as the Registration Statement is declared effective by the SEC, for an aggregate offering price of up to $200 million. For the year ended December 31, 2021, the Company sold 1,626,327 ordinary shares, par value $0.00166667 per share, through the ATM offering with net proceeds of $5,128,477. Additional paid-in capital As of December 31, 2021 and 2020, additional paid-in capital in the consolidated balance sheet represented the combined contributed capital of the Company’s subsidiaries. Statutory reserve Under PRC law, the Company’s subsidiary located in the PRC (collectively referred as the (“PRC entities”) are required to provide for certain statutory reserves. The PRC entities are required to allocate at least 10% of their after-tax profits on an individual company basis as determined under PRC accounting standards to the statutory reserve and has the right to discontinue allocations to the statutory reserve if such reserve has reached 50% of registered capital on an individual company basis. The Company’s subsidiaries in PRC had accumulated deficits for the years ended December 31, 2021 and 2020, as a result, the statutory reserve balances were Nil |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Note 12 — Commitments and contingencies Contingencies From time to time, the Company may be subject to certain legal proceedings, claims and disputes that arise in the ordinary course of business. Although the outcomes of these legal proceedings cannot be predicted, the Company does not believe these actions, in the aggregate, will have a material adverse impact on its financial position, results of operations or liquidity. Lease commitment The Company has entered into non-cancellable operating lease agreements for several offices and dormitory spaces for its employees. The leases are expiring through 2024. The Company’s commitments for minimum lease payment under these operating leases as of December 31, 2021 are as follow: Twelve months ending December 31, Minimum lease payment 2022 $ 178,516 2023 32,313 2024 19,023 Total $ 229,852 Rent expense for the years ended December 31, 2021, 2020 and 2019 were $307,497, $305,832 and $492,530, respectively. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment reporting | Note 13 — Segment reporting For the years ended December 31, 2021 and 2020, the Company’s CODM reviewed the financial information of the business carried out by the Company on a consolidated basis. Therefore, the Company has one operating segment, which is the provision of global trade software application and technology services. The Company operates solely in the PRC and all of the Company’s long-lived assets are located in the PRC. The following table presents revenues by the service lines: For the Years Ended December 31, 2021 2020 2019 REVENUES: Application development services* $ 20,323,422 $ 21,985,214 $ 15,720,676 Consulting and technical support services 4,555,352 3,797,354 3,307,662 Subscription services 936,913 881,443 1,066,720 Trading revenue 6,277,141 - - Total revenues $ 32,092,828 $ 26,664,011 $ 20,095,058 * For the year ended December 31, 2021 and 2020, certain application development service arrangements included sales of IT equipment. Such revenue of $14,472,010 and $6,299,982 was included in the application development service revenue for years ended December 31, 2021 and 2020, respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent events | Note 14 — Subsequent events To explore metaverse business, the Company established two new subsidiaries in China. Zhuhai Hongsheng new technology Co., Ltd. was established in January 2022. Zhuhai Pangu Vision Digital Technology Co., Ltd. was established in February 2022. On January 6, 2022, the Company entered into an equity transfer agreement (the “Agreement”) with the shareholder of SmartConn., Limited (“SmartConn”) pursuant to which the Company agrees to purchase 19.99% equity of SmartConn at 90% of the appraisal price. The consideration of the acquisition will be paid in the form of newly issued shares of the Company. Upon the consummation of the acquisition, the shareholder of SmartConn will hold 17,138,305 shares of the Company. The closing is subject to the customary closing conditions and terms as stipulated in the Agreement. SmartConn wholly controls Shanghai Stamp Technology Co., Ltd. (“Stamp Technology”). Stamp Technology mainly engaged in distributed database blockchain (including alliance chain and private chain), cryptocurrency DAPP development and cryptocurrency industry research. Powerbridge further uses its big data and blockchain technology to expand Powerbridge’s blockchain business by acquiring SmartConn. On January 28, 2022, Powerbridge Zhuhai entered into a loan agreement with Bank of Communication to obtain a loan of $1,569,218 for a term of one year and at a fixed annual interest rate of 4.70%. The bank loan was guaranteed by the representative of Zhuhai Powerbridge and pledged approximately $2.6 million fixed assets as the collateral to secure the loan. On January 5, 2022, the Board approved to sell the Company’s 38% ownership interest in Shantou Hongrui to other shareholders for a price of $0. From February 2022 to March 2022, YA delivered conversion notice for convertible notes in principle of $1,750,000. The Company issued an aggregate of 5,024,599 restricted ordinary shares, par value $0.00166667 per share, of the Company, to YA. Stewart Lor ceased to act as CFO in April 2022. Yuxia Xu was appointed CFO and Chief Operating Officer, with effect from May 1, 2022. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities Exchange Commission (“SEC”). |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries. All intercompany transactions and balances are eliminated upon consolidation. All significant intercompany transactions and balances between the Company and its subsidiaries are eliminated upon consolidation. Subsidiaries are those entities 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. Non-controlling interest represents the portion of the net assets of a subsidiary attributable to interests that are not owned by the Company. The non-controlling interest is presented in the consolidated balance sheets, separately from equity attributable to the shareholders of the Company. Non-controlling interest’s operating result is presented on the face of the consolidated statements of income and comprehensive income as an allocation of the total income for the year between non-controlling shareholders and the shareholders of the Company. |
Liquidity | Liquidity For the year ended December 31, 2021, the Company had working capital of approximately $6.7 million and incurred a net loss of approximately $9.5 million. For fiscal 2021, the Company had negative operation cash flow of approximately $9.8 million. The Company has historically funded its working capital needs primarily from public offering, operations, bank loans, advance payments from customers and shareholders. The working capital requirements are affected by the efficiency of operations, the numerical volume and dollar value of revenue contracts, the progress or execution on customer contracts, and the timing of accounts receivable collections. In assessing its liquidity, the Company monitors and analyzes its cash on hand, its ability to generate sufficient revenue sources in the future and its operating and capital expenditure commitments. As of December 31, 2021, the Company had cash of approximately $7.0 million. On August 7, 2021, the Company entered into an amendment (the “Closing Statement”) to the securities purchase agreement initially entered into with YA on April 9, 2021 (the “Purchase Agreement”). Pursuant to the Purchase Agreement, YA agreed to purchase convertible notes (the “Notes”) in the aggregate principal amount of US$7,000,000 (the “Principal”), which shall be convertible into the Company’s ordinary shares par value $0.00166667 per share, and a warrant (the “Warrant”) to purchase 571,429 Ordinary Shares (the “Offering”), for gross proceeds of approximately US$6,790,000. The first closing of the offer and sale of the first Note (the “First Note”) in the principal amount of $4,000,000 was completed on April 9, 2021. Pursuant to the Closing Statement, the Company and YA agreed that, among other thing, (i) the Principal shall be increased to US$8,000,000; (ii) the principal amount of the second Note (the “Second Note”) is reduced from $3,000,000 to $2,000,000; (iii) the number of ordinary shares to be issued pursuant to the Warrant shall be increased from 571,429 to 653,061; and (iv) promptly after the Securities and Exchange Commission (the “SEC”) declares effective a registration statement to be filed by the Company pursuant to a registration rights agreement (the “Registration Rights Agreement”), YA agrees to purchase the third Note (the “Third Note”) in the principal amount of $2,000,000, which shall have identical terms as those of the Second Note. Except as expressly amended by the Closing Statement, the Second Note has essentially identical terms to the First Note. The closing of the second Note in the principal amount of $2,000,000 was completed on August 9, 2021. The Company believes that its cash on hand and financing cash flows will be sufficient to fund its operations over at least the next 12 months from the date of this report. However, the Company may need additional cash resources in the future if the Company experiences changed business conditions or other developments, and may also need additional cash resources in the future if the Company wishes to pursue opportunities for investment, acquisition, strategic cooperation or other similar actions. If it is determined that the cash requirements exceed the Company’s amounts of cash on hand, the Company may seek to issue debt or equity securities or obtain a credit facility. |
Use of estimates | Use 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 disclosures of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Significant accounting estimates reflected in the Company’s consolidated financial statements include but not limited to the useful lives of property and equipment and capitalized development cost, impairment of long-lived assets, valuation of accounts receivables, valuation of convertible loans, loans to third parties, revenue recognition and realization of deferred tax assets and uncertain tax positions. Actual results could differ from these estimates. |
Foreign currency translation | Foreign currency translation The functional currencies of the Company are the local currency of the county in which the subsidiaries operate. The Company’s financial statements are reported using U.S. Dollars. The results of operations and the consolidated statements of cash flows denominated in foreign currencies are translated at the average rates of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currencies is translated at the historical rates of exchange at the time of capital contributions. Because cash flows are translated based on the average translation rates, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive income (loss) included in consolidated statements of changes in equity. Gains and losses from foreign currency transactions are included in the consolidated statement of operations and comprehensive income (loss). |
Fair value measurement | Fair value measurement ASC 825-10 requires certain disclosures regarding the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: ● Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 — inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable and inputs derived from or corroborated by observable market data. ● Level 3 — inputs to the valuation methodology are unobservable. Unless otherwise disclosed, the fair value of the Company’s financial instruments including cash, notes and accounts receivable, due from related parties, prepayments, deposits and other current assets, notes and accounts payable, customer deposits, salaries and benefits payables, due to related party and taxes payable approximates their recorded values due to their short-term maturities. The fair value of the long-term prepayments, deposits and other assets and loans to third parties approximate their carrying amounts because the deposits were paid in cash. The Company elected the fair value option to account for its convertible loan. The Company engaged an independent valuation firm to perform the valuation. The fair value of the convertible loans is calculated using the binomial tree model. The convertible loans are classified as level 3 instruments as the valuation was determined based on unobservable inputs which are supported by little or no market activity and reflect the Company’s own assumptions in measuring fair value. Significant estimates used in developing the fair value of the convertible loans include time to maturity, risk-free interest rate, straight debt discount rate, probability to convert and expected timing of conversion. Refer to Note 9 for additional information. As the inputs used in developing the fair value for level 3 instruments are unobservable, and require significant management estimate, a change in these inputs could result in a significant change in the fair value measurement. The following is a reconciliation of the beginning and ending balances for convertible loans measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as of December 31, 2021 and 2020: December 31, December 31, 2021 2020 Opening balance $ - $ - Issuance of convertible loans 6,860,000 50,000,000 Loss on change in fair value of convertible loan 1,508,229 15,258,333 Accrued interest 226,775 - Conversion of convertible loan (6,343,172 ) (65,258,333 ) Total $ 2,251,832 $ - |
Cash and cash equivalent | Cash and cash equivalent Cash and cash equivalent comprise cash at banks and on hand, which includes deposits with original maturities of three months or less with commercial banks in PRC. As of December 31, 2021 and 2020, cash balances were $6,960,996 and $8,389,704, respectively. |
Restricted cash | Restricted cash Restricted cash mainly represents security deposits as required by certain customers on the Company’s projects. The deposits in restricted bank accounts cannot be withdrawn until the Company completes the related projects. Restricted cash is classified as either current or non-current based on when the funds will be released in accordance with the terms of the respective agreements. As of December 31, 2021 and 2020, restricted cash consists of cash equivalents of $95,252 and $ nil |
Accounts receivable, net | Accounts receivable, net Accounts receivable, net, is stated at the original invoiced amount net of write-offs and allowance for doubtful accounts. The Company reviews the accounts receivable on a periodic basis and makes allowances when there is doubt as to the collectability of individual balances. Past-due balances over 90 days are reviewed individually for collectability. In evaluating the collectability of individual accounts receivable balances, the Company considers several factors, including the age of the balance, the customer’s payment history, current credit-worthiness, and current economic trends. Accounts receivable balances are written off after all collection efforts have been exhausted. Typically, the Company includes unbilled receivables in accounts receivable for contracts on which revenue has been recognized, but for which the customer has not yet been billed. Unbilled receivables, substantially all of which are expected to be billed within one year are stated at their estimated realizable value and consist of costs and fees billable on contract completion or the occurrence of contractual payment phase. |
Prepayments, deposits and other assets, net | Prepayments, deposits and other assets, net Prepayment, deposit and other assets, net, primarily consists of advances to suppliers for purchasing goods or services that have not been received or provided; security deposits made to our customers; advances to employees and loan receivables from business partners. Prepayment, deposit and other assets are classified as either current or non-current based on the terms of the respective agreements. These advances are unsecured and are reviewed periodically to determine whether their carrying value has become impaired. |
Property and equipment, net | Property and equipment, net Property and equipment, net, mainly comprise furniture and furniture, vehicles, computer and equipment are stated at cost less accumulated depreciation and impairment. Property and equipment are depreciated over the estimated useful lives of the assets on a straight-line basis, after considering the estimated residual value. The estimated useful lives are as follows: Useful Life Office equipment, fixtures and furniture 3-10 years Automobiles 5-8 years Capitalized development costs and software acquired 5-10 years Computer equipment 5 years Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and the related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is charged to the statement of income and comprehensive income. |
Capitalized development costs | Capitalized development costs The Company follows the provisions of Accounting Standards Codification (“ASC”) 350-40, “Internal Use Software.” ASC 350-40 provides guidance on capitalization of the costs incurred for computer software developed or obtained for internal use in fiscal 2020. The Company follows the provisions of Accounting Standards Codification (“ASC”) 985-20, “Costs of Software to be Sold, Leased, or Marketed.” ASC 985-20 provides guidance on capitalization of the costs of software developed or obtained for sold, leased, or marketed in fiscal 2021.The Company expenses all costs incurred during the preliminary project stage of its development, and capitalizes costs incurred during the application development stage. Costs incurred relating to upgrades and enhancements to the application are capitalized if it is determined that these upgrades or enhancements add additional functionality to the application. The capitalized development cost is amortized on a straight-line basis over the estimated useful life, which is generally five years. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. |
Impairment for long-lived assets | Impairment for long-lived assets Long-lived assets, including property, equipment, furniture and fixtures and intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. When these events occur, the Company measures impairment by comparing the carrying values of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amounts of the assets, the Company would recognize an impairment loss based on the excess of the carrying value over the assessed discounted cash flow amount. For the years ended December 31, 2021, 2020 and 2019, the Company recognized nil |
Revenue recognition | Revenue recognition The Company adopted ASC Topic 606 Revenue from Contracts with Customers (“ASC 606”) on January 1, 2019 using the modified retrospective approach. Revenues for the year ended December 31, 2021, 2020 and 2019 were presented under ASC 606. There is no adjustment to the opening balance of retained earnings at January 1, 2019 since there was no change to the timing and pattern of revenue recognition upon adoption of ASC 606. Under ASC 606, revenue is recognized when control of promised goods or services is transferred to the Company’s customers in an amount of consideration to which an entity expects to be entitled to in exchange for those goods or services and is recorded net of value-added tax (“VAT”). To achieve that core principle, the Group applies the following steps: Step 1: Identify the contract (s) with a customer Step 2: Identify the performance obligations in the contract Step 3: Determine the transaction price Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation The Company derives its revenues from four sources: (1) revenue from application development services, (2) revenue from consulting and technical support services, (3) revenue from subscription services. All of the Company’s contracts with customer do not contain cancelable and refund-type provisions and (4) trading revenue. (1) Revenue from application development service The Company’s application development service contracts are primarily on a fixed-price basis, which require the Company to perform services including project planning, project design, application development and system integration based on customers’ specific needs. These services also require significant production and customization. Upon delivery of the services, customer acceptance is generally required. In the same contract, the Company is generally required to provide post-contract customer support (“PCS’) for a period from three months to three years (“PCS period”) after the customized application development services are delivered. The type of services for PCS clause is generally not specified in the contracts or as stand-ready services on when-and-if-available basis. The unspecified PCS is stand-ready service on when-and-if-available basis. It grants the customers on line and telephone access to technical support personnel during the term of the service. Specified PCS includes specified service term in the contract such as training. The Company’s application development service revenues are generated primarily from contracts with PRC government or related agencies and state-owned enterprises. The contracts contain negotiated billing terms which generally include multiple payment phases throughout the contract term and a significant portion (30% - 50%) of contract amount usually is billed upon the completion of the related projects. Pursuant to the contract terms, the Company has enforceable right on payments for the work performed. The Company sometimes provides a warranty for its application development service contracts. The warranty period is typically 12-36 months upon the completion of the application development service. In accordance with ASC 606-10-25-19, the Company believes the warranty provision in the contracts generally represents service-type warranty, which is a distinct performance obligation and the Company also provides the similar service on standalone basis and customers can benefit from the related service-type warranty service. For the service warranty component, the customer simultaneously receives and consumes the benefits provided by the company performance over the warranty term, therefore, the service warranty is satisfied over time. The revenue allocated to the service warranty is recognized over the warranty period. The Company assesses that application development service, PCS or specific service and service-type warranty service, if applicable, are distinct performance obligations in the application development service contracts. The Company provides these services on standalone basis and customers are able to benefit from each of the service on its own. In addition, the timing of delivery of these performance obligations can be separately identifiable in the contracts. The transaction price is allocated to these identified performance obligations based on the relative standalone selling prices. The transaction price allocated to PCS or unspecific service and service-type warranty, if applicable, on a straight-line method over the contractual period. Revenue allocated to specified PCS is recognized as the related services are rendered. The transaction price allocated to application development service is recognized over time as the Company’s performance creates or enhances the project controlled by the customer and the control is transferred continuously to our customers. The Company uses an input method based on cost incurred as the Company believes that this method most accurately reflects the Company’s progress toward satisfaction of the performance obligation, which usually takes less than one year. Under this method, the transaction price allocated to application development service is recognized as work is performed based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligations. Incurred costs include all direct material, labor and subcontract costs, and those indirect costs related to application development performance, such as indirect labor, supplies, and tools. Cost-based input method requires the Company to make estimates of revenues and costs to complete the construction. In making such estimates, significant judgment is required to evaluate assumptions related to the costs to complete the application development, including materials, labor, and other system costs. The Company’s estimates are based upon the professional knowledge and experience of our engineers and project managers to assess the contract’s schedule, performance, technical matters. The Company has adequate cost history and estimating experience, and with respect to which management believes it can reasonably estimate total development costs. If the estimated costs are greater than the related revenues, the Company recognizes the entire estimated loss in the period the loss becomes known and can be reasonably estimated. Changes in estimates for application development services include but not limited to cost forecast changes and change orders. The cumulative effect of changes in estimates is recorded in the period in which the revisions to estimates are identified and the amounts can be reasonably estimated. To date, the Company has not incurred a material loss on any contracts. However, as a policy, provisions for estimated losses on such engagements will be made during the period in which a loss becomes probable and can be reasonably estimated. If contract modifications result in additional goods or services that are distinct from those transferred before the modification, they are accounted for prospectively as if the Company entered into a new contract. If the goods or services in the modification are not distinct from those in the original contract, sales and gross profit are adjusted using the cumulative catch-up method for revisions in estimated total contract costs and contract values. In certain application development service arrangements, the Company sells and delivers IT equipment on standalone basis prior to the delivery of the services. In these cases, the Company controls the IT equipment before they are transferred to the customer. The Company has the right to direct the suppliers and control the goods or assets transferred to its customers. Thus, the Company considers it should recognize revenue as a principal in the gross amount of consideration to which it is entitled in exchange for the IT equipment delivered. The Company assesses the sale of equipment is separately identifiable from other promises in the contract and it is distinct performance obligation within the context of the contract. Accordingly, the revenue from the related IT equipment based on its relative standalone selling price is recognized upon customer acceptance after delivery. (2) Revenue from consulting and technical support services Revenue from consulting and technical support services is primarily comprised of fixed-fee contracts, which require the Company to provide professional consulting and technical support services over contract terms beginning on the commencement date of each contract, which is the date its service is made available to customers. Billings to the customers are generally on a monthly or quarterly basis over the contract term, which is typically 12 to 24 months. The consulting and technical support services contracts typically include a single performance obligation. The revenue from consulting and technical support services is recognized over the contract term on a straight-line basis as customers receive and consume benefits of such services. (3) Revenue from subscription services Revenue from subscription services is comprised of subscription fees from customers accessing the Company’s software-as-a-service applications for a subscribed period. The Company’s monthly or quarterly billing to customer is on the basis of number of uses or the actual usage by the customers. The subscription arrangements are considered service contracts because customers do not have the right to take possession of the software and can only benefit from the software when provided the right to access the software. Accordingly, the subscription services contracts typically include a single performance obligation. The revenue from subscription services is recognized over the contract term on a straight-line basis or based on the actual usage as customers receive and consume benefits of such services. (4) Trading revenue The Company started trading business (sales of consumables) for the year ended December 31, 2021 and recognized revenue at a point in time when control of such products transfers to the customer, which generally occurs upon shipment or delivery depending on the terms of the contracts with the customer. Product sale contracts typically include a single performance obligation and there are no rights of return. The transaction price is based on the fixed contractual price with the customer. Billings to the customer for the sale of products occur at the time the products are transferred to the customer. Revenue from trading business accounted less than 15% of the Company’s revenue for the year ended December 31, 2021. Revenue includes reimbursements of travel and out-of-pocket expense, with equivalent amounts of expense recorded in cost of revenue. The Company reports revenues net of value added tax (“VAT”). The Company’s subsidiaries in PRC are subject to a 6% to 13% value added tax (“VAT”) and related surcharges on the revenues earned from providing services or products. Practical Expedient and Exemptions The Company does not disclose the value of unsatisfied performance obligations within one year by applying the right to invoice practical expedient provided by ASC 606-10-55-18. |
Contract costs | Contract costs Contract costs include contract acquisition costs and contract fulfillment costs which are all recorded within prepayments, deposits, and other assets in the consolidated balance sheets. Contract acquisition costs consist of incremental costs incurred by the Company to originate contracts with customers. Contract acquisition costs, which generally include costs that are only incurred as a result of obtaining a contract, are capitalized when the incremental costs are expected to be recovered over the contract period. All other costs incurred regardless of obtaining a contract are expensed as incurred. Contract acquisition costs are amortized over the period the costs are expected to contribute directly or indirectly to future cash flows, which is generally over the contract term, on a basis consistent with the transfer of goods or services to the customer to which the costs relate. Contract fulfillments costs consist of costs incurred by the Company to fulfill a contract with a customer and are capitalized when the costs generate or enhance resources that will be used in satisfying future performance obligations of the contract and the costs are expected to be recovered. Capitalized contract fulfillment costs generally include contracted services, direct labor, materials, and allocable overhead directly related to resources required to fulfill the contract. Contract fulfillment costs are recognized in cost of revenue during the period that the related costs are expected to contribute directly or indirectly to future cash flows, which is generally over the contract term, on a basis consistent with the transfer of goods or services to the customer to which the costs are related. The contract fulfillment cost amounted to $ nil |
Contract balance | Contract balance The accounts receivable includes both unbilled accounts receivable and billed accounts receivable. The Company records unbilled accounts receivable for revenue that has been recognized in advance of billing the customer, which is common for application development service contracts. The unbilled accounts receivable represents the Company’s right to consideration in exchange for the service that the Company has performed to the customer before payment is due and the unbilled account receivable will be reclassified into billed accounts receivable when the Company has the right to invoice. Contract liabilities are presented as customer deposits and deferred revenue on the consolidated balance sheet. Contract liabilities relate to payments received in advance of completion of performance obligations under a contract. Contract liabilities are recognized as revenue upon the completion of performance obligations. As of December 31, 2021 and 2020, the balance of customer deposits amounted to $575,303 and $573,243, respectively. As of December 31, 2021 and 2020, the balance of deferred revenue amounted to $1,344,637 and $1,095,279, respectively. |
Government subsidies | Government subsidies Government subsidies mainly represent amounts granted by local government authorities as an incentive for companies to promote development of the local technology industry. The Company receives government subsidies related to government sponsored projects, and records such government subsidies as a liability when it is received. The Company records government subsidies as other income when there is no further performance obligation. |
Advertising expenditures | Advertising expenditures Advertising expenditures are expensed as incurred and such expenses were minimal for the periods presented. Advertising expenditures have been included as part of selling and marketing expenses. For the years ended December 31, 2021, 2020 and 2019, the advertising expense amounted to $279,979, $53,445 and 61,174, respectively. |
Operating leases | Operating leases A lease for which substantially all the benefits and risks incidental to ownership remain with the lessor is classified by the lessee as an operating lease. All leases of the Company are currently classified as operating leases. The Company records the total expenses on a straight-line basis over the lease term. |
Income taxes | Income taxes The Company accounts for current income taxes in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. 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. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. No significant penalties or interest relating to income taxes have been incurred during the years ended December 31, 2021, 2020 and 2019. All of the tax returns of the Company’s subsidiary in China remain subject to examination by the tax authorities for five years from the date of filing. |
Value added tax | Value added tax Revenue represents the invoiced value of service, net of VAT. The VAT is based on gross sales price and VAT rates range up to 13%, depending on the type of service provided. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded in taxes payable. All of the VAT returns filed by the Company’s subsidiary in China, have been and remain subject to examination by the tax authorities for five years from the date of filing. |
Employee defined contribution plan | Employee defined contribution plan Full time employees of the Company in the PRC participate in a government mandated multi-employer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require that the Company make contributions to the government for these benefits based on a certain percentage of the employee’s salaries. The Company has no legal obligation for the benefits beyond the contributions. The total amount was expensed as incurred. |
(Loss) earnings per share | (Loss) earnings per share The Company computes (loss) earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share”. ASC 260 requires companies to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common share outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of the potential Ordinary 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 Ordinary 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 year ended December 31, 2020 and 2019, since the company had a loss, basic and dilutive loss per share is the same. For the years ended December 31, 2018, there were nil potential dilutive ordinary shares. |
Share-Based compensation | Share-Based compensation The Company accounts for share-based awards to employees and nonemployees directors and consultants in accordance with the provisions of ASC 718, Compensation—Stock Compensation, and under the recently issued guidance following FASB’s pronouncement, ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. Under ASC 718, and applicable updates adopted, for employee stock-based awards, share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense with graded vesting on a straight-line basis over the requisite service period for the entire award. For the non-employee stock-based awards, the fair value of the awards to non-employees are measured every reporting period based on the value of the Company’s common stock. |
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. Other comprehensive income (loss) consists of a foreign currency translation adjustment resulting from the Company not using the U.S. dollar as its functional currencies. |
Statement of Cash Flows | Statement of Cash Flows In accordance with ASC 230, “Statement of Cash Flows,” cash flows from the Company’s operations are formulated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the statements of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheets. |
Commitments and Contingencies | Commitments and Contingencies In the normal course of business, the Company is subject to contingencies, including legal proceedings and claims arising out of the business that relate to a wide range of matters, such as government investigations and tax matters. The Company recognizes a liability for such contingency if it determines it is probable that a loss has occurred and a reasonable estimate of the loss can be made. The Company may consider many factors in making these assessments including historical and the specific facts and circumstances of each matter. |
Segment reporting | Segment reporting The Company’s chief operating decision maker (“CODM”) has been identified as its CEO, who reviews the consolidated results when making decisions about allocating resources and assessing performance of the Company as a whole and hence, the Company has only one reportable segment. The Company does not distinguish between markets or segments for the purpose of internal reporting. The Company’s long-lived assets are substantially all located in the PRC and all of the Company’s revenues are derived from the PRC. Therefore, no geographical segments are presented. |
Concentrations of Risks | Concentrations of Risks (a) Concentration of credit risk Assets that potentially subject the Company to significant concentration of credit risk primarily consist of cash, restricted cash, accounts receivable and other current assets. The maximum exposure of such assets to credit risk is their carrying amounts as at the balance sheet dates. As of December 31, 2021 and 2020, the aggregate amount of cash and restricted cash of $ 6,971,124 and $8,365,573, respectively, were held at major financial institutions in PRC, which the management believes are of high credit quality. On May 1, 2015, China’s new Deposit Insurance Regulation came into effect, pursuant to which banking financial institutions, such as commercial banks, established in China are required to purchase deposit insurance for deposits in RMB and in foreign currency placed with them. Such Deposit Insurance Regulation would not be effective in providing complete protection for the Group’s accounts, as its aggregate deposits are much higher than the compensation 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 are financially sound based on public available information. The Company conducts credit evaluations of its customers and suppliers, and generally does not require collateral or other security from them. The Company establishes an accounting policy for allowance for doubtful accounts on the individual customer’s and supplier’s financial condition, credit history, and the current economic conditions. (b) Foreign currency risk A majority of the Company’s expense transactions are denominated in RMB and a significant portion of the Company and its subsidiaries’ assets and liabilities are denominated in RMB. RMB is not freely convertible into foreign currencies. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China (“PBOC”). Remittances in currencies other than RMB by the Company in China must be processed through the PBOC or other China foreign exchange regulatory bodies which require certain supporting documentation in order to affect the remittance. The Company’s functional currency is the RMB, and the Company’s financial statements are presented in U.S. dollars. The RMB appreciated by 6.3% in fiscal year 2020 and further appreciated by 2.3% in fiscal year 2021. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the RMB and the U.S. dollar in the future. The change in the value of the RMB relative to the U.S. dollar may affect our financial results reported in the U.S. dollar terms without giving effect to any underlying changes in our business or results of operations. Currently, our assets, liabilities, revenues and costs are denominated in RMB. To the extent that the Company needs to convert U.S. dollars into RMB for capital expenditures and working capital and other business purposes, appreciation of RMB against U.S. dollar would have an adverse effect on the RMB amount the Company would receive from the conversion. Conversely, if the Company decides to convert RMB into U.S. dollar for the purpose of making payments for dividends, strategic acquisition or investments or other business purposes, appreciation of U.S. dollar against RMB would have a negative effect on the U.S. dollar amount available to the Company. (c) Significant customers For the year ended December 31, 2021, one customer accounted for 12.8% of the Company’s total revenues. For the year ended December 31, 2020, one customer accounted for 25.7% of the Company’s total revenues. For the year ended December 31, 2019, two customers accounted for 21.8% and 10.7% of the Company’s total revenues. As of December 31, 2021 and 2020, no customer accounted for more than 10% of the Company’s accounts receivable. (d) Significant suppliers For the year ended December 31, 2021, one supplier accounted for 15.8% of the Company’s total purchases. For the year ended December 31, 2020, one supplier accounted for 21.3% of the Company’s total purchases. For the year ended December 31, 2019, one supplier accounted for 22.7% of the Company’s total purchases. As of December 31, 2021, no supplier accounted for more than 10.0% of the Company’s total accounts payable. As of December 31, 2020, one supplier accounted for 11.9% of the Company’s total accounts payable. |
Recently issued accounting pronouncements | Recently issued accounting pronouncements The Company considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued. Under the Jumpstart Our Business Startups Act of 2012, as amended ("the JOBS Act"), the Company meets the definition of an emerging growth company, or EGC, and has elected the extended transition period for complying with new or revised accounting standards, which delays the adoption of these accounting standards until they would apply to private companies. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize a right-of-use asset and lease liability on the balance sheet for all leases, including operating leases, with a term in excess of 12 months. The guidance also expands the quantitative and qualitative disclosure requirements. In July 2018, the FASB issued updates to the lease standard making transition requirements less burdensome. The update provides an option to apply the transition provisions of the new standard at its adoption date instead of at the earliest comparative period presented in the company’s financial statements. The new guidance requires the lessee to record operating leases on the balance sheet with a right-of-use asset and corresponding liability for future payment obligations. FASB further issued ASU 2018-11 “Target Improvement” and ASU 2018-20 “Narrow-scope Improvements for Lessors.” In June 2020, the FASB issued ASU No. 2020-05, “Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842) Effective Dates for Certain Entities” (“ASU 2020-05”) in response to the ongoing impacts to businesses in response to the coronavirus (COVID-19) pandemic. ASU 2020-05 provides a limited deferral of the effective dates for implementing previously issued ASU 842 to give some relief to businesses and the difficulties they are facing during the pandemic. ASU 2020-05 affects entities in the “all other” category and public Not-For-Profit entities that have not gone into effect yet regarding ASU 2016-02, Leases (Topic 842). Entities in the “all other” category may defer to fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. As an emerging growth company, the Company will adopt this guidance effective January 1, 2022. The Company is evaluating the impact on its 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) (“ASU 2020-01”), which is intended to clarify the interaction of the accounting for equity securities under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. ASU 2020-01 is effective for the Company beginning January 1, 2021. The Company does not expect this guidance will have a material impact on its consolidated financial statements. Except for the above-mentioned pronouncements, there are no new recent issued accounting standards that will have a material impact on the consolidated financial position, statements of operations and cash flows. |
Nature of Business and Organi_2
Nature of Business and Organization (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of details of company's principal subsidiaries | Major subsidiaries Percentage of Date of Place of Major Operation Powerbridge Technologies Co., Ltd. (“Powerbridge HK”) 100% by Powerbridge July 27, 2018 Hong Kong, PRC Investment holding Hongding Technology Co., Ltd (“Hongding”) 100% by Powerbridge July 28, 2020 Hong Kong, PRC Investment holding Powercrypto Holding Pte. Ltd. (“Powercrypto”) 100% by Powerbridge October 1, 2021 Singapore Management consultancy services Powerbridge Technologies Group Co., Ltd. (“Powerbridge Zhuhai”) 100% by Powerbridge HK October 30, 1997 the PRC software application and technology services Powerstream Supply Chain Co., Ltd. (“Powerstream”) 100% by Powerbridge HK August 17, 2021 the PRC Supply chain business Shenzhen Hongding Interconnect Technology Co., Ltd. 100% by Hongding October 21, 2020 the PRC software application and technology services Shantou Hongrui Information Technology Co., Ltd. (“Shantou Hongrui) * 38% by Powerbridge Zhuhai On August 19, 2019 the PRC software application and technology services Ningbo Powerbridge Pet Product Cross-border E-Commerce Service Co., Ltd. (“Ningbo Powerbridge”) (1) 60% by Powerbridge Zhuhai September 29, 2019 the PRC E-commerce Shenzhen Honghao Internet Technology Co., Ltd (“Honghao”) 100% by Hongding July 28, 2020 the PRC software application and technology services Wuhan Honggang Technology Co., Ltd (“Honggang”) 60% by Powerbridge Zhuhai June 21, 2019 the PRC software application and technology services Chongqing Powerbridge Zhixin Technology Co., Ltd* (“Zhixin”) 45% by Powerbridge Zhuhai September 2, 2019 the PRC software application and technology services Zhuhai Hongyang Supply Chain Co., Ltd. (“Zhuhai Hongyang”) 60% by Powerbridge Zhuhai July 21, 2021 the PRC Supply chain business Hunan Xinfei Digital Technology Co., Ltd. (“Hunan Xinfei”) 51% by Powerbridge Zhuhai August 2, 2021 the PRC software application and technology services Zhanjiang Hongqin Technology Co., Ltd. (“Zhanjiang Hongqin”) 51% by Powerbridge Zhuhai July 7, 2021 the PRC software application and technology services Ningbo Zhijing Tongfu Technology Co., Ltd. (“Ningbo Zhijing”) (2) 51% by Powerbridge Zhuhai April 25, 2021 the PRC software application and technology services |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of reconciliation of the beginning and ending balances for convertible loans measured at fair value on a recurring basis | December 31, December 31, 2021 2020 Opening balance $ - $ - Issuance of convertible loans 6,860,000 50,000,000 Loss on change in fair value of convertible loan 1,508,229 15,258,333 Accrued interest 226,775 - Conversion of convertible loan (6,343,172 ) (65,258,333 ) Total $ 2,251,832 $ - |
Schedule of estimated useful lives | Useful Life Office equipment, fixtures and furniture 3-10 years Automobiles 5-8 years Capitalized development costs and software acquired 5-10 years Computer equipment 5 years |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Schedule of accounts receivable, net | As of December 31, 2021 2020 Accounts receivable $ 26,825,337 $ 15,896,127 Less: Allowance for doubtful accounts (2,607,600 ) (1,581,142 ) Total accounts receivable, net $ 24,217,737 $ 14,314,985 |
Schedule of movement of allowance for doubtful accounts | As of December 31, 2021 2020 2019 Beginning balance $ 1,581,142 $ 1,669,658 $ 392,533 Provision (reverse) for doubtful accounts 1,011,760 - 3,276,200 Recovery - (189,286 ) - Written-off (34,879 ) - (1,984,244 ) Foreign currency translation adjustments 49,577 100,770 (14,831 ) Ending balance $ 2,607,600 $ 1,581,142 $ 1,669,658 |
Prepayments, Deposits and Oth_2
Prepayments, Deposits and Other Assets, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Prepayments Deposits And Other Assets Net [Abstract] | |
Schedule of prepayments, deposits and other assets, net | As of December 31, 2021 2020 Security deposits (1) $ 381,813 $ 385,607 Advances to suppliers 1,483,084 1,508,022 Advances to employees 317,725 215,735 Prepaid expense 360,074 293,573 Others 188,216 288,464 2,730,912 2,691,401 Less: Long term portion (381,656 ) (385,607 ) Allowance for doubtful accounts (313,844 ) (306,513 ) Prepayments, deposits and other assets – current portion $ 2,035,412 $ 1,999,281 (1) Security deposits mainly represent contract fulfillment deposits required by customer for specific projects, rent deposits and etc. |
Schedule of allowance for doubtful accounts | As of December 31, 2021 2020 2019 Beginning balance $ 306,513 $ 31,139 $ 14,047 Provision(recovery) for doubtful accounts 88,846 258,280 17,400 Write off (88,846 ) - - Foreign currency translation adjustments 7,331 17,094 (308 ) Ending balance $ 313,844 $ 306,513 $ 31,139 |
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 | As of December 31, 2021 2020 Unsecured loan receivable from third parties (1) $ 300,000 $ 704,981 Guaranteed loan receivable from media business (2) 68,468,129 68,095,019 68,768,129 68,800,000 Less: Long term portion (64,951,511 ) (63,434,483 ) Prepayments, deposits and other assets – current portion $ 3,816,618 $ 5,365,517 (1) As of December 31, 2020, the loan to third party amounted to $704,981 with annual interest rate approximately 8%, unsecured and within one year. The loan was collected upon maturity. As of December 31,2021, the loan to third party amounted to $300,000 with annual interest approximately 4.85% upon maturity, unsecured and due on March 7,2022. The interest rate raised to 10% after March 7, 2021. As of this filing date, the Company has not received any repayment from this loan. (2) Pursuant to the agreement with Shenzhen Kezhi Technology Co., Ltd.(“Kezhi”) on September 25, 2020 and a series of amendments entered during the period from September 25, 2020 to May 16, 2021, the Company intends to expand to media business through Kezhi. The Company originally planned to acquire certain media business assets from Kezhi, however, due to uncertainties in COVID-19, the Company and Kezhi ultimately reached into a final agreement (“Final agreement”) on May 16, 2021. Pursuant to the Final agreement, the Company agreed to extend a working capital support loan to Kezhi in aggregated of $69,723,504 (RMB444,320,000) with expected annual returns over two years and coupon interest rate of 5%. The company collected $1,255,375 (RMB8,000,000) in fiscal year 2021. As of December 31, 2021, the outstanding balance was $68,468,129 (RMB436,320,000). The expected annual return is as follows: |
Schedule of long term debt maturities repayment | Twelve months ending December 31, Expected 2022 $ 3,516,618 2023 64,951,511 Total return payments $ 68,468,129 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment, net | As of December 31, 2021 2020 Computer equipment $ 544,972 $ 494,803 Office equipment, fixtures and furniture 2,133,433 2,084,615 Capitalized development cost and software acquired 10,464,573 8,081,105 Automobiles 224,713 165,149 Construction in Progress 2,656,120 - Subtotal 16,023,811 10,825,672 Less: accumulated depreciation and amortization (5,761,393 ) (3,641,571 ) Total $ 10,262,418 $ 7,184,101 |
Schedule of amortization of capitalized development cost | Twelve months ending December 31, Estimated 2022 $ 1,806,523 2023 1,620,236 2024 1,320,961 2025 787,770 2026 279,705 Total $ 5,815,195 |
Related Party Balances and Tr_2
Related Party Balances and Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of prepaid expense, related parties | Name of Related Party Relationship to the Company Hengqin Baisheng Investment, GP Company has significant influence over with this entity. Guangzhou Powerbridge Blockchain Co., Ltd. a non-controlling shareholder of Powerbridge Ningbo Zongbo Jiang legal representative of Guangzhou Hongqiao Blockchain Co., Ltd, which the Company has significant influence over with Ban Lor CEO Stewart Lor CFO Hong Yu shareholder of Zhixin Ling Lor wife of CEO and director of the Company Hybridge Holding Limited Shareholder of the Company Guangodong Guangrui Network Technology Co., Ltd. (Guangdong Guangrui) Company has significant influence over with this entity. |
Schedule of due from related parties | As of December 31, 2021 2020 Hengqin Baisheng Investment, GP (1) $ - $ 622,222 Guangzhou Powerbridge Blockchain Co., Ltd. (2) 132,345 129,254 Zongbo Jiang (3) - 30,651 Ling Lor (3) 8,661 - Ban Lor (3) 706,148 - Stewart Lor (3) 781,284 - Subtotal 1,628,438 782,127 Less: allowance for doubtful accounts (132,345 ) (129,254 ) Due from related parties, net $ 1,496,093 $ 652,873 |
Schedule of due to related party | As of December 31, 2021 2020 Hong Yu (1) $ 108,990 $ 62,165 Ling Lor (1) - 8,855 Hybridge Holding Limited (1) 109,872 - Subtotal $ 218,862 $ 71,020 |
Schedule of accounts payable-related party | As of December 31, 2021 2020 Guangzhou Guangrui $ 734,263 $ - Subtotal $ 734,263 $ - |
Schedule of purchase from related parties | For the year ended 2021 2020 Guangzhou Guangrui $ 725,362 $ Subtotal $ 725,362 $ - |
Bank Loans (Tables)
Bank Loans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of outstanding balance of short-term bank loans | December 31, December 31, Loan from Bank of Communication $ 1,569,218 $ 1,532,567 Loan from Bank of China 470,765 766,284 Loan from Guangfa Bank 2,353,828 2,298,850 $ 4,393,811 $ 4,597,701 |
Convertible Note (Tables)
Convertible Note (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Convertible Debt [Abstract] | |
Schedule of conversion of convertible note | July 14, 2021-September 8, 2021 Risk-free interest rate 0.05-0.06 % Expected life 0.33-0.49 year Discount rate 9.49-9.68 % Expected volatility 76.02-82.60 % Expected dividend yield 0 % Fair value $ 1,897,739 April 9, 2021-August 13, 2021 Risk-free interest rate 0.05-0.07 % Expected life 0.65-0.99 year Discount rate 9.49-9.80 % Expected volatility 78.01-95.06 % Expected dividend yield 0 % Fair value $ 4,445,433 |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of provision for income taxes | For the years ended December 31, 2021 2020 2019 Current $ 135 $ 109 $ 11,164 Deferred (174,076 ) (80,641 ) (224,511 ) Total income tax (benefits) expenses $ (173,941 ) $ (80,532 ) $ (213,347 ) |
Schedule of effective tax rate | For the years ended December 31, 2021 2020 2019 PRC statutory rates 25.0 % 25.0 % 25.0 % Preferential tax rates (25.8 )% (25.0 )% (16.9 )% R&D credits 3.0 % 1.7 % (3.4 )% Change in valuation allowance and others (0.4 )% (1.3 )% (2.8 )% Effective tax rate 1.8 % 0.4 % 1.9 % |
Schedule of deferred tax assets | As of December 31, 2021 2020 Deferred tax assets: Provision for doubtful accounts $ 455,343 $ 302,536 Depreciation and amortization 145,928 112,595 Net operating loss carryforward 738,187 517,537 Valuation allowance (738,187 ) (517,537 ) Total deferred tax assets $ 601,271 $ 415,131 |
Schedule of taxes payable | As of December 31, 2021 2020 Income taxes payable $ 594,026 $ 565,506 VAT and other tax payable 136,898 133,429 Totals $ 730,924 $ 698,935 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of estimate the fair value of stock options | Options Risk-free interest rate 0.81 % Expected life of the options 5 years Expected volatility 96.0 % Expected dividend yield - % Fair value $ 7,232,526 |
Schedule of stock options | Number of Weighted Weighted Aggregate US$ Year US$ Outstanding as of January 1, 2019 - - - - Granted 1,350,500 4.72 - - Expired, forfeited or cancelled - - - - Outstanding as of December 31, 2019 1,350,500 4.72 5.37 - Granted - - - - Expired, forfeited or cancelled - - - - Outstanding as of December 31, 2020 1,350,500 4.72 4.37 - Granted 7,604,964 1.22 4.40 Exercised (58,110 ) Outstanding as of December 31, 2021 8,897,354 1.74 4.23 - Exercisable as of December 31, 2021 5,034,334 1.93 4.21 - |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of minimum lease payment under these operating leases | Twelve months ending December 31, Minimum lease payment 2022 $ 178,516 2023 32,313 2024 19,023 Total $ 229,852 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of revenues | For the Years Ended December 31, 2021 2020 2019 REVENUES: Application development services* $ 20,323,422 $ 21,985,214 $ 15,720,676 Consulting and technical support services 4,555,352 3,797,354 3,307,662 Subscription services 936,913 881,443 1,066,720 Trading revenue 6,277,141 - - Total revenues $ 32,092,828 $ 26,664,011 $ 20,095,058 * For the year ended December 31, 2021 and 2020, certain application development service arrangements included sales of IT equipment. Such revenue of $14,472,010 and $6,299,982 was included in the application development service revenue for years ended December 31, 2021 and 2020, respectively. |
Nature of Business and Organi_3
Nature of Business and Organization (Details) - USD ($) | Jan. 05, 2022 | Feb. 10, 2019 | Aug. 18, 2018 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jul. 05, 2021 | Apr. 04, 2019 | Aug. 27, 2018 | Aug. 07, 2018 | Sep. 28, 2017 |
Nature of Business and Organization (Details) [Line Items] | |||||||||||
Ordinary shares (in Shares) | 300,000,000 | ||||||||||
Share price per share (in Dollars per share) | $ 0.00166667 | ||||||||||
Gross proceeds (in Dollars) | $ 10,062,500 | ||||||||||
Common stock, shares issued (in Shares) | 56,794,773 | 45,777,318 | |||||||||
Common stock, par value (in Dollars per share) | $ 0.00166667 | $ 0.00166667 | |||||||||
Reverse stock split description | the board of directors approved a reverse stock split of the Company’s authorized number of Ordinary Shares at a ratio of 1-0.6. | ||||||||||
Common stock, shares outstanding (in Shares) | 56,794,773 | 45,777,318 | |||||||||
Equity interest percentage | 60.00% | ||||||||||
Cash consideration (in Dollars) | $ 6,960,996 | $ 8,389,704 | $ 5,772,055 | $ 894 | |||||||
Common Stock [Member] | |||||||||||
Nature of Business and Organization (Details) [Line Items] | |||||||||||
Common stock, shares issued (in Shares) | 6,905,248 | 11,508,747 | |||||||||
Common stock, par value (in Dollars per share) | $ 0.0001 | $ 0.001 | |||||||||
Reverse stock split description | On August 18, 2018, in order to optimize the Company’s share capital structure, the board of directors approved a reverse stock split of the Company’s authorized number of Ordinary Shares at a ratio of 10-1. | ||||||||||
Common stock, shares outstanding (in Shares) | 6,905,248 | ||||||||||
IPO [Member] | |||||||||||
Nature of Business and Organization (Details) [Line Items] | |||||||||||
Ordinary shares (in Shares) | 2,012,500 | ||||||||||
Share price per share (in Dollars per share) | $ 5 | ||||||||||
Gross proceeds (in Dollars) | $ 10,062,500 | ||||||||||
Net proceeds (in Dollars) | $ 8,021,987 | ||||||||||
Over-Allotment Option [Member] | |||||||||||
Nature of Business and Organization (Details) [Line Items] | |||||||||||
Ordinary shares (in Shares) | 262,500 | ||||||||||
Share price per share (in Dollars per share) | $ 5 | ||||||||||
Subsequent Event [Member] | |||||||||||
Nature of Business and Organization (Details) [Line Items] | |||||||||||
Equity interest percentage | 38.00% | ||||||||||
Other shareholders price (in Dollars) | $ 0 | ||||||||||
Powerbridge Zhuhai [Member] | |||||||||||
Nature of Business and Organization (Details) [Line Items] | |||||||||||
Common stock, shares issued (in Shares) | 11,508,747 | ||||||||||
Common stock, par value (in Dollars per share) | $ 0.001 | ||||||||||
Equity interest percentage | 84.90% | 100.00% | 55.00% | ||||||||
Mr. Tianfei Feng [Member] | |||||||||||
Nature of Business and Organization (Details) [Line Items] | |||||||||||
Equity interest percentage | 45.00% | ||||||||||
Powerbridge [Member] | |||||||||||
Nature of Business and Organization (Details) [Line Items] | |||||||||||
Equity interest percentage | 100.00% | ||||||||||
Powerbridge HK [Member] | |||||||||||
Nature of Business and Organization (Details) [Line Items] | |||||||||||
Equity interest percentage | 100.00% |
Nature of Business and Organi_4
Nature of Business and Organization (Details) - Schedule of details of company's principal subsidiaries | 12 Months Ended | |
Dec. 31, 2021 | ||
Powerbridge Technologies Co., Ltd. (“Powerbridge HK”) [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Percentage of Ownership | 100% by Powerbridge | |
Date of Incorporation | Jul. 27, 2018 | |
Place of Incorporation | Hong Kong, PRC | |
Major Operation | Investment holding | |
Hongding Technology Co., Ltd (“Hongding”) [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Percentage of Ownership | 100% by Powerbridge | |
Date of Incorporation | Jul. 28, 2020 | |
Place of Incorporation | Hong Kong, PRC | |
Major Operation | Investment holding | |
Powercrypto Holding Pte. Ltd. (“Powercrypto”) [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Percentage of Ownership | 100% by Powerbridge | |
Date of Incorporation | Oct. 1, 2021 | |
Place of Incorporation | Singapore | |
Major Operation | Management consultancy services | |
Powerbridge Technologies Group Co., Ltd. (“Powerbridge Zhuhai”) [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Percentage of Ownership | 100% by Powerbridge HK | |
Date of Incorporation | Oct. 30, 1997 | |
Place of Incorporation | the PRC | |
Major Operation | software application and technology services | |
Powerstream Supply Chain Co., Ltd. (“Powerstream”) [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Percentage of Ownership | 100% by Powerbridge HK | |
Date of Incorporation | Aug. 17, 2021 | |
Place of Incorporation | the PRC | |
Major Operation | Supply chain business | |
Shenzhen Hongding Interconnect Technology Co., Ltd. [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Percentage of Ownership | 100% by Hongding | |
Date of Incorporation | Oct. 21, 2020 | |
Place of Incorporation | the PRC | |
Major Operation | software application and technology services | |
Shantou Hongrui Information Technology Co., Ltd. (“Shantou Hongrui) [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Percentage of Ownership | 38% by Powerbridge Zhuhai | |
Date of Incorporation | Aug. 19, 2019 | |
Place of Incorporation | the PRC | |
Major Operation | software application and technology services | |
Ningbo Powerbridge Pet Product Cross-border E-Commerce Service Co., Ltd. (“Ningbo Powerbridge”) [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Percentage of Ownership | 60% by Powerbridge Zhuhai | [1] |
Date of Incorporation | Sep. 29, 2019 | [1] |
Place of Incorporation | the PRC | [1] |
Major Operation | E-commerce | [1] |
Shenzhen Honghao Internet Technology Co., Ltd (“Honghao”) [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Percentage of Ownership | 100% by Hongding | |
Date of Incorporation | Jul. 28, 2020 | |
Place of Incorporation | the PRC | |
Major Operation | software application and technology services | |
Wuhan Honggang Technology Co., Ltd (“Honggang”) [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Percentage of Ownership | 60% by Powerbridge Zhuhai | |
Date of Incorporation | Jun. 21, 2019 | |
Place of Incorporation | the PRC | |
Major Operation | software application and technology services | |
Chongqing Powerbridge Zhixin Technology Co., Ltd* (“Zhixin”) [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Percentage of Ownership | 45% by Powerbridge Zhuhai | |
Date of Incorporation | Sep. 2, 2019 | |
Place of Incorporation | the PRC | |
Major Operation | software application and technology services | |
Zhuhai Hongyang Supply Chain Co., Ltd. (“Zhuhai Hongyang”) [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Percentage of Ownership | 60% by Powerbridge Zhuhai | |
Date of Incorporation | Jul. 21, 2021 | |
Place of Incorporation | the PRC | |
Major Operation | Supply chain business | |
Hunan Xinfei Digital Technology Co., Ltd. (“Hunan Xinfei”) [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Percentage of Ownership | 51% by Powerbridge Zhuhai | |
Date of Incorporation | Aug. 2, 2021 | |
Place of Incorporation | the PRC | |
Major Operation | software application and technology services | |
Zhanjiang Hongqin Technology Co., Ltd. (“Zhanjiang Hongqin”) [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Percentage of Ownership | 51% by Powerbridge Zhuhai | |
Date of Incorporation | Jul. 7, 2021 | |
Place of Incorporation | the PRC | |
Major Operation | software application and technology services | |
Ningbo Zhijing Tongfu Technology Co., Ltd. (“Ningbo Zhijing”) [Member] | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Percentage of Ownership | 51% by Powerbridge Zhuhai | [2] |
Date of Incorporation | Apr. 25, 2021 | [2] |
Place of Incorporation | the PRC | [2] |
Major Operation | software application and technology services | [2] |
[1] | Certain third-party shareholders of Shantou Hongrui and Zhixin signed consents with the Company for the year ended December 31, 2021, which stated that the Company has the power and control to direct the activities that most significantly impact Shantou Hongrui and Zhixin and they unconditionally vote by consensus with the Company in all the board decisions. As such, the Company consolidates the financial results of Shantou Hongrui and Zhixin based on the voting power. On January 5, 2022, the Board approved to sell the Company’s 38% ownership interest in Shantou Hongrui to other shareholders for a price of $0. | |
[2] | On July 5, 2021, the Board approved to the sale of the Company’s 60% ownership interest to a third party of Ningbo Powerbridge for a cash consideration of $894. Management determined that this disposition did not represent a strategic shift and had no significant effect on the Company’s operations and financial results; therefore, no discontinued operations were presented. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | Aug. 07, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Working capital | $ 6,700,000 | |||
Net loss | 9,500,000 | |||
Negative operation cash flow | 9,800,000 | |||
Cash | 7,000,000 | |||
Description of amendment | the Company entered into an amendment (the “Closing Statement”) to the securities purchase agreement initially entered into with YA on April 9, 2021 (the “Purchase Agreement”). Pursuant to the Purchase Agreement, YA agreed to purchase convertible notes (the “Notes”) in the aggregate principal amount of US$7,000,000 (the “Principal”), which shall be convertible into the Company’s ordinary shares par value $0.00166667 per share, and a warrant (the “Warrant”) to purchase 571,429 Ordinary Shares (the “Offering”), for gross proceeds of approximately US$6,790,000. The first closing of the offer and sale of the first Note (the “First Note”) in the principal amount of $4,000,000 was completed on April 9, 2021. Pursuant to the Closing Statement, the Company and YA agreed that, among other thing, (i) the Principal shall be increased to US$8,000,000; (ii) the principal amount of the second Note (the “Second Note”) is reduced from $3,000,000 to $2,000,000; (iii) the number of ordinary shares to be issued pursuant to the Warrant shall be increased from 571,429 to 653,061; and (iv) promptly after the Securities and Exchange Commission (the “SEC”) declares effective a registration statement to be filed by the Company pursuant to a registration rights agreement (the “Registration Rights Agreement”), YA agrees to purchase the third Note (the “Third Note”) in the principal amount of $2,000,000, which shall have identical terms as those of the Second Note. Except as expressly amended by the Closing Statement, the Second Note has essentially identical terms to the First Note. The closing of the second Note in the principal amount of $2,000,000 was completed on August 9, 2021. The Company believes that its cash on hand and financing cash flows will be sufficient to fund its operations over at least the next 12 months from the date of this report. However, the Company may need additional cash resources in the future if the Company experiences changed business conditions or other developments, and may also need additional cash resources in the future if the Company wishes to pursue opportunities for investment, acquisition, strategic cooperation or other similar actions. If it is determined that the cash requirements exceed the Company’s amounts of cash on hand, the Company may seek to issue debt or equity securities or obtain a credit facility. | |||
Cash balances | 6,960,996 | $ 8,389,704 | ||
Restricted cash | 95,252 | $ 172,369 | ||
Impairment long-lived assets | ||||
Percentage of revenue | 15.00% | |||
Contract fulfillment cost | 4,041,585 | |||
Balance of customer deposits | 575,303 | 573,243 | ||
Deferred revenue | 1,344,637 | 1,095,279 | ||
Advertising expense | $ 279,979 | $ 53,445 | $ 61,174 | |
Income tax benefit percentage | 50.00% | |||
VAT rates | 13.00% | |||
RMB percentage | 2.30% | 6.30% | ||
Accounts receivable, percentage | 10.00% | |||
Minimum [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Contract amount | 30.00% | |||
VAT tax percentage | 6.00% | |||
Maximum [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Contract amount | 50.00% | |||
VAT tax percentage | 13.00% | |||
Customer One [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Total revenues, percentage | 12.80% | |||
Customer Two [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Total revenues, percentage | 21.80% | |||
Percentage of total revenue | 10.70% | |||
Customer One [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Total revenues, percentage | 25.70% | |||
Suppliers One [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Total purchases, percentage | 15.80% | 21.30% | 22.70% | |
Total accounts payable, percentage | 11.90% | |||
Cash Equivalents [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Cash and restricted cash | $ 6,971,124 | $ 8,365,573 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of reconciliation of the beginning and ending balances for convertible loans measured at fair value on a recurring basis - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of reconciliation of the beginning and ending balances for convertible loans measured at fair value on a recurring basis [Abstract] | ||
Opening balance | ||
Issuance of convertible loans | 6,860,000 | 50,000,000 |
Loss on change in fair value of convertible loan | 1,508,229 | 15,258,333 |
Accrued interest | 226,775 | |
Conversion of convertible loan | (6,343,172) | (65,258,333) |
Total | $ 2,251,832 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives | 12 Months Ended |
Dec. 31, 2021 | |
Office equipment, fixtures and furniture [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Estimated useful lives | 3 years |
Office equipment, fixtures and furniture [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Estimated useful lives | 10 years |
Automobiles [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Estimated useful lives | 5 years |
Automobiles [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Estimated useful lives | 8 years |
Capitalized development costs and software acquired [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Estimated useful lives | 5 years |
Capitalized development costs and software acquired [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Estimated useful lives | 10 years |
Computer equipment [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives [Line Items] | |
Estimated useful lives | 5 years |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | May 07, 2022 | Dec. 31, 2020 | |
Accounts Receivable, Net (Details) [Line Items] | |||
Accounts receivable | $ 13,067,528 | ||
Unbilled accounts receivable | $ 7,526,282 | ||
Unbilled accounts receivables, description | The unbilled accounts receivables as of December 31, 2021 are expected to be billed within one year and collected over one year. The billed accounts receivable is expected to be collected within one year. | ||
Total account receivable | $ 24,217,737 | $ 14,314,985 | |
Total accounts receivable percentage | 19.60% | ||
Percentage of billed accounts receivable | 31.40% | ||
Percentage of unbilled accounts receivable | 7.30% | ||
Forecast [Member] | |||
Accounts Receivable, Net (Details) [Line Items] | |||
Total account receivable | $ 5,300,000 |
Accounts Receivable, Net (Det_2
Accounts Receivable, Net (Details) - Schedule of accounts receivable, net - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of accounts receivable, net [Abstract] | ||
Accounts receivable | $ 26,825,337 | $ 15,896,127 |
Less: Allowance for doubtful accounts | (2,607,600) | (1,581,142) |
Total accounts receivable, net | $ 24,217,737 | $ 14,314,985 |
Accounts Receivable, Net (Det_3
Accounts Receivable, Net (Details) - Schedule of movement of allowance for doubtful accounts - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts Receivable, Net (Details) - Schedule of movement of allowance for doubtful accounts [Line Items] | |||
Recovery | $ (189,286) | ||
Accounts Receivable [Member] | |||
Accounts Receivable, Net (Details) - Schedule of movement of allowance for doubtful accounts [Line Items] | |||
Beginning balance | 1,581,142 | 1,669,658 | 392,533 |
Provision (reverse) for doubtful accounts | 1,011,760 | 3,276,200 | |
Written-off | (34,879) | (1,984,244) | |
Foreign currency translation adjustments | 49,577 | 100,770 | (14,831) |
Ending balance | $ 2,607,600 | $ 1,581,142 | $ 1,669,658 |
Prepayments, Deposits and Oth_3
Prepayments, Deposits and Other Assets, net (Details) - Schedule of prepayments, deposits and other assets, net - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of prepayments, deposits and other assets, net [Abstract] | |||
Security deposits | [1] | $ 381,813 | $ 385,607 |
Advances to suppliers | 1,483,084 | 1,508,022 | |
Advances to employees | 317,725 | 215,735 | |
Prepaid expense | 360,074 | 293,573 | |
Others | 188,216 | 288,464 | |
Prepayments, deposits and other assets, net | 2,730,912 | 2,691,401 | |
Less: Long term portion | (381,656) | (385,607) | |
Allowance for doubtful accounts | (313,844) | (306,513) | |
Prepayments, deposits and other assets – current portion | $ 2,035,412 | $ 1,999,281 | |
[1] | Security deposits mainly represent contract fulfillment deposits required by customer for specific projects, rent deposits and etc. |
Prepayments, Deposits and Oth_4
Prepayments, Deposits and Other Assets, net (Details) - Schedule of allowance for doubtful accounts - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of allowance for doubtful accounts [Abstract] | |||
Beginning balance | $ 306,513 | $ 31,139 | $ 14,047 |
Provision(recovery) for doubtful accounts | 88,846 | 258,280 | 17,400 |
Write off | (88,846) | ||
Foreign currency translation adjustments | 7,331 | 17,094 | (308) |
Ending balance | $ 313,844 | $ 306,513 | $ 31,139 |
Loans to Third Parties (Details
Loans to Third Parties (Details) | 12 Months Ended | |||
Dec. 31, 2021USD ($) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021CNY (¥) | Dec. 31, 2020USD ($) | |
Loans to Third Parties (Details) [Line Items] | ||||
Annual interest | $ 300,000 | |||
Percentage of unsecured annual interest | 4.85% | 4.85% | ||
Interest rate | 10.00% | 10.00% | ||
Loan to third parties, description | Pursuant to the agreement with Shenzhen Kezhi Technology Co., Ltd.(“Kezhi”) on September 25, 2020 and a series of amendments entered during the period from September 25, 2020 to May 16, 2021, the Company intends to expand to media business through Kezhi. The Company originally planned to acquire certain media business assets from Kezhi, however, due to uncertainties in COVID-19, the Company and Kezhi ultimately reached into a final agreement (“Final agreement”) on May 16, 2021. Pursuant to the Final agreement, the Company agreed to extend a working capital support loan to Kezhi in aggregated of $69,723,504 (RMB444,320,000) with expected annual returns over two years and coupon interest rate of 5%. | Pursuant to the agreement with Shenzhen Kezhi Technology Co., Ltd.(“Kezhi”) on September 25, 2020 and a series of amendments entered during the period from September 25, 2020 to May 16, 2021, the Company intends to expand to media business through Kezhi. The Company originally planned to acquire certain media business assets from Kezhi, however, due to uncertainties in COVID-19, the Company and Kezhi ultimately reached into a final agreement (“Final agreement”) on May 16, 2021. Pursuant to the Final agreement, the Company agreed to extend a working capital support loan to Kezhi in aggregated of $69,723,504 (RMB444,320,000) with expected annual returns over two years and coupon interest rate of 5%. | ||
Collected value | $ 1,255,375 | ¥ 8,000,000 | ||
Outstanding balance | $ 68,468,129 | ¥ 436,320,000 | ||
Effective interest rate | 5.00% | 5.00% | ||
Principal of loan receivable | $ 3,516,618 | |||
Receivables in the current portion | 64,951,511 | |||
Collected subsequently value | $ 3,952,280 | |||
Loan To Third Parties [Member] | ||||
Loans to Third Parties (Details) [Line Items] | ||||
Loans to third parties | $ 704,981 | |||
Annual Interest rate | 1.00% | 1.00% | 8.00% |
Loans to Third Parties (Detai_2
Loans to Third Parties (Details) - Schedule of loans to third parties - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of loans to third parties [Abstract] | |||
Unsecured loan receivable from third parties | [1] | $ 300,000 | $ 704,981 |
Guaranteed loan receivable from media business | [2] | 68,468,129 | 68,095,019 |
Loans to third parties, total | 68,768,129 | 68,800,000 | |
Less: Long term portion | (64,951,511) | (63,434,483) | |
Prepayments, deposits and other assets – current portion | $ 3,816,618 | $ 5,365,517 | |
[1] | As of December 31, 2020, the loan to third party amounted to $704,981 with annual interest rate approximately 8%, unsecured and within one year. The loan was collected upon maturity. As of December 31,2021, the loan to third party amounted to $300,000 with annual interest approximately 4.85% upon maturity, unsecured and due on March 7,2022. The interest rate raised to 10% after March 7, 2021. As of this filing date, the Company has not received any repayment from this loan. | ||
[2] | Pursuant to the agreement with Shenzhen Kezhi Technology Co., Ltd.(“Kezhi”) on September 25, 2020 and a series of amendments entered during the period from September 25, 2020 to May 16, 2021, the Company intends to expand to media business through Kezhi. The Company originally planned to acquire certain media business assets from Kezhi, however, due to uncertainties in COVID-19, the Company and Kezhi ultimately reached into a final agreement (“Final agreement”) on May 16, 2021. Pursuant to the Final agreement, the Company agreed to extend a working capital support loan to Kezhi in aggregated of $69,723,504 (RMB444,320,000) with expected annual returns over two years and coupon interest rate of 5%. The company collected $1,255,375 (RMB8,000,000) in fiscal year 2021. As of December 31, 2021, the outstanding balance was $68,468,129 (RMB436,320,000). The expected annual return is as follows: |
Loans to Third Parties (Detai_3
Loans to Third Parties (Details) - Schedule of long term debt maturities repayment | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Schedule of long term debt maturities repayment [Abstract] | |
2022 | $ 3,516,618 |
2023 | 64,951,511 |
Total return payments | $ 68,468,129 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2021CNY (¥) | |
Property and Equipment, Net (Details) [Line Items] | ||||
Depreciation and amortization expense | $ 324,367 | $ 310,845 | $ 299,959 | |
Amortization expense | 1,692,352 | $ 1,140,727 | $ 652,245 | |
Short- term bank loan borrowed | 1,569,218 | |||
Fixed asset pledge | 2,600,000 | |||
Zhuhai Powerbridge [Member] | ||||
Property and Equipment, Net (Details) [Line Items] | ||||
Capital | 5,600,000 | ¥ 35.9 | ||
Payment issued | $ 3,400,000 |
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 | $ 16,023,811 | $ 10,825,672 |
Less: accumulated depreciation and amortization | (5,761,393) | (3,641,571) |
Total | 10,262,418 | 7,184,101 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 544,972 | 494,803 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 2,133,433 | 2,084,615 |
Capitalized development cost [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 10,464,573 | 8,081,105 |
Automobiles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 224,713 | 165,149 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 2,656,120 |
Property and Equipment, Net (_3
Property and Equipment, Net (Details) - Schedule of amortization of capitalized development cost | Dec. 31, 2021USD ($) |
Schedule of amortization of capitalized development cost [Abstract] | |
2022 | $ 1,806,523 |
2023 | 1,620,236 |
2024 | 1,320,961 |
2025 | 787,770 |
2026 | 279,705 |
Total | $ 5,815,195 |
Related Party Balances and Tr_3
Related Party Balances and Transactions (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2020 | |
Related Party Balances and Transactions (Details) [Line Items] | ||
Balance due from related party | $ 622,222 | |
Hengqin Baisheng [Member] | ||
Related Party Balances and Transactions (Details) [Line Items] | ||
Consulting fee prepayment | $ 685,167 | |
Guangzhou Powerbridge Blockchain Co., Ltd. [Member] | ||
Related Party Balances and Transactions (Details) [Line Items] | ||
Consulting fee prepayment | $ 121,144 | |
Balance due from related party | $ 129,254 |
Related Party Balances and Tr_4
Related Party Balances and Transactions (Details) - Schedule of prepaid expense, related parties | 12 Months Ended |
Dec. 31, 2021 | |
Hengqin Baisheng Investment, GP [Member] | |
Related Party Balances and Transactions (Details) - Schedule of prepaid expense, related parties [Line Items] | |
Relationship to the Company | Company has significant influence over with this entity. |
Guangzhou Powerbridge Blockchain Co., Ltd. [Member] | |
Related Party Balances and Transactions (Details) - Schedule of prepaid expense, related parties [Line Items] | |
Relationship to the Company | a non-controlling shareholder of Powerbridge Ningbo |
Zongbo Jiang [Member] | |
Related Party Balances and Transactions (Details) - Schedule of prepaid expense, related parties [Line Items] | |
Relationship to the Company | legal representative of Guangzhou Hongqiao Blockchain Co., Ltd, which the Company has significant influence over with |
Ban Lor [Member] | |
Related Party Balances and Transactions (Details) - Schedule of prepaid expense, related parties [Line Items] | |
Relationship to the Company | CEO |
Stewart Lor [Member] | |
Related Party Balances and Transactions (Details) - Schedule of prepaid expense, related parties [Line Items] | |
Relationship to the Company | CFO |
Hong Yu [Member] | |
Related Party Balances and Transactions (Details) - Schedule of prepaid expense, related parties [Line Items] | |
Relationship to the Company | shareholder of Zhixin |
Ling Lor [Member] | |
Related Party Balances and Transactions (Details) - Schedule of prepaid expense, related parties [Line Items] | |
Relationship to the Company | wife of CEO and director of the Company |
Hybridge Holding Limited [Member] | |
Related Party Balances and Transactions (Details) - Schedule of prepaid expense, related parties [Line Items] | |
Relationship to the Company | Shareholder of the Company |
Guangodong Guangrui Network Technology Co., Ltd. (Guangdong Guangrui) [Member] | |
Related Party Balances and Transactions (Details) - Schedule of prepaid expense, related parties [Line Items] | |
Relationship to the Company | Company has significant influence over with this entity. |
Related Party Balances and Tr_5
Related Party Balances and Transactions (Details) - Schedule of due from related parties - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Balances and Transactions (Details) - Schedule of due from related parties [Line Items] | |||
Subtotal | $ 1,628,438 | $ 782,127 | |
Less: allowance for doubtful accounts | (132,345) | (129,254) | |
Due from related parties, net | 1,496,093 | 652,873 | |
Hengqin Baisheng Investment, GP [Member] | |||
Related Party Balances and Transactions (Details) - Schedule of due from related parties [Line Items] | |||
Subtotal | [1] | 622,222 | |
Guangzhou Powerbridge Blockchain Co., Ltd. [Member] | |||
Related Party Balances and Transactions (Details) - Schedule of due from related parties [Line Items] | |||
Subtotal | [2] | 132,345 | 129,254 |
Zongbo Jiang [Member] | |||
Related Party Balances and Transactions (Details) - Schedule of due from related parties [Line Items] | |||
Subtotal | [3] | 30,651 | |
Ling Lor [Member] | |||
Related Party Balances and Transactions (Details) - Schedule of due from related parties [Line Items] | |||
Subtotal | [3] | 8,661 | |
Ban Lor [Member] | |||
Related Party Balances and Transactions (Details) - Schedule of due from related parties [Line Items] | |||
Subtotal | [3] | 706,148 | |
Stewart Lor [Member] | |||
Related Party Balances and Transactions (Details) - Schedule of due from related parties [Line Items] | |||
Subtotal | [3] | $ 781,284 | |
[1] | For the year ended December 31, 2019, the Company incurred consulting fee prepayment $685,167 to Hengqin Baisheng Investment, GP, which was a non-controlling shareholder of Powerbridge Ningbo. The balance of $622,222 as of December 31, 2020 was reclassified to due from related party in 2020. Hengqin Baisheng Investment, GP was no longer a related party along with the disposal of Ningbo Hongqiao on July 5, 2021. | ||
[2] | The Company had consulting fee prepayment of $121,144 to Guangzhou Powerbridge Blockchain Co., Ltd. as of December 31, 2019, which the Company has significant influence over with. In 2020, both parties negotiated to terminate the consulting service. The balance of $129,254 as of December 31, 2020 was reclassified to due from related party and fully allowanced in 2020. | ||
[3] | From time to time, the Company advances funds to senior management for business purpose. |
Related Party Balances and Tr_6
Related Party Balances and Transactions (Details) - Schedule of due to related party - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Balances and Transactions (Details) - Schedule of due to related party [Line Items] | |||
Due to related party | $ 218,862 | $ 71,020 | |
Hong Yu [Member] | |||
Related Party Balances and Transactions (Details) - Schedule of due to related party [Line Items] | |||
Due to related party | [1] | 108,990 | 62,165 |
Ling Lor [Member] | |||
Related Party Balances and Transactions (Details) - Schedule of due to related party [Line Items] | |||
Due to related party | [1] | 8,855 | |
Hybridge Holding Limited [Member] | |||
Related Party Balances and Transactions (Details) - Schedule of due to related party [Line Items] | |||
Due to related party | [1] | $ 109,872 | |
[1] | The above balances represent unpaid loan and expenses to these related parties. |
Related Party Balances and Tr_7
Related Party Balances and Transactions (Details) - Schedule of accounts payable-related party - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | ||
Subtotal | $ 734,263 | |
Guangzhou Guangrui [Member] | ||
Related Party Transaction [Line Items] | ||
Subtotal | $ 734,263 |
Related Party Balances and Tr_8
Related Party Balances and Transactions (Details) - Schedule of purchase from related parties - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Balances and Transactions (Details) - Schedule of purchase from related parties [Line Items] | ||
Subtotal | $ 725,362 | |
Guangzhou Guangrui [Member] | ||
Related Party Balances and Transactions (Details) - Schedule of purchase from related parties [Line Items] | ||
Subtotal | $ 725,362 |
Bank Loans (Details)
Bank Loans (Details) - USD ($) | Nov. 11, 2021 | Nov. 04, 2021 | Mar. 10, 2021 | Mar. 09, 2021 | Dec. 14, 2020 | Nov. 05, 2020 | Mar. 04, 2020 | Jan. 02, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Bank Loans (Details) [Line Items] | |||||||||||
Interest expense | $ 211,197 | $ 203,289 | $ 123,278 | ||||||||
Weighted average interest rate | 4.90% | 4.70% | 5.00% | ||||||||
Powerbridge Zhuhai [Member] | |||||||||||
Bank Loans (Details) [Line Items] | |||||||||||
Obtain loan amount | $ 688,979 | $ 880,239 | $ 2,353,828 | $ 470,765 | $ 306,514 | $ 1,532,567 | $ 459,770 | $ 2,298,850 | |||
Term of loan | 1 year | 1 year | 1 year | 1 year | 1 year | 1 year | 1 year | 1 year | |||
Fixed annual interest | 4.5675% | 4.5675% | 5.30% | 4.50% | 4.50% | 4.5675% | 4.55% | 4.60% |
Bank Loans (Details) - Schedule
Bank Loans (Details) - Schedule of outstanding balance of short-term bank loans - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Short-Term Debt [Line Items] | ||
Loan from bank | $ 4,393,811 | $ 4,597,701 |
Loan from Bank of Communication [Member] | ||
Short-Term Debt [Line Items] | ||
Loan from bank | 1,569,218 | 1,532,567 |
Loan from Bank of China [Member] | ||
Short-Term Debt [Line Items] | ||
Loan from bank | 470,765 | 766,284 |
Loan From Guangfa Bank [Member] | ||
Short-Term Debt [Line Items] | ||
Loan from bank | $ 2,353,828 | $ 2,298,850 |
Convertible Note (Details)
Convertible Note (Details) - USD ($) | Aug. 09, 2021 | Apr. 09, 2021 | Apr. 09, 2021 | Jan. 08, 2021 | Jan. 08, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Convertible Note (Details) [Line Items] | |||||||
Aggregate principal amount | $ 1,650,000 | $ 1,650,000 | $ 4,000,000 | ||||
Ordinary shares, par value (in Dollars per share) | $ 0.00166667 | $ 0.00166667 | |||||
Gross proceeds | $ 6,790,000 | $ 1,500,000 | |||||
Interest rate | 9.00% | 9.00% | |||||
Original issue discount | $ 150,000 | ||||||
Uptowns fees | $ 20,000 | ||||||
Outstanding balance elected for pre payment percentage | 120.00% | ||||||
Principal amount | $ 2,000,000 | $ 4,000,000 | $ 7,000,000 | ||||
Purchase ordinary shares (in Shares) | 571,429 | ||||||
Convertible note, description | Pursuant to the Closing Statement, the Company and YA agreed that, among other thing, (i) the Principal shall be increased to US$8,000,000; (ii) the principal amount of the second Note (the “Second Note”) is reduced from $3,000,000 to $2,000,000; (iii) the number of ordinary shares to be issued pursuant to the Warrant shall be increased from 571,429 to 653,061; and (iv) promptly after the Securities and Exchange Commission (the “SEC”) declares effective a registration statement to be filed by the Company pursuant to a registration rights agreement (the “Registration Rights Agreement”), YA agrees to purchase the third Note (the “Third Note”) in the principal amount of $2,000,000, which shall have identical terms as those of the Second Note. | The Notes have a conversion price of the lower of (i) US$3.675 per ordinary shares (the “Fixed Conversion Price”), or (ii) 90% of the lowest daily VWAP (Volume-Weighted Average Price) during the 10 consecutive trading days immediately preceding the conversion date or other date of determination, but not lower than the floor price of US$1.50 per ordinary share. The principal will become due and payable 12 months from the date of closing (the “Maturity Date”) and bears an annual interest rate of 6% unless earlier converted or redeemed by the Company. At any time before the Maturity Date, YA may convert the Notes at its option into ordinary shares at the conversion price.On August 7, 2021, the Company entered into an amendment (the “Closing Statement”) to the securities purchase agreement initially entered into with YA on April 9, 2021 (the “Purchase Agreement”). Pursuant to the Purchase Agreement, YA agreed to purchase convertible notes (the “Notes”) in the aggregate principal amount of US$7,000,000 (the “Principal”), which shall be convertible into the Company’s ordinary shares par value $0.00166667 per share, and a warrant (the “Warrant”) to purchase 571,429 Ordinary Shares (the “Offering”), for gross proceeds of approximately US$6,790,000. | |||||
Ordinary shares, par value (in Dollars per share) | $ 0.00166667 | $ 0.00166667 | |||||
Conversion note amount | $ 4,445,433 | ||||||
Issued an aggregate of restricted ordinary shares (in Shares) | 3,054,591 | ||||||
Fair value of convertible loan | $ 1,508,229 | $ 15,258,333 | |||||
Interest expense recognized for these convertible loans | 226,775 | ||||||
First Closing [Member] | |||||||
Convertible Note (Details) [Line Items] | |||||||
Principal amount | 4,000,000 | ||||||
Second Closing [Member] | |||||||
Convertible Note (Details) [Line Items] | |||||||
Principal amount | $ 2,000,000 | ||||||
Convertible Note [Member] | |||||||
Convertible Note (Details) [Line Items] | |||||||
Aggregate restricted share (in Shares) | 1,676,437 | ||||||
Ordinary shares, par value (in Dollars per share) | $ 0.00166667 | ||||||
Conversion of Convertible Note [Member] | |||||||
Convertible Note (Details) [Line Items] | |||||||
Conversion note amount | $ 1,897,739 |
Convertible Note (Details) - Sc
Convertible Note (Details) - Schedule of conversion of convertible note - USD ($) | 1 Months Ended | |
Sep. 08, 2021 | Aug. 13, 2021 | |
Minimum [Member] | ||
Convertible Note (Details) - Schedule of conversion of convertible note [Line Items] | ||
Risk-free interest rate | 0.05% | 0.05% |
Expected life | 3 months 29 days | 7 months 24 days |
Discount rate | 9.49% | 9.49% |
Expected volatility | 76.02% | 78.01% |
Expected dividend yield | 0.00% | 0.00% |
Fair value (in Dollars) | $ 1,897,739 | $ 4,445,433 |
Maximum [Member] | ||
Convertible Note (Details) - Schedule of conversion of convertible note [Line Items] | ||
Risk-free interest rate | 0.06% | 0.07% |
Expected life | 5 months 26 days | 11 months 26 days |
Discount rate | 9.68% | 9.80% |
Expected volatility | 82.60% | 95.06% |
Expected dividend yield | 0.00% | 0.00% |
Fair value (in Dollars) | $ 1,897,739 | $ 4,445,433 |
Taxes (Details)
Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Taxes (Details) [Line Items] | |||
Unified enterprise income tax rate | 25.00% | ||
Income tax rate | 15.00% | ||
Statutory income tax rate | 15.00% | ||
Subsidiaries in PRC are subject to income tax rate | 25.00% | ||
Decreased income taxes (in Dollars) | $ 89,850 | $ 25,735 | $ 595,556 |
Net income per share (in Dollars per share) | $ 0.07 | ||
Description of net operating loss carryforwards | As of December 31, 2021, the Company has approximately $4.6 million net operating loss (“NOL”) carryforwards with expirations by 2026. | ||
Valuation allowance against (in Dollars) | $ 738,187 | $ 517,537 | |
Minimum [Member] | |||
Taxes (Details) [Line Items] | |||
Value add tax standard rates | 6.00% | ||
Maximum [Member] | |||
Taxes (Details) [Line Items] | |||
Value add tax standard rates | 13.00% |
Taxes (Details) - Schedule of p
Taxes (Details) - Schedule of provision for income taxes - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of provision for income taxes [Abstract] | |||
Current | $ 135 | $ 109 | $ 11,164 |
Deferred | (174,076) | (80,641) | (224,511) |
Total income tax (benefits) expenses | $ (173,941) | $ (80,532) | $ (213,347) |
Taxes (Details) - Schedule of e
Taxes (Details) - Schedule of effective tax rate | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of effective tax rate [Abstract] | |||
PRC statutory rates | 25.00% | 25.00% | 25.00% |
Preferential tax rates | (25.80%) | (25.00%) | (16.90%) |
R&D credits | 3.00% | 1.70% | (3.40%) |
Change in valuation allowance and others | (0.40%) | (1.30%) | (2.80%) |
Effective tax rate | 1.80% | 0.40% | 1.90% |
Taxes (Details) - Schedule of d
Taxes (Details) - Schedule of deferred tax assets - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of deferred tax assets [Abstract] | ||
Provision for doubtful accounts | $ 455,343 | $ 302,536 |
Depreciation and amortization | 145,928 | 112,595 |
Net operating loss carryforward | 738,187 | 517,537 |
Valuation allowance | (738,187) | (517,537) |
Total deferred tax assets | $ 601,271 | $ 415,131 |
Taxes (Details) - Schedule of t
Taxes (Details) - Schedule of taxes payable - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of taxes payable [Abstract] | ||
Income taxes payable | $ 594,026 | $ 565,506 |
VAT and other tax payable | 136,898 | 133,429 |
Totals | $ 730,924 | $ 698,935 |
Equity (Details)
Equity (Details) - USD ($) | Sep. 08, 2021 | Aug. 13, 2021 | Jul. 02, 2020 | Mar. 15, 2020 | Apr. 04, 2019 | Feb. 10, 2019 | Aug. 27, 2018 | May 26, 2021 | Feb. 23, 2021 | Nov. 16, 2020 | Sep. 30, 2020 | Aug. 24, 2020 | Sep. 30, 2019 | Aug. 18, 2018 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 05, 2021 |
Equity (Details) [Line Items] | ||||||||||||||||||
Ordinary shares, authorized (in Shares) | 300,000,000 | 300,000,000 | ||||||||||||||||
Ordinary shares, par value (in Dollars per share) | $ 0.00166667 | $ 0.00166667 | ||||||||||||||||
Description of reverse stock split | the board of directors approved a reverse stock split of the Company’s authorized number of Ordinary Shares at a ratio of 1-0.6. | |||||||||||||||||
Ordinary, shares issued (in Shares) | 56,794,773 | 45,777,318 | ||||||||||||||||
Share capital | $ 11,509 | |||||||||||||||||
Ordinary, shares outstanding (in Shares) | 56,794,773 | 45,777,318 | ||||||||||||||||
Equity description | As a result, the Company’s authorized share capital is US$500,000 divided into 300,000,000 shares of a par value of US$0.00166667 each, with an increase of an additional 270,000,000 shares of a par value of US$0.00166667 each. | |||||||||||||||||
Restricted shares, description | the Company entered into a marketing development service agreement with an external consultant for service term of three years and agreed to 50,000 restricted shares as compensation. On November 28, 2019, the Company entered into a marketing development service agreement with another external consultants for service term of three years and agreed to 57,540 restricted shares as compensation. The aggregated fair value of those restricted shares was assessed at $335,469 based on the stock price of contract dates. | the Company issued 50,000 restricted shares and issued the remaining 57,450 restricted shares in January 2020. For the year ended December 31, 2019, the aggregated of 107,540 restricted shares was included in the calculation of basic earning per shares in accordance with ASC 260-10-45-13. | ||||||||||||||||
Consulting fee expense | $ 461,680 | $ 487,347 | $ 18,430 | |||||||||||||||
Unrecognized share based compensation expense | $ 689,807 | 490,094 | $ 317,039 | |||||||||||||||
Consulting agreement, description | the Company signed a consulting agreement with an independent marketing professional with term of one year. Pursuant to the agreement, the Company agreed to pay total of 150,000 ordinary shares as compensation for the services after signing of the agreement. The Company issued 150,000 restricted ordinary shares on April 14, 2020. The fair value of those shares was assessed at approximately $332,100 based on the stock price of contract date. On July 30, 2020, the Company issued 24,254 ordinary shares as compensation to an advisory firm for the related investor relations advisory service during the period ended from January 2020 to July 2020. The fair value of those shares was assessed at approximately $65,001 based on the stock price of contract date. On September 26, 2020, the Company signed a consulting agreement with a third-party consultant. Pursuant to the agreement, the Company agreed to pay a total of 100,000 ordinary shares as compensation for new business segment strategic positioning and planning services. The Company has issued the above 100,000 shares as of December 31, 2021. On August 17, 2020, the Company signed a consulting agreement with a third-party consultant. Pursuant to the agreement, the Company agreed to pay a total of 10,000 ordinary shares as compensation for services. The Company has not issued the above 10,000 shares as of December 31, 2021. On October 19, 2021, the Company issued 21,182 ordinary shares as compensation to an advisory firm for the related investor relations advisory service. | |||||||||||||||||
Aggregated of shares (in Shares) | 10,000 | |||||||||||||||||
Number of outstanding percentage | 20.00% | |||||||||||||||||
Exercise price (in Dollars per share) | $ 5 | |||||||||||||||||
Aggregate of ordinary shares (in Shares) | 300,000,000 | |||||||||||||||||
Aggregate of restricted ordinary shares (in Shares) | 3,054,591 | |||||||||||||||||
Conversion amount | 65,258,333 | |||||||||||||||||
Ordinary shares issued (in Shares) | 4,014,964 | |||||||||||||||||
Sales agreement, description | the Company entered into a Sales Agreement (the “Sales Agreement”) with A.G.P./Alliance Global Partners, as sales agent (the “Agent”), pursuant to which the Company may offer and sell, from time to time, through or to the Agent, as sales agent and/or principal (the “Offering”) up to $30,000,000 of its ordinary shares, par value $0.00166667 per share (the “Shares”). Any Shares offered and sold in the Offering will be issued pursuant to the Company’s Registration Statement on Form F-3 (the “Registration Statement”) filed with the Securities and Exchange Commission (the “SEC”) on February 23, 2021, and the sales agreement prospectus that forms a part of such Registration Statement, following such time as the Registration Statement is declared effective by the SEC, for an aggregate offering price of up to $200 million. For the year ended December 31, 2021, the Company sold 1,626,327 ordinary shares, par value $0.00166667 per share, through the ATM offering with net proceeds of $5,128,477. | |||||||||||||||||
Statutory reserve, description | The PRC entities are required to allocate at least 10% of their after-tax profits on an individual company basis as determined under PRC accounting standards to the statutory reserve and has the right to discontinue allocations to the statutory reserve if such reserve has reached 50% of registered capital on an individual company basis. | |||||||||||||||||
Statutory reserve balances | ||||||||||||||||||
2018 Stock Option Plan [Member] | ||||||||||||||||||
Equity (Details) [Line Items] | ||||||||||||||||||
Unrecognized share based compensation expense | 2,415,370 | 1,056,410 | ||||||||||||||||
Board authorized, description | The Board authorized that the maximum aggregate number of ordinary shares reserved and available pursuant to this Plan shall be the aggregate of (i) 1,035,787 shares, and (ii) on each January 1, starting with January 1, 2019, an additional number of shares equal to the lesser of (A) 2% of the outstanding number of ordinary shares (on a fully-diluted basis) on the immediately preceding December 31, and (B) such lower number of ordinary shares as may be determined by the Committee. | |||||||||||||||||
Stock options issued (in Shares) | 1,050,500 | |||||||||||||||||
Stock option, description | the Board approved to issue 300,000stock options to an external consultant under 2018 stock option plan with exercise price of $3.75 per share. These options were fully vested upon grant and will expire no later than April 3, 2029. | the Board approved to issue 7,604,964 stock options to its employees under 2018 stock option plan with exercise price of $1.22 per share. 4,014,964 of these stock options were fully vested upon grant; 3,590,000 of these stock options generally have vesting periods of 1-3 years. The options will expire no later than May 26, 2026. | ||||||||||||||||
Share-based compensation expenses | $ 5,873,566 | 986,629 | ||||||||||||||||
Ordinary Shares [Member] | ||||||||||||||||||
Equity (Details) [Line Items] | ||||||||||||||||||
Ordinary shares, authorized (in Shares) | 50,000,000 | 500,000,000 | ||||||||||||||||
Ordinary shares, par value (in Dollars per share) | $ 0.001 | $ 0.0001 | ||||||||||||||||
Description of reverse stock split | On August 18, 2018, in order to optimize the Company’s share capital structure, the board of directors approved a reverse stock split of the Company’s authorized number of Ordinary Shares at a ratio of 10-1. | |||||||||||||||||
Ordinary, shares issued (in Shares) | 6,905,248 | 11,508,747 | ||||||||||||||||
Ordinary, shares outstanding (in Shares) | 6,905,248 | |||||||||||||||||
Conversion amount | $ 46,297 | |||||||||||||||||
Minimum [Member] | 2018 Stock Option Plan [Member] | ||||||||||||||||||
Equity (Details) [Line Items] | ||||||||||||||||||
Vesting periods | 1 year | |||||||||||||||||
Maximum [Member] | 2018 Stock Option Plan [Member] | ||||||||||||||||||
Equity (Details) [Line Items] | ||||||||||||||||||
Vesting periods | 3 years | |||||||||||||||||
Warrant [Member] | ||||||||||||||||||
Equity (Details) [Line Items] | ||||||||||||||||||
Public offering warrants, description | the Company issued warrants totaling 122,500 units to the placement agents (the “Public Offering Warrants”). The warrants carry a term of five years and shall be exercisable at $5.50 per share. Management determined that these warrants are equity instruments because the warrants are both a) indexed to its own stock; and b) classified in shareholders’ equity. The warrants were recorded at their fair value on the date of grant as a component of shareholders’ equity. No warrants were exercised for the year ended December 31, 2020 and 2019. As of December 31, 2021 and 2020, the total number of warrants outstanding was 122,500 with weighted average remaining life of 2.24 years and 3.25 years, respectively. No warrants were exercised as of December 31, 2021 and 2020. The fair value of this Public Offering Warrants was $356,200, which was considered a direct cost of IPO and included in additional paid-in capital. The fair value has been estimated using the Black-Scholes pricing model with the following weighted-average assumptions: market value of underlying share of $5.00, risk free rate of 2.2%; expected term of 5 years; exercise price of the warrants of $5.5, volatility of 71.9%; and expected future dividends of nil. | |||||||||||||||||
IPO [Member] | ||||||||||||||||||
Equity (Details) [Line Items] | ||||||||||||||||||
Initial public offering , description | the Company consummated its initial public offering (“IPO”) of 2,012,500 Ordinary Shares at a price of $5.00 per shares including the exercise in full of the underwriters' over-allotment option of 262,500 ordinary shares at IPO price of $5.00 per share. The gross proceeds from the IPO were $10,062,500 and the net proceeds was $8,021,987. As a result of the IPO, the Ordinary Shares now trade on the Nasdaq Capital Market under the symbol “PBTS.” | |||||||||||||||||
Aggregate of ordinary shares (in Shares) | 2,012,500 | |||||||||||||||||
2020 Private Placement [Member] | ||||||||||||||||||
Equity (Details) [Line Items] | ||||||||||||||||||
Aggregate of ordinary shares (in Shares) | 8,800,000 | |||||||||||||||||
Ordinary shares par par value (in Dollars per share) | $ 0.00166667 | |||||||||||||||||
Purchase price per share (in Dollars per share) | $ 2 | |||||||||||||||||
Net proceeds offering amount | $ 17,600,000 | |||||||||||||||||
2020 Conversion of Convertible Loan [Member] | ||||||||||||||||||
Equity (Details) [Line Items] | ||||||||||||||||||
Ordinary shares par par value (in Dollars per share) | $ 0.00166667 | |||||||||||||||||
Aggregate of restricted ordinary shares (in Shares) | 27,777,776 | |||||||||||||||||
Conversion amount | $ 65,258,333 | |||||||||||||||||
2021 Conversion of Convertible Loan [Member] | ||||||||||||||||||
Equity (Details) [Line Items] | ||||||||||||||||||
Ordinary shares par par value (in Dollars per share) | $ 0.00166667 | $ 0.00166667 | ||||||||||||||||
Aggregate of restricted ordinary shares (in Shares) | 1,676,437 | 3,054,591 | ||||||||||||||||
Conversion amount | $ 1,897,739 | $ 4,445,433 | ||||||||||||||||
Aggregate of principle | $ 1,650,000 | |||||||||||||||||
Director [Member] | ||||||||||||||||||
Equity (Details) [Line Items] | ||||||||||||||||||
Ordinary shares, authorized (in Shares) | 300,000,000 | |||||||||||||||||
Ordinary shares, par value (in Dollars per share) | $ 0.00166667 | |||||||||||||||||
Ordinary, shares issued (in Shares) | 6,905,248 | |||||||||||||||||
Ordinary, shares outstanding (in Shares) | 6,905,248 |
Equity (Details) - Schedule of
Equity (Details) - Schedule of estimate the fair value of stock options - Options Granted [Member] | 1 Months Ended |
May 31, 2021USD ($) | |
Equity (Details) - Schedule of estimate the fair value of stock options [Line Items] | |
Risk-free interest rate | 0.81% |
Expected life of the options | 5 years |
Expected volatility | 96.00% |
Expected dividend yield | |
Fair value (in Dollars) | $ 7,232,526 |
Equity (Details) - Schedule o_2
Equity (Details) - Schedule of stock options - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of stock options [Abstract] | |||
Number of Share Options, Outstanding opening | 1,350,500 | 1,350,500 | |
Weighted Average Exercise Price, Outstanding opening (in Dollars per share) | $ 4.72 | $ 4.72 | |
Weighted Average Remaining Contractual Term, Outstanding opening | |||
Aggregate Intrinsic Value, Outstanding opening (in Dollars) | |||
Number of Share Options, Granted | 7,604,964 | 1,350,500 | |
Weighted Average Exercise Price, Granted (in Dollars per share) | $ 1.22 | $ 4.72 | |
Weighted Average Remaining Contractual Term, Granted | 4 years 4 months 24 days | ||
Aggregate Intrinsic Value, Granted (in Dollars) | |||
Number of Share Options, Exercised | (58,110) | ||
Number of Share Options, Expired, forfeited or cancelled | |||
Weighted Average Exercise Price, Expired, forfeited or cancelled (in Dollars per share) | |||
Weighted Average Remaining Contractual Term, Expired, forfeited or cancelled | |||
Aggregate Intrinsic Value, Expired, forfeited or cancelled (in Dollars) | |||
Number of Share Options, Outstanding ending | 8,897,354 | 1,350,500 | 1,350,500 |
Weighted Average Exercise Price, Outstanding ending (in Dollars per share) | $ 1.74 | $ 4.72 | $ 4.72 |
Weighted Average Remaining Contractual Term, Outstanding ending | 4 years 2 months 23 days | 4 years 4 months 13 days | 5 years 4 months 13 days |
Aggregate Intrinsic Value, Outstanding ending (in Dollars) | |||
Number of Share Options, Exercisable | 5,034,334 | ||
Weighted Average Exercise Price, Exercisable (in Dollars per share) | $ 1.93 | ||
Weighted Average Remaining Contractual Term, Exercisable | 4 years 2 months 15 days | ||
Aggregate Intrinsic Value, Exercisable (in Dollars) |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Lease expiration period | The leases are expiring through 2024. | ||
Rent expense | $ 307,497 | $ 305,832 | $ 492,530 |
Commitments and Contingencies_3
Commitments and Contingencies (Details) - Schedule of minimum lease payment under these operating leases | Dec. 31, 2021USD ($) |
Schedule of minimum lease payment under these operating leases [Abstract] | |
2022 | $ 178,516 |
2023 | 32,313 |
2024 | 19,023 |
Total | $ 229,852 |
Segment Reporting (Details)
Segment Reporting (Details) | 12 Months Ended | |
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Segment Reporting [Abstract] | ||
Number of operating segment | 1 | |
Application development service revenue | $ 14,472,010 | $ 6,299,982 |
Segment Reporting (Details) - S
Segment Reporting (Details) - Schedule of revenues - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
REVENUES: | ||||
Application development services | [1] | $ 20,323,422 | $ 21,985,214 | $ 15,720,676 |
Consulting and technical support services | 4,555,352 | 3,797,354 | 3,307,662 | |
Subscription services | 936,913 | 881,443 | 1,066,720 | |
Trading revenue | 6,277,141 | |||
Total revenues | $ 32,092,828 | $ 26,664,011 | $ 20,095,058 | |
[1] | For the year ended December 31, 2021 and 2020, certain application development service arrangements included sales of IT equipment. Such revenue of $14,472,010 and $6,299,982 was included in the application development service revenue for years ended December 31, 2021 and 2020, respectively. |
Subsequent Events (Details)
Subsequent Events (Details) | Jan. 28, 2022USD ($) | Jan. 06, 2022shares | Mar. 31, 2022USD ($) | Jan. 05, 2022shares | Dec. 31, 2021USD ($)$ / shares | Dec. 31, 2021CNY (¥) | Jan. 08, 2021 |
Subsequent Events (Details) [Line Items] | |||||||
Interest rate | 9.00% | ||||||
Principle amount | $ 1,255,375 | ¥ 8,000,000 | |||||
Restricted ordinary share par value | $ 5,024,599 | ||||||
Restricted ordinary share per shares (in Dollars per share) | $ / shares | $ 0.00166667 | ||||||
Subsequent Event [Member] | |||||||
Subsequent Events (Details) [Line Items] | |||||||
Company agrees to purchase | 19.99% | ||||||
Price percentage | 90.00% | ||||||
Share issued (in Shares) | shares | 17,138,305 | ||||||
Loan agreement | $ 1,569,218 | ||||||
Interest rate | 4.70% | ||||||
Fixed asset | $ 2.6 | ||||||
Powerbridge Zhuhai [Member] | Subsequent Event [Member] | |||||||
Subsequent Events (Details) [Line Items] | |||||||
Ownership interest (in Shares) | shares | 0.38 | ||||||
Convertible note [Member] | Subsequent Event [Member] | |||||||
Subsequent Events (Details) [Line Items] | |||||||
Principle amount | $ 1,750,000 |