Document And Entity Information
Document And Entity Information | 6 Months Ended |
Jun. 30, 2021 | |
Document Information Line Items | |
Entity Registrant Name | Lion Group Holding Ltd. |
Document Type | F-1/A |
Amendment Flag | true |
Amendment Description | Amendment No. 4 |
Entity Central Index Key | 0001806524 |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | Unit A-C, 33/F |
Entity Address, Address Line Two | Tower A, Billion Center1 Wang Kwong Road |
Entity Address, City or Town | Kowloon Bay |
Entity Address, Country | HK |
City Area Code | (852) |
Local Phone Number | 2820-9000 |
Business Contact | |
Document Information Line Items | |
Entity Address, Address Line One | 122 East 42nd Street |
Entity Address, Address Line Two | 18th Floor |
Entity Address, City or Town | New York |
City Area Code | (212) |
Local Phone Number | 947-7200 |
Contact Personnel Name | Cogency Global Inc. |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10168 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Assets | ||||
Cash and cash equivalents | $ 14,888,644 | $ 3,426,467 | $ 6,388,978 | |
Restricted cash-bank balances held on behalf of customers | 808,923 | 1,367,630 | 2,192,201 | |
Securities owned, at fair value | 30,325,800 | 17,622 | 180,201 | |
Derivative assets, at fair value | 194,110 | |||
Receivables from broker-dealers and clearing organizations | 23,689,967 | 8,089,193 | 1,684,961 | |
Crypto currencies | 201,152 | |||
Commissions receivable | 71,253 | 88,560 | ||
Short-term loans receivable | 508,756 | 2,239,378 | 1,637,310 | |
Other receivables | 67,475 | 724,708 | 166,064 | |
Prepaids, deposits and other | 2,195,925 | 749,231 | ||
Prepaids, deposits and other | 677,978 | 510,291 | ||
Total current assets | 72,686,642 | 16,614,229 | 13,042,676 | |
Long term investment | 1,548,565 | |||
Fixed assets, net | 10,264,199 | 34,919 | 73,688 | |
Intangible assets | 86,585 | 86,728 | 67,964 | |
Other assets | 1,931,686 | 6,169,065 | 233,343 | |
Deferred taxes | 1,128 | 677 | ||
Total Assets | 86,517,677 | 22,906,069 | 13,418,348 | |
Current Liabilities | ||||
Payables to customers | 14,362,840 | 5,221,270 | 3,853,693 | |
Payables to broker-dealers and clearing organizations | 24,270,558 | 3,845,740 | ||
Accrued expenses and other payables | 1,169,408 | 1,807,927 | ||
Commissions payable | 39,180 | 29,439 | ||
Accrued expenses and other payables | 1,763,094 | 417,445 | ||
Short-term borrowings | 293,905 | 1,412,570 | ||
Short-term borrowings from related party | 128,415 | |||
Warrant liabilities | 3,881,250 | 1,469,821 | ||
Derivative liabilities, at fair value | 5,653 | |||
Due to director | 152,472 | 149,522 | ||
Total current liabilities | 39,955,278 | 11,318,364 | ||
Dividends payable | 385,901 | |||
Total current liabilities | 12,788,185 | 6,227,463 | ||
Convertible debenture | 816,006 | |||
Total Liabilities | 43,836,528 | 13,604,191 | 6,227,463 | |
Commitments and Contingencies | ||||
Stockholders’ Equity | ||||
Preferred shares value | ||||
Series A Convertible Preferred Shares - 345,000 shares authorized, stated value of $1,000 per share, 7,000 and none shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively | 4,231,453 | |||
Class A ordinary shares | [1] | 2,933 | 963 | 314 |
Class B ordinary shares | [1] | 984 | 984 | 395 |
Additional paid in capital | [1] | 51,575,575 | 12,269,761 | 7,605,034 |
Accumulated deficit | (13,051,036) | (2,952,362) | (376,903) | |
Accumulated other comprehensive losses | (42,533) | (17,468) | (37,955) | |
Total shareholders’ equity | 42,681,149 | 9,301,878 | 7,190,885 | |
Total Liabilities and Stockholders’ equity | 86,517,677 | 22,906,069 | $ 13,418,348 | |
Total LGHL Stockholders’ Equity | 42,717,376 | 9,301,878 | ||
Non-controlling interest | $ (36,227) | |||
[1] | Par value of ordinary shares, additional paid -in |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Preferred shares, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Preferred shares, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 |
Preferred shares, shares issued | 0 | 0 | |
Preferred shares, shares outstanding | 0 | 0 | |
Class A Ordinary Shares | |||
Ordinary shares, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Ordinary shares, shares authorized | 300,000,000 | 300,000,000 | 300,000,000 |
Ordinary shares, shares issued | 29,328,180 | 9,627,553 | 3,140,388 |
Ordinary shares, shares outstanding | 29,328,180 | 9,627,553 | 3,140,388 |
Class B Ordinary Shares | |||
Ordinary shares, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Ordinary shares, shares authorized | 150,000,000 | 150,000,000 | 150,000,000 |
Ordinary shares, shares issued | 9,843,096 | 9,843,096 | 3,949,993 |
Ordinary shares, shares outstanding | 9,843,096 | 9,843,096 | 3,949,993 |
Series A Preferred Stock | |||
Preferred shares, par value (in Dollars per share) | $ 1,000 | $ 1,000 | |
Preferred shares, shares authorized | 345,000 | 345,000 | |
Preferred shares, shares issued | 7,000 | 0 | |
Preferred shares, shares outstanding | 7,000 | 0 |
Condensed Statements of Operati
Condensed Statements of Operations and Comprehensive Income (Loss) {Unaudited) - USD ($) | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Revenues | ||||||
Insurance brokerage commissions | $ 295,343 | $ 638,574 | $ 959,299 | $ 2,648,119 | $ 5,375,531 | |
Securities brokerage commissions and fees | 1,178,062 | 565,517 | 1,890,502 | 2,210,915 | 2,025,650 | |
Market making commissions and fees | 1,069,656 | 2,717,614 | 4,940,623 | 11,056,431 | ||
Trading gains | 1,466,873 | 2,337,607 | ||||
Trading gains (losses) | 3,600,000 | 1,833,875 | 1,782,750 | (897,812) | ||
Interest and other | (409,637) | 171,204 | 605,836 | 828,635 | 64,894 | |
Gross profit | 3,600,297 | 6,430,516 | 10,230,135 | 18,526,850 | 6,568,263 | |
Expenses | ||||||
Commissions and fees | 1,189,243 | 762,061 | 1,845,994 | 3,355,205 | 5,471,602 | |
Compensation and benefits | 2,383,547 | 1,486,160 | 3,802,793 | 2,430,636 | 1,639,288 | |
Occupancy | 347,660 | 323,224 | 683,160 | 591,936 | 548,331 | |
Communication and technology | 947,292 | 469,662 | 1,454,050 | 823,433 | 588,353 | |
Cost of crypto mining (inclusive of depreciation) | 219,662 | |||||
General and administrative | 630,059 | 292,788 | 2,264,318 | 692,648 | 539,773 | |
Professional fees | 990,011 | 153,853 | 1,565,834 | 761,238 | 227,998 | |
Services fees | 2,474,122 | 231,785 | 833,864 | 384,840 | 53,592 | |
Interest | 942,264 | 79,343 | 183,157 | 731,812 | 118 | |
Depreciation | 279,680 | 21,992 | 40,556 | 52,852 | 32,743 | |
Marketing | 553,758 | 199,948 | 651,324 | 55,378 | 195,933 | |
Payment service charge | 292,630 | 245,030 | 355,585 | |||
Other operating | 19,474 | 32,502 | 11,464 | 10,463 | 15,406 | |
Total operating expenses | 11,269,402 | 4,053,318 | 13,581,544 | 10,246,026 | 9,313,137 | |
(Loss) income from operations | (7,669,105) | 2,377,198 | (3,351,409) | 8,280,824 | (2,744,874) | |
Change in fair value of warrant liabilities | (2,411,429) | 414,440 | 777,266 | |||
(Loss) income before income taxes | (10,080,534) | 2,791,638 | (2,574,143) | 8,280,824 | (2,744,874) | |
Income tax expense | (54,367) | (3,321) | (1,316) | (64,472) | (26,334) | |
Net (loss) income | (10,134,901) | 2,788,317 | (2,575,459) | 8,216,352 | (2,771,208) | |
Other comprehensive (loss) income | ||||||
Net loss attributable to non-controlling interests | 36,227 | |||||
Net (loss) income attributable to LGHL | (10,098,674) | 2,788,317 | ||||
Deemed dividend on the effect of the down round features | (1,021,500) | |||||
Deemed dividends on preferred shares | (1,562,905) | |||||
Net (loss) income attributable to LGHL ordinary shareholders | (12,683,079) | 2,788,317 | ||||
Foreign currency translation adjustment | (25,065) | 20,560 | 20,487 | 75,637 | (24,749) | |
Comprehensive (loss) income | $ (10,159,966) | $ 2,808,877 | $ (2,554,972) | $ 8,291,989 | $ (2,795,957) | |
(Loss) earnings per share for both Class A and Class B – basic and diluted (in Dollars per share) | [1] | $ (0.47) | $ 0.37 | $ (0.25) | $ 1.16 | $ (0.39) |
Weighted average Class A ordinary shares outstanding – basic and diluted (in Shares) | [1] | 22,690,522 | 3,511,891 | |||
Weighted average Class B ordinary shares outstanding – basic and diluted (in Shares) | [1] | 4,041,875 | 3,949,993 | |||
Class A Ordinary Shares | ||||||
Other comprehensive (loss) income | ||||||
Weighted average ordinary shares outstanding - basic and diluted (in Shares) | [1] | 6,180,795 | 3,140,388 | 3,140,388 | ||
Class B Ordinary Shares | ||||||
Other comprehensive (loss) income | ||||||
Weighted average ordinary shares outstanding - basic and diluted (in Shares) | [1] | 3,962,294 | 3,949,993 | 3,949,993 | ||
[1] | Share and per share data have been retroactively restated to give effect to the reverse recapitalization that is discussed in Note 1 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) - USD ($) | Class AOrdinary Shares | Class BOrdinary Shares | Series AConvertible Preferred Shares | Additional Paid in Capital | [1] | Receivable from Shareholder | Accumulated Deficit | Accumulated Other Comprehensive (Loss) Income | Non- Controlling Interest | Total | ||||||
Balance at Dec. 31, 2017 | $ 314 | [1] | $ 395 | [1] | $ 12,503,046 | $ (8,437,688) | $ (827,431) | $ (88,843) | $ 3,149,793 | |||||||
Balance (in Shares) at Dec. 31, 2017 | [1] | 3,140,388 | 3,949,993 | |||||||||||||
Subscription payments | 5,415,082 | 5,415,082 | ||||||||||||||
Net income (loss) | (2,771,208) | (2,771,208) | ||||||||||||||
Other comprehensive income (loss) | (24,749) | (24,749) | ||||||||||||||
Balance at Dec. 31, 2018 | $ 314 | [1] | $ 395 | [1] | 12,503,046 | (3,022,606) | (3,598,639) | (113,592) | 5,768,918 | |||||||
Balance (in Shares) at Dec. 31, 2018 | [1] | 3,140,388 | 3,949,993 | |||||||||||||
Return of capital | (4,898,012) | 3,022,606 | (1,875,406) | |||||||||||||
Dividends declared | (4,994,616) | (4,994,616) | ||||||||||||||
Net income (loss) | 8,216,352 | 8,216,352 | ||||||||||||||
Other comprehensive income (loss) | 75,637 | 75,637 | ||||||||||||||
Balance at Dec. 31, 2019 | $ 314 | [1] | $ 395 | [1] | 7,605,034 | (376,903) | (37,955) | 7,190,885 | ||||||||
Balance (in Shares) at Dec. 31, 2019 | 3,140,388 | [1] | 3,949,993 | [1] | ||||||||||||
Effect of reverse recapitalization, net of costs | $ 336 | [1],[2] | $ 580 | [1],[2] | (2,202,234) | [2] | [2] | [2] | (2,201,318) | [2] | ||||||
Effect of reverse recapitalization, net of costs (in Shares) | [2] | 3,357,574 | [1] | 5,801,221 | ||||||||||||
Conversion of rights to ordinary shares upon the reverse recapitalization | $ 115 | [1] | [1] | (115) | ||||||||||||
Conversion of rights to ordinary shares upon the reverse recapitalization (in Shares) | [1] | 1,150,000 | ||||||||||||||
Net income (loss) | [1] | [1] | 2,788,317 | 2,788,317 | ||||||||||||
Other comprehensive income (loss) | [1] | [1] | 20,560 | 20,560 | ||||||||||||
Balance at Jun. 30, 2020 | $ 765 | [1] | $ 975 | [1] | 5,402,685 | 2,411,414 | (17,395) | 7,798,444 | ||||||||
Balance (in Shares) at Jun. 30, 2020 | 7,647,962 | [1] | 9,751,214 | [1] | ||||||||||||
Balance at Dec. 31, 2019 | $ 314 | [1] | $ 395 | [1] | 7,605,034 | (376,903) | (37,955) | 7,190,885 | ||||||||
Balance (in Shares) at Dec. 31, 2019 | 3,140,388 | [1] | 3,949,993 | [1] | ||||||||||||
Effect of reverse recapitalization, net of costs | [2] | $ 336 | [1] | $ 580 | (2,242,234) | (2,241,318) | ||||||||||
Effect of reverse recapitalization, net of costs (in Shares) | [1],[2] | 3,357,574 | 5,801,221 | |||||||||||||
Conversion of rights to ordinary shares upon the reverse recapitalization | $ 115 | [1] | (115) | |||||||||||||
Conversion of rights to ordinary shares upon the reverse recapitalization (in Shares) | 1,150,000 | [1] | ||||||||||||||
Shares issued to prior D&O | $ 30 | [1] | 59,970 | 60,000 | ||||||||||||
Shares issued to prior D&O (in Shares) | 300,000 | [1] | ||||||||||||||
Shares issued in connection with August 2020 PIPE, net of costs | $ 165 | [1] | 2,530,536 | 2,530,701 | ||||||||||||
Shares issued in connection with August 2020 PIPE, net of costs (in Shares) | 1,650,000 | [1] | ||||||||||||||
Shares issued as a result of post-merger consideration adjustment | $ 3 | [1] | $ 9 | [1] | (12) | |||||||||||
Shares issued as a result of post-merger consideration adjustment (in Shares) | [1] | 29,591 | 91,882 | |||||||||||||
2020 incentive shares granted and unissued | 3,656,800 | 3,656,800 | ||||||||||||||
Detachable warrants issued in connection with December 2020 Convertible Debenture, net of costs | 454,089 | 454,089 | ||||||||||||||
Beneficial conversion feature in connection with December 2020 Convertible Debenture | 205,693 | 205,693 | ||||||||||||||
Net income (loss) | (2,575,459) | (2,575,459) | ||||||||||||||
Other comprehensive income (loss) | 20,487 | 20,487 | ||||||||||||||
Balance at Dec. 31, 2020 | $ 963 | [1] | $ 984 | [1] | 12,269,761 | (2,952,362) | (17,468) | 9,301,878 | ||||||||
Balance (in Shares) at Dec. 31, 2020 | 9,627,553 | [1] | 9,843,096 | [1] | ||||||||||||
Issuance of January 2021 Call Options for service | [1] | 1,909,000 | 1,909,000 | |||||||||||||
Conversion of Debenture into ordinary shares | $ 89 | [1] | [1] | 1,611,511 | 1,611,600 | |||||||||||
Conversion of Debenture into ordinary shares (in Shares) | [1] | 889,667 | ||||||||||||||
Exercise of December 2020 Warrants | $ 1,420 | [1] | [1] | 27,398,580 | 27,400,000 | |||||||||||
Exercise of December 2020 Warrants (in Shares) | [1] | 14,200,000 | ||||||||||||||
Exercise of August 2020 PIPE Warrants | $ 77 | [1] | [1] | 1,541,589 | 1,541,666 | |||||||||||
Exercise of August 2020 PIPE Warrants (in Shares) | [1] | 770,833 | ||||||||||||||
Issuance of Series A Convertible Preferred Shares and detachable February 2021 Warrants, net of costs | [1] | [1] | $ 2,668,548 | 3,630,452 | 6,299,000 | |||||||||||
Issuance of Series A Convertible Preferred Shares and detachable February 2021 Warrants, net of costs (in Shares) | 7,000 | |||||||||||||||
Beneficial conversion feature in connection with Series A Convertible Preferred Shares | [1] | $ 1,562,905 | (1,562,905) | |||||||||||||
Issuance of ordinary shares in connection with 2020 Share Incentive Plan | $ 148 | [1] | [1] | (148) | ||||||||||||
Issuance of ordinary shares in connection with 2020 Share Incentive Plan (in Shares) | [1] | 1,486,504 | ||||||||||||||
Issuance of ordinary shares to Yun Tian | $ 36 | [1] | [1] | 777,935 | 777,971 | |||||||||||
Issuance of ordinary shares to Yun Tian (in Shares) | [1] | 353,623 | ||||||||||||||
Exercise of January 2021 Call Options | $ 200 | [1] | [1] | 3,999,800 | 4,000,000 | |||||||||||
Exercise of January 2021 Call Options (in Shares) | [1] | 2,000,000 | ||||||||||||||
Net income (loss) | [1] | [1] | (10,098,674) | (36,227) | (10,134,901) | |||||||||||
Other comprehensive income (loss) | [1] | [1] | (25,065) | (25,065) | ||||||||||||
Balance at Jun. 30, 2021 | $ 2,933 | [1] | $ 984 | [1] | $ 4,231,453 | $ 51,575,575 | $ (13,051,036) | $ (42,533) | $ (36,227) | $ 42,681,149 | ||||||
Balance (in Shares) at Jun. 30, 2021 | 29,328,180 | [1] | 9,843,096 | [1] | 7,000 | |||||||||||
[1] | Par value of ordinary shares, additional paid -in | |||||||||||||||
[2] | As a result of the restatement the reverse recapitalization has been reduced by the fair value of approximately $2.2 million of Public Warrants and Private Warrants as a liability as of June 16, 2020 that is discussed in Note 1 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flows from Operating Activities | |||||
Net (loss) income | $ (10,134,901) | $ 2,788,317 | $ (2,575,459) | $ 8,216,352 | $ (2,771,208) |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||
Stock based compensation expense | 190,900 | 3,656,800 | |||
Change in fair value of warrant liabilities | 2,411,429 | (414,440) | (777,266) | ||
Amortization of debt discounts | 783,994 | 13,288 | |||
Depreciation | 367,851 | 21,992 | 40,556 | 52,852 | 32,743 |
Deferred taxes | (465) | 479 | (451) | (1,827) | (628) |
Gain on forgiveness of debt | (25,528) | ||||
(Increase) decrease in operating assets | |||||
Securities owned | (30,308,178) | 170,777 | 162,579 | 927,032 | (1,107,233) |
Derivatives assets | 194,110 | ||||
Receivables from broker-dealers and clearing organizations | (15,600,774) | (516,365) | (6,404,232) | 4,723,829 | (5,475,634) |
Crypto currencies | (201,152) | ||||
Prepaids, deposits and other assets | (413,314) | 122,001 | |||
Commissions receivable | 17,307 | 68,444 | 187,226 | ||
Other receivables and Prepaids, deposits and other assets | (374,728) | (217,497) | (187,933) | 323,392 | |
Increase (decrease) in operating liabilities | |||||
Payables to customers | 9,141,570 | (809,003) | 1,367,577 | (5,697,526) | 8,033,193 |
Payables to broker-dealers and clearing organizations | 20,424,818 | 607,132 | 3,845,740 | (8,625) | |
Commissions payable | 9,741 | (96,229) | (343,000) | ||
Taxes payable | (76,276) | ||||
Accrued expenses and other payables | (621,266) | 90,445 | 767,229 | 211,926 | 8,910 |
Derivative liabilities | 5,653 | (214,397) | 20,287 | ||
Net cash (used in) provided by operating activities | (24,334,216) | 2,061,335 | 105,675 | 7,976,995 | (1,176,853) |
Cash Flows from Investing Activities | |||||
Purchases of fixed assets | (2,597,361) | (20,576) | (62,586) | ||
Acquisition of Trademarks | (5,188) | (5,184) | (4,117) | ||
Investment in investment funds | (1,548,565) | ||||
Advance payments for assets acquisition | (5,950,000) | ||||
Advances to shareholder | (6,484,121) | ||||
Advances to unrelated parties | (19,108,159) | ||||
Short term loans receivable | (1,007,759) | (442,485) | (680,350) | (1,637,310) | |
Collection of short-term loan | 684,861 | 86,020 | |||
Net cash used in investing activities | (4,468,824) | (447,673) | (6,549,514) | (27,254,283) | (62,586) |
Cash Flows from Financing Activities | |||||
Dividends paid | (385,901) | (385,901) | |||
Cash acquired in the reverse recapitalization | 2,476,198 | 2,476,198 | |||
Payments for reverse recapitalization and ordinary shares issuance costs | (1,802,105) | (1,908,591) | |||
Proceeds from the exercise of December 2020 warrants | 27,400,000 | ||||
Proceeds from the exercise of August 2020 PIPE Warrants | 1,541,666 | ||||
Proceeds from the exercise of January 2021 Call Options | 4,000,000 | ||||
Proceeds from issuance Series A Convertible Preferred Shares and detachable warrants, net of issuance costs | 6,299,000 | ||||
Proceeds from issuance of ordinary shares to Yuntian | 777,971 | ||||
Proceeds from August 2020 PIPE, net of costs | 2,021,951 | ||||
Proceeds from Short-term borrowings | 21,047,260 | ||||
Repayment of Short-term borrowings | (293,449) | (791,469) | (1,124,448) | (382,917) | |
Repayment of Short-term borrowings from related party | (128,415) | (128,415) | |||
Proceeds from issuance of convertible debenture | 1,540,000 | ||||
Subscription payments from shareholder | 5,415,082 | ||||
Advances from director | 1,426,107 | 1,616,565 | 7,679,131 | 484,601 | |
Repayments to director | (1,426,107) | (1,467,043) | (7,679,131) | (484,601) | |
Net cash provided by (used in) financing activities | 39,725,188 | (631,692) | 2,640,316 | 20,664,343 | 5,415,082 |
Effect of Exchange Rate Changes on Cash and Restricted Cash | (18,678) | 18,746 | 16,441 | 85,966 | (24,616) |
Net Change in Cash and Restricted Cash | 10,903,470 | 1,000,716 | (3,787,082) | 1,473,021 | 4,151,027 |
Cash and Restricted Cash – Beginning of Period | 4,794,097 | 8,581,179 | 8,581,179 | 7,108,158 | 2,957,131 |
Cash and Restricted Cash – End of Period | 15,697,567 | 9,581,895 | 4,794,097 | 8,581,179 | 7,108,158 |
Noncash Investing and Financing Activities | |||||
Settlement of short-term loans receivable and borrowings | 19,120,332 | ||||
Return of capital through reduction in subscription receivable | 3,022,606 | ||||
Return of capital through reduction in due from shareholder | 1,875,406 | ||||
Dividends made through reduction in due from shareholder | 4,608,715 | ||||
Dividends declared and payable at year-end | 385,901 | ||||
Net liabilities acquired in the reverse recapitalization | 57,754 | 57,963 | |||
Increase in payables for ordinary shares issuance costs | 570,571 | ||||
Increase in payables for ordinary shares issuance costs in reverse acquisition | 504,084 | ||||
Decrease in accrued expenses for shares issued to prior D&O | 60,000 | ||||
Convertible debenture debt discounts and issuance costs charged to equity | 659,782 | ||||
Subscription receivable for the shares issued in August 2020 PIPE | 508,750 | ||||
Transfer from other assets to intangible assets | 13,287 | 13,277 | |||
Decrease in other assets for fixed assets | 8,000,000 | ||||
Value of January 2021 Call Options issued for service | 1,909,000 | ||||
Issuance of ordinary shares in connection with 2020 Share Incentive Plan | 148 | ||||
Conversion of Debenture into ordinary shares | 1,611,511 | ||||
Supplemental disclosure of cash flow information | |||||
Cash paid for interest | 104,927 | $ 73,168 | 115,160 | 729,504 | |
Cash paid for income taxes | $ 54,667 | $ 8,227 | $ 1,521 | $ 180,689 |
Organization and Principal Acti
Organization and Principal Activities | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Organization and Principal Activities | Note 1 — Organization and Principal Activities Lion Group Holding Ltd. (the “Company”, “Lion” or “LGHL”) is a company with limited liability registered as an exempted company in the Cayman Islands. The Company and its subsidiaries (collectively referred to as the “Group”) provide securities, futures and derivatives brokerage services, insurance brokerage services and market maker trading services. Each American Depositary Shares (“ADSs”) of the Company represents one Class A ordinary share. Reverse Recapitalization The Company was incorporated on February 11, 2020 for the sole purpose of consummating the business combination described further below. A business combination agreement dated March 10, 2020, as amended and restated on May 12, 2020 (the “Business Combination Agreement”), was entered into by and among the Company, Proficient Alpha Acquisition Corp., a Nevada corporation (“PAAC”), Lion MergerCo I, Inc., a Delaware corporation and a wholly -owned On June 16, 2020, the Company consummated the Business Combination (the “Closing”) and each of PAAC and LFGL became a wholly -owned -tenth The Business Combination was accounted for as a reverse recapitalization in accordance with U.S. generally accepted accounting principles. Under this method of accounting, LGHL and PAAC are treated as the “acquired” company for financial reporting purpose. This determination was primarily based on LFGL comprising the ongoing operations of the combined company, LFGL’s senior management comprising the senior management of the combined company, and LFGL’s stockholders having a majority of the voting power of the combined company. Accordingly, for accounting purposes, LFGL is deemed the accounting acquirer in the transaction. The transaction is not a business combination because neither PAAC nor LGHL was a business under ASC 805. Consequently, the transaction is treated as the equivalent of LFGL issuing stock for the net monetary assets of PAAC, accompanied by a recapitalization of LFGL. Accordingly, the consolidated assets, liabilities and results of operations of LFGL are the historical financial statements of the combined company, and LGHL and PAAC’s assets, liabilities and results of operations are consolidated with LFGL beginning on June 16, 2020. The consolidated financial statements are prepared as a continuation of the financial statements of LFGL, the acquirer and predecessor, with retrospective adjustments to give effect of the reverse recapitalization. The equity is restated using the exchange ratio of 141.81 established in the reverse recapitalization transaction, which is 7,090,381 (the number of Exchange Shares excluding Escrow Shares, see below) divided by 50,000, to reflect the equity structure of the legal acquirer, LGHL. Earnings (loss) per share is retrospectively restated using the historical weighted -average The par value of ordinary shares was adjusted retrospectively from $0 to $709, and the difference of $709 was adjusted retrospectively as additional paid -in Upon the consummation of the reverse recapitalization, the assets and liabilities of PAAC were recognized at fair value. The fair value of cash and short -term -in Cash $ 2,476,198 Prepaid expenses and other current assets 209 Warrant liabilities (2,247,087 ) Accrued expenses (57,963 ) Net assets acquired by LGHL as of June 16, 2020 $ 171,357 For the six months ended June 30, 2020, the Group incurred approximately $2.4 million of direct and incremental transaction costs, consisting of legal, accounting and financial consulting services directly associated with the reverse recapitalization. In accordance with SEC reporting guidance with regards to an operating company’s reverse acquisition with a nonoperating company having some cash, transaction costs incurred for the reverse acquisition, such as legal fees, investment banking fees and the like, may be charged directly to equity to the extent of the cash received, while all costs in excess of cash received should be charged to expense. Accordingly, the Group charged transaction costs of approximately $2.4 million to additional paid in capital in the consolidated financial statements. 1,933,740 Class B ordinary shares being 15% of the Exchange Shares (“Indemnity Escrow Shares”) otherwise issuable to LFGL shareholders are set aside in escrow for a period of 24 months after the closing to satisfy any post -closing • • Principal Activities The Group generates commission revenues by enabling its customers to trade in securities, futures and derivative markets throughout the world. The Group’s trading customers consist of corporate clients, individual traders and retail investors primarily located in People’s Republic of China (“PRC”) and Southeast Asia, although its trading platform allows it to serve customers worldwide. The Group also generates commission revenues by providing insurance brokerage services to high -net-worth In May 2019, the Group began to serve as the counterparty to its customers in derivative transactions. This predominantly occurs when a customer utilizes a contract for difference (CFD). CFDs allow for the exchange of the difference in value of a particular asset such as a currency pair between the time at which a contract is opened and the time at which it is closed. If the trades of one customer can be used to naturally offset the trades of another customer, the Group will act as the market maker to offer liquidity and pricing to both customers. When such an offsetting is not available, the Group may choose to use its own trades to offset the trades of its customer, and the Group may also act as a broker in arranging trades between the customer and third -party The Group officially began offering total return swap (TRS) trading services to customers in July 2020. The Group has entered into International Swaps and Derivatives Association (ISDA) master agreements and related supplementary agreements with two of the top five swap traders in China. The Group is currently offering A -shares -share In March 2021, the Group launched the sponsorship of two Special Purpose Acquisition Companies (“SPAC”) in cooperation with other parties with offering size of $50,000,000 each. The SPACs’ registration statements are currently still under SEC’s review. For the six months ended June 30, 2021, three trading customers accounted for more than 68% of its total revenue; for the first six months of 2020, the Group had three trading customers account for 38.9% of its total revenue. For the six months ended June 30, 2021 and 2020, one clearing broker accounted for 68.2% and 55.3%, respectively, of the Group’s total commissions expense. For the six months ended June 30, 2021 and 2020, the Group placed 82% (less than 10% of total revenue for the first six months of 2021) and 77.1% (less than 10% of total revenue for the first six months of 2020) of its insurance brokerage sales with one insurance provider. The subsidiaries of the Company include a participant of the Stock Exchange of Hong Kong Limited (“SEHK”) and Hong Kong Securities Clearing Company Limited (“HKSCC”), remote trading member of Singapore Exchange Limited (“SGX”), and member of the Professional Insurance Brokers Association Limited (“PIBA”); possess the licenses issued by Hong Kong Securities and Futures Commission (“HKSFC”) to carry out regulated activities including Type 1 Dealing in Securities, Type 2 Dealing in Futures Contracts, Type 4 Advising on Securities, Type 5 Advising on Futures Contracts, and Type 9 Asset Management, and the full license issued by Cayman Islands Monetary Authority (“CIMA”) to carry out securities investment business including Broker Dealer and Market Maker. COVID-19 In December 2019, COVID -19 -19 -19 -19 -19 Details of the Company’s subsidiaries as of June 30, 2021 are as follows: Company Name Date of Place of Ownership Principal Activities Lion Financial Group Limited June 16, 2015 British Virgin Islands 100% Investment holding Lion Wealth Management Limited February 16, 2017 British Virgin Islands 100% Investment holding Lion International Securities Group Limited May 20, 2016 Hong Kong 100% Securities brokerage Lion Futures Limited May 20, 2016 Hong Kong 100% Futures brokerage Lion Investment (Hong Kong) Limited (F/K/A Lion Foreign Exchange Limited) May 20, 2016 Hong Kong 100% Dormant Lion Asset Management Limited (F/K/A Lion Capital Management Limited) May 20, 2016 Hong Kong 100% Asset management BC Wealth Management Limited October 14, 2014 Hong Kong 100% Insurance brokerage Lion Wealth Limited October 4, 2018 Hong Kong 100% Marketing and support service Lion Brokers Limited May 2, 2017 Cayman Islands 100% Broker dealer and market maker Lion Investment Fund SPC June 11, 2019 Cayman Islands 100% Dormant Lion International Financial July 26,2019 Singapore 100% Dormant Company Name Date of Place of Ownership Principal Activities Lion Group North America Corp. (F/K/A Proficient Alpha Acquisition Corp.) June 16, 2020 Nevada, USA 100% Dormant Lion Fintech Group Limited April 13, 2021 British Virgin Islands 100% Investment holding Royal Lion Investment Limited April 13, 2021 Cayman Islands 70% Investment holding Royal Lion Middle East DMCC April 13, 2021 Dubai 70% Trading in crypto-commodities Lion NFT Limited (“Lion NFT”) May 7, 2021 British Virgin Islands 60% Investment and innovation in digital assets Flying Lion Limited (“Flying Lion”) June 17, 2021 Cayman Islands 70% Investment and innovation in digital assets Lion Group (Hangzhou) Investment Limited May 7, 2021 China 100% Technology development, consulting, conference and exhibition services Aquarius Sponsor Ltd. April 12, 2021 British Virgin Islands 51% Investment holding Aquarius II Sponsor Ltd. May 4, 2021 British Virgin Islands 51% Investment holding Aquarius I Acquisition Corp. April 15, 2021 Cayman Islands 51% Special purpose acquisition company Aquarius II Acquisition Corp. May 5, 2021 Cayman Islands 51% Special purpose acquisition company | Note 1 — Organization and Principal Activities Lion Group Holding Ltd. (the “Company”, “Lion” or “LGHL”) is a company with limited liability registered as an exempted company in the Cayman Islands. The Company’s principal executive office is located at Unit A -C The Company and its subsidiaries (collectively referred to as the “Group”) provide securities, futures and derivatives brokerage services, insurance brokerage services and market maker trading services. As a result of the transaction described below, the Company’s ordinary shares and warrants started to be traded on the NASDAQ Capital Market under the ticker symbols LGHL and LGHLW, respectively on June Reverse Recapitalization The Company was incorporated on February -owned On June -owned -tenth The Business Combination was accounted for as a reverse recapitalization in accordance with U.S. generally accepted accounting principles. Under this method of accounting, LGHL and PAAC are treated as the “acquired” company for financial reporting purpose. This determination was primarily based on LFGL comprising the ongoing operations of the combined company, LFGL’s senior management comprising the senior management of the combined company, and LFGL’s stockholders having a majority of the voting power of the combined company. Accordingly, for accounting purposes, LFGL is deemed the accounting acquirer in the transaction. The transaction is not a business combination because neither PAAC nor LGHL was a business under ASC 805. Consequently, the transaction is treated as the equivalent of LFGL issuing stock for the net monetary assets of PAAC, accompanied by a recapitalization of LFGL. Accordingly, the consolidated assets, liabilities and results of operations of LFGL are the historical financial statements of the combined company, and LGHL and PAAC’s assets, liabilities and results of operations are consolidated with LFGL beginning on June The consolidated financial statements are prepared as a continuation of the financial statements of LFGL, the acquirer and predecessor, with retrospective adjustments to give effect of the reverse recapitalization. The equity is restated using the exchange ratio of 141.81 established in the reverse recapitalization transaction, which is 7,090,381 (the number of Exchange Shares excluding Escrow Shares, see below) divided by 50,000, to reflect the equity structure of the legal acquirer, LGHL. Earnings (loss) per share is retrospectively restated using the historical weighted -average The par value of ordinary shares was adjusted retrospectively from $0 to $709, and the difference of $709 was adjusted retrospectively as additional paid -in Years ended December 31, 2019 2018 Before adjustment After adjustment Before adjustment After adjustment Earnings (loss) per share – basic and dilutive $ 164.3 $ 1.16 $ (55.4 ) $ (0.39 ) Upon the consummation of the reverse recapitalization, the assets and liabilities of PAAC were recognized at fair value. The fair value of cash and short -term -in Cash $ 2,476,198 Prepaid expenses and other current assets 209 Warrant liabilities (2,247,087 ) Accrued expenses (57,963 ) Net assets acquired by LGHL as of June 16, 2020 $ 171,357 During the year ended December 1,933,740 Class B ordinary shares being 15% of the Exchange Shares (“Indemnity Escrow Shares”) otherwise issuable to LFGL shareholders are set aside in escrow for a period of 24 -closing • • giving effect to any forfeitures for the 2021 calendar year, the “Second Half Earnout Property”) shall vest and shall no longer be subject to forfeiture. If the 2022 Net Income is less than the Second Net Income Target, but is equal to or greater than $10,925,000, then the Class B Sellers’ rights to 50% of the Second Half Earnout Property shall vest and shall no longer be subject to forfeiture. In all other cases, the Second Half Earnout Property will be forfeited. Principal Activities The Group generates commission revenues by enabling its customers to trade in securities, futures and derivative markets throughout the world. The Group’s trading customers consist of corporate clients, individual traders and retail investors primarily located in People’s Republic of China (“PRC”) and Southeast Asia, although its trading platform allows it to serve customers worldwide. The Group also generates commission revenues by providing insurance brokerage services to high -net-worth In May 2019, the Group began to serve as the counterparty to its customers in derivative transactions. This predominantly occurs when a customer utilizes a contract for difference (CFD). CFDs allow for the exchange of the difference in value of a particular asset such as a currency pair between the time at which a contract is opened and the time at which it is closed. If the trades of one customer can be used to naturally offset the trades of another customer, the Group will act as the market maker to offer liquidity and pricing to both customers. When such an offsetting is not available, the Group may choose to use its own trades to offset the trades of its customer, and the Group may also act as a broker in arranging trades between the customer and third -party The Group officially began offering total return swap (TRS) trading services to customers in July 2020. The Group has entered into International Swaps and Derivatives Association (ISDA) master agreements and related supplementary agreements with two of the top five swap traders in China. The Group is currently offering A -shares -share For the year ended December For the years ended December The subsidiaries of the Company include a participant of the Stock Exchange of Hong Kong Limited (“SEHK”) and Hong Kong Securities Clearing Company Limited (“HKSCC”), remote trading member of Singapore Exchange Limited (“SGX”), and member of the Professional Insurance Brokers Association Limited (“PIBA”); possess the licenses issued by Hong Kong Securities and Futures Commission (“HKSFC”) to carry out regulated activities including Type 1 Dealing in Securities, Type 2 Dealing in Futures Contracts, Type 4 Advising on Securities, Type 5 Advising on Futures Contracts, and Type 9 Asset Management, and the full license issued by Cayman Islands Monetary Authority (“CIMA”) to carry out securities investment business including Broker Dealer and Market Maker. COVID-19 In December 2019, COVID -19 -19 -19 -19 -19 Details of the Company’s subsidiaries as of December Company name Date of Place of Ownership interest Principal activities Lion Financial Group Limited June 16, 2015 British Virgin Islands 100% Investment holding Lion Wealth Management Limited February 16, 2017 British Virgin Islands 100% Investment holding Lion International Securities Group Limited May 20, 2016 Hong Kong 100% Securities brokerage Lion Futures Limited May 20, 2016 Hong Kong 100% Futures brokerage Lion Foreign Exchange Limited May 20, 2016 Hong Kong 100% Dormant Lion Asset Management Limited (F/K/A Lion Capital Management Limited) May 20, 2016 Hong Kong 100% Asset management BC Wealth Management Limited October 14, 2014 Hong Kong 100% Insurance brokerage Lion Wealth Limited October 4, 2018 Hong Kong 100% Marketing and support service Lion Brokers Limited May 2, 2017 Cayman Islands 100% Broker dealer and market maker Lion Investment Fund SPC June 11, 2019 Cayman Islands 100% Dormant Lion International Financial (Singapore) Pte LTD July 26, 2019 Singapore 100% Dormant Lion Group North America Corp. (F/K/A Proficient Alpha Acquisition Corp.) June 16, 2020 Nevada, USA 100% Dormant |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Significant Accounting Policies | Note 2 — Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements reflect all adjustments that, in the opinion of management, are necessary to fairly present the financial statements for the interim periods. The condensed consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and have been prepared in accordance with the regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. Results for the interim periods are not necessarily indicative of results to be expected for the full year. These condensed consolidated financial statements should be read in conjunction with LFGL’s audited consolidated financial statements and related notes as of and for the year ended December 31, 2020. Emerging Growth Company Status The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended, (the “Securities Act”), as modified by the Jumpstart our Business Startups Act of 2012, (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes -Oxley Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non -emerging Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. A subsidiary is an entity (including a structured entity), directly or indirectly, controlled by the Company. The financial statements of the subsidiaries are prepared for the same reporting period as the Company, using consistent accounting policies. All intra -group Translation of Foreign Currencies The functional currency is the U.S. dollar for the Group’s Cayman Island operations and the Hong Kong dollar for all other Group operations. The Group’s reporting currency is the U.S. dollar. Assets and liabilities denominated in foreign currencies are translated at year -end Use of Estimates The preparation of 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 financial statements as well as the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. Securities Owned and Derivatives The Group’s proprietary trading securities transactions are recorded on the trade date, as if they had settled. Securities, futures and derivative positions are recorded at fair value in accordance with FASB ASC 820, Fair Value Measurement. Crypto Currencies Crypto currencies are included in current assets in the unaudited condensed consolidated balance sheets. Crypto currencies are recorded at cost less impairment. An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite -lived The following table presents the activities of the crypto currencies for the six months ended June 30, 2021: Crypto currencies at December 31, 2020 $ — Additions of crypto currencies 201,152 Realized gain on sale of crypto currencies — Impairment of crypto currencies — Sale of crypto currencies — Crypto currencies at June 30, 2021 $ 201,152 Crypto-currency Machines Management has assessed the basis of depreciation of the Group’s crypto -currency -year • • • The Group operates in an emerging industry for which limited data is available to make estimates of the useful economic lives of specialized equipment. Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed using the straight -line To the extent that any of the assumptions underlying management’s estimate of useful life of its transaction verification servers are subject to revision in a future reporting period either as a result of changes in circumstances or through the availability of greater quantities of data then the estimated useful life could change and have a prospective impact on depreciation expense and the carrying amounts of these assets. Receivables Receivables arise from the business of dealing in investment securities, futures and derivatives and include the amounts due on brokerage transactions on a trade -date -dealers Receivables from broker -dealers -shares Fixed Assets, Net Fixed assets are stated at cost and depreciated using the straight -line Long-term Investments The Group follows Accounting Standards Update (“ASU”) 2016 -01 -03 For equity investments that are accounted for using the measurement alternative, the Group initially records equity investments at cost but is required to adjust the carrying value of such equity investments through earnings when there is an observable transaction involving the same or a similar investment with the same issuer or upon an impairment. Payables Payables arise from the business of dealing in investment securities, futures and derivatives. The Group enters into loans from business partners at benchmark interest rate plus a fixed spread, and immediately lent to TRS trading service customers. Net loans borrowed from TRS business partners are included in the line item “payables to broker -dealers -dealers Payables to customers as presented in the consolidated balance sheets represent such payables related to the Group’s customer trading activities as well as the cash balances held on behalf of customers. Commissions payable mainly represent amounts owed to referral sources outside of the Group for transactions referred based on the terms of the underlying agreements. As of June 30, 2021 and December 31, 2020, commissions payable were both related to the insurance brokerage business. Revenue Recognition See Note 3 for details. Cost of Revenue The Company’s cost of revenue consists primarily of direct costs of earning bitcoin related to mining operations, including electric power costs, other utilities, and depreciation expenses on the mining machines. Commissions and Fees Commissions and fees related to securities, derivative and TRS trading transactions are recorded on a trade date basis. Commissions expense on insurance products are recognized on the closing date of a transaction as determined by the terms of the relevant contract and insurance policy. Derivative Financial Instruments The Company evaluates all of its equity -linked -10 -40 -valued Earnings (Loss) per Ordinary Share The Company complies with accounting and disclosure requirements ASC Topic 260, “Earnings Per Share”, which requires earnings per share for each class of stock (ordinary shares and participating securities) to be calculated using the two -class -class -class Basic earnings (loss) per ordinary share is computed by dividing net income or loss by the weighted average number of ordinary shares issued and outstanding for the periods. For the six months ended June 30, 2021, the December 2020 Convertible Debenture (as discussed in Note 13) which is convertible into the Company’s Class A ordinary shares, as represented by ADSs and December 2020 Series A Warrant (as discussed in Note 13) which is exercisable into the Company’s Class A ordinary shares, as represented by ADSs, have the same dividend rights as the ordinary shares on an as -converted -exercised In accordance with ASC 260 -10-45 For purposes of determining diluted earnings (loss) per ordinary share, basic earnings (loss) per ordinary share is further adjusted to include the effect of potential dilutive ordinary shares outstanding during the period. Potential ordinary shares consist of the incremental ordinary shares upon exercise of warrants using the treasury stock method and upon conversion of convertible debt using the if -converted For the six months ended June 30, 2021 and 2020 (on a retroactively adjusted basis), the following potential dilutive securities denominated in ordinary shares equivalents were excluded for the period they were outstanding from the computation of diluted earnings (loss) per share because to do so would have been antidilutive. As a result, diluted earnings (loss) per ordinary share is the same as basic earnings (loss) per ordinary share for all periods presented. Six Months Ended 2021 2020 SPAC Warrants See Note 21 17,795,000 17,795,000 August 2020 PIPE Warrants See Note 15 1,500,000 — Convertible Debenture See Note 13 800,000 — December 2020 Warrants See Note 13 13,700,000 — Series A Convertible Preferred Shares See Note 14 2,333,333 — February 2021 Warrants See Note 14 26,666,667 — Non-controlling Interest Non -controlling -controlling -controlling -controlling Reclassification Certain prior periods amounts have been reclassified to be comparable to the current period presentation. The reclassification has no effect on previously reported net assets or net income (loss). Stock-based Compensation The Company applies ASC No. 718, “Compensation -Stock -based -07 After the closing of the Business Combination, the fair value of the Company’s ordinary shares underlying stock -based -based Income Taxes The amount of current taxes payable or refundable is recognized as of the date of the consolidated financial statements, utilizing currently enacted tax laws and rates of the relevant authorities. Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements, net operating loss carry forwards and tax credits based on applicable tax rates. Deferred tax assets are reduced by a valuation allowance when management determines that it is more likely than not that some portion of the deferred tax asset will not be realized. Deferred tax expenses or benefits are recognized in the consolidated financial statements for the changes in deferred tax liabilities or assets between years. The Group recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50 percent likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Group presents any interest or penalties related to an underpayment of income taxes as part of its income tax expense. Concentrations of Credit Risk The Group is engaged in various trading and brokerage activities in which counterparties primarily include broker -dealers Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016 -02 -use -term -of-use -05 -02 -to-use In June 2016, FASB amended guidance related to impairment of financial instruments as part of ASU 2016 -13 -effect -retrospective -05 -11 -13 -10 -for-profit small public companies effective date on its credit losses (CECL) standards to fiscal years beginning after December 15, 2022 and interim periods therein. The Group has evaluated the effect of the adoption of this ASU and does not expect there will be significant impact on its consolidated financial statements from the adoption of the new guidance. In August 2020, the FASB issued ASU No. 2020 -06 -20 -40 | Note 2 — Significant Accounting Policies Basis of Presentation These consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and have been prepared in accordance with the regulations of the Securities and Exchange Commission (“SEC”). Restatement of Previously Issued Financial Statements The Company has restated its consolidated financial statements as of and for the year ended December -period Emerging Growth Company Status The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended, (the “Securities Act”), as modified by the Jumpstart our Business Startups Act of 2012, (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes -Oxley Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non -emerging Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. A subsidiary is an entity (including a structured entity), directly or indirectly, controlled by the Company. The financial statements of the subsidiaries are prepared for the same reporting period as the Company, using consistent accounting policies. All intra -group Translation of Foreign Currencies The functional currency is the U.S. dollar for the Group’s Cayman Island operations and the Hong Kong dollar for all other Group operations. The Group’s reporting currency is the U.S. dollar. Assets and liabilities denominated in foreign currencies are translated at year -end exchange for the year and equity is translated at historical exchange rates. Any translation gains or losses are recorded in other comprehensive income (loss). Gains or losses resulting from foreign currency transactions are included in net income. Use of Estimates The preparation of 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 financial statements as well as the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents consist of deposits with banks and all highly liquid investments, with maturities of three months or less, that are not segregated and deposited for regulatory purposes. The Group maintains its cash in bank deposit accounts which at times may exceed insured limits. The Group has not experienced any losses in such accounts. Management believes that the Group is not exposed to any significant credit risk on cash and cash equivalents. Restricted Cash — Cash Balances Held on Behalf of Customers The Group maintains segregated trust accounts with licensed banks or payment platform to hold customer funds in accordance with the relevant legislation. The Group has classified customer funds as bank balances held on behalf of customers with a corresponding payable to customers in the liabilities section of the consolidated balance sheets. Securities Owned and Derivatives Securities transactions are recorded on the trade date, as if they had settled. Securities, futures and derivative positions are recorded at fair value in accordance with FASB ASC 820, Fair Value Measurement. See Notes 5 and 10 for more information on derivatives. Receivables Receivables arise from the business of dealing in investment securities, futures and derivatives and include the amounts due on brokerage transactions on a trade -date -dealers Receivables from broker -dealers -shares -dealers Commissions receivable as presented in the consolidated balance sheets represent trading commissions due and amounts due from insurance providers once referrals have been made and the transactions have been executed under the terms of the relative insurance policy or subscription agreement. As of December Fixed Assets and Depreciation Furniture, equipment and leasehold improvements are stated at cost less accumulated depreciation. Depreciation is provided on a straight -line Intangible Assets Intangible assets are originally recognized at cost. The useful lives of intangible assets are assessed to be either finite or indefinite. The Group’s intangible assets consist of eligibility rights to trade on or through the Stock Exchange of Hong Kong Limited (the “SEHK ”) -generating Payables Payables arise from the business of dealing in investment securities, futures and derivatives. The Group borrows loans from business partners at benchmark interest rate plus a fixed spread, and immediately lent to TRS trading service customers. Net loans borrowed from TRS business partners are included in the line item “payables to broker -dealers -dealers Payables to customers as presented in the consolidated balance sheets represent such payables related to the Group’s customer trading activities as well as the cash balances held on behalf of customers. Commissions payable mainly represent amounts owed to referral sources outside of the Group for transactions referred based on the terms of the underlying agreements. As of December Revenue recognition See Note 3 for details. Commissions and Fees Commissions and fees related to securities, derivative and TRS trading transactions are recorded on a trade date basis. Commissions expense on insurance products are recognized on the closing date of a transaction as determined by the terms of the relevant contract and insurance policy. Derivative Financial Instruments The Company evaluates all of its equity -linked -10 -40 -valued Earnings (Loss) per Ordinary Share The Company complies with accounting and disclosure requirements ASC Topic 260, “Earnings Per Share”, which requires earnings per share for each class of stock (ordinary shares and participating securities) to be calculated using the two -class -class -class Basic earnings (loss) per ordinary share is computed by dividing net income or loss by the weighted average number of ordinary shares issued and outstanding for the periods. For the year ended December -converted -exercised In accordance with ASC 260 -10-45 For purposes of determining diluted earnings (loss) per ordinary share, basic earnings (loss) per ordinary share is further adjusted to include the effect of potential dilutive ordinary shares outstanding during the period. Potential ordinary shares consist of the incremental ordinary shares upon exercise of warrants using the treasury stock method and upon conversion of convertible debt using the if -converted During the years ended December Year ended December 31, 2020 2019 2018 SPAC Warrants See Note 20 17,795,000 17,795,000 17,795,000 August 2020 PIPE Warrants See Note 13 1,500,000 — — December 2020 Convertible Debenture See Note 12 800,000 — — December 2020 Series A Warrant See Note 12 1,200,000 — — December 2020 Series B Warrant See Note 12 5,000,000 — — December 2020 Series C Warrant See Note 12 7,500,000 — — Subsequently, an aggregate of approximately 17.6 Reclassification Certain prior periods amounts have been reclassified to be comparable to the current period presentation. The reclassification has no effect on previously reported net assets or net income (loss). Stock-based Compensation The Company applies ASC No. 718, “Compensation -Stock -based -07 After the closing of the Business Combination, the fair value of the Company’s ordinary shares underlying stock -based -based Income Taxes The amount of current taxes payable or refundable is recognized as of the date of the consolidated financial statements, utilizing currently enacted tax laws and rates of the relevant authorities. Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements, net operating loss carry forwards and tax credits based on applicable tax rates. Deferred tax assets are reduced by a valuation allowance when management determines that it is more likely than not that some portion of the deferred tax asset will not be realized. Deferred tax expenses or benefits are recognized in the consolidated financial statements for the changes in deferred tax liabilities or assets between years. The Group recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50 percent likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Group presents any interest or penalties related to an underpayment of income taxes as part of its income tax expense. Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016 -02 -use -term -of-use -05 -02 -to-use In June 2016, FASB amended guidance related to impairment of financial instruments as part of ASU 2016 -13 off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual rights to receive cash. For public business entities, the amendments in this Update are effective for fiscal years beginning after December -effect -retrospective -05 -11 -13 -10 -for-profit In August 2020, the FASB issued ASU No. 2020 -06 -20 -40 |
Revenue Recognition
Revenue Recognition | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Revenue Recognition [Abstract] | ||
Revenue Recognition | Note 3 — Revenue Recognition Under ASC Topic 606 Revenue from Contracts with Customers, revenues are recognized when control of the promised goods or services is transferred to customers in exchange for an amount that reflects the consideration the Group expects to be entitled to in return for transferring those goods or services. Significant Judgments Revenue from contracts with customers include commission income from securities, futures and derivative brokerage, market making trading and insurance brokerage. The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgment is required to determine whether performance obligations are satisfied at a point in time or over time; how to allocate transaction prices where multiple performance obligations are identified; when to recognize revenue based on the appropriate measure of progress under the contract; whether revenue should be presented gross or net of certain costs; and whether constraints on variable consideration should be applied due to uncertain future events. Commissions and Fees The Group earns fees and commissions from securities, futures and derivatives brokerage services (including commissions and fees related to TRS trading business) and CFD trading services when the Group acts as a market maker. Each time a customer executes a securities, futures, derivative or CFD transaction, commissions and fees are earned. Commissions and related clearing fees and expenses are recorded on the trade date. The performance obligation is satisfied on the trade date because that is when the underlying financial instrument or purchaser is identified, the pricing is agreed upon and the risks and rewards of ownership have been transferred to/from the customer. The Group charges securities brokerage commissions and market making commissions based on amount of transaction volume, or the number of shares, lots of contracts executed in each order, which generally vary in accordance with the type of products or services the Group offers. The Group also earns commission income arising from insurance brokerage services which are recognized at a point in time when the performance obligation has been satisfied by successfully referring an insurance client to an insurer in accordance with the relevant broker contract. The commission earned is equal to a percentage of the premium paid to the insurance provider. The following table presents revenue from contracts with customers, in accordance with ASC Topic 606, by major source and geographic region: For the Six Months Ended 2021 2020 Insurance brokerage commissions $ 295,343 $ 638,574 Securities brokerage commissions 1,178,062 565,517 Market making commissions and fees 1,069,656 2,717,614 Total revenue from contracts with customers $ 2,543,061 $ 3,921,705 Hong Kong $ 1,473,405 $ 1,204,091 Cayman Islands 1,069,656 2,717,614 $ 2,543,061 $ 3,921,705 All of the Group’s revenues from contracts with customers are recognized at a point in time. Trading Gains (Losses) Trading gains and losses along with interest revenue fall within the scope of ASC Topic 825, Financial Instruments, Trading gains (losses) consist of realized and unrealized gains (losses) derived from (i) managed portfolio trading positions where the Group act as counterparty to customers’ trades, (ii) marking up the bid/offer spreads on customers’ CFD transactions, and (iii) the option trading products purchased by customers. Changes in fair value in relation to derivative contracts are recorded in trading gains (losses), net on a daily basis. Interest Income and Other Interest income primarily consist of interest earned on bank deposit and short -term Other income primarily consists of advisory service fee, government subsidy, crypto currencies mining, and other miscellaneous charges from customers etc. Crypto Currencies Mining The Group recognizes revenue under ASC 606, Revenue from Contracts with Customers. The core principle of the new revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle: • • • • • In order to identify the performance obligations in a contract with a customer, a company must assess the promised goods or services in the contract and identify each promised good or service that is distinct. A performance obligation meets ASC 606’s definition of a “distinct” good or service (or bundle of goods or services) if both of the following criteria are met: The customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer (i.e., the good or service is capable of being distinct), and the entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract (i.e., the promise to transfer the good or service is distinct within the context of the contract). If a good or service is not distinct, the good or service is combined with other promised goods or services until a bundle of goods or services is identified that is distinct. The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer. The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both. When determining the transaction price, an entity must consider the effects of all of the following: • • • • • Variable consideration is included in the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The transaction price is allocated to each performance obligation on a relative standalone selling price basis. The transaction price allocated to each performance obligation is recognized when that performance obligation is satisfied, at a point in time or over time as appropriate. Providing computing power in digital asset transaction verification services is an output of the Group’s ordinary activities. The provision of providing such computing power is the only performance obligation in the Group’s contracts with mining pool operators. The transaction consideration the Group receives, if any, is noncash consideration, which the Group measures at fair value on the date received, which is not materially different than the fair value at contract inception or the time the Group has earned the award from the pools. The consideration is all variable. Because it is not probable that a significant reversal of cumulative revenue will not occur, the consideration is constrained until the mining pool operator successfully places a block (by being the first to solve an algorithm) and the Group receives confirmation of the consideration it will receive, at which time revenue is recognized. There is no significant financing component in these transactions. Fair value of the cryptocurrency award received is determined using the quoted closing price of the related cryptocurrency at the date of receipt. There is currently no specific definitive guidance under GAAP or alternative accounting framework for the accounting for cryptocurrencies recognized as revenue or held, and management has exercised significant judgment in determining the appropriate accounting treatment. In the event authoritative guidance is enacted by the FASB, the Group may be required to change its policies, which could have an effect on the Group’s consolidated financial position and results from operations. | Note 3 — Revenue Recognition Under ASC Topic 606 Revenue from Contracts with Customers, revenues are recognized when control of the promised goods or services is transferred to customers in exchange for an amount that reflects the consideration the Group expects to be entitled to in return for transferring those goods or services. Significant Judgments Revenue from contracts with customers include commission income from securities, futures and derivative brokerage, market making trading and insurance brokerage. The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgment is required to determine whether performance obligations are satisfied at a point in time or over time; how to allocate transaction prices where multiple performance obligations are identified; when to recognize revenue based on the appropriate measure of progress under the contract; whether revenue should be presented gross or net of certain costs; and whether constraints on variable consideration should be applied due to uncertain future events. Commissions and fees The Group earns fees and commissions from securities, futures and derivatives brokerage services (including commissions and fees related to TRS trading business) and CFD trading services when the Group acts as a market maker. Each time a customer executes a securities, futures, derivative or CFD transaction, commissions and fees are earned. Commissions and related clearing fees and expenses are recorded on the trade date. The performance obligation is satisfied on the trade date because that is when the underlying financial instrument or purchaser is identified, the pricing is agreed upon and the risks and rewards of ownership have been transferred to/from the customer. The Group charges securities brokerage commissions and market making commissions based on amount of transaction volume, or the number of shares, lots of contracts executed in each order, which generally vary in accordance with the type of products or services the Group offers. The Group also earns commission income arising from insurance brokerage services which are recognized at a point in time when the performance obligation has been satisfied by successfully referring an insurance client to an insurer in accordance with the relevant broker contract. The commission earned is equal to a percentage of the premium paid to the insurance provider. The following table presents revenue from contracts with customers, in accordance with ASC Topic 606, by major source and geographic region: Year ended December 31, 2020 2019 2018 Insurance brokerage commissions $ 959,299 $ 2,648,119 $ 5,375,531 Securities brokerage commissions 1,890,502 2,210,915 2,025,650 Market making commissions and fees 4,940,623 11,056,431 — Total revenue from contracts with customers $ 7,790,424 $ 15,915,465 $ 7,401,181 Hong Kong $ 2,777,831 $ 4,859,034 $ 7,401,181 Cayman Islands 5,012,593 11,056,431 — $ 7,790,424 $ 15,915,465 $ 7,401,181 All of the Group’s revenues from contracts with customers are recognized at a point in time. Trading Gains (Losses), Interest Income and Other Trading gains and losses along with interest revenue fall within the scope of ASC Topic 825, Financial Instruments, Trading gains (losses) consist of realized and unrealized gains (losses) derived from (i) managed portfolio trading positions where the Group act as counterparty to customers’ trades, and (ii) marking up the bid/offer spreads on customers’ CFD transactions. Changes in fair value in relation to derivative contracts are recorded in trading gains (losses), net on a daily basis. Interest income primarily consist of interests earned on bank deposit and short -term Other income primarily consists of advisory service fee, government subsidy and other miscellaneous charges from customers etc. |
Cash and Restricted Cash
Cash and Restricted Cash | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Cash and Restricted Cash [Abstract] | ||
Cash and Restricted Cash | Note 4 — Cash and Restricted Cash The following table provides a reconciliation of cash and restricted cash reported within the consolidated balance sheets and statements of cash flows. June 30, 2021 2020 Cash $ 14,888,644 $ 8,111,409 Restricted Cash 808,923 1,470,486 Total cash and restricted cash presented in the consolidated statement of $ 15,697,567 $ 9,581,895 Restricted cash includes cash balances held on behalf of customers (See Note 2 for further information). | Note 4 — Cash and Restricted Cash The following table provides a reconciliation of cash and restricted cash reported within the consolidated balance sheets and statements of cash flows. December 31, 2020 2019 2018 Cash $ 3,426,467 $ 6,388,978 $ 3,116,209 Restricted Cash 1,367,630 2,192,201 3,991,949 Total cash and restricted cash presented in the consolidated statement of cash flows $ 4,794,097 $ 8,581,179 $ 7,108,158 Restricted cash includes cash balances held on behalf of customers (See Note 2 for further information). |
Fair Value
Fair Value | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | ||
Fair Value | Note 5 — Fair Value Fair Value Hierarchy FASB ASC 820 defines fair value, establishes a framework for measuring fair value, and establishes a hierarchy of fair value inputs. Fair value is 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 fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market. Valuation techniques that are consistent with the market, income or cost approach, as specified by FASB ASC 820, are used to measure fair value. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: • • • The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety. A description of the valuation techniques applied to the Group’s major categories of assets and liabilities measured at fair value on a recurring basis follows. Exchange -traded Listed derivatives that are actively traded are valued based on quoted prices at the close of trading on the period end date and are categorized in level 1 of the fair value hierarchy. Listed derivatives that are not actively traded are valued using the same approaches as those applied to OTC derivatives; they are generally categorized in level 2 of the fair value hierarchy. Depending on the product and the terms of the transaction, the fair value of OTC derivative products can be either observed or modeled using a series of techniques and model inputs from comparable benchmarks. Substantially all of the Group’s OTC derivatives were carried at fair value based on spot exchange rates broadly distributed in active markets, or amounts approximating fair value. Such values are categorized as level 2 of the fair value hierarchy. Public Warrants are classified as level 1 financial instruments, as their value is derived using quoted market prices as of the measurement date. Private Warrants are classified as level -Sholes-Merton The significant assumptions which the Company used in the model for the six months ended June 30, 2021 are: Stock price $ 2.41 Exercise price $ 11.50 Expected term in years 3.96 Expected dividend yield 0 % Volatility 61.28 % Risk-free interest Rate 0.781 % The significant assumptions which the Company used in the model for the period from June 16, 2020 (closing day of the Business Combination) to December 31, 2020 are: Stock price $ 1.89 ~ 2.43 Exercise price $ 11.50 Expected term in years 4.46 ~ 5.00 Expected dividend yield 0% Volatility 54.44% ~ 54.92% Risk-free interest Rate 0.364% ~ 0.373% The following table presents the Group’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis at June 30, 2021 and December 31, 2020. At June 30, 2021 Quoted Prices Significant Significant Total Assets Listed equity securities (i) $ 30,325,800 $ — $ — $ 30,325,800 $ 30,325,800 $ — $ — $ 30,325,800 Liabilities Warrant liabilities $ (2,645,000 ) $ (1,236,250 ) $ — $ (3,881,250 ) ____________ (i) In February 2021, the Group entered into a framework strategic partnership agreement with Grandshores Technology Group Limited (“Grandshores”). The amount includes the fair value of 64,500,000 At December 31, 2020 Quoted Prices Significant Significant Total Assets Listed equity securities $ 17,622 $ — $ — $ 17,622 Liabilities Derivatives $ — $ (5,653 ) $ — $ (5,653 ) Warrant liabilities (as restated) (1,000,500 ) (469,321 ) — (1,469,821 ) $ (1,000,500 ) $ (474,974 ) $ — $ (1,475,474 ) There were no transfers between level 1 and level 2 during either year. The following table presents the carrying values and estimated fair values of financial assets and liabilities, excluding financial instruments that are carried at fair value on a recurring basis, and information is provided on their classification within the fair value hierarchy. At June 30, 2021 Total Quoted Prices Significant Significant Estimated Assets Cash and cash equivalents $ 14,888,644 $ 14,888,644 $ — $ — $ 14,888,644 Bank balances held on behalf of customers 808,923 808,923 — — 808,923 Receivables from broker-dealers and clearing organizations 23,689,967 — 23,689,967 — 23,689,967 Short-term loans receivable 508,756 — 508,756 — 508,756 Other receivables 67,475 — 67,475 — 67,475 $ 39,963,765 $ 15,697,567 $ 24,266,198 $ — $ 39,963,765 Liabilities Payables to customers $ 14,362,840 $ — $ 14,362,840 $ — $ 14,362,840 Payable to broker-dealers 24,270,558 — 24,270,558 — 24,270,558 Accrued expenses and other payables 1,169,408 — 1,169,408 — 1,169,408 Short-term borrowings — — — — — Due to director 152,472 — 152,472 — 152,472 $ 39,955,278 $ — $ 39,955,278 $ — $ 39,955,278 At December 31, 2020 Total Quoted Prices Significant Significant Estimated Assets Cash and cash equivalents $ 3,426,467 $ 3,426,467 $ — $ — $ 3,426,467 Bank balances held on behalf of customers 1,367,630 1,367,630 — — 1,367,630 Receivables from broker-dealers and clearing organizations 8,089,193 — 8,089,193 — 8,089,193 Short-term loans receivable 2,239,378 — 2,239,378 — 2,239,378 Commissions receivable 71,253 — 71,253 — 71,253 Other receivables 724,708 — 724,708 — 724,708 $ 15,918,629 $ 4,794,097 $ 11,124,532 $ — $ 15,918,629 Total Quoted Prices Significant Significant Estimated Liabilities Payables to customers $ 5,221,270 $ — $ 5,221,270 $ — $ 5,221,270 Payable to broker-dealers 3,845,740 — 3,845,740 — 3,845,740 Commissions payable 39,180 — 39,180 — 39,180 Accrued expenses and other payables 1,763,094 — 1,763,094 — 1,763,094 Short-term borrowings 293,905 — 293,905 — 293,905 Due to director 149,522 — 149,522 — 149,522 $ 11,312,711 $ — $ 11,312,711 $ — $ 11,312,711 | Note 5 — Fair Value Fair Value Hierarchy FASB ASC 820 defines fair value, establishes a framework for measuring fair value, and establishes a hierarchy of fair value inputs. Fair value is 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 fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market. Valuation techniques that are consistent with the market, income or cost approach, as specified by FASB ASC 820, are used to measure fair value. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: • • • The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety. A description of the valuation techniques applied to the Group’s major categories of assets and liabilities measured at fair value on a recurring basis follows. Exchange -traded Listed derivatives that are actively traded are valued based on quoted prices at the close of trading on the period end date and are categorized in level 1 of the fair value hierarchy. Listed derivatives that are not actively traded are valued using the same approaches as those applied to OTC derivatives; they are generally categorized in level 2 of the fair value hierarchy. Depending on the product and the terms of the transaction, the fair value of OTC derivative products can be either observed or modeled using a series of techniques and model inputs from comparable benchmarks. Substantially all of the Group’s OTC derivatives were carried at fair value based on spot exchange rates broadly distributed in active markets, or amounts approximating fair value. Such values are categorized as level 2 of the fair value hierarchy. Public Warrants are classified as level 1 financial instruments, as their value is derived using quoted market prices as of the measurement date. Private Warrants are classified as level -Sholes-Merton Stock price $ 1.89 ~ 2.43 Exercise price $ 11.50 Expected term in years 4.46 ~ 5.00 Expected dividend yield 0% Volatility 54.44% ~ 54.92% Risk-free interest Rate 0.364% ~ 0.373% The following table presents the Group’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis at December At December 31, 2020 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Significant Unobservable Total Assets Listed equity securities $ 17,622 $ — $ — $ 17,622 Liabilities Derivatives $ — $ (5,653 ) $ — $ (5,653 ) Warrant liabilities (as restated) (1,000,500 ) (469,321 ) — (1,469,821 ) $ (1,000,500 ) $ (474,974 ) $ — $ (1,475,474 ) At December 31, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs Significant Unobservable Inputs Total Assets Listed equity securities $ 180,201 $ — $ — $ 180,201 Derivatives — 194,110 — 194,110 $ 180,201 $ 194,110 $ — $ 374,311 There were no transfers between level 1 and level 2 during either year. The following table presents the carrying values and estimated fair values of financial assets and liabilities, excluding financial instruments that are carried at fair value on a recurring basis, and information is provided on their classification within the fair value hierarchy. At December 31, 2020 Total Quoted Prices Significant Significant Estimated Assets Cash and cash equivalents $ 3,426,467 $ 3,426,467 $ — $ — $ 3,426,467 Bank balances held on behalf of customers 1,367,630 1,367,630 — — 1,367,630 Receivables from 8,089,193 — 8,089,193 — 8,089,193 Short-term loans receivable 2,239,378 — 2,239,378 — 2,239,378 Commissions receivable 71,253 — 71,253 — 71,253 Other receivables 724,708 — 724,708 — 724,708 $ 15,918,629 $ 4,794,097 $ 10,399,824 $ — $ 15,918,629 Liabilities Payables to customers $ 5,221,270 $ — $ 5,221,270 $ — $ 5,221,270 Payable to broker-dealers 3,845,740 — 3,845,740 — 3,845,740 Commissions payable 39,180 — 39,180 — 39,180 Accrued expenses and other payables 1,763,094 — 1,763,094 — 1,763,094 Short-term borrowings 293,905 — 293,905 — 293,905 Due to director 149,522 — 149,522 — 149,522 $ 11,312,711 $ — $ 11,312,711 $ — $ 11,312,711 At December 31, 2019 Total Quoted Prices Significant Significant Estimated Assets Cash and cash equivalents $ 6,388,978 $ 6,388,978 $ — $ — $ 6,388,978 Bank balances held on behalf of customers 2,192,201 2,192,201 — — 2,192,201 Receivables from broker-dealers and clearing organizations 1,684,961 — 1,684,961 — 1,684,961 Short-term loans receivable 1,637,310 — 1,637,310 — 1,637,310 Commissions receivable 88,560 — 88,560 — 88,560 Other receivables 166,064 — 166,064 — 166,064 $ 12,158,074 $ 8,581,179 $ 3,576,895 $ — $ 12,158,074 Total Quoted Prices Significant Significant Estimated Liabilities Payables to customers $ 3,853,693 $ — $ 3,853,693 $ — $ 3,853,693 Commissions payable 29,439 — 29,439 — 29,439 Dividends payable 385,901 — 385,901 — 385,901 Accrued expenses and other payables 417,445 — 417,445 — 417,445 Short-term borrowings 1,412,570 — 1,412,570 — 1,412,570 Short-term borrowings from related party 128,415 — 128,415 — 128,415 $ 6,227,463 $ — $ 6,227,463 $ — $ 6,227,463 |
Short-term Loans Receivable
Short-term Loans Receivable | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Short-term Loans Receivable [Abstract] | ||
Short-term Loans Receivable | Note 6 — Short-term Loans Receivable (a) On December 20, 2019, the Group issued notes receivable in an aggregate of approximately $1,626,000 to an unrelated party. The notes were due June 20, 2020 and accrue interest at a rate of 6% per annum. On June 20, 2020, the notes were extended to June 21, 2021. For the years ended December 31, 2020 and 2019, interest income earned on these notes were approximately $99,000 and $3,000, respectively. (b) In June and December 2020, the Group entered into loan agreements in the aggregate principal amount of $380,000 to one unrelated party. The loans are due on April 28, 2021 and June 29, 2021, respectively and both accrue interest at a rate of 6% per annum. For the year ended December 31, 2020, interest income earned on these notes was approximately $4,000. (c) In June 2020, the Group entered into a loan agreement in the principal amount of $300,000 to another unrelated party. Such loan is due on December 1, 2020 and accrue interest at a rate of 6% per annum. The loan was partially repaid and then was extended to December 1, 2021. As of December 31, 2020, the outstanding balance was approximately $214,000 which was fully repaid in March 2021. For the six months ended June 30, 2021 and the year ended December 31, 2020, interest income earned on this note was approximately $3,000 and $11,000, respectively. On March 1, 2021, the Group entered into Deeds of Assignment with the two unrelated borrowers discussed in (a) and (b) above and Lanlian (as discussed in Note 7). As a result, the Group assigned the outstanding loans receivable and accrued interest in Note 6(a) in an aggregate of approximate $1,691,000 to Lanlian without recourse as payment for the purchase price (as discussed in Note 7), and such notes were fully settled; the Group assigned the outstanding loans receivable in Note 6(b) in an aggregate of approximate $359,000 to Lanlian without recourse as payment for the purchase price (as discussed in Note 7), and the remaining principal of such loans were approximately $21,000 which were fully collected in March 2021. No gains or losses are recognized. (d) On April 28, 2021, the Group entered into loan agreement in the principal amount of $1,000,000 to one unrelated party. The loan is due on June 1, 2021 and accrue interest at a rate of 12% per annum. The loan was partially repaid and then was extended to September 30, 2021. As of September 30, 2021, the loan was assigned to Lanlian as part of the consideration for the trading software purchase as described in Note 22. For the six months ended June 30, 2021, interest income earned on this note was approximately $16,000. As of June 30, 2021 and December 31, 2020, the aggregate outstanding balance of loan receivables above was approximately $509,000 and $1,637,000, respectively. | Note 6 — Short-term Loans Receivable (a) On December (b) In June and December 2020, the Group entered into loan agreements in the aggregate principal amount of $380,000 to one unrelated party. The loans are due on April (c) In June 2020, the Group entered into a loan agreement in the principal amount of $300,000 to another unrelated party. Such loan is due on December As of December |
Other Assets
Other Assets | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Other Assets [Abstract] | ||
Other Assets | Note 7 — Other Assets As of December 31, 2020, the balance of other assets was primarily comprised of advance payment for purchasing eight copyrighted trading software in the amount of $5,950,000. In December 2020, the Group entered into an asset acquisition agreement with Hangzhou Lanlian Technology Co., Ltd (“Lanlian”), in a single transaction, to acquire eight separate copyrighted trading software programs at closing. The acquisition was closed in March 2021, with the Group acquiring eight copyrighted trading software programs (“Assets Portfolio”) with titles transferred. The aggregate purchase price for the Assets Portfolio was approximately $8.0 million, inclusive of capital expenditure commitments and transaction costs. In addition, as a result of Deed of Assignments entered as discussed in Note 6, the aggregate purchase price was fully settled and the $5,950,000 in other assets was transferred to fixed assets. In May 2021, the Group made a long -term | Note 7 — Other Assets As of December In December 2020, the Group entered into an asset acquisition agreement (the “Asset Acquisition Agreement”) with Hangzhou Lanlian Technology Co., Ltd (“Lanlian”), in a single transaction, to acquire eight separate copyrighted trading software programs at closing. The acquisition is expected close on or before June |
Accrued Expenses and Other Paya
Accrued Expenses and Other Payables | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Accrued Expenses and Other Payables [Abstract] | ||
Accrued Expenses and Other Payables | Note 10 — Accrued Expenses and Other Payables Accrued expenses and other payables consist of the following: June 30, December 31, (unaudited) Accrued professional fees $ 212,525 $ 1,376,450 Accrued vacation and benefits 342,187 174,771 Accrued communication and technology expenses 182,963 114,754 Accrued electricity expenses for crypto mining 131,410 — Payable to Grandshore on Sponsor entities 179,764 — Other payables 64,195 97,119 $ 1,113,045 $ 1,763,094 | Note 8 — Accrued Expenses and Other Payables Accrued expenses and other payables consist of the following: December 31, 2020 2019 Accrued professional fees $ 1,376,450 $ 188,749 Accrued vacation and benefits 174,771 127,999 Accrued communication and technology expenses 114,754 83,724 Other payables 97,119 16,973 $ 1,763,094 $ 417,445 |
Short-term Borrowings
Short-term Borrowings | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Short-term Borrowings [Abstract] | ||
Short-term Borrowings | Note 11 — Short-term Borrowings In August and September 2019, Lion Wealth Limited (“LWL”) obtained short -term -term -term -term During 2020, LWL entered into a supplemental loan agreement with China Tonghai Financial Limited and the loan was changed to due on demand afterwards. During the year ended December 31, 2020, the repayments made were approximately $990,000 in the aggregate, and interest expense incurred on the remaining outstanding balance totaled approximately $105,000. As of December 31, 2020, the outstanding amount under this loan was approximately $294,000 which was fully repaid in February 2021. | Note 9 — Short-term Borrowings In August and September 2019, Lion Wealth Limited (“LWL”) obtained short -term -term -term -term During 2020, LWL entered into a supplemental loan agreement with China Tonghai Financial Limited and the loan was changed to due on demand afterwards. During the year ended December In September 2019, Lion Financial Group Limited obtained short -term -party In November 2019, LWL obtained short -term |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2020 | |
Derivatives [Abstract] | |
Derivatives | Note 10 — Derivatives Derivative financial instruments used for trading purposes are carried at fair value. Fair values for exchange -traded -the-counter The Group does not apply hedge accounting as defined in FASB ASC 815 because all financial instruments are recorded at fair value with changes in fair values reflected in earnings. Therefore, certain of the disclosures required under FASB ASC 815 are generally not applicable with respect to these financial instruments. As discussed in Note The contractual amounts related to CFDs reflect the volume and activity and generally do not reflect the amounts at risk. The fair value of the asset or liability is the best indicator of the Group’s risk. The credit risk for the CFDs is limited to the unrealized fair value gains (losses) recorded in the balance sheets. Market risk is substantially dependent upon the value of the underlying assets and is affected by market forces such as volatility and changes in interest and foreign exchange rates. The Group’s open derivative positions at December Offsetting Arrangements Financial assets and financial liabilities are offset and the net amount is reported in the consolidated balance sheets if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously. Concentrations of Credit Risk The Group is engaged in various trading and brokerage activities in which counterparties primarily include broker -dealers |
Related Parties
Related Parties | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Related Party Transactions [Abstract] | ||
Related Parties | Note 12 — Related Parties During the six months ended June 30, 2021, no advances were received or repaid from/to the individual shareholder. During the year ended December 31, 2020, dividends paid to the individual shareholder were $385,901; the Group received the advances from director for working capital needs in an aggregate of approximately $1,617,000 and repaid in an aggregate of approximately $1,467,000. As a result, due to director in an amount of approximately $152,000 and $150,000 were included in the consolidated balance sheet as of June 30, 2021 and December 31, 2020, respectively. | Note 11 — Related Parties The Group received subscription payments from its then sole shareholder prior to Business Combination to meet the capital needs, which were reflected in the consolidated statements of changes in stockholders’ equity. In addition, the sole shareholder also funded the Group’s working capital needs and the Group repaid and provided advances to the shareholder from time to time, which were recorded in due from or due to shareholder included in the consolidated balance sheets. Any advances received from and made to the shareholder are non -interest Prior to the Closing, an individual shareholder owns 100% of the LFGL’s outstanding shares which were initially financed with subscription receivable from the shareholder recorded as a reduction to equity. The shareholder has been making subscription payments based on the capital needs. This sole shareholder became the Group’s director upon the Closing. During the year ended December During the year ended December During the year ended December Also see Note 9 for a description of a short -term |
December 2020 Convertible Deben
December 2020 Convertible Debenture and Warrants | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | ||
December 2020 Convertible Debenture and Warrants | Note 13 — December 2020 Convertible Debenture and Warrants On December 14, 2020, the Company completed a private placement in net proceeds of $1,540,000 in exchange for the issuance of i) a 9% senior secured convertible debenture (the “2020 Convertible Debenture” or “Debenture”) in the principal amount of $1,600,000, which is convertible up to 800,000 ADSs at $2.00 per ADS at any time, matures 30 months from the date of issuance and accrues interest at 9% per annum payable quarterly in cash or, in lieu of cash payment, in our ADSs, subject to adjustment and certain customary equity conditions; ii) a 2 -year -year The Debenture includes an adjustment provision in the event of share combination event (as defined in the agreements), also includes a full ratchet anti -dilution The Company adopted ASU 2017 -11 -10-15 -Scholes Series A Series B Series C Expected term in years 7 2 7 Expected dividend yield 0 % 0 % 0 % Volatility 46.68 % 49.61 % 46.68 % Risk-free interest Rate 0.63 % 0.197 % 0.63 % The Company assessed the accounting for the Debenture in accordance with ASC 470 -20 The intrinsic value of beneficial conversion feature (the “BCF”) is greater than the proceeds allocated to the convertible instrument, therefore the amount of the discount assigned to the BCF is limited to the amount of the proceeds allocated to the convertible instrument. For the holder of the Debenture, conversion price results in BCF that is separated as an equity component and assigned a value of approximately $206,000 as a debt discount. Debt discount is amortized using the effective interest rate method over the period from the issuance date through the stated redemption date. The issuance costs are allocated in the same proportion as the proceeds are allocated to the debt and warrants. Issuance costs allocated to the equity -classified The Debenture is recognized initially at fair value, net of debt discounts including the amount paid to the holder of $60,000 and allocation of proceeds to BCF and the detachable Series A and Series B Warrants of $737,000, in an aggregate of approximately $803,000 on the date of issuance. As the vesting of Series C Warrants is contingent upon the exercise of Series B, debt discounts related to allocation of proceeds to Series C Warrants will be deferred and recognized until Series C Warrants are vested on a proportional basis. As of December 31, 2020, the remaining unamortized debt discount was $784,000. The Company recognized interest expense of approximately $20,000 for the period ended December 31, 2020 including interest relating to contractual interest obligation approximately of $7,000 and amortization of the debt discounts and debt issuance cost approximately of $13,000. As a result of discounts accretion and amortization, the Debenture was in the carrying value of approximately $816,000 as of December 31, 2020. As a result of January 2021 Call Options as discussed in Note 14, exercise price of Series A and Series C Warrants was adjusted from $2.45 to $2.00. In accordance with ASC 260 -10-25-1 On January 29, 2021, the Debenture along with accrued interest of $11,600 was fully converted into 889,667 Class A ordinary shares, as represented by ADSs. The remaining debt discounts of $784,000 was fully amortized upon conversion. The Company recognized interest expense of approximately $796,000 for the six months ended June 30, 2021. During the six months ended June 30, 2021, as a result of full exercise of December 2020 Warrants, the Company received the proceeds of $27.4 million in exchange for the issuance of 14,200,000 Class A ordinary shares, as represented by ADSs. | Note 12 — December 2020 Convertible Debenture and Warrants On December -year -year The Debenture includes an adjustment provision in the event of share combination event (as defined in the agreements), also includes a full ratchet anti -dilution The Company adopted ASU 2017 -11 -10-15 -Scholes Series A Series B Series C Expected term in years 7 2 7 Expected dividend yield 0 % 0 % 0 % Volatility 46.68 % 49.61 % 46.68 % Risk-free interest Rate 0.63 % 0.197 % 0.63 % The Company assessed the accounting for the Debenture in accordance with ASC 470 -20 The intrinsic value of beneficial conversion feature (the “BCF”) is greater than the proceeds allocated to the convertible instrument, therefore the amount of the discount assigned to the BCF is limited to the amount of the proceeds allocated to the convertible instrument. For the holder of the Debenture, conversion price results in BCF that is separated as an equity component and assigned a value of approximately $206,000 as a debt discount. Debt discount is amortized using the effective interest rate method over the period from the issuance date through the stated redemption date. The issuance costs are allocated in the same proportion as the proceeds are allocated to the debt and warrants. Issuance costs allocated to the equity -classified The Debenture is recognized initially at fair value, net of debt discounts including the amount paid to the holder of $60,000 and allocation of proceeds to BCF and the detachable Series A and Series B Warrants of $737,000, in an aggregate of approximately $803,000 on the date of issuance. As the vesting of Series C Warrants is contingent upon the exercise of Series B, debt discounts related to allocation of proceeds to Series C Warrants will be deferred and recognized until Series C Warrants are vested on a proportional basis. As of December The Company recognized interest expense of approximately $20,000 for the period ended December |
Stockholders_ Equity
Stockholders’ Equity | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | ||
Stockholders’ Equity | Note 15 — Stockholders’ Equity Ordinary Shares and Preferred Shares The Company is authorized to issue (i) 450,000,000 ordinary shares, $0.0001 par value per share, divided into 300,000,000 Class A ordinary shares and 150,000,000 Class B ordinary shares, and (ii) 50,000,000 preferred shares, $0.0001 par value per share. As of June 16, 2020, subsequent to the closing of the Business Combination, there were 17,399,176 ordinary shares outstanding, including 7,647,962 Class A ordinary shares and 9,751,214 Class B ordinary shares, and no preferred shares outstanding. The shareholders of Class A and Class B ordinary shares have the same rights except for the voting and conversion rights. Each Class A ordinary share is entitled to one vote, and is not convertible into Class B ordinary share under any circumstance; and each Class B ordinary share is entitled to ten votes, and is convertible into one Class A ordinary share at any time by the holder thereof, subject to adjustments for any subdivision or combination. A total of 1,486,504 Class A ordinary shares, represented by ADSs were issued in March 2021 in connection with 2020 Share Incentive Plan. As of June 30, 2021 and December 31, 2020, there was an aggregate of 29,328,180 and 9,627,553 Class A ordinary shares issued and outstanding, respectively; and an aggregate of 9,843,096 Class B ordinary shares issued and outstanding each. As of June 30, 2021, there was an aggregate of 7,000 preferred shares issued and outstanding and no preferred shares outstanding as of December 31, 2020. August 2020 Private Placement On August 1, 2020, the Company entered into a securities purchase agreement (as amended on September 29, 2020, and later amended and restated on October 19, 2020) with three investors (collectively, the “Investors”). Two tranches of transactions contemplated under the agreement were closed on August 3 and November 13, 2020, respectively. As a result, an aggregate of 1,500,000 ADSs and 1,500,000 warrants to purchase an aggregate of 1,500,000 of our ADS at US$3.00 per ADS (the “August 2020 PIPE Warrants”) were issued at US$2.00 per ADS for an aggregate purchase price of US$3 million, and an aggregate of 150,000 ADSs were issued as origination fee. Issuance costs of approximately $469,000 were recorded as a charge to additional paid -in -40 -in -20-30 Such warrants shall be exercisable for a period of three years from the issuance date. Exercise price is subject to adjustments in case of reorganization, consolidation, merger etc. and in case of stock purchase rights in the subsequent two -year As a result of January 2021 Call Options as discussed below, exercise price of PIPE Warrants was adjusted from $3.00 to $2.00. In accordance with ASC 260 -10-25-1 For the six months ended June 30, 2021, 770,833 Class A ordinary shares, as represented by ADSs were issued for the aggregate proceeds of approximately $1.5 million, as a result of investors’ exercise of August 2020 PIPE Warrants. Share Subscription Agreement with Yun Tian On December 19, 2020, the Company entered into a private placement share subscription agreement (the “Share Subscription Agreement”) with Yun Tian Investment Limited (“Yun Tian”). Yun Tian subscribes for an aggregate of not more than 4,540,000 Class A ordinary shares (the “Subscription Shares”) by tranches at a subscription price of $2.2 per share before June 30, 2021. The Share Subscription Agreement is automatically terminated at June 30, 2021. The Subscription Shares shall be subject to a lock -up For a period of two years commencing on January 1, 2021 (or such other date as may be mutually agreed), Yun Tian shall procure that Lion Brokers Limited’s TRS trading business, T+0 business, OTC Stock Options business and any other relevant business (the “Relevant Business”) shall achieve a milestone (the “Milestone”) of net profit before tax of RMB 200 million. At any point of time during the two -year -out -out -out -10-15 -10 -out For the six months ended June 30, 2021, the Company received subscription price in an aggregate of $0.8 million from Yun Tian, and the related Subscription Shares of 353,623 Class A shares were issued. January 2021 Call Options On January 6, 2021, the Company entered into a binding strategic cooperation framework agreement (the “Strategic Cooperation Agreement”) with Mr. Yao Yongjie (“Mr. Yao”) and engaged Mr. Yao as the chief technical adviser to provide technical advice and consultancy service in blockchain industry. The Company grants to Mr. Yao options (the “Call Options”) to subscribe for 6 million Class A ordinary shares, represented by ADSs at a price fixed at US$2 per share. Within 24 months of the signing of the Strategic Cooperation Agreement, Mr. Yao may exercise the right to subscribe for such shares by tranches if the following conditions are met: (i) if the closing price of the shares in the Company exceeds US$3 per share for 3 consecutive trading days, Mr. Yao may exercise 2 million call options; (ii) if the closing price of the shares in the Company exceeds US$5 per share for 3 consecutive trading days, Mr. Yao may exercise 2 million call options; (iii) if the closing price of the shares in the Company exceeds US$7.50 per share for 3 consecutive trading days, Mr. Yao may exercise 2 million call options. The Company estimated the fair value of the call options on the date of grant using Binomial Option Pricing Model applying the assumptions in the following table. The fair value of the Call Options is valued at approximately $1,909,000, and recognized as stock -based -year Call Expected term in years 2 Expected dividend yield 0 % Volatility 51.69 % Risk-free interest Rate 0.21 % For the six months ended June 30, 2021, an aggregate of $191,000 was recognized in expenses. For the six months ended June 30, 2021, 2,000,000 Class A ordinary shares, as represented by ADSs were issued for the aggregate proceeds of $4.0 million, as a result of exercise of Call Options. | Note 13 — Stockholders’ Equity Ordinary Shares and Preferred Shares The Company is authorized to issue (i) 450,000,000 ordinary shares, $0.0001 par value per share, divided into 300,000,000 Class A ordinary shares and 150,000,000 Class B ordinary shares, and (ii) 50,000,000 preferred shares, $0.0001 par value per share. As of June The shareholders of Class A and Class B ordinary shares have the same rights except for the voting and conversion rights. Each Class A ordinary share is entitled to one vote, and is not convertible into Class B ordinary share under any circumstance; and each Class B ordinary share is entitled to ten votes, and is convertible into one Class A ordinary share at any time by the holder thereof, subject to adjustments for any subdivision or combination. On July On November -merger August 2020 Private Placement On August -in -40 -in -20-30 Such warrants shall be exercisable for a period of three years from the issuance date. Exercise price is subject to adjustments in case of reorganization, consolidation, merger etc. and in case of stock purchase rights in the subsequent two -year Share Subscription Agreement with Yun Tian On December -up For a period of two years commencing on January -year -out -out -out -10-15 -10 -out As of December |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Share-Based Payment Arrangement [Abstract] | ||
Stock-Based Compensation | Note 16 — Stock-Based Compensation 2020 Share Incentive Plan In June 2020, in connection with the Business Combination, the Company’s board approved the 2020 Share Incentive Plan (the “2020 Plan”) and reserved 4,632,449 ordinary shares for issuance thereunder. The Company’s employees, non -employee ten | Note 14 — Stock-Based Compensation 2020 Share Incentive Plan In June 2020, in connection with the Business Combination, the Company’s board approved the 2020 Share Incentive Plan (the “2020 Plan”) and reserved 4,632,449 ordinary shares for issuance thereunder. The Company’s employees, non -employee forth in the award agreements which may be a fixed or variable price related to the fair market value of the Company’s ordinary shares and a contractual term up to ten years. The Administrator is authorized to grant deferred shares to any Eligible Individual. The number of shares of deferred shares shall be determined by the Administrator; shares underlying a deferred share award will not be issued until the deferred share award has vested, pursuant to a vesting schedule or other conditions or criteria set by the Administrator. As of December On December -employee -based Communication and technology $ 335,000 Marketing 363,000 Services fees 294,000 Compensation and benefits 934,800 Professional fees 228,000 General and administrative 1,502,000 Total stock-based compensation $ 3,656,800 |
Income Taxes
Income Taxes | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Income Taxes | Note 17 — Income Taxes The current and deferred portions of the income tax expense included in the statements of operations and comprehensive income as determined in accordance with FASB ASC 740 are as follows: Six Months Ended 2021 2020 Current $ 53,239 $ 2,842 Deferred 1,128 479 $ 54,367 $ 3,321 A reconciliation of the difference between the expected income tax expense or benefit computed at applicable statutory income tax rates and the Group’s income tax expense is shown in the following table: Six Months Ended 2021 2020 Income tax expense (benefit) at applicable statutory rate (1) $ (1,688,110 ) $ 9,738 Nondeductible expenses (402,509 ) 5,090 (Income) loss not subject to tax (2) 1,151,121 (323,006 ) Current year change in valuation allowance 940,626 311,499 Prior year examination adjustment 53,239 — Reported income taxes $ 54,367 $ 3,321 ____________ (1) The applicable statutory rate applied is based on the profits tax rates in Hong Kong. Effective for tax years ended on or after December 31, 2018, the applicable tax rate was 8.25% on the first HK $2,000,000 of assessable profits and 16.5% on any assessable profits above that threshold. The 8.25% tax rate can only be utilized by one entity in a controlled group. All other Hong Kong entities in the Group utilize the 16.5% tax rate. The Singapore entity within the Group has an applicable tax rate of 17.0%. The entity in the United States within the Group has a federal tax rate of 21.0%. (2) The Group also has entities domiciled in the British Virgin Islands and the Cayman Islands, but such entities are not subject to income or capital gains taxes. Significant components of the Group’s deferred tax assets (liabilities) are presented below: June 30, Decemer 31, Deferred tax asset Others $ 1,477 $ 1,128 Fixed assets 118 — Net operating loss carryforwards 2,323,105 1,367,309 Less: Valuation allowance (2,324,700 ) (1,367,309 ) Net deferred tax asset $ — $ 1,128 Management has applied a valuation allowance to the total amount of deferred tax assets based on the determination that it is more likely than not that some portion of the deferred tax asset will not be realized. This determination was based on the historic and estimated future profitability of the entities to which the deferred tax assets relate. The tax rules in Hong Kong do not allow the Group to file on a consolidated basis. | Note 15 — Income Taxes The current and deferred portions of the income tax expense included in the statements of operations and comprehensive income as determined in accordance with FASB ASC 740 are as follows: Year ended December 31, 2020 2019 2018 Current $ 1,767 $ 66,299 $ 26,962 Deferred (451 ) (1,827 ) (628 ) $ 1,316 $ 64,472 $ 26,334 A reconciliation of the difference between the expected income tax expense or benefit computed at applicable statutory income tax rates and the Group’s income tax expense is shown in the following table: Year ended December 31, 2020 2019 2018 Income tax expense (benefit) at applicable statutory rate (1) $ (348,782 ) $ 1,345,164 $ (473,951 ) (Income) loss not subject to tax (2) (214,313 ) (1,716,553 ) 313,015 Current year change in valuation allowance 558,859 406,506 195,420 Others 5,552 29,355 (8,150 ) Reported income taxes $ 1,316 $ 64,472 $ 26,334 (1) The applicable statutory rate applied is based on the profits tax rates in Hong Kong. Effective for tax years ended on or after December 31, 2018, the applicable tax rate was 8.25% on the first HK $2,000,000 of assessable profits and 16.5% on any assessable profits above that threshold. The 8.25% tax rate can only be utilized by one entity in a controlled group. All other Hong Kong entities in the Group utilize the 16.5% tax rate. The Singapore entity within the Group has an applicable tax rate of 17.0%. The entity in the United States within the Group has a federal tax rate of 21.0%. (2) The Group also has entities domiciled in the British Virgin Islands and the Cayman Islands, but such entities are not subject to income or capital gains taxes. Significant components of the Group’s deferred tax assets (liabilities) are presented below: December 31, 2020 December 31, 2019 Deferred tax asset Others $ 1,128 $ 677 Net operating loss carryforwards 1,367,309 808,450 Less: Valuation allowance (1,367,309 ) (808,450 ) Net deferred tax asset $ 1,128 $ 677 Management has applied a valuation allowance to the total amount of deferred tax assets based on the determination that it is more likely than not that some portion of the deferred tax asset will not be realized. This determination was based on the historic and estimated future profitability of the entities to which the deferred tax assets relate. The tax rules in Hong Kong do not allow the Group to file on a consolidated basis. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2020 | |
Commitments [Abstract] | |
Commitments | Note 16 — Commitments The Group leases certain office premises under non -cancelable Future minimum payments under non -cancelable Year Ended December 31, 2021 $ 646,930 2022 209,556 2023 3,736 $ 860,222 |
Regulatory Requirements
Regulatory Requirements | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | ||
Regulatory Requirements | Note 19 — Regulatory Requirements The following table illustrates the minimum regulatory capital as established by the Hong Kong Securities and Futures Commission, the Insurance Authority (Hong Kong) and the Cayman Islands Monetary Authority (CIMA) that the Company’s subsidiaries were required to maintain as of June 30, 2021 and the actual amounts of capital that were maintained. Entity Name Minimum Capital Excess Percent of Lion International Securities Group Limited $ 386,292 $ 1,171,495 $ 785,203 303 % Lion Futures Limited 386,292 1,039,855 653,563 269 % Lion Asset Management Limited 12,876 43,415 30,539 337 % BC Wealth Management Limited 12,876 177,081 164,205 1375 % Lion Broker Limited (Cayman) 9,704,983 12,495,487 2,790,504 129 % Total $ 10,503,319 $ 14,927,333 $ 4,424,014 142 % | Note 17 — Regulatory Requirements The following table illustrates the minimum regulatory capital as established by the Hong Kong Securities and Futures Commission, the Insurance Authority (Hong Kong) and the Cayman Islands Monetary Authority (CIMA) that the Company’s subsidiaries were required to maintain as of December Entity Name Minimum Regulatory Capital Requirements Capital Excess Percent of requirement Maintained Lion International Securities Group Limited $ 386,927 $ 1,043,803 $ 656,876 270 % Lion Futures Limited 386,927 948,872 561,945 245 % Lion Asset Management Limited 12,898 27,770 14,872 215 % BC Wealth Management Limited 12,898 468,279 455,381 3631 % Lion Broker Limited (Cayman) 537,164 8,426,049 7,888,885 1569 % Total $ 1,336,814 $ 10,914,773 $ 9,577,959 816 % |
Segment Reporting
Segment Reporting | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Segment Reporting [Abstract] | ||
Segment Reporting | Note 20 — Segment Reporting ASC 280, Disclosures about Segments of an Enterprise and Related Information establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise which engage in business activities from which they may earn revenues and incur expenses, and about which separate financial information is available that is evaluated regularly by the chief operating decision -maker -making The Group has three primary operating segments (1) futures and securities brokerage services, (2) insurance brokerage services and (3) market making (CFD) trading and other. The Group’s futures and securities brokerage segment generates commissions income by enabling customers to trade in futures and securities markets throughout the world. The Group’s insurance brokerage segment generates commissions by providing insurance brokerage services to high -net-worth Futures Insurance Market making Other Total Six months ended June 30, 2021 Revenue $ 1,212,222 $ 295,340 $ 2,949,525 $ (856,790 ) $ 3,600,297 Commissions and fees 814,295 84,902 290,046 — 1,189,243 Compensation and benefits 594,038 135,183 — 1,654,326 2,383,547 Occupancy — 119,301 4,200 224,159 347,660 Communication and technology 224,232 3,126 563,526 156,408 947,292 General and administrative 40,133 21,225 164,709 403,992 630,059 Crypto currencies — — — 219,662 219,662 Professional fees 773 — 190,128 799,110 990,011 Service fees — — 2,311,018 163,104 2,474,122 Interest — — 109,268 832,996 942,264 Depreciation 1,476 — 266,666 11,538 279,680 Marketing 1,010 — 55,000 497,748 553,758 Payment service charge — — 292,630 — 292,630 Other operating expenses 1,526 — — 17,948 19,474 1,677,483 363,737 4,247,191 4,980,991 11,269,402 Income (loss) from operations $ (465,261 ) $ (68,397 ) $ (1,297,666 ) $ (5,837,781 ) $ (7,669,105 ) Total segment assets $ 4,412,577 $ 182,524 $ 63,259,609 $ 18,662,967 $ 86,517,677 Futures Insurance Market making Other Total Six months ended June 30, 2020 Revenue $ 617,242 $ 638,574 5,126,239 $ 48,461 $ 6,430,516 Commissions 387,439 315,083 59,539 — 762,061 Compensation 607,139 135,312 — 743,709 1,486,160 Occupancy 3,119 142,052 3,600 174,453 323,224 Communication and technology 208,672 2,393 257,311 1,286 469,662 General and administrative 34,396 24,502 105,853 128,037 292,788 Professional fees 800 — 112,506 40,547 153,853 Service fees — — 119,379 112,406 231,785 Interest — — 4,989 74,354 79,343 Depreciation 10,484 — — 11,508 21,992 Marketing 222 222 105,013 94,491 199,948 Other operating expenses 3,847 — 19,309 9,346 32,502 1,256,118 619,564 787,499 1,390,137 4,053,318 Income (loss) from operations $ (638,876 ) $ 19,010 $ 4,338,740 $ (1,341,676 ) $ 2,377,198 Total segment assets $ 3,793,041 $ 214,252 $ 7,987,408 $ 3,075,902 $ 15,070,603 | Note 18 — Segment Reporting ASC 280, Disclosures about Segments of an Enterprise and Related Information establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise which engage in business activities from which they may earn revenues and incur expenses, and about which separate financial information is available that is evaluated regularly by the chief operating decision -maker -making The Group has three primary operating segments (1) futures and securities brokerage services, (2) insurance brokerage services and (3) market making (CFD) trading and other business. The Group’s futures and securities brokerage segment generates commissions income by enabling customers to trade in futures and securities markets throughout the world. The Group’s insurance brokerage segment generates commissions by providing insurance brokerage services to high -net-worth Futures Insurance brokerage services Market making Other Total Year ended December 31, 2020 Revenue $ 2,029,669 $ 959,299 $ 7,034,447 $ 206,720 $ 10,230,135 Commissions and fees 1,316,800 413,351 115,843 — 1,845,994 Compensation and benefits 1,110,192 256,529 — 2,436,072 3,802,793 Occupancy — 277,414 6,600 399,146 683,160 Communication and technology 455,323 5,160 643,630 349,937 1,454,050 General and administrative 55,028 48,210 243,172 1,917,908 2,264,318 Professional fees 26,690 16,813 278,719 1,243,612 1,565,834 Service fees — — 314,342 519,522 833,864 Interest — — 52,240 130,917 183,157 Depreciation 13,000 4,128 — 23,428 40,556 Marketing 222 222 166,013 484,867 651,324 Payment service charge — — 245,030 — 245,030 Other operating expenses — — — 11,464 11,464 2,977,255 1,021,827 2,065,589 7,516,873 13,581,544 Income (loss) from operations $ (947,586 ) $ (62,528 ) $ 4,968,858 $ (7,310,153 ) $ (3,351,409 ) Total segment assets $ 4,624,325 $ 213,495 $ 14,636,139 $ 3,432,110 $ 22,906,069 Futures Insurance brokerage services Market making Other Total Year ended December 31, 2019 Revenue $ 2,215,867 $ 2,648,141 $ 12,843,574 $ 819,268 $ 18,526,850 Commissions and fees 1,526,852 1,506,223 322,130 — 3,355,205 Compensation and benefits 1,154,378 334,964 — 941,294 2,430,636 Occupancy 202,467 198,637 1,200 189,632 591,936 Depreciation 26,845 4,087 — 21,920 52,852 Interest — — — 731,812 731,812 Communication and technology 469,818 7,269 343,556 2,790 823,433 General and administrative 72,403 69,765 140,598 409,882 692,648 Professional fees 7,369 702 118,929 634,238 761,238 Marketing 2,608 — 51,714 1,056 55,378 Service fees — — 119,711 265,129 384,840 Payment service charge — — 355,585 — 355,585 Other operating expenses 5,739 — — 4,724 10,463 3,468,479 2,121,647 1,453,423 3,202,477 10,246,026 Income (loss) from operations $ (1,252,612 ) $ 526,494 $ 11,390,151 $ (2,383,209 ) $ 8,280,824 Total segment assets $ 4,823,056 $ 352,377 $ 5,307,525 $ 2,935,390 $ 13,418,348 Futures Insurance brokerage services Market making Other Total Year ended December 31, 2018 Revenue $ 2,066,354 $ 5,378,679 $ — $ (876,770 ) $ 6,568,263 Commissions and fees 1,293,577 4,157,668 — 20,357 5,471,602 Compensation and benefits 882,887 363,523 — 392,878 1,639,288 Occupancy 420,732 1,021 — 126,578 548,331 Depreciation 26,487 4,086 — 2,170 32,743 Interest — — — 118 118 Communication and technology 505,152 4,596 — 78,605 588,353 General and administrative 85,208 93,880 — 360,685 539,773 Professional fees 21,081 28,710 — 178,207 227,998 Marketing 8,736 185,019 — 2,178 195,933 Service fees — — — 53,592 53,592 Other operating expenses 3,063 1,359 — 10,984 15,406 3,246,923 4,839,862 — 1,226,352 9,313,137 Income (loss) from operations $ (1,180,569 ) $ 538,817 $ — $ (2,103,122 ) $ (2,744,874 ) Total segment assets $ 12,243,072 $ 370,114 $ — $ 3,059,575 $ 15,672,761 |
Subsequent Events
Subsequent Events | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Subsequent Events [Abstract] | ||
Subsequent Events | Note 22 — Subsequent Events Management has considered subsequent events through September 30, 2021, which was the date these consolidated financial statements were issued. Asset Acquisition Agreement On September 7, 2021, the Group entered into an asset acquisition agreement with Hangzhou Lanlian, to acquire various software systems. The acquisition is expected to close by December 31, 2021 upon which Lanlian shall convey and deliver to the Group the software systems. The aggregate purchase price for the software systems is expected to be $8,000,000. | Note 19 — Subsequent Events Management has considered subsequent events through March Strategic Cooperation Agreement On January (i) if the closing price of the shares in the Company exceeds US$3 per share for 3 consecutive trading days, Mr. (ii) if the closing price of the shares in the Company exceeds US$5 per share for 3 consecutive trading days, Mr. (iii) if the closing price of the shares in the Company exceeds US$7.50 per share for 3 consecutive trading days, Mr. The fair value of the Call Options is recognized as stock -based -year February 2021 Private Placement On February -year -year Shares Issuance (a) Exercise of Warrants in Connection with August 2020 Private Placement 770,833 Class A ordinary shares, as represented by ADSs were issued in February 2021 for the aggregate proceeds of approximately $1.5 (b) Conversion of the Debenture and Exercise of December 2020 Warrants On January In addition, the Company received the proceeds of $27.4 (c) Share Subscription Agreement with Yun Tian Subsequently, the Company received subscription price in an aggregate of $0.5 (d) 2020 Share Incentive Plan A total of 1,486,504 Class A ordinary shares, represented by ADSs were issued in March 2021. Sponsorship of SPAC Companies In March 2021, the Group launched the sponsorship of two SPAC companies in cooperation with other parties. Subscription of Shares in Grandshores In February 2021, the Company entered into a framework strategic partnership agreement with Grandshores Technology Group Limited (“Grandshores”) (HKEX: 01647). In March 2021, Lion Brokers Limited subscribed 64,500,000 |
SPAC Warrants
SPAC Warrants | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
SPAC Warrants [Abstract] | ||
SPAC Warrants | Note 21 — SPAC Warrants PAAC’s warrants (collectively, the “SPAC Warrants”), which include (i) 11,500,000 warrants, those warrants included in the Units as part of IPO on June 3, 2019 (the “Public Warrants”), (ii) 5,375,000 warrants purchased by the founders of PAAC in a private placement simultaneously closed with PAAC’s IPO (the “Private Warrants”) and (iii) 920,000 warrants issued to the underwriters of PAAC’s IPO (the “Underwriters’ Warrants”). Public Warrants and Private Warrants Upon the Closing, each outstanding Public Warrant and Private Warrant of PAAC automatically represents the right to purchase one Class A Ordinary Share in the form of the Company’s ADSs in lieu of one ordinary share of PAAC at a price of $11.50 per share or $11.50 per ADS, subject to adjustment in the event of a share dividend, extraordinary dividend or our recapitalization, reorganization, merger or consolidation. However, the warrants will not be adjusted for issuances of Class A Ordinary Shares at a price below their respective exercise prices. However, no warrants issued in exchange for PAAC’s public warrants will be exercisable for cash unless the Company has an effective and current registration statement covering the Class A Ordinary Shares issuable upon exercise of the warrants and a current prospectus relating to such Class A Ordinary Shares. Notwithstanding the foregoing, warrant holders may, during any period when the Company shall have failed to maintain an effective registration statement, exercise warrants on a cashless basis in the same manner as if the Company called the warrants for Redemption and required all holders to exercise their warrants on a “cashless basis.” The Company’s Public Warrants and Private Warrants became exercisable thirty (30) days after the Closing and will expire on the fifth anniversary of the Closing or earlier upon redemption or liquidation. The Company’s warrants issued in exchange for PAAC’s private warrants are identical to warrants issued in exchange for the PAAC’s public warrants, except that such private warrants will be exercisable for cash (even if a registration statement covering the Class A Ordinary Shares issuable upon exercise of such warrants is not effective) or on a cashless basis, at the holder’s option, and will not be redeemable by the Company, in each case so long as they are still held by PAAC’s initial purchasers or their affiliates. The Company may call the warrants for Redemption (excluding the private warrants), in whole and not in part, at a price of $0.01 per warrant, • • • -day • -day If the Company calls the warrants for Redemption as described above, management will have the option to require all holders that wish to exercise warrants to do so on a “cashless basis.” Subsequent to the Closing, 11,500,000 Public Warrants and 5,375,000 Private Warrants remained outstanding as of December 31, 2020. The Company evaluated the Public and Private Warrants under ASC 815 -40 -for-fixed Accordingly, due to this restatement, the Public and Private Warrants are now classified as a liability at fair value on the Company’s consolidated balance sheet at December 31, 2020, and the change in the fair value of such liability in each period is recognized as a gain or loss in the Company’s consolidated statements of operations and comprehensive income (loss). Because the Public Warrants were publicly traded and thus had an observable market price, fair value adjustments were determined by utilizing the market prices whereas the Private Warrants were valued using a Black -Sholes-Merton Underwriters’ Warrants The Underwriters’ Warrants may be exercised for cash or on a cashless basis at $12.00 per share, at the holder’s option, at any time during the period commencing on the later of the first anniversary of the effective date of the registration statement of which this prospectus forms a part and the closing of our initial business combination and terminating on the fifth anniversary of such effectiveness date. Such warrants may not be sold, transferred, assigned, pledged or hypothecated for a period of 360 days immediately following the effective date of the PAAC’s registration statement. After 360 days after the effective date, transfers to others may be made subject to compliance with or exemptions from applicable securities laws. The Company will have no obligation to net cash settle the exercise of the warrants. The exercise price and number of shares of common stock issuable upon exercise of the warrants may be adjusted in certain circumstances including in the event of a stock dividend, or our recapitalization, reorganization, merger or consolidation. Subsequent to the Closing, 920,000 Underwriters’ Warrants remained outstanding as of December 31, 2020. The Company evaluated the Underwriters’ Warrants under ASC 815 -40 -in | Note 20 — SPAC Warrants PAAC’s warrants (collectively, the “SPAC Warrants”), which include (i) 11,500,000 warrants, those warrants included in the Units as part of IPO on June 3, 2019 (the “Public Warrants”), (ii) 5,375,000 warrants purchased by the founders of PAAC in a private placement simultaneously closed with PAAC’s IPO (the “Private Warrants”) and (iii) 920,000 warrants issued to the underwriters of PAAC’s IPO (the “Underwriters’ Warrants”). Public Warrants and Private Warrants Upon the Closing, each outstanding Public Warrant and Private Warrant of PAAC automatically represents the right to purchase one Class A Ordinary Share in the form of the Company’s ADSs in lieu of one ordinary share of PAAC at a price of $11.50 per share or $11.50 per ADS, subject to adjustment in the event of a share dividend, extraordinary dividend or our recapitalization, reorganization, merger or consolidation. However, the warrants will not be adjusted for issuances of Class A Ordinary Shares at a price below their respective exercise prices. However, no warrants issued in exchange for PAAC’s public warrants will be exercisable for cash unless the Company has an effective and current registration statement covering the Class A Ordinary Shares issuable upon exercise of the warrants and a current prospectus relating to such Class A Ordinary Shares. Notwithstanding the foregoing, warrant holders may, during any period when the Company shall have failed to maintain an effective registration statement, exercise warrants on a cashless basis in the same manner as if the Company called the warrants for Redemption and required all holders to exercise their warrants on a “cashless basis.” The Company’s Public Warrants and Private Warrants became exercisable thirty (30) days after the Closing and will expire on the fifth anniversary of the Closing or earlier upon redemption or liquidation. The Company’s warrants issued in exchange for PAAC’s private warrants are identical to warrants issued in exchange for the PAAC’s public warrants, except that such private warrants will be exercisable for cash (even if a registration statement covering the Class A Ordinary Shares issuable upon exercise of such warrants is not effective) or on a cashless basis, at the holder’s option, and will not be redeemable by the Company, in each case so long as they are still held by PAAC’s initial purchasers or their affiliates. The Company may call the warrants for Redemption (excluding the private warrants), in whole and not in part, at a price of $0.01 per warrant, • • • -day • -day If the Company calls the warrants for Redemption as described above, management will have the option to require all holders that wish to exercise warrants to do so on a “cashless basis.” Subsequent to the Closing, 11,500,000 Public Warrants and 5,375,000 Private Warrants remained outstanding as of December 31, 2020. The Company evaluated the Public and Private Warrants under ASC 815 -40 -Contracts -for-fixed Accordingly, due to this restatement, the Public and Private Warrants are now classified as a liability at fair value on the Company’s consolidated balance sheet at December 31, 2020, and the change in the fair value of such liability in each period is recognized as a gain or loss in the Company’s consolidated statements of operations and comprehensive income (loss). Because the Public Warrants were publicly traded and thus had an observable market price, fair value adjustments were determined by utilizing the market prices whereas the Private Warrants were valued using a Black -Sholes-Merton Underwriters’ Warrants The Underwriters’ Warrants may be exercised for cash or on a cashless basis at $12.00 per share, at the holder’s option, at any time during the period commencing on the later of the first anniversary of the effective date of the registration statement of which this prospectus forms a part and the closing of our initial business combination and terminating on the fifth anniversary of such effectiveness date. Such warrants may not be sold, transferred, assigned, pledged or hypothecated for a period of 360 days immediately following the effective date of the PAAC’s registration statement. After 360 days after the effective date, transfers to others may be made subject to compliance with or exemptions from applicable securities laws. The Company will have no obligation to net cash settle the exercise of the warrants. The exercise price and number of shares of common stock issuable upon exercise of the warrants may be adjusted in certain circumstances including in the event of a stock dividend, or our recapitalization, reorganization, merger or consolidation. Subsequent to the Closing, 920,000 Underwriters’ Warrants remained outstanding as of December 31, 2020. The Company evaluated the Underwriters’ Warrants under ASC 815 -40 -Contracts -in |
Restatement of Previously Issue
Restatement of Previously Issued Audited and Unaudited Consolidated Financial Statements | 12 Months Ended |
Dec. 31, 2020 | |
Restatement Of Previously Issued Audited And Unaudited Consolidated Financial Statements [Abstract] | |
Restatement of Previously Issued Audited and Unaudited Consolidated Financial Statements | Note 21 — Restatement of Previously Issued Audited and Unaudited Consolidated Financial Statements On April 12, 2021, the Acting Director of the Division of Corporation Finance and Acting Chief Accountant of the Securities and Exchange Commission together issued a statement regarding the accounting and reporting considerations for warrants issued by special purpose acquisition companies entitled “Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies (“SPACs”)” (the “SEC Statement”). Specifically, the SEC Statement focused in part on provisions in warrant agreements that provide for potential changes to the settlement amounts dependent upon the characteristics of the warrant holder and because the holder of a warrant is not an input into the pricing of a fixed -for-fixed Accordingly, due to this restatement, the Public Warrants and Private Warrants are now classified as a liability at fair value on the Company’s consolidated balance sheet at December 31, 2020, and the change in the fair value of such liability in each period is recognized as a gain or loss in the Company’s consolidated statements of operations and comprehensive income (loss). The Public Warrants and Private Warrants are deemed equity instruments for income tax purposes, and accordingly, there is no tax accounting relating to changes in the fair value of the Warrants recognized. When presenting diluted earnings (loss) per share in the Company’s Form 20 -F The impact of this correction to the applicable reporting periods for the financial statement line items impacted is as follows: For the Year Ended As Restatement As Consolidated Statements of Operations and Comprehensive Income (Loss): Change in fair value of warrant liabilities $ — $ 777,266 $ 777,266 (Loss) income before income taxes $ (3,351,409 ) $ 777,266 $ (2,574,143 ) Net (loss) income $ (3,352,725 ) $ 777,266 $ (2,575,459 ) Comprehensive income (loss) $ (3,332,238 ) $ 777,266 $ (2,554,972 ) (Loss) earnings per share for both Class A and Class B – basic and diluted: Basic and diluted $ (0.33 ) $ 0.08 $ (0.25 ) As of December 31, 2020 As Restatement As Consolidated Balance Sheets: Warrant liabilities $ — $ 1,469,821 $ 1,469,821 Total current liabilities $ 11,318,364 $ 1,469,821 $ 12,788,185 Total liabilities $ 12,134,370 $ 1,469,821 $ 13,604,191 Additional paid-in-capital $ 14,516,848 $ (2,247,087 ) $ 12,269,761 Accumulated deficit $ (3,729,628 ) $ 777,266 $ (2,952,362 ) Total stockholders’ equity $ 10,771,699 $ (1,469,821 ) $ 9,301,878 For the Year Ended As Restatement As Consolidated Statements of Cash Flow Cash Flows from Operating Activities Net (loss) income $ (3,352,725 ) $ 777,266 $ (2,575,459 ) Change in fair value of warrant liabilities $ — $ (777,266 ) $ (777,266 ) These errors had a non -cash Restatement of Previously Issued Unaudited Condensed Consolidated Financial Statements In lieu of filing amended 6 -K -K -K For the Six Months Ended As Restatement As Consolidated Statements of Operations and Comprehensive Income: Change in fair value of warrant liabilities $ — $ 414,440 $ 414,440 Income before income taxes $ 2,377,198 $ 414,440 $ 2,791,638 Net income $ 2,373,877 $ 414,440 $ 2,788,317 Comprehensive income $ 2,394,437 $ 414,440 $ 2,808,877 Earnings per share for both Class A and Class B – basic and diluted : Basic and diluted $ 0.32 $ 0.05 $ 0.37 As of June 30, 2020 As Restatement As Consolidated Balance Sheets: Warrant liabilities $ — $ 1,832,647 $ 1,832,647 Total current liabilities $ 5,439,512 $ 1,832,647 $ 7,272,159 Total liabilities $ 5,439,512 $ 1,832,647 $ 7,272,159 Additional paid-in-capital $ 7,649,772 $ (2,247,087 ) $ 5,402,685 Accumulated deficit $ 1,996,974 $ 414,440 $ 2,411,414 Total equity $ 9,631,091 $ (1,832,647 ) $ 7,798,444 For the Six Months Ended As Restatement As Consolidated Statements of Cash Flow Cash Flows from Operating Activities Net income $ 2,373,877 $ 414,440 $ 2,788,317 Change in fair value of warrant liabilities $ — $ (414,440 ) $ (414,440 ) |
Long-term Investment
Long-term Investment | 6 Months Ended |
Jun. 30, 2021 | |
Long-term Investment [Abstract] | |
Long-term Investment | Note 8 — Long-term Investment In May 2021, the Group formed Lion Group (Hangzhou) Investment Limited and invested RMB 10,000,000 ($1,580,000) to purchase 20% of the equity interest in Hangzhou Qianlan Enterprise Management Partnership (Limited Partnership) (“Qianlan”). Qianlan, a limited partner of Hangzhou Tunlan Hongyi Investment Partnership (Limited Partnership) (“Tunlan Hongyi”), holds 62% of equity interest in Tunlan Hongyi (a private equity fund with total investment of RMB 64,500,000 which invested in Shenzhen Yuhe Chuangzhi Technology Limited Company). The Group classified the investments to long term investment and elects to record at cost, less impairment, adjusted for subsequent price changes. As of June 30, 2021, no unrealized gain or loss is recognized. |
Fixed Assets, Net
Fixed Assets, Net | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets, Net | Note 9 — Fixed Assets, Net Fixed assets consisted of the following as of June 30, 2021 and December 31, 2020: June 30, December 31, (unaudited) Cryptocurrency mining machines $ 2,594,524 $ — Software (see Note 7) 8,000,000 — Leasehold improvement 38,399 38,463 Office and computer equipment 150,405 148,048 Total cost of fixed assets 10,783,327 186,511 Less: accumulated depreciation (519,128 ) (151,592 ) Fixed assets, net $ 10,264,199 $ 34,919 On April 19, 2021, Lion Wealth Limited (the “Transferee”), a wholly -owned (approximately $2.6 million), including the transportation and installation costs. The annual maintenance costs payable to the Minebaba are expected to be $0.2 million. In accordance with the Antminer Transfer and Maintenance Agreement, Minebaba shall operate and maintain the mining machines for three years. The Group may terminate Minebaba’s operation and maintenance with a written notice of 30 days prior to the termination without penalty. Depreciation expense for the six months ended June 30, 2021 and 2020 was $367,851, and $21,992, respectively and are included in operating expenses in the accompanying statement of operations. There were no impairment charges related to fixed assets for the period ended June 30, 2021 and December 31, 2020. |
February 2021 Convertible Prefe
February 2021 Convertible Preferred Shares and Warrants | 6 Months Ended |
Jun. 30, 2021 | |
February 2021 Convertible Preferred Shares And Warrants [Abstract] | |
February 2021 Convertible Preferred Shares and Warrants | Note 14 — February 2021 Convertible Preferred Shares and Warrants On February 15, 2021, the Company entered into a Securities Purchase Agreement (the “Securities Purchase Agreement) with one third party investor (the “Purchaser”), pursuant to which the Company received $6,440,000 in consideration of the issuance of: a) Series A Convertible Preferred Shares (the “Series A Convertible Preferred Shares”) with a stated value of $7,000,000; b) a warrant (the “Series D Warrant”) to purchase 2,333,333 American Depositary Shares (“ADS”) of the Company until the fifth year anniversary of the closing date at an exercise price of $3.00 per ADS; c) a one -year -year The number of Series A Convertible Preferred Shares is 7,000 and each share has a par value of $0.0001 and a stated value of $1,000. The Series A Convertible Preferred Shares have no voting rights, bear dividend rights at a rate of 8% per annum commencing on the six month anniversary of the closing date, and are convertible into the ADSs, beginning after its original date of issuance at an initial conversion price of $3.00 per share. Dividend is payable quarterly in cash, or the Company may pay accrued interest in its ADSs. At election of the Company, the Series A Convertible Preferred Shares may be redeemed, subject to certain equity conditions. The Series A Convertible Preferred Shares include an adjustment provision in the event of share combination event (as defined in the agreements), also include a full ratchet anti -dilution Series A Convertible Preferred Shares are classified as equity and carried at the amount recorded at inception, without amortization. The discount to the redemption amount shall be recognized as a dividend upon redemption. The Company adopted ASU 2017 -11 -10-15 -Scholes Series D Series E Series F Expected term in years 5 1 5 Expected dividend yield 0 % 0 % 0 % Volatility 43.05 % 50.45 % 43.05 % Risk-free interest Rate 0.63 % 0.208 % 0.63 % In accordance with ASC 470 -20 The issuance costs are allocated in the same proportion as the proceeds are allocated to the preferred stock and warrants. Issuance costs allocated to the equity -classified The Series A Convertible Preferred Shares are recognized initially at fair value, net of debt discounts including the amount paid to the holder of $620,000 and allocation of proceeds to the detachable Series D and Series E Warrants of $2,149,000, in an aggregate of approximately $4,231,000 on the date of issuance. As the vesting of Series F Warrants is contingent upon the exercise of Series E, preferred stock discounts related to allocation of proceeds to Series F Warrants will be deferred and recognized until Series F Warrants are vested on a proportional basis. |
Commitments_2
Commitments | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Note 18 — Commitments The Group leases certain office premises under non -cancelable Future minimum payments under non -cancelable Year Ended 2021 $ 272,089 2022 208,970 2023 3,912 $ 484,971 |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements reflect all adjustments that, in the opinion of management, are necessary to fairly present the financial statements for the interim periods. The condensed consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and have been prepared in accordance with the regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. Results for the interim periods are not necessarily indicative of results to be expected for the full year. These condensed consolidated financial statements should be read in conjunction with LFGL’s audited consolidated financial statements and related notes as of and for the year ended December 31, 2020. | Basis of Presentation These consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and have been prepared in accordance with the regulations of the Securities and Exchange Commission (“SEC”). |
Restatement of Previously Issued Financial Statements | Restatement of Previously Issued Financial Statements The Company has restated its consolidated financial statements as of and for the year ended December -period | |
Emerging Growth Company Status | Emerging Growth Company Status The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended, (the “Securities Act”), as modified by the Jumpstart our Business Startups Act of 2012, (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes -Oxley Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non -emerging | Emerging Growth Company Status The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended, (the “Securities Act”), as modified by the Jumpstart our Business Startups Act of 2012, (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes -Oxley Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non -emerging |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. A subsidiary is an entity (including a structured entity), directly or indirectly, controlled by the Company. The financial statements of the subsidiaries are prepared for the same reporting period as the Company, using consistent accounting policies. All intra -group | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. A subsidiary is an entity (including a structured entity), directly or indirectly, controlled by the Company. The financial statements of the subsidiaries are prepared for the same reporting period as the Company, using consistent accounting policies. All intra -group |
Translation of Foreign Currencies | Translation of Foreign Currencies The functional currency is the U.S. dollar for the Group’s Cayman Island operations and the Hong Kong dollar for all other Group operations. The Group’s reporting currency is the U.S. dollar. Assets and liabilities denominated in foreign currencies are translated at year -end | Translation of Foreign Currencies The functional currency is the U.S. dollar for the Group’s Cayman Island operations and the Hong Kong dollar for all other Group operations. The Group’s reporting currency is the U.S. dollar. Assets and liabilities denominated in foreign currencies are translated at year -end exchange for the year and equity is translated at historical exchange rates. Any translation gains or losses are recorded in other comprehensive income (loss). Gains or losses resulting from foreign currency transactions are included in net income. |
Use of Estimates | Use of Estimates The preparation of 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 financial statements as well as the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. | Use of Estimates The preparation of 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 financial statements as well as the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of deposits with banks and all highly liquid investments, with maturities of three months or less, that are not segregated and deposited for regulatory purposes. The Group maintains its cash in bank deposit accounts which at times may exceed insured limits. The Group has not experienced any losses in such accounts. Management believes that the Group is not exposed to any significant credit risk on cash and cash equivalents. | |
Restricted Cash - Cash Balances Held on Behalf of Customers | Restricted Cash — Cash Balances Held on Behalf of Customers The Group maintains segregated trust accounts with licensed banks or payment platform to hold customer funds in accordance with the relevant legislation. The Group has classified customer funds as bank balances held on behalf of customers with a corresponding payable to customers in the liabilities section of the consolidated balance sheets. | |
Securities Owned and Derivatives | Securities Owned and Derivatives Securities transactions are recorded on the trade date, as if they had settled. Securities, futures and derivative positions are recorded at fair value in accordance with FASB ASC 820, Fair Value Measurement. See Notes 5 and 10 for more information on derivatives. | |
Receivables | Receivables Receivables arise from the business of dealing in investment securities, futures and derivatives and include the amounts due on brokerage transactions on a trade -date -dealers Receivables from broker -dealers -shares | Receivables Receivables arise from the business of dealing in investment securities, futures and derivatives and include the amounts due on brokerage transactions on a trade -date -dealers Receivables from broker -dealers -shares -dealers Commissions receivable as presented in the consolidated balance sheets represent trading commissions due and amounts due from insurance providers once referrals have been made and the transactions have been executed under the terms of the relative insurance policy or subscription agreement. As of December |
Fixed Assets and Depreciation | Fixed Assets and Depreciation Furniture, equipment and leasehold improvements are stated at cost less accumulated depreciation. Depreciation is provided on a straight -line | |
Intangible Assets | Intangible Assets Intangible assets are originally recognized at cost. The useful lives of intangible assets are assessed to be either finite or indefinite. The Group’s intangible assets consist of eligibility rights to trade on or through the Stock Exchange of Hong Kong Limited (the “SEHK ”) -generating | |
Payables | Payables Payables arise from the business of dealing in investment securities, futures and derivatives. The Group enters into loans from business partners at benchmark interest rate plus a fixed spread, and immediately lent to TRS trading service customers. Net loans borrowed from TRS business partners are included in the line item “payables to broker -dealers -dealers Payables to customers as presented in the consolidated balance sheets represent such payables related to the Group’s customer trading activities as well as the cash balances held on behalf of customers. Commissions payable mainly represent amounts owed to referral sources outside of the Group for transactions referred based on the terms of the underlying agreements. As of June 30, 2021 and December 31, 2020, commissions payable were both related to the insurance brokerage business. | Payables Payables arise from the business of dealing in investment securities, futures and derivatives. The Group borrows loans from business partners at benchmark interest rate plus a fixed spread, and immediately lent to TRS trading service customers. Net loans borrowed from TRS business partners are included in the line item “payables to broker -dealers -dealers Payables to customers as presented in the consolidated balance sheets represent such payables related to the Group’s customer trading activities as well as the cash balances held on behalf of customers. Commissions payable mainly represent amounts owed to referral sources outside of the Group for transactions referred based on the terms of the underlying agreements. As of December |
Revenue Recognition | Revenue Recognition See Note 3 for details. | Revenue recognition See Note 3 for details. |
Commissions and Fees | Commissions and Fees Commissions and fees related to securities, derivative and TRS trading transactions are recorded on a trade date basis. Commissions expense on insurance products are recognized on the closing date of a transaction as determined by the terms of the relevant contract and insurance policy. | Commissions and Fees Commissions and fees related to securities, derivative and TRS trading transactions are recorded on a trade date basis. Commissions expense on insurance products are recognized on the closing date of a transaction as determined by the terms of the relevant contract and insurance policy. |
Derivative Financial Instruments | Derivative Financial Instruments The Company evaluates all of its equity -linked -10 -40 -valued | Derivative Financial Instruments The Company evaluates all of its equity -linked -10 -40 -valued |
Earnings (Loss) per Ordinary Share | Earnings (Loss) per Ordinary Share The Company complies with accounting and disclosure requirements ASC Topic 260, “Earnings Per Share”, which requires earnings per share for each class of stock (ordinary shares and participating securities) to be calculated using the two -class -class -class Basic earnings (loss) per ordinary share is computed by dividing net income or loss by the weighted average number of ordinary shares issued and outstanding for the periods. For the six months ended June 30, 2021, the December 2020 Convertible Debenture (as discussed in Note 13) which is convertible into the Company’s Class A ordinary shares, as represented by ADSs and December 2020 Series A Warrant (as discussed in Note 13) which is exercisable into the Company’s Class A ordinary shares, as represented by ADSs, have the same dividend rights as the ordinary shares on an as -converted -exercised In accordance with ASC 260 -10-45 For purposes of determining diluted earnings (loss) per ordinary share, basic earnings (loss) per ordinary share is further adjusted to include the effect of potential dilutive ordinary shares outstanding during the period. Potential ordinary shares consist of the incremental ordinary shares upon exercise of warrants using the treasury stock method and upon conversion of convertible debt using the if -converted For the six months ended June 30, 2021 and 2020 (on a retroactively adjusted basis), the following potential dilutive securities denominated in ordinary shares equivalents were excluded for the period they were outstanding from the computation of diluted earnings (loss) per share because to do so would have been antidilutive. As a result, diluted earnings (loss) per ordinary share is the same as basic earnings (loss) per ordinary share for all periods presented. Six Months Ended 2021 2020 SPAC Warrants See Note 21 17,795,000 17,795,000 August 2020 PIPE Warrants See Note 15 1,500,000 — Convertible Debenture See Note 13 800,000 — December 2020 Warrants See Note 13 13,700,000 — Series A Convertible Preferred Shares See Note 14 2,333,333 — February 2021 Warrants See Note 14 26,666,667 — | Earnings (Loss) per Ordinary Share The Company complies with accounting and disclosure requirements ASC Topic 260, “Earnings Per Share”, which requires earnings per share for each class of stock (ordinary shares and participating securities) to be calculated using the two -class -class -class Basic earnings (loss) per ordinary share is computed by dividing net income or loss by the weighted average number of ordinary shares issued and outstanding for the periods. For the year ended December -converted -exercised In accordance with ASC 260 -10-45 For purposes of determining diluted earnings (loss) per ordinary share, basic earnings (loss) per ordinary share is further adjusted to include the effect of potential dilutive ordinary shares outstanding during the period. Potential ordinary shares consist of the incremental ordinary shares upon exercise of warrants using the treasury stock method and upon conversion of convertible debt using the if -converted During the years ended December Year ended December 31, 2020 2019 2018 SPAC Warrants See Note 20 17,795,000 17,795,000 17,795,000 August 2020 PIPE Warrants See Note 13 1,500,000 — — December 2020 Convertible Debenture See Note 12 800,000 — — December 2020 Series A Warrant See Note 12 1,200,000 — — December 2020 Series B Warrant See Note 12 5,000,000 — — December 2020 Series C Warrant See Note 12 7,500,000 — — Subsequently, an aggregate of approximately 17.6 |
Reclassification | Reclassification Certain prior periods amounts have been reclassified to be comparable to the current period presentation. The reclassification has no effect on previously reported net assets or net income (loss). | Reclassification Certain prior periods amounts have been reclassified to be comparable to the current period presentation. The reclassification has no effect on previously reported net assets or net income (loss). |
Stock-based Compensation | Stock-based Compensation The Company applies ASC No. 718, “Compensation -Stock -based -07 After the closing of the Business Combination, the fair value of the Company’s ordinary shares underlying stock -based -based | Stock-based Compensation The Company applies ASC No. 718, “Compensation -Stock -based -07 After the closing of the Business Combination, the fair value of the Company’s ordinary shares underlying stock -based -based |
Income Taxes | Income Taxes The amount of current taxes payable or refundable is recognized as of the date of the consolidated financial statements, utilizing currently enacted tax laws and rates of the relevant authorities. Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements, net operating loss carry forwards and tax credits based on applicable tax rates. Deferred tax assets are reduced by a valuation allowance when management determines that it is more likely than not that some portion of the deferred tax asset will not be realized. Deferred tax expenses or benefits are recognized in the consolidated financial statements for the changes in deferred tax liabilities or assets between years. The Group recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50 percent likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Group presents any interest or penalties related to an underpayment of income taxes as part of its income tax expense. | Income Taxes The amount of current taxes payable or refundable is recognized as of the date of the consolidated financial statements, utilizing currently enacted tax laws and rates of the relevant authorities. Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements, net operating loss carry forwards and tax credits based on applicable tax rates. Deferred tax assets are reduced by a valuation allowance when management determines that it is more likely than not that some portion of the deferred tax asset will not be realized. Deferred tax expenses or benefits are recognized in the consolidated financial statements for the changes in deferred tax liabilities or assets between years. The Group recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50 percent likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Group presents any interest or penalties related to an underpayment of income taxes as part of its income tax expense. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016 -02 -use -term -of-use -05 -02 -to-use In June 2016, FASB amended guidance related to impairment of financial instruments as part of ASU 2016 -13 -effect -retrospective -05 -11 -13 -10 -for-profit small public companies effective date on its credit losses (CECL) standards to fiscal years beginning after December 15, 2022 and interim periods therein. The Group has evaluated the effect of the adoption of this ASU and does not expect there will be significant impact on its consolidated financial statements from the adoption of the new guidance. In August 2020, the FASB issued ASU No. 2020 -06 -20 -40 | Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016 -02 -use -term -of-use -05 -02 -to-use In June 2016, FASB amended guidance related to impairment of financial instruments as part of ASU 2016 -13 off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual rights to receive cash. For public business entities, the amendments in this Update are effective for fiscal years beginning after December -effect -retrospective -05 -11 -13 -10 -for-profit In August 2020, the FASB issued ASU No. 2020 -06 -20 -40 |
Securities Owned and Derivatives | Securities Owned and Derivatives The Group’s proprietary trading securities transactions are recorded on the trade date, as if they had settled. Securities, futures and derivative positions are recorded at fair value in accordance with FASB ASC 820, Fair Value Measurement. | |
Crypto Currencies | Crypto Currencies Crypto currencies are included in current assets in the unaudited condensed consolidated balance sheets. Crypto currencies are recorded at cost less impairment. An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite -lived The following table presents the activities of the crypto currencies for the six months ended June 30, 2021: Crypto currencies at December 31, 2020 $ — Additions of crypto currencies 201,152 Realized gain on sale of crypto currencies — Impairment of crypto currencies — Sale of crypto currencies — Crypto currencies at June 30, 2021 $ 201,152 | |
Crypto-currency Machines | Crypto-currency Machines Management has assessed the basis of depreciation of the Group’s crypto -currency -year • • • The Group operates in an emerging industry for which limited data is available to make estimates of the useful economic lives of specialized equipment. Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed using the straight -line To the extent that any of the assumptions underlying management’s estimate of useful life of its transaction verification servers are subject to revision in a future reporting period either as a result of changes in circumstances or through the availability of greater quantities of data then the estimated useful life could change and have a prospective impact on depreciation expense and the carrying amounts of these assets. | |
Fixed Assets, Net | Fixed Assets, Net Fixed assets are stated at cost and depreciated using the straight -line | |
Long-term Investments | Long-term Investments The Group follows Accounting Standards Update (“ASU”) 2016 -01 -03 For equity investments that are accounted for using the measurement alternative, the Group initially records equity investments at cost but is required to adjust the carrying value of such equity investments through earnings when there is an observable transaction involving the same or a similar investment with the same issuer or upon an impairment. | |
Cost of Revenue | Cost of Revenue The Company’s cost of revenue consists primarily of direct costs of earning bitcoin related to mining operations, including electric power costs, other utilities, and depreciation expenses on the mining machines. | |
Non-controlling Interest | Non-controlling Interest Non -controlling -controlling -controlling -controlling | |
Concentrations of Credit Risk | Concentrations of Credit Risk The Group is engaged in various trading and brokerage activities in which counterparties primarily include broker -dealers |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Schedule of earnings (loss) per share before and after the retrospective adjustments | Years ended December 31, 2019 2018 Before adjustment After adjustment Before adjustment After adjustment Earnings (loss) per share – basic and dilutive $ 164.3 $ 1.16 $ (55.4 ) $ (0.39 ) | |
Schedule of net assets acquired by the company upon business combination | Cash $ 2,476,198 Prepaid expenses and other current assets 209 Warrant liabilities (2,247,087 ) Accrued expenses (57,963 ) Net assets acquired by LGHL as of June 16, 2020 $ 171,357 | |
Schedule of subsidiaries | Company Name Date of Place of Ownership Principal Activities Lion Financial Group Limited June 16, 2015 British Virgin Islands 100% Investment holding Lion Wealth Management Limited February 16, 2017 British Virgin Islands 100% Investment holding Lion International Securities Group Limited May 20, 2016 Hong Kong 100% Securities brokerage Lion Futures Limited May 20, 2016 Hong Kong 100% Futures brokerage Lion Investment (Hong Kong) Limited (F/K/A Lion Foreign Exchange Limited) May 20, 2016 Hong Kong 100% Dormant Lion Asset Management Limited (F/K/A Lion Capital Management Limited) May 20, 2016 Hong Kong 100% Asset management BC Wealth Management Limited October 14, 2014 Hong Kong 100% Insurance brokerage Lion Wealth Limited October 4, 2018 Hong Kong 100% Marketing and support service Lion Brokers Limited May 2, 2017 Cayman Islands 100% Broker dealer and market maker Lion Investment Fund SPC June 11, 2019 Cayman Islands 100% Dormant Lion International Financial July 26,2019 Singapore 100% Dormant Company Name Date of Place of Ownership Principal Activities Lion Group North America Corp. (F/K/A Proficient Alpha Acquisition Corp.) June 16, 2020 Nevada, USA 100% Dormant Lion Fintech Group Limited April 13, 2021 British Virgin Islands 100% Investment holding Royal Lion Investment Limited April 13, 2021 Cayman Islands 70% Investment holding Royal Lion Middle East DMCC April 13, 2021 Dubai 70% Trading in crypto-commodities Lion NFT Limited (“Lion NFT”) May 7, 2021 British Virgin Islands 60% Investment and innovation in digital assets Flying Lion Limited (“Flying Lion”) June 17, 2021 Cayman Islands 70% Investment and innovation in digital assets Lion Group (Hangzhou) Investment Limited May 7, 2021 China 100% Technology development, consulting, conference and exhibition services Aquarius Sponsor Ltd. April 12, 2021 British Virgin Islands 51% Investment holding Aquarius II Sponsor Ltd. May 4, 2021 British Virgin Islands 51% Investment holding Aquarius I Acquisition Corp. April 15, 2021 Cayman Islands 51% Special purpose acquisition company Aquarius II Acquisition Corp. May 5, 2021 Cayman Islands 51% Special purpose acquisition company | Company name Date of Place of Ownership interest Principal activities Lion Financial Group Limited June 16, 2015 British Virgin Islands 100% Investment holding Lion Wealth Management Limited February 16, 2017 British Virgin Islands 100% Investment holding Lion International Securities Group Limited May 20, 2016 Hong Kong 100% Securities brokerage Lion Futures Limited May 20, 2016 Hong Kong 100% Futures brokerage Lion Foreign Exchange Limited May 20, 2016 Hong Kong 100% Dormant Lion Asset Management Limited (F/K/A Lion Capital Management Limited) May 20, 2016 Hong Kong 100% Asset management BC Wealth Management Limited October 14, 2014 Hong Kong 100% Insurance brokerage Lion Wealth Limited October 4, 2018 Hong Kong 100% Marketing and support service Lion Brokers Limited May 2, 2017 Cayman Islands 100% Broker dealer and market maker Lion Investment Fund SPC June 11, 2019 Cayman Islands 100% Dormant Lion International Financial (Singapore) Pte LTD July 26, 2019 Singapore 100% Dormant Lion Group North America Corp. (F/K/A Proficient Alpha Acquisition Corp.) June 16, 2020 Nevada, USA 100% Dormant |
Schedule of consummation of the reverse recapitalization | Cash $ 2,476,198 Prepaid expenses and other current assets 209 Warrant liabilities (2,247,087 ) Accrued expenses (57,963 ) Net assets acquired by LGHL as of June 16, 2020 $ 171,357 |
Significant Accounting Polici_2
Significant Accounting Policies (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Schedule of potential dilutive securities denominated in ordinary shares equivalents that were excluded from the computation of diluted earnings (loss) per share | Year ended December 31, 2020 2019 2018 SPAC Warrants See Note 20 17,795,000 17,795,000 17,795,000 August 2020 PIPE Warrants See Note 13 1,500,000 — — December 2020 Convertible Debenture See Note 12 800,000 — — December 2020 Series A Warrant See Note 12 1,200,000 — — December 2020 Series B Warrant See Note 12 5,000,000 — — December 2020 Series C Warrant See Note 12 7,500,000 — — | |
Schedule of activities of the crypto currencies | Crypto currencies at December 31, 2020 $ — Additions of crypto currencies 201,152 Realized gain on sale of crypto currencies — Impairment of crypto currencies — Sale of crypto currencies — Crypto currencies at June 30, 2021 $ 201,152 | |
Schedule of potential dilutive securities denominated in ordinary shares equivalents that were excluded from the computation of diluted earnings (loss) per share | Six Months Ended 2021 2020 SPAC Warrants See Note 21 17,795,000 17,795,000 August 2020 PIPE Warrants See Note 15 1,500,000 — Convertible Debenture See Note 13 800,000 — December 2020 Warrants See Note 13 13,700,000 — Series A Convertible Preferred Shares See Note 14 2,333,333 — February 2021 Warrants See Note 14 26,666,667 — |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Revenue Recognition [Abstract] | ||
Schedule of revenue from contracts with customers | For the Six Months Ended 2021 2020 Insurance brokerage commissions $ 295,343 $ 638,574 Securities brokerage commissions 1,178,062 565,517 Market making commissions and fees 1,069,656 2,717,614 Total revenue from contracts with customers $ 2,543,061 $ 3,921,705 Hong Kong $ 1,473,405 $ 1,204,091 Cayman Islands 1,069,656 2,717,614 $ 2,543,061 $ 3,921,705 | Year ended December 31, 2020 2019 2018 Insurance brokerage commissions $ 959,299 $ 2,648,119 $ 5,375,531 Securities brokerage commissions 1,890,502 2,210,915 2,025,650 Market making commissions and fees 4,940,623 11,056,431 — Total revenue from contracts with customers $ 7,790,424 $ 15,915,465 $ 7,401,181 Hong Kong $ 2,777,831 $ 4,859,034 $ 7,401,181 Cayman Islands 5,012,593 11,056,431 — $ 7,790,424 $ 15,915,465 $ 7,401,181 |
Cash and Restricted Cash (Table
Cash and Restricted Cash (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | ||
Schedule of cash and restricted cash | June 30, 2021 2020 Cash $ 14,888,644 $ 8,111,409 Restricted Cash 808,923 1,470,486 Total cash and restricted cash presented in the consolidated statement of $ 15,697,567 $ 9,581,895 | December 31, 2020 2019 2018 Cash $ 3,426,467 $ 6,388,978 $ 3,116,209 Restricted Cash 1,367,630 2,192,201 3,991,949 Total cash and restricted cash presented in the consolidated statement of cash flows $ 4,794,097 $ 8,581,179 $ 7,108,158 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | ||
Schedule of financial instruments, as their value is derived using quoted market prices as of the measurement date | Stock price $ 2.41 Exercise price $ 11.50 Expected term in years 3.96 Expected dividend yield 0 % Volatility 61.28 % Risk-free interest Rate 0.781 % Stock price $ 1.89 ~ 2.43 Exercise price $ 11.50 Expected term in years 4.46 ~ 5.00 Expected dividend yield 0% Volatility 54.44% ~ 54.92% Risk-free interest Rate 0.364% ~ 0.373% | Stock price $ 1.89 ~ 2.43 Exercise price $ 11.50 Expected term in years 4.46 ~ 5.00 Expected dividend yield 0% Volatility 54.44% ~ 54.92% Risk-free interest Rate 0.364% ~ 0.373% |
Schedule of fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis | Quoted Prices Significant Significant Total Assets Listed equity securities (i) $ 30,325,800 $ — $ — $ 30,325,800 $ 30,325,800 $ — $ — $ 30,325,800 Liabilities Warrant liabilities $ (2,645,000 ) $ (1,236,250 ) $ — $ (3,881,250 ) Quoted Prices Significant Significant Total Assets Listed equity securities $ 17,622 $ — $ — $ 17,622 Liabilities Derivatives $ — $ (5,653 ) $ — $ (5,653 ) Warrant liabilities (as restated) (1,000,500 ) (469,321 ) — (1,469,821 ) $ (1,000,500 ) $ (474,974 ) $ — $ (1,475,474 ) | Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Significant Unobservable Total Assets Listed equity securities $ 17,622 $ — $ — $ 17,622 Liabilities Derivatives $ — $ (5,653 ) $ — $ (5,653 ) Warrant liabilities (as restated) (1,000,500 ) (469,321 ) — (1,469,821 ) $ (1,000,500 ) $ (474,974 ) $ — $ (1,475,474 ) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs Significant Unobservable Inputs Total Assets Listed equity securities $ 180,201 $ — $ — $ 180,201 Derivatives — 194,110 — 194,110 $ 180,201 $ 194,110 $ — $ 374,311 |
Schedule of fair values of financial assets and liabilities, excluding financial instruments | Total Quoted Prices Significant Significant Estimated Assets Cash and cash equivalents $ 14,888,644 $ 14,888,644 $ — $ — $ 14,888,644 Bank balances held on behalf of customers 808,923 808,923 — — 808,923 Receivables from broker-dealers and clearing organizations 23,689,967 — 23,689,967 — 23,689,967 Short-term loans receivable 508,756 — 508,756 — 508,756 Other receivables 67,475 — 67,475 — 67,475 $ 39,963,765 $ 15,697,567 $ 24,266,198 $ — $ 39,963,765 Liabilities Payables to customers $ 14,362,840 $ — $ 14,362,840 $ — $ 14,362,840 Payable to broker-dealers 24,270,558 — 24,270,558 — 24,270,558 Accrued expenses and other payables 1,169,408 — 1,169,408 — 1,169,408 Short-term borrowings — — — — — Due to director 152,472 — 152,472 — 152,472 $ 39,955,278 $ — $ 39,955,278 $ — $ 39,955,278 Total Quoted Prices Significant Significant Estimated Assets Cash and cash equivalents $ 3,426,467 $ 3,426,467 $ — $ — $ 3,426,467 Bank balances held on behalf of customers 1,367,630 1,367,630 — — 1,367,630 Receivables from broker-dealers and clearing organizations 8,089,193 — 8,089,193 — 8,089,193 Short-term loans receivable 2,239,378 — 2,239,378 — 2,239,378 Commissions receivable 71,253 — 71,253 — 71,253 Other receivables 724,708 — 724,708 — 724,708 $ 15,918,629 $ 4,794,097 $ 11,124,532 $ — $ 15,918,629 Total Quoted Prices Significant Significant Estimated Liabilities Payables to customers $ 5,221,270 $ — $ 5,221,270 $ — $ 5,221,270 Payable to broker-dealers 3,845,740 — 3,845,740 — 3,845,740 Commissions payable 39,180 — 39,180 — 39,180 Accrued expenses and other payables 1,763,094 — 1,763,094 — 1,763,094 Short-term borrowings 293,905 — 293,905 — 293,905 Due to director 149,522 — 149,522 — 149,522 $ 11,312,711 $ — $ 11,312,711 $ — $ 11,312,711 | Total Quoted Prices Significant Significant Estimated Assets Cash and cash equivalents $ 3,426,467 $ 3,426,467 $ — $ — $ 3,426,467 Bank balances held on behalf of customers 1,367,630 1,367,630 — — 1,367,630 Receivables from 8,089,193 — 8,089,193 — 8,089,193 Short-term loans receivable 2,239,378 — 2,239,378 — 2,239,378 Commissions receivable 71,253 — 71,253 — 71,253 Other receivables 724,708 — 724,708 — 724,708 $ 15,918,629 $ 4,794,097 $ 10,399,824 $ — $ 15,918,629 Liabilities Payables to customers $ 5,221,270 $ — $ 5,221,270 $ — $ 5,221,270 Payable to broker-dealers 3,845,740 — 3,845,740 — 3,845,740 Commissions payable 39,180 — 39,180 — 39,180 Accrued expenses and other payables 1,763,094 — 1,763,094 — 1,763,094 Short-term borrowings 293,905 — 293,905 — 293,905 Due to director 149,522 — 149,522 — 149,522 $ 11,312,711 $ — $ 11,312,711 $ — $ 11,312,711 Total Quoted Prices Significant Significant Estimated Assets Cash and cash equivalents $ 6,388,978 $ 6,388,978 $ — $ — $ 6,388,978 Bank balances held on behalf of customers 2,192,201 2,192,201 — — 2,192,201 Receivables from broker-dealers and clearing organizations 1,684,961 — 1,684,961 — 1,684,961 Short-term loans receivable 1,637,310 — 1,637,310 — 1,637,310 Commissions receivable 88,560 — 88,560 — 88,560 Other receivables 166,064 — 166,064 — 166,064 $ 12,158,074 $ 8,581,179 $ 3,576,895 $ — $ 12,158,074 Total Quoted Prices Significant Significant Estimated Liabilities Payables to customers $ 3,853,693 $ — $ 3,853,693 $ — $ 3,853,693 Commissions payable 29,439 — 29,439 — 29,439 Dividends payable 385,901 — 385,901 — 385,901 Accrued expenses and other payables 417,445 — 417,445 — 417,445 Short-term borrowings 1,412,570 — 1,412,570 — 1,412,570 Short-term borrowings from related party 128,415 — 128,415 — 128,415 $ 6,227,463 $ — $ 6,227,463 $ — $ 6,227,463 |
Accrued Expenses and Other Pa_2
Accrued Expenses and Other Payables (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Accrued Expenses and Other Payables [Abstract] | ||
Schedule of accrued expenses and other payables | June 30, December 31, (unaudited) Accrued professional fees $ 212,525 $ 1,376,450 Accrued vacation and benefits 342,187 174,771 Accrued communication and technology expenses 182,963 114,754 Accrued electricity expenses for crypto mining 131,410 — Payable to Grandshore on Sponsor entities 179,764 — Other payables 64,195 97,119 $ 1,113,045 $ 1,763,094 | December 31, 2020 2019 Accrued professional fees $ 1,376,450 $ 188,749 Accrued vacation and benefits 174,771 127,999 Accrued communication and technology expenses 114,754 83,724 Other payables 97,119 16,973 $ 1,763,094 $ 417,445 |
December 2020 Convertible Deb_2
December 2020 Convertible Debenture and Warrants (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | ||
Schedule of assumptions used to measure the fair value of December 2020 Warrants on the date of issuance | Series A Series B Series C Expected term in years 7 2 7 Expected dividend yield 0 % 0 % 0 % Volatility 46.68 % 49.61 % 46.68 % Risk-free interest Rate 0.63 % 0.197 % 0.63 % | Series A Series B Series C Expected term in years 7 2 7 Expected dividend yield 0 % 0 % 0 % Volatility 46.68 % 49.61 % 46.68 % Risk-free interest Rate 0.63 % 0.197 % 0.63 % |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of stock-based compensation expenses | Communication and technology $ 335,000 Marketing 363,000 Services fees 294,000 Compensation and benefits 934,800 Professional fees 228,000 General and administrative 1,502,000 Total stock-based compensation $ 3,656,800 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Schedule of current and deferred portions of the income tax expense | Six Months Ended 2021 2020 Current $ 53,239 $ 2,842 Deferred 1,128 479 $ 54,367 $ 3,321 | Year ended December 31, 2020 2019 2018 Current $ 1,767 $ 66,299 $ 26,962 Deferred (451 ) (1,827 ) (628 ) $ 1,316 $ 64,472 $ 26,334 |
Schedule of reconciliation of the difference between the expected income tax expense or benefit computed at applicable statutory income tax rates and the group’s income tax expense | Six Months Ended 2021 2020 Income tax expense (benefit) at applicable statutory rate (1) $ (1,688,110 ) $ 9,738 Nondeductible expenses (402,509 ) 5,090 (Income) loss not subject to tax (2) 1,151,121 (323,006 ) Current year change in valuation allowance 940,626 311,499 Prior year examination adjustment 53,239 — Reported income taxes $ 54,367 $ 3,321 | Year ended December 31, 2020 2019 2018 Income tax expense (benefit) at applicable statutory rate (1) $ (348,782 ) $ 1,345,164 $ (473,951 ) (Income) loss not subject to tax (2) (214,313 ) (1,716,553 ) 313,015 Current year change in valuation allowance 558,859 406,506 195,420 Others 5,552 29,355 (8,150 ) Reported income taxes $ 1,316 $ 64,472 $ 26,334 (1) The applicable statutory rate applied is based on the profits tax rates in Hong Kong. Effective for tax years ended on or after December 31, 2018, the applicable tax rate was 8.25% on the first HK $2,000,000 of assessable profits and 16.5% on any assessable profits above that threshold. The 8.25% tax rate can only be utilized by one entity in a controlled group. All other Hong Kong entities in the Group utilize the 16.5% tax rate. The Singapore entity within the Group has an applicable tax rate of 17.0%. The entity in the United States within the Group has a federal tax rate of 21.0%. (2) The Group also has entities domiciled in the British Virgin Islands and the Cayman Islands, but such entities are not subject to income or capital gains taxes. |
Schedule of significant components of the group’s deferred tax assets (liabilities) | June 30, Decemer 31, Deferred tax asset Others $ 1,477 $ 1,128 Fixed assets 118 — Net operating loss carryforwards 2,323,105 1,367,309 Less: Valuation allowance (2,324,700 ) (1,367,309 ) Net deferred tax asset $ — $ 1,128 | December 31, 2020 December 31, 2019 Deferred tax asset Others $ 1,128 $ 677 Net operating loss carryforwards 1,367,309 808,450 Less: Valuation allowance (1,367,309 ) (808,450 ) Net deferred tax asset $ 1,128 $ 677 |
Commitments (Tables)
Commitments (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Schedule of future minimum payments under non-cancelable operating leases | Year Ended 2021 $ 272,089 2022 208,970 2023 3,912 $ 484,971 | Year Ended December 31, 2021 $ 646,930 2022 209,556 2023 3,736 $ 860,222 |
Regulatory Requirements (Tables
Regulatory Requirements (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | ||
Schedule of the minimum regulatory capital required and the actual amounts of capital maintained | Entity Name Minimum Capital Excess Percent of Lion International Securities Group Limited $ 386,292 $ 1,171,495 $ 785,203 303 % Lion Futures Limited 386,292 1,039,855 653,563 269 % Lion Asset Management Limited 12,876 43,415 30,539 337 % BC Wealth Management Limited 12,876 177,081 164,205 1375 % Lion Broker Limited (Cayman) 9,704,983 12,495,487 2,790,504 129 % Total $ 10,503,319 $ 14,927,333 $ 4,424,014 142 % | Entity Name Minimum Regulatory Capital Requirements Capital Excess Percent of requirement Maintained Lion International Securities Group Limited $ 386,927 $ 1,043,803 $ 656,876 270 % Lion Futures Limited 386,927 948,872 561,945 245 % Lion Asset Management Limited 12,898 27,770 14,872 215 % BC Wealth Management Limited 12,898 468,279 455,381 3631 % Lion Broker Limited (Cayman) 537,164 8,426,049 7,888,885 1569 % Total $ 1,336,814 $ 10,914,773 $ 9,577,959 816 % |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Segment Reporting [Abstract] | ||
Schedule of operating segments | Futures Insurance Market making Other Total Six months ended June 30, 2021 Revenue $ 1,212,222 $ 295,340 $ 2,949,525 $ (856,790 ) $ 3,600,297 Commissions and fees 814,295 84,902 290,046 — 1,189,243 Compensation and benefits 594,038 135,183 — 1,654,326 2,383,547 Occupancy — 119,301 4,200 224,159 347,660 Communication and technology 224,232 3,126 563,526 156,408 947,292 General and administrative 40,133 21,225 164,709 403,992 630,059 Crypto currencies — — — 219,662 219,662 Professional fees 773 — 190,128 799,110 990,011 Service fees — — 2,311,018 163,104 2,474,122 Interest — — 109,268 832,996 942,264 Depreciation 1,476 — 266,666 11,538 279,680 Marketing 1,010 — 55,000 497,748 553,758 Payment service charge — — 292,630 — 292,630 Other operating expenses 1,526 — — 17,948 19,474 1,677,483 363,737 4,247,191 4,980,991 11,269,402 Income (loss) from operations $ (465,261 ) $ (68,397 ) $ (1,297,666 ) $ (5,837,781 ) $ (7,669,105 ) Total segment assets $ 4,412,577 $ 182,524 $ 63,259,609 $ 18,662,967 $ 86,517,677 Futures Insurance Market making Other Total Six months ended June 30, 2020 Revenue $ 617,242 $ 638,574 5,126,239 $ 48,461 $ 6,430,516 Commissions 387,439 315,083 59,539 — 762,061 Compensation 607,139 135,312 — 743,709 1,486,160 Occupancy 3,119 142,052 3,600 174,453 323,224 Communication and technology 208,672 2,393 257,311 1,286 469,662 General and administrative 34,396 24,502 105,853 128,037 292,788 Professional fees 800 — 112,506 40,547 153,853 Service fees — — 119,379 112,406 231,785 Interest — — 4,989 74,354 79,343 Depreciation 10,484 — — 11,508 21,992 Marketing 222 222 105,013 94,491 199,948 Other operating expenses 3,847 — 19,309 9,346 32,502 1,256,118 619,564 787,499 1,390,137 4,053,318 Income (loss) from operations $ (638,876 ) $ 19,010 $ 4,338,740 $ (1,341,676 ) $ 2,377,198 Total segment assets $ 3,793,041 $ 214,252 $ 7,987,408 $ 3,075,902 $ 15,070,603 | Futures Insurance brokerage services Market making Other Total Year ended December 31, 2020 Revenue $ 2,029,669 $ 959,299 $ 7,034,447 $ 206,720 $ 10,230,135 Commissions and fees 1,316,800 413,351 115,843 — 1,845,994 Compensation and benefits 1,110,192 256,529 — 2,436,072 3,802,793 Occupancy — 277,414 6,600 399,146 683,160 Communication and technology 455,323 5,160 643,630 349,937 1,454,050 General and administrative 55,028 48,210 243,172 1,917,908 2,264,318 Professional fees 26,690 16,813 278,719 1,243,612 1,565,834 Service fees — — 314,342 519,522 833,864 Interest — — 52,240 130,917 183,157 Depreciation 13,000 4,128 — 23,428 40,556 Marketing 222 222 166,013 484,867 651,324 Payment service charge — — 245,030 — 245,030 Other operating expenses — — — 11,464 11,464 2,977,255 1,021,827 2,065,589 7,516,873 13,581,544 Income (loss) from operations $ (947,586 ) $ (62,528 ) $ 4,968,858 $ (7,310,153 ) $ (3,351,409 ) Total segment assets $ 4,624,325 $ 213,495 $ 14,636,139 $ 3,432,110 $ 22,906,069 Futures Insurance brokerage services Market making Other Total Year ended December 31, 2019 Revenue $ 2,215,867 $ 2,648,141 $ 12,843,574 $ 819,268 $ 18,526,850 Commissions and fees 1,526,852 1,506,223 322,130 — 3,355,205 Compensation and benefits 1,154,378 334,964 — 941,294 2,430,636 Occupancy 202,467 198,637 1,200 189,632 591,936 Depreciation 26,845 4,087 — 21,920 52,852 Interest — — — 731,812 731,812 Communication and technology 469,818 7,269 343,556 2,790 823,433 General and administrative 72,403 69,765 140,598 409,882 692,648 Professional fees 7,369 702 118,929 634,238 761,238 Marketing 2,608 — 51,714 1,056 55,378 Service fees — — 119,711 265,129 384,840 Payment service charge — — 355,585 — 355,585 Other operating expenses 5,739 — — 4,724 10,463 3,468,479 2,121,647 1,453,423 3,202,477 10,246,026 Income (loss) from operations $ (1,252,612 ) $ 526,494 $ 11,390,151 $ (2,383,209 ) $ 8,280,824 Total segment assets $ 4,823,056 $ 352,377 $ 5,307,525 $ 2,935,390 $ 13,418,348 Futures Insurance brokerage services Market making Other Total Year ended December 31, 2018 Revenue $ 2,066,354 $ 5,378,679 $ — $ (876,770 ) $ 6,568,263 Commissions and fees 1,293,577 4,157,668 — 20,357 5,471,602 Compensation and benefits 882,887 363,523 — 392,878 1,639,288 Occupancy 420,732 1,021 — 126,578 548,331 Depreciation 26,487 4,086 — 2,170 32,743 Interest — — — 118 118 Communication and technology 505,152 4,596 — 78,605 588,353 General and administrative 85,208 93,880 — 360,685 539,773 Professional fees 21,081 28,710 — 178,207 227,998 Marketing 8,736 185,019 — 2,178 195,933 Service fees — — — 53,592 53,592 Other operating expenses 3,063 1,359 — 10,984 15,406 3,246,923 4,839,862 — 1,226,352 9,313,137 Income (loss) from operations $ (1,180,569 ) $ 538,817 $ — $ (2,103,122 ) $ (2,744,874 ) Total segment assets $ 12,243,072 $ 370,114 $ — $ 3,059,575 $ 15,672,761 |
Restatement of Previously Iss_2
Restatement of Previously Issued Audited and Unaudited Consolidated Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restatement Of Previously Issued Audited And Unaudited Consolidated Financial Statements [Abstract] | |
Schedule of consolidated statements of operations and comprehensive income (loss) | For the Year Ended As Restatement As Consolidated Statements of Operations and Comprehensive Income (Loss): Change in fair value of warrant liabilities $ — $ 777,266 $ 777,266 (Loss) income before income taxes $ (3,351,409 ) $ 777,266 $ (2,574,143 ) Net (loss) income $ (3,352,725 ) $ 777,266 $ (2,575,459 ) Comprehensive income (loss) $ (3,332,238 ) $ 777,266 $ (2,554,972 ) (Loss) earnings per share for both Class A and Class B – basic and diluted: Basic and diluted $ (0.33 ) $ 0.08 $ (0.25 ) For the Six Months Ended As Restatement As Consolidated Statements of Operations and Comprehensive Income: Change in fair value of warrant liabilities $ — $ 414,440 $ 414,440 Income before income taxes $ 2,377,198 $ 414,440 $ 2,791,638 Net income $ 2,373,877 $ 414,440 $ 2,788,317 Comprehensive income $ 2,394,437 $ 414,440 $ 2,808,877 Earnings per share for both Class A and Class B – basic and diluted : Basic and diluted $ 0.32 $ 0.05 $ 0.37 |
Schedule of consolidated balance sheets | As of December 31, 2020 As Restatement As Consolidated Balance Sheets: Warrant liabilities $ — $ 1,469,821 $ 1,469,821 Total current liabilities $ 11,318,364 $ 1,469,821 $ 12,788,185 Total liabilities $ 12,134,370 $ 1,469,821 $ 13,604,191 Additional paid-in-capital $ 14,516,848 $ (2,247,087 ) $ 12,269,761 Accumulated deficit $ (3,729,628 ) $ 777,266 $ (2,952,362 ) Total stockholders’ equity $ 10,771,699 $ (1,469,821 ) $ 9,301,878 As of June 30, 2020 As Restatement As Consolidated Balance Sheets: Warrant liabilities $ — $ 1,832,647 $ 1,832,647 Total current liabilities $ 5,439,512 $ 1,832,647 $ 7,272,159 Total liabilities $ 5,439,512 $ 1,832,647 $ 7,272,159 Additional paid-in-capital $ 7,649,772 $ (2,247,087 ) $ 5,402,685 Accumulated deficit $ 1,996,974 $ 414,440 $ 2,411,414 Total equity $ 9,631,091 $ (1,832,647 ) $ 7,798,444 |
Schedule of consolidated statements of cash flow | For the Year Ended As Restatement As Consolidated Statements of Cash Flow Cash Flows from Operating Activities Net (loss) income $ (3,352,725 ) $ 777,266 $ (2,575,459 ) Change in fair value of warrant liabilities $ — $ (777,266 ) $ (777,266 ) For the Six Months Ended As Restatement As Consolidated Statements of Cash Flow Cash Flows from Operating Activities Net income $ 2,373,877 $ 414,440 $ 2,788,317 Change in fair value of warrant liabilities $ — $ (414,440 ) $ (414,440 ) |
Fixed Assets, Net (Tables)
Fixed Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of fixed assets | June 30, December 31, (unaudited) Cryptocurrency mining machines $ 2,594,524 $ — Software (see Note 7) 8,000,000 — Leasehold improvement 38,399 38,463 Office and computer equipment 150,405 148,048 Total cost of fixed assets 10,783,327 186,511 Less: accumulated depreciation (519,128 ) (151,592 ) Fixed assets, net $ 10,264,199 $ 34,919 |
February 2021 Convertible Pre_2
February 2021 Convertible Preferred Shares and Warrants (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
February 2021 Convertible Preferred Shares And Warrants [Abstract] | |
Schedule of assumptions used to measure the fair value of February 2021 Warrants on the date of issuance | Series D Series E Series F Expected term in years 5 1 5 Expected dividend yield 0 % 0 % 0 % Volatility 43.05 % 50.45 % 43.05 % Risk-free interest Rate 0.63 % 0.208 % 0.63 % |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of stock-based compensation expense over the requisite service period | Call Expected term in years 2 Expected dividend yield 0 % Volatility 51.69 % Risk-free interest Rate 0.21 % |
Commitments (Tables)_2
Commitments (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Schedule of future minimum payments under non-cancelable operating leases | Year Ended 2021 $ 272,089 2022 208,970 2023 3,912 $ 484,971 | Year Ended December 31, 2021 $ 646,930 2022 209,556 2023 3,736 $ 860,222 |
Organization and Principal Ac_3
Organization and Principal Activities (Details) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Mar. 31, 2021USD ($) | Jun. 16, 2020shares | Jun. 16, 2020shares | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)shares | Dec. 31, 2019shares | Dec. 31, 2018shares | |
Organization and Principal Activities (Details) [Line Items] | ||||||||
Consideration value (in Dollars) | $ | $ 131,300,000 | $ 131,300,000 | ||||||
Ordinary shares issued (in Shares) | 17,600,000 | |||||||
Description of ordinary shares | the Company acquired all of the issued and outstanding shares of LFGL, i.e. 50,000 ordinary shares of LFGL from each of LFGL shareholders, in exchange for 12,891,602 ordinary shares (including 3,140,388 Class A and 9,751,214 Class B, “Exchange Shares”) of the Company, valued at a price per share equal to the price at which each share of PAAC common stock was redeemed, i.e. $10.185 per share. | |||||||
Exchange ratio | 141.81 | |||||||
Exchange shares excluding escrow shares (in Shares) | 7,090,381 | |||||||
Divided shares (in Shares) | 50,000 | |||||||
Ordinary shares adjustment, description | The par value of ordinary shares was adjusted retrospectively from $0 to $709, and the difference of $709 was adjusted retrospectively as additional paid-in capital as of January 1, 2020. | The par value of ordinary shares was adjusted retrospectively from $0 to $709, and the difference of $709 was adjusted retrospectively as additional paid-in capital as of January 1, 2018. | ||||||
Weighted average number of share basic and diluted, before retrospective adjustments (in Shares) | 50,000 | |||||||
Weighted average number of share basic and diluted, after retrospective adjustments (in Shares) | 7,090,381 | |||||||
Net assets acquired by the company upon closing (in Dollars) | $ | $ 171,357 | |||||||
Transaction costs for legal (in Dollars) | $ | $ 2,400,000 | 2,400,000 | ||||||
Transaction costs charged to additional paid in capital (in Dollars) | $ | $ 2,400,000 | |||||||
Earnout escrow shares, description | 1,933,740 Class B ordinary shares being 15% of the Exchange Shares (“Indemnity Escrow Shares”) otherwise issuable to LFGL shareholders are set aside in escrow for a period of 24 months after the closing to satisfy any post-closing purchase price adjustment and indemnification claims prescribed in the Business Combination Agreement. Additionally, 3,876,481 Class B ordinary shares being 30% of the Exchange Shares (the “Earnout Escrow Shares”, together with any dividends, distributions or other income on the Earnout Escrow Shares, the “Earnout Escrow Property”) otherwise issuable to LFGL shareholders are set aside in escrow until released upon the satisfaction of certain financial milestones below:• In the event that the net income for the calendar year ended December 31, 2021 (the “2021 Net Income”), as set forth in LGHL’s audited financial statements, is equal to or greater than $19,000,000 (the “First Net Income Target”), then, the Class B Sellers’ rights to 50% of the Earnout Escrow Property (the “First Half Earnout Property”) shall vest and shall no longer be subject to forfeiture. If the 2021 Net Income is less than the First Net Income Target, but is equal to or greater than $9,500,000, then the Sellers’ rights to 50% of the First Half Earnout Property shall vest and shall no longer be subject to forfeiture. In all other cases, the First Half Earnout Property will be forfeited.• In the event that the net income for the calendar year ended December 31, 2022 (the “2022 Net Income”), as set forth in LGHL’s audited financial statements, is equal to or greater than $21,850,000 (the “Second Net Income Target”), then the Class B Sellers’ rights to the remaining Earnout Escrow Property (after giving effect to any forfeitures for the 2021 calendar year, the “Second Half Earnout Property”) shall vest and shall no longer be subject to forfeiture. If the 2022 Net Income is less than the Second Net Income Target, but is equal to or greater than $10,925,000, then the Class B Sellers’ rights to 50% of the Second Half Earnout Property shall vest and shall no longer be subject to forfeiture. In all other cases, the Second Half Earnout Property will be forfeited. | Additionally, 3,876,481 Class B ordinary shares being 30% of the Exchange Shares (the “Earnout Escrow Shares”, together with any dividends, distributions or other income on the Earnout Escrow Shares, the “Earnout Escrow Property”) otherwise issuable to LFGL shareholders are set aside in escrow until released upon the satisfaction of certain financial milestones below:• In the event that the net income for the calendar year ended December 31, 2021 (the “2021 Net Income”), as set forth in LGHL’s audited financial statements, is equal to or greater than $19,000,000 (the “First Net Income Target”), then, the Class B Sellers’ rights to 50% of the Earnout Escrow Property (the “First Half Earnout Property”) shall vest and shall no longer be subject to forfeiture. If the 2021 Net Income is less than the First Net Income Target, but is equal to or greater than $9,500,000, then the Sellers’ rights to 50% of the First Half Earnout Property shall vest and shall no longer be subject to forfeiture. In all other cases, the First Half Earnout Property will be forfeited.• In the event that the net income for the calendar year ended December 31, 2022 (the “2022 Net Income”), as set forth in LGHL’s audited financial statements, is equal to or greater than $21,850,000 (the “Second Net Income Target”), then the Class B Sellers’ rights to the remaining Earnout Escrow Property (after giving effect to any forfeitures for the 2021 calendar year, the “Second Half Earnout Property”) shall vest and shall no longer be subject to forfeiture. If the 2022 Net Income is less than the Second Net Income Target, but is equal to or greater than $10,925,000, then the Class B Sellers’ rights to 50% of the Second Half Earnout Property shall vest and shall no longer be subject to forfeiture. In all other cases, the Second Half Earnout Property will be forfeited. | ||||||
Total revenue, percentage | 68.00% | 38.90% | 10.00% | 35.00% | 10.00% | |||
Number of trading customer | 2 | 1 | ||||||
Commissions expense, percentage | 68.20% | 55.30% | 73.00% | 43.00% | 16.00% | |||
Insurance brokerage sales, description | For the six months ended June 30, 2021 and 2020, the Group placed 82% (less than 10% of total revenue for the first six months of 2021) and 77.1% (less than 10% of total revenue for the first six months of 2020) of its insurance brokerage sales with one insurance provider. | For the years ended December 31, 2020, 2019 and 2018, the Group placed 77% (7% of total revenue in 2020), 72% (10% of total revenue in 2019) and 79% (65% of total revenue in 2018), respectively, of its insurance brokerage sales with one insurance provider. | ||||||
Business combination agreement, description | one-tenth of one Class A ordinary share of the Company, resulting in 4,507,574 Class A ordinary shares being issued to PAAC and 17,795,000 warrants being issued to PAAC stockholders; and where the Company acquired all of the issued and outstanding shares of LFGL, i.e. 50,000 ordinary shares of LFGL from each of LFGL shareholders, in exchange for 12,891,602 ordinary shares (including 3,140,388 Class A and 9,751,214 Class B, “Exchange Shares”) of the Company, valued at a price per share equal to the price at which each share of PAAC common stock was redeemed, i.e. $10.185 per share. | |||||||
Reverse recapitalization, description | The equity is restated using the exchange ratio of 141.81 established in the reverse recapitalization transaction, which is 7,090,381 (the number of Exchange Shares excluding Escrow Shares, see below) divided by 50,000, to reflect the equity structure of the legal acquirer, LGHL. | |||||||
Net assets (in Dollars) | $ | $ 171,357 | $ 171,357 | ||||||
Additional paid in capital (in Dollars) | $ | $ 2,400,000 | |||||||
Offering size value (in Dollars) | $ | $ 50,000,000 | |||||||
Warrant [Member] | ||||||||
Organization and Principal Activities (Details) [Line Items] | ||||||||
Warrants issued (in Shares) | 17,795,000 | 17,795,000 | ||||||
Class A Ordinary Shares [Member] | ||||||||
Organization and Principal Activities (Details) [Line Items] | ||||||||
Ordinary shares issued (in Shares) | 4,507,574 | 4,507,574 | ||||||
Class B Ordinary Shares [Member] | ||||||||
Organization and Principal Activities (Details) [Line Items] | ||||||||
Indemnity Escrow shares (in Shares) | 1,933,740 | |||||||
Percentage of exchange shares in Indemnity Escrow | 15.00% | |||||||
Exchange shares in Earnout Escrow (in Shares) | 3,876,481 | |||||||
Percentage of exchange shares in Earnout Escrow | 30.00% |
Organization and Principal Ac_4
Organization and Principal Activities (Details) - Schedule of earnings (loss) per share before and after the retrospective adjustments - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Before adjustment [Member] | ||
Organization and Principal Activities (Details) - Schedule of earnings (loss) per share before and after the retrospective adjustments [Line Items] | ||
Earnings (loss) per share - basic and dilutive | $ 164.3 | $ (55.4) |
After adjustment [Member] | ||
Organization and Principal Activities (Details) - Schedule of earnings (loss) per share before and after the retrospective adjustments [Line Items] | ||
Earnings (loss) per share - basic and dilutive | $ 1.16 | $ (0.39) |
Organization and Principal Ac_5
Organization and Principal Activities (Details) - Schedule of net assets acquired by the company upon business combination - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule of net assets acquired by the company upon business combination [Abstract] | ||
Cash | $ 2,476,198 | $ 2,476,198 |
Prepaid expenses and other current assets | 209 | 209 |
Warrant liabilities | (2,247,087) | |
Accrued expenses | (57,963) | (57,963) |
Net assets acquired by LGHL as of June 16, 2020 | $ 171,357 | $ 171,357 |
Organization and Principal Ac_6
Organization and Principal Activities (Details) - Schedule of subsidiaries | 12 Months Ended |
Dec. 31, 2020 | |
June 16, 2015 [Member] | |
Organization and Principal Activities (Details) - Schedule of subsidiaries [Line Items] | |
Company name | Lion Financial Group Limited |
Date of Incorporation or acquisition | Jun. 16, 2015 |
Place of incorporation or establishment | British Virgin Islands |
Ownership interest | 100.00% |
Principal activities | Investment holding |
February 16, 2017 [Member] | |
Organization and Principal Activities (Details) - Schedule of subsidiaries [Line Items] | |
Company name | Lion Wealth Management Limited |
Date of Incorporation or acquisition | Feb. 16, 2017 |
Place of incorporation or establishment | British Virgin Islands |
Ownership interest | 100.00% |
Principal activities | Investment holding |
May 20, 2016 [Member] | |
Organization and Principal Activities (Details) - Schedule of subsidiaries [Line Items] | |
Company name | Lion International Securities Group Limited |
Date of Incorporation or acquisition | May 20, 2016 |
Place of incorporation or establishment | Hong Kong |
Ownership interest | 100.00% |
Principal activities | Securities brokerage |
May 20, 2016 [Member] | |
Organization and Principal Activities (Details) - Schedule of subsidiaries [Line Items] | |
Company name | Lion Futures Limited |
Date of Incorporation or acquisition | May 20, 2016 |
Place of incorporation or establishment | Hong Kong |
Ownership interest | 100.00% |
Principal activities | Futures brokerage |
May 20, 2016 [Member] | |
Organization and Principal Activities (Details) - Schedule of subsidiaries [Line Items] | |
Company name | Lion Foreign Exchange Limited |
Date of Incorporation or acquisition | May 20, 2016 |
Place of incorporation or establishment | Hong Kong |
Ownership interest | 100.00% |
Principal activities | Dormant |
May 20, 2016 [Member] | |
Organization and Principal Activities (Details) - Schedule of subsidiaries [Line Items] | |
Company name | Lion Asset Management Limited (F/K/A Lion Capital Management Limited) |
Date of Incorporation or acquisition | May 20, 2016 |
Place of incorporation or establishment | Hong Kong |
Ownership interest | 100.00% |
Principal activities | Asset management |
October 14, 2014 [Member] | |
Organization and Principal Activities (Details) - Schedule of subsidiaries [Line Items] | |
Company name | BC Wealth Management Limited |
Date of Incorporation or acquisition | Oct. 14, 2014 |
Place of incorporation or establishment | Hong Kong |
Ownership interest | 100.00% |
Principal activities | Insurance brokerage |
October 4, 2018 [Member] | |
Organization and Principal Activities (Details) - Schedule of subsidiaries [Line Items] | |
Company name | Lion Wealth Limited |
Date of Incorporation or acquisition | Oct. 4, 2018 |
Place of incorporation or establishment | Hong Kong |
Ownership interest | 100.00% |
Principal activities | Marketing and support service |
May 2, 2017 [Member] | |
Organization and Principal Activities (Details) - Schedule of subsidiaries [Line Items] | |
Company name | Lion Brokers Limited |
Date of Incorporation or acquisition | May 2, 2017 |
Place of incorporation or establishment | Cayman Islands |
Ownership interest | 100.00% |
Principal activities | Broker dealer and market maker |
June 11, 2019 [Member] | |
Organization and Principal Activities (Details) - Schedule of subsidiaries [Line Items] | |
Company name | Lion Investment Fund SPC |
Date of Incorporation or acquisition | Jun. 11, 2019 |
Place of incorporation or establishment | Cayman Islands |
Ownership interest | 100.00% |
Principal activities | Dormant |
July 26,2019 [Member] | |
Organization and Principal Activities (Details) - Schedule of subsidiaries [Line Items] | |
Company name | Lion International Financial (Singapore) Pte LTD |
Date of Incorporation or acquisition | Jul. 26, 2019 |
Place of incorporation or establishment | Singapore |
Ownership interest | 100.00% |
Principal activities | Dormant |
June 16, 2020 [Member] | |
Organization and Principal Activities (Details) - Schedule of subsidiaries [Line Items] | |
Company name | Lion Group North America Corp. (F/K/A Proficient Alpha Acquisition Corp.) |
Date of Incorporation or acquisition | Jun. 16, 2020 |
Place of incorporation or establishment | Nevada, USA |
Ownership interest | 100.00% |
Principal activities | Dormant |
Significant Accounting Polici_3
Significant Accounting Policies (Details) - shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Significant Accounting Policies (Details) [Line Items] | ||
Shares issued | 17,600,000 | |
Effective Income Tax Rate Reconciliation, Percent | 50.00% | 50.00% |
Estimated useful life | three | |
Lion NFT [Member] | ||
Significant Accounting Policies (Details) [Line Items] | ||
Equity interest | 40.00% | |
Flying Lion [Member] | ||
Significant Accounting Policies (Details) [Line Items] | ||
Equity interest | 30.00% | |
Royal Lion and Lion DMCC [Member] | ||
Significant Accounting Policies (Details) [Line Items] | ||
Equity interest | 30.00% | |
Aquarius Sponsor Ltd [Member] | ||
Significant Accounting Policies (Details) [Line Items] | ||
Equity interest | 49.00% | |
Minimum [Member] | ||
Significant Accounting Policies (Details) [Line Items] | ||
Straight-line basis of depreciation useful life | 3 years | |
Estimated useful life | three | |
Maximum [Member] | ||
Significant Accounting Policies (Details) [Line Items] | ||
Straight-line basis of depreciation useful life | 5 years | |
Estimated useful life | five | |
Indemnity Escrow Shares [Member] | ||
Significant Accounting Policies (Details) [Line Items] | ||
Shares Issued | 1,933,740 | |
Shares issued | 1,933,740 | |
Earnout Escrow Shares [Member] | ||
Significant Accounting Policies (Details) [Line Items] | ||
Shares Issued | 3,876,481 | |
Shares issued | 3,876,481 | |
Class A 2020 Share Incentive Plan [Member] | ||
Significant Accounting Policies (Details) [Line Items] | ||
Shares Issued | 1,486,504 |
Significant Accounting Polici_4
Significant Accounting Policies (Details) - Schedule of potential dilutive securities denominated in ordinary shares equivalents that were excluded from the computation of diluted earnings (loss) per share - shares | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
SPAC Warrants [Member] | |||
Significant Accounting Policies (Details) - Schedule of potential dilutive securities denominated in ordinary shares equivalents that were excluded from the computation of diluted earnings (loss) per share [Line Items] | |||
Total basic and diluted earnings (loss) per ordinary share | 17,795,000 | 17,795,000 | 17,795,000 |
August 2020 PIPE Warrants [Member] | |||
Significant Accounting Policies (Details) - Schedule of potential dilutive securities denominated in ordinary shares equivalents that were excluded from the computation of diluted earnings (loss) per share [Line Items] | |||
Total basic and diluted earnings (loss) per ordinary share | 1,500,000 | ||
December 2020 Convertible Debenture [Member] | |||
Significant Accounting Policies (Details) - Schedule of potential dilutive securities denominated in ordinary shares equivalents that were excluded from the computation of diluted earnings (loss) per share [Line Items] | |||
Total basic and diluted earnings (loss) per ordinary share | 800,000 | ||
December 2020 Series A Warrant [Member] | |||
Significant Accounting Policies (Details) - Schedule of potential dilutive securities denominated in ordinary shares equivalents that were excluded from the computation of diluted earnings (loss) per share [Line Items] | |||
Total basic and diluted earnings (loss) per ordinary share | 1,200,000 | ||
December 2020 Series B Warrant [Member] | |||
Significant Accounting Policies (Details) - Schedule of potential dilutive securities denominated in ordinary shares equivalents that were excluded from the computation of diluted earnings (loss) per share [Line Items] | |||
Total basic and diluted earnings (loss) per ordinary share | 5,000,000 | ||
December 2020 Series C Warrant [Member] | |||
Significant Accounting Policies (Details) - Schedule of potential dilutive securities denominated in ordinary shares equivalents that were excluded from the computation of diluted earnings (loss) per share [Line Items] | |||
Total basic and diluted earnings (loss) per ordinary share | 7,500,000 |
Revenue Recognition (Details) -
Revenue Recognition (Details) - Schedule of revenue from contracts with customers - USD ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue Recognition (Details) - Schedule of revenue from contracts with customers [Line Items] | |||||
Insurance brokerage commissions | $ 295,343 | $ 638,574 | $ 959,299 | $ 2,648,119 | $ 5,375,531 |
Securities brokerage commissions | 1,890,502 | 2,210,915 | 2,025,650 | ||
Market making commissions and fees | 1,069,656 | 2,717,614 | 4,940,623 | 11,056,431 | |
Total revenue from contracts with customers | 7,790,424 | 15,915,465 | 7,401,181 | ||
Geographic revenue | 2,543,061 | 3,921,705 | 7,790,424 | 15,915,465 | 7,401,181 |
Hong Kong [Member] | |||||
Revenue Recognition (Details) - Schedule of revenue from contracts with customers [Line Items] | |||||
Geographic revenue | 1,473,405 | 1,204,091 | 2,777,831 | 4,859,034 | 7,401,181 |
Cayman Islands [Member] | |||||
Revenue Recognition (Details) - Schedule of revenue from contracts with customers [Line Items] | |||||
Geographic revenue | $ 1,069,656 | $ 2,717,614 | $ 5,012,593 | $ 11,056,431 |
Cash and Restricted Cash (Detai
Cash and Restricted Cash (Details) - Schedule of cash and restricted cash - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of cash and restricted cash [Abstract] | |||||
Cash | $ 14,888,644 | $ 3,426,467 | $ 8,111,409 | $ 6,388,978 | $ 3,116,209 |
Restricted Cash | 808,923 | 1,367,630 | 1,470,486 | 2,192,201 | 3,991,949 |
Total cash and restricted cash presented in the consolidated statement of cash flows | $ 15,697,567 | $ 4,794,097 | $ 9,581,895 | $ 8,581,179 | $ 7,108,158 |
Fair Value (Details)
Fair Value (Details) $ in Millions | 1 Months Ended |
Feb. 28, 2021USD ($)shares | |
Fair Value Disclosures [Abstract] | |
Number of grandshores shares (in Shares) | shares | 64,500,000 |
Total subscription price | $ 3.5 |
Percentage of total issued share capital | 5.89% |
Fair value of shares of related party | $ 2.4 |
Trading Securities, Unrealized Holding Loss | $ 1.1 |
Fair Value (Details) - Schedule
Fair Value (Details) - Schedule of financial instruments, as their value is derived using quoted market prices as of the measurement date - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Fair Value (Details) - Schedule of financial instruments, as their value is derived using quoted market prices as of the measurement date [Line Items] | ||
Stock price (in Dollars per share) | $ 2.41 | |
Exercise price (in Dollars per share) | $ 11.5 | $ 11.5 |
Expected term in years | 3 years 11 months 15 days | |
Expected dividend yield | 0.00% | 0.00% |
Volatility | 61.28% | |
Risk-free interest Rate | 0.781% | |
Minimum [Member] | ||
Fair Value (Details) - Schedule of financial instruments, as their value is derived using quoted market prices as of the measurement date [Line Items] | ||
Stock price (in Dollars per share) | $ 1.89 | |
Expected term in years | 4 years 5 months 15 days | |
Volatility | 54.44% | |
Risk-free interest Rate | 0.364% | |
Maximum [Member] | ||
Fair Value (Details) - Schedule of financial instruments, as their value is derived using quoted market prices as of the measurement date [Line Items] | ||
Stock price (in Dollars per share) | $ 2.43 | |
Expected term in years | 5 years | |
Volatility | 54.92% | |
Risk-free interest Rate | 0.373% |
Fair Value (Details) - Schedu_2
Fair Value (Details) - Schedule of fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Assets | ||||
Listed equity securities | $ 30,325,800 | [1] | $ 17,622 | $ 180,201 |
Liabilities | ||||
Derivatives | (5,653) | 194,110 | ||
Warrant liabilities (as restated) | (3,881,250) | (1,469,821) | ||
Total | (1,475,474) | |||
Assets | ||||
Total | 374,311 | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Assets | ||||
Listed equity securities | 30,325,800 | [1] | 17,622 | 180,201 |
Liabilities | ||||
Derivatives | ||||
Warrant liabilities (as restated) | (1,000,500) | |||
Total | (1,000,500) | |||
Assets | ||||
Total | 180,201 | |||
Significant Observable Inputs (Level 2) [Member] | ||||
Assets | ||||
Listed equity securities | [1] | |||
Liabilities | ||||
Derivatives | (5,653) | 194,110 | ||
Warrant liabilities (as restated) | (469,321) | |||
Total | (474,974) | |||
Assets | ||||
Total | 194,110 | |||
Significant Unobservable Inputs (Level 3) [Member] | ||||
Assets | ||||
Listed equity securities | [1] | |||
Liabilities | ||||
Derivatives | ||||
Warrant liabilities (as restated) | ||||
Total | ||||
Assets | ||||
Total | ||||
[1] | In February 2021, the Group entered into a framework strategic partnership agreement with Grandshores Technology Group Limited (“Grandshores”). The amount includes the fair value of 64,500,000 shares of Grandshores (“Grandshores Shares”) at a total subscription price of approximately $3.5 million (representing approximately 5.89% of the total issued share capital of Grandshores). As of June 30, 2021, the fair value of the Grandshores Shares was $2.4 million and the Group recorded unrealized trading loss of approximately $1.1 million. |
Fair Value (Details) - Schedu_3
Fair Value (Details) - Schedule of fair values of financial assets and liabilities, excluding financial instruments - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | |||||
Cash and cash equivalents | $ 14,888,644 | $ 3,426,467 | $ 8,111,409 | $ 6,388,978 | $ 3,116,209 |
Bank balances held on behalf of customers | 808,923 | 1,367,630 | 2,192,201 | ||
Receivables from broker-dealers and clearing organizations | 23,689,967 | 8,089,193 | 1,684,961 | ||
Short-term loans receivable | 508,756 | 2,239,378 | 1,637,310 | ||
Commissions receivable | 71,253 | 88,560 | |||
Other receivables | 67,475 | 724,708 | 166,064 | ||
Total assets in fair value | 15,918,629 | 12,158,074 | |||
Liabilities | |||||
Payables to customers | 14,362,840 | 5,221,270 | 3,853,693 | ||
Payable to broker-dealers | 24,270,558 | 3,845,740 | |||
Commissions payable | 39,180 | 29,439 | |||
Dividends payable | 385,901 | ||||
Accrued expenses and other payables | 1,169,408 | 1,763,094 | 417,445 | ||
Short-term borrowings | 293,905 | 1,412,570 | |||
Short-term borrowings from related party | 128,415 | ||||
Due to director | 152,472 | 149,522 | |||
Total liabilities | 39,955,278 | 11,312,711 | 6,227,463 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||||
Assets | |||||
Cash and cash equivalents | 14,888,644 | 3,426,467 | 6,388,978 | ||
Bank balances held on behalf of customers | 808,923 | 1,367,630 | 2,192,201 | ||
Receivables from broker-dealers and clearing organizations | |||||
Short-term loans receivable | |||||
Commissions receivable | |||||
Other receivables | |||||
Total assets in fair value | 4,794,097 | 8,581,179 | |||
Liabilities | |||||
Payables to customers | |||||
Payable to broker-dealers | |||||
Commissions payable | |||||
Dividends payable | |||||
Accrued expenses and other payables | |||||
Short-term borrowings | |||||
Short-term borrowings from related party | |||||
Due to director | |||||
Total liabilities | |||||
Significant Observable Inputs (Level 2) [Member] | |||||
Assets | |||||
Cash and cash equivalents | |||||
Bank balances held on behalf of customers | |||||
Receivables from broker-dealers and clearing organizations | 23,689,967 | 8,089,193 | 1,684,961 | ||
Short-term loans receivable | 508,756 | 2,239,378 | 1,637,310 | ||
Commissions receivable | 71,253 | 88,560 | |||
Other receivables | 67,475 | 724,708 | 166,064 | ||
Total assets in fair value | 10,399,824 | 3,576,895 | |||
Liabilities | |||||
Payables to customers | 14,362,840 | 5,221,270 | 3,853,693 | ||
Payable to broker-dealers | 24,270,558 | 3,845,740 | |||
Commissions payable | 39,180 | 29,439 | |||
Dividends payable | 385,901 | ||||
Accrued expenses and other payables | 1,169,408 | 1,763,094 | 417,445 | ||
Short-term borrowings | 293,905 | 1,412,570 | |||
Short-term borrowings from related party | 128,415 | ||||
Due to director | 152,472 | 149,522 | |||
Total liabilities | 39,955,278 | 11,312,711 | 6,227,463 | ||
Significant Unobservable Inputs (Level 3) [Member] | |||||
Assets | |||||
Cash and cash equivalents | |||||
Bank balances held on behalf of customers | |||||
Receivables from broker-dealers and clearing organizations | |||||
Short-term loans receivable | |||||
Commissions receivable | |||||
Other receivables | |||||
Total assets in fair value | |||||
Liabilities | |||||
Payables to customers | |||||
Payable to broker-dealers | |||||
Commissions payable | |||||
Accrued expenses and other payables | |||||
Short-term borrowings | |||||
Short-term borrowings from related party | |||||
Due to director | |||||
Total liabilities | |||||
Estimated Fair Value [Member] | |||||
Assets | |||||
Cash and cash equivalents | 3,426,467 | 6,388,978 | |||
Bank balances held on behalf of customers | 1,367,630 | 2,192,201 | |||
Receivables from broker-dealers and clearing organizations | 8,089,193 | 1,684,961 | |||
Short-term loans receivable | 2,239,378 | 1,637,310 | |||
Commissions receivable | 71,253 | 88,560 | |||
Other receivables | 724,708 | 166,064 | |||
Total assets in fair value | 15,918,629 | 12,158,074 | |||
Liabilities | |||||
Payables to customers | 5,221,270 | 3,853,693 | |||
Payable to broker-dealers | 3,845,740 | ||||
Commissions payable | 39,180 | 29,439 | |||
Dividends payable | 385,901 | ||||
Accrued expenses and other payables | 1,763,094 | 417,445 | |||
Short-term borrowings | 293,905 | 1,412,570 | |||
Short-term borrowings from related party | 128,415 | ||||
Due to director | 149,522 | ||||
Total liabilities | $ 11,312,711 | $ 6,227,463 |
Short-term Loans Receivable (De
Short-term Loans Receivable (Details) - USD ($) | Mar. 02, 2021 | Dec. 05, 2019 | Apr. 28, 2021 | Jun. 20, 2020 | Dec. 20, 2019 | Nov. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Short-term Loans Receivable (Details) [Line Items] | ||||||||||||
Notes receivable | $ 1,626,000 | |||||||||||
Interest rate | 13.00% | 12.00% | 6.00% | 6.00% | 12.00% | 15.00% | 6.00% | 6.00% | ||||
Interest income earned | $ 16,000 | $ 99,000 | $ 3,000 | |||||||||
Principal loans amount | $ 21,000 | |||||||||||
Loan extended date | Dec. 1, 2021 | |||||||||||
Loan extended date | $ 1,637,000 | $ 2,239,000 | ||||||||||
Outstanding loans receivable and accrued interest assigned as payment for purchase price | 1,691,000 | |||||||||||
Aggregate principal amount | $ 128,415 | $ 380,000 | $ 1,284,155 | |||||||||
Loans due date | Apr. 28, 2021 | Jun. 29, 2021 | ||||||||||
Interest income earned | $ 4,000 | |||||||||||
Principal amount | $ 300,000 | |||||||||||
Outstanding loans receivable and accrued interest | 1,691,000 | |||||||||||
Outstanding loans receivable | $ 359,000 | |||||||||||
Loan receivables | 509,000 | $ 1,637,000 | ||||||||||
June and December 2020 [Member] | ||||||||||||
Short-term Loans Receivable (Details) [Line Items] | ||||||||||||
Interest rate | 6.00% | |||||||||||
Interest income earned | $ 4,000 | |||||||||||
Principal loans amount | 380,000 | |||||||||||
Outstanding loans receivable and accrued interest assigned as payment for purchase price | 359,000 | |||||||||||
Loan receivables | 21,000 | |||||||||||
June 2020 [Member] | ||||||||||||
Short-term Loans Receivable (Details) [Line Items] | ||||||||||||
Interest income earned | 11,000 | |||||||||||
Principal loans amount | $ 300,000 | |||||||||||
Outstanding balance | 214,000 | |||||||||||
Short-Term Loans Receivable [Member] | ||||||||||||
Short-term Loans Receivable (Details) [Line Items] | ||||||||||||
Interest rate | 6.00% | |||||||||||
Interest income earned | $ 3,000 | 11,000 | ||||||||||
Loan receivables | $ 214,000 | |||||||||||
Lion Financial Group Limited [Member] | ||||||||||||
Short-term Loans Receivable (Details) [Line Items] | ||||||||||||
Interest rate | 12.00% | 6.00% | ||||||||||
Aggregate principal amount | $ 510,230 | $ 510,230 | ||||||||||
Maximum [Member] | ||||||||||||
Short-term Loans Receivable (Details) [Line Items] | ||||||||||||
Aggregate principal amount | $ 1,000,000 | $ 380,000 | ||||||||||
Minimum [Member] | ||||||||||||
Short-term Loans Receivable (Details) [Line Items] | ||||||||||||
Aggregate principal amount | $ 1 | $ 1 |
Other Assets (Details)
Other Assets (Details) - USD ($) | 1 Months Ended | 12 Months Ended |
May 31, 2021 | Dec. 31, 2020 | |
Other Assets [Line Items] | ||
Advance payment for purchase of trading software | $ 5,950,000 | |
Purchase price of portfolio | 8,000,000 | |
Other assets was transferred to fixed assets | $ 5,950,000 | |
Long-term deposit | $ 375,000 |
Accrued Expenses and Other Pa_3
Accrued Expenses and Other Payables (Details) - Schedule of accrued expenses and other payables - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of accrued expenses and other payables [Abstract] | |||
Accrued professional fees | $ 212,525 | $ 1,376,450 | $ 188,749 |
Accrued vacation and benefits | 342,187 | 174,771 | 127,999 |
Accrued communication and technology expenses | 182,963 | 114,754 | 83,724 |
Other payables | 64,195 | 97,119 | 16,973 |
Accrued expenses and other payables | $ 1,113,045 | $ 1,763,094 | $ 417,445 |
Short-term Borrowings (Details)
Short-term Borrowings (Details) - USD ($) | Dec. 05, 2019 | Dec. 05, 2019 | Apr. 28, 2021 | Jun. 20, 2020 | Dec. 31, 2019 | Dec. 20, 2019 | Nov. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 31, 2019 |
Short-term Borrowings (Details) [Line Items] | ||||||||||||||
Short term borrowings | $ 1,412,570 | $ 20,409,250 | $ 20,409,250 | $ 293,905 | $ 1,412,570 | $ 20,409,250 | ||||||||
Interest rate | 13.00% | 12.00% | 6.00% | 6.00% | 12.00% | 15.00% | 6.00% | 6.00% | ||||||
Loan receivable | $ 19,108,159 | $ 19,108,159 | ||||||||||||
Remaining loan balance after novation | $ 19,100,000 | $ 19,100,000 | ||||||||||||
Original borrowing agreement | 1,300,000 | 1,300,000 | ||||||||||||
Deed of novation borrowers | $ 19,100,000 | $ 19,100,000 | 19,100,000 | $ 19,100,000 | ||||||||||
Gain from forgiveness of debts | 26,000 | |||||||||||||
Aggregate principal amount | $ 128,415 | $ 380,000 | 1,284,155 | |||||||||||
Interest income | 768,000 | |||||||||||||
Interest expense | 105,000 | 714,000 | ||||||||||||
Repayments of loan | 990,000 | |||||||||||||
Outstanding loan amount | 294,000 | |||||||||||||
Interest expense | 2,000 | |||||||||||||
Gain from forgiveness of debts | 26,000 | |||||||||||||
Outstanding short-term borrowings | 1,284,155 | |||||||||||||
Tonghai [Member] | ||||||||||||||
Short-term Borrowings (Details) [Line Items] | ||||||||||||||
Interest rate | 13.00% | |||||||||||||
Xiao Bin [Member] | ||||||||||||||
Short-term Borrowings (Details) [Line Items] | ||||||||||||||
Original borrowing agreement | $ 19,100,000 | |||||||||||||
China Tonghai Financial [Member] | ||||||||||||||
Short-term Borrowings (Details) [Line Items] | ||||||||||||||
Interest expense | 105,000 | |||||||||||||
Repayments of loan | 990,000 | |||||||||||||
Outstanding loan amount | $ 294,000 | |||||||||||||
Lion Financial Group Limited [Member] | ||||||||||||||
Short-term Borrowings (Details) [Line Items] | ||||||||||||||
Interest rate | 12.00% | 6.00% | ||||||||||||
Aggregate principal amount | $ 510,230 | $ 510,230 | ||||||||||||
Interest expense | 15,000 | |||||||||||||
Repayments of loan | 128,415 | |||||||||||||
Remaining balance borrowing | $ 128,415 | $ 128,415 |
Derivatives (Details)
Derivatives (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative liability | $ 6,000 | |
Derivative assets | $ 194,000 |
Related Parties (Details)
Related Parties (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2018 | Jun. 30, 2021 | Dec. 31, 2019 | |
Related Parties (Details) [Line Items] | ||||
Outstanding shares, percentage | 100.00% | |||
Dividends paid | $ 385,901 | |||
Advance to shareholder | $ 6,484,121 | |||
Dividends payable | 385,901 | |||
Subscription payments | $ 5,415,082 | |||
subscription receivable from share holder | 3,022,606 | |||
Dividends paid | 385,901 | |||
Advances from directors | 1,617,000 | |||
Repaid amount | 1,467,000 | |||
Due to director | 150,000 | $ 152,000 | ||
Director [Member] | ||||
Related Parties (Details) [Line Items] | ||||
Advances for working capital needs | 1,617,000 | $ 484,601 | $ 7,679,131 | |
Aggregate amount repaid | 1,467,000 | |||
Amount due | $ 150,000 |
December 2020 Convertible Deb_3
December 2020 Convertible Debenture and Warrants (Details) - USD ($) | Sep. 07, 2021 | Dec. 14, 2020 | Dec. 14, 2019 | Jan. 31, 2021 | Jan. 29, 2019 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
December 2020 Convertible Debenture and Warrants (Details) [Line Items] | |||||||||
Net proceeds allocated to convertible debenture | $ 1,540,000 | $ 1,540,000 | $ 1,540,000 | ||||||
Convertible debenture, description | i) a 9% senior secured convertible debenture (the “2020 Convertible Debenture” or “Debenture”) in the principal amount of $1,600,000, which is convertible up to 800,000 ADSs at $2.00 per ADS at any time, matures 30 months from the date of issuance and accrues interest at 9% per annum payable quarterly in cash or, in lieu of cash payment, in our ADSs, subject to adjustment and certain customary equity conditions; ii) a 2-year warrant (“Series B Warrant”) to purchase 5,000,000 ADS at an exercise price of $2.00 per ADS; iii) a warrant to purchase 1,200,000 ADS (“Series A Warrant”) until December 14, 2027 at an exercise price of $2.45 per ADS; and iv) a 7-year warrant to purchase 7,500,000 ADS (“Series C Warrant”, together with Series A Warrant and Series B Warrant, the “December 2020 Warrants”) at an exercise price of $2.45 per ADS. The exercisability of Series C Warrant shall vest ratably from time to time in proportion to the exercise of the Series B Warrant by the holder. Further, for each $1 million of subscription amount under the 2020 Convertible Debenture and the Series B Warrant, the purchaser shall receive a certificate representing 50,000 ADSs (or such lesser number on a ratable basis if the Subscription Amount is less than $1 million). | i) a 9% senior secured convertible debenture (the “2020 Convertible Debenture” or “Debenture”) in the principal amount of $1,600,000, which is convertible up to 800,000 ADSs at $2.00 per ADS at any time, matures 30 months from the date of issuance and accrues interest at 9% per annum payable quarterly in cash or, in lieu of cash payment, in our ADSs, subject to adjustment and certain customary equity conditions; ii) a 2-year warrant (“Series B Warrant”) to purchase 5,000,000 ADS at an exercise price of $2.00 per ADS; iii) a warrant to purchase 1,200,000 ADS (“Series A Warrant”) until December 14, 2027 at an exercise price of $2.45 per ADS; and iv) a 7-year warrant to purchase 7,500,000 ADS (“Series C Warrant”, together with Series A Warrant and Series B Warrant, the “December 2020 Warrants”) at an exercise price of $2.45 per ADS. The exercisability of Series C Warrant shall vest ratably from time to time in proportion to the exercise of the Series B Warrant by the holder. Further, for each $1 million of subscription amount under the 2020 Convertible Debenture and the Series B Warrant, the purchaser shall receive a certificate representing 50,000 ADSs (or such lesser number on a ratable basis if the Subscription Amount is less than $1 million). | |||||||
Exercise price (in Dollars per share) | $ 2.2 | $ 2.2 | |||||||
Net proceeds allocated to convertible debenture | $ 206,000 | $ 206,000 | |||||||
Net proceeds from issuance of warrants | 27,400,000 | ||||||||
Beneficial conversion feature (BCF) | 206,000 | 206,000 | |||||||
Issuance costs charged to equity | 77,500 | 77,500 | |||||||
Amount paid to the holder | 60,000 | 60,000 | |||||||
Remaining unamortized debt discount | $ 784,000 | 784,000 | |||||||
Recognized interest expense | 20,000 | ||||||||
Contractual interest | 7,000 | ||||||||
Amortization of the debt discounts and debt issuance cost | 13,000 | ||||||||
Debenture carrying value | 816,000 | ||||||||
Aggregate amount | $ 8,000,000 | $ 743,500 | |||||||
Accrued interest | 11,600 | ||||||||
Interest expense | $ 796,000 | ||||||||
Series A [Member] | |||||||||
December 2020 Convertible Debenture and Warrants (Details) [Line Items] | |||||||||
Fair value adjustment of warrants | 1,220,000 | 1,220,000 | |||||||
Net proceeds from issuance of warrants | 157,000 | 157,000 | |||||||
Aggregate proceeds | 737,000 | $ 737,000 | |||||||
Exercise price (in Dollars per share) | $ 2.45 | ||||||||
Series B [Member] | |||||||||
December 2020 Convertible Debenture and Warrants (Details) [Line Items] | |||||||||
Fair value adjustment of warrants | 2,915,000 | $ 2,915,000 | |||||||
Net proceeds from issuance of warrants | 375,000 | 375,000 | |||||||
Aggregate proceeds | 803,000 | 803,000 | |||||||
Series C [Member] | |||||||||
December 2020 Convertible Debenture and Warrants (Details) [Line Items] | |||||||||
Fair value adjustment of warrants | 6,244,000 | 6,244,000 | |||||||
Net proceeds from issuance of warrants | $ 802,000 | $ 802,000 | |||||||
Exercise price (in Dollars per share) | $ 2 | ||||||||
Class A Ordinary Shares [Member] | |||||||||
December 2020 Convertible Debenture and Warrants (Details) [Line Items] | |||||||||
Converted shares (in Shares) | 889,667 | ||||||||
Issuance of shares (in Shares) | 14,200,000 |
December 2020 Convertible Deb_4
December 2020 Convertible Debenture and Warrants (Details) - Schedule of assumptions used to measure the fair value of December 2020 Warrants on the date of issuance | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Series A [Member] | ||
December 2020 Convertible Debenture and Warrants (Details) - Schedule of assumptions used to measure the fair value of December 2020 Warrants on the date of issuance [Line Items] | ||
Expected term in years | 7 years | 7 years |
Expected dividend yield | 0.00% | 0.00% |
Volatility | 46.68% | 46.68% |
Risk-free interest Rate | 0.63% | 0.63% |
Series B [Member] | ||
December 2020 Convertible Debenture and Warrants (Details) - Schedule of assumptions used to measure the fair value of December 2020 Warrants on the date of issuance [Line Items] | ||
Expected term in years | 2 years | 2 years |
Expected dividend yield | 0.00% | 0.00% |
Volatility | 49.61% | 49.61% |
Risk-free interest Rate | 0.197% | 0.197% |
Series C [Member] | ||
December 2020 Convertible Debenture and Warrants (Details) - Schedule of assumptions used to measure the fair value of December 2020 Warrants on the date of issuance [Line Items] | ||
Expected term in years | 7 years | 7 years |
Expected dividend yield | 0.00% | 0.00% |
Volatility | 46.68% | 46.68% |
Risk-free interest Rate | 0.63% | 0.63% |
Stockholders_ Equity (Details)
Stockholders’ Equity (Details) $ / shares in Units, ¥ in Millions | Jan. 06, 2021 | Jan. 02, 2021CNY (¥)shares | Nov. 12, 2020shares | Oct. 02, 2020 | Aug. 02, 2020 | Dec. 19, 2020$ / sharesshares | Jun. 30, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Mar. 31, 2021shares | Jul. 24, 2020USD ($)$ / sharesshares | Jun. 16, 2020shares | Dec. 31, 2019$ / sharesshares |
Stockholders’ Equity (Details) [Line Items] | ||||||||||||
Shares authorized | 450,000,000 | 450,000,000 | ||||||||||
Shares par value (in Dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||||||||||
Preferred shares authorized | 50,000,000 | 50,000,000 | 50,000,000 | |||||||||
Preferred shares per share value (in Dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||||
Ordinary shares outstanding | 17,399,176 | |||||||||||
Directors and officers amount (in Dollars) | $ | $ 60,000 | |||||||||||
Fair value price (in Dollars per share) | $ / shares | $ 0.2 | |||||||||||
Additional post-merger consideration adjustment | 121,473 | |||||||||||
Preferred shares issued and outstanding, description | As of June 30, 2021, there was an aggregate of 7,000 preferred shares issued and outstanding and no preferred shares outstanding as of December 31, 2020. | |||||||||||
Aggregate proceeds of investors (in Dollars) | $ | $ 6,299,000 | |||||||||||
Yun Tian [Member] | ||||||||||||
Stockholders’ Equity (Details) [Line Items] | ||||||||||||
Subscription price per share (in Dollars per share) | $ / shares | $ 2.2 | |||||||||||
Net profit before tax (in Yuan Renminbi) | ¥ | ¥ 200 | |||||||||||
Received subscription price (in Dollars) | $ | 800,000 | |||||||||||
Business Combination [Member] | ||||||||||||
Stockholders’ Equity (Details) [Line Items] | ||||||||||||
Ordinary shares outstanding | 17,399,176 | |||||||||||
Private Placement [Member] | ||||||||||||
Stockholders’ Equity (Details) [Line Items] | ||||||||||||
Description of securities purchase agreement | the Company entered into a securities purchase agreement (as amended on September 29, 2020, and later amended and restated on October 19, 2020) with three investors (collectively, the “Investors”). Two tranches of transactions contemplated under the agreement were closed on August 3 and November 13, 2020, respectively. As a result, an aggregate of 1,500,000 ADSs and 1,500,000 warrants to purchase an aggregate of 1,500,000 of our ADS at US$3.00 per ADS (the “August 2020 PIPE Warrants”) were issued at US$2.00 per ADS for an aggregate purchase price of US$3 million, and an aggregate of 150,000 ADSs were issued as origination fee. Issuance costs of approximately $469,000 were recorded as a charge to additional paid-in capital, including legal and accounting fees. | the Company entered into a securities purchase agreement (as amended on September 29, 2020, and later amended and restated on October 19, 2020) with three investors (collectively, the “Investors”). Two tranches of transactions contemplated under the agreement were closed on August 3 and November 13, 2020, respectively. As a result, an aggregate of 1,500,000 ADSs and 1,500,000 warrants to purchase an aggregate of 1,500,000 of our ADS at US$3.00 per ADS (the “August 2020 PIPE Warrants”) were issued at US$2.00 per ADS for an aggregate purchase price of US$3 million, and an aggregate of 150,000 ADSs were issued as origination fee. Issuance costs of approximately $469,000 were recorded as a charge to additional paid-in capital, including legal and accounting fees. | ||||||||||
Net proceed (in Dollars) | $ | 2,531,000 | $ 2,531,000 | ||||||||||
Subscription receivable (in Dollars) | $ | 508,750 | $ 508,750 | ||||||||||
Warrants exercise period | 3 years | |||||||||||
Aggregate of down round features (in Dollars) | $ | 278,000 | |||||||||||
Aggregate proceeds of investors (in Dollars) | $ | $ 1,500,000 | |||||||||||
Class A Ordinary Shares [Member] | ||||||||||||
Stockholders’ Equity (Details) [Line Items] | ||||||||||||
Ordinary shares authorized | 300,000,000 | 300,000,000 | 300,000,000 | |||||||||
Ordinary shares outstanding | 29,328,180 | 9,627,553 | 7,647,962 | 3,140,388 | ||||||||
Ordinary shares issued | 29,328,180 | 9,627,553 | 300,000 | 3,140,388 | ||||||||
Additional post-merger consideration adjustment | 29,591 | |||||||||||
Class A Ordinary Shares [Member] | Yun Tian [Member] | ||||||||||||
Stockholders’ Equity (Details) [Line Items] | ||||||||||||
Subscribes share | 4,540,000 | |||||||||||
Subscription shares issued | 5,000,000 | 353,623 | ||||||||||
Share received | 5,000,000 | |||||||||||
Class A Ordinary Shares [Member] | Private Placement [Member] | ||||||||||||
Stockholders’ Equity (Details) [Line Items] | ||||||||||||
Ordinary shares issued | 770,833 | |||||||||||
Class B Ordinary Shares [Member] | ||||||||||||
Stockholders’ Equity (Details) [Line Items] | ||||||||||||
Ordinary shares authorized | 150,000,000 | 150,000,000 | 150,000,000 | |||||||||
Ordinary shares outstanding | 9,843,096 | 9,843,096 | 9,751,214 | 3,949,993 | ||||||||
Ordinary shares issued | 9,843,096 | 9,843,096 | 3,949,993 | |||||||||
Additional post-merger consideration adjustment | 91,882 | |||||||||||
Maximum [Member] | Private Placement [Member] | ||||||||||||
Stockholders’ Equity (Details) [Line Items] | ||||||||||||
Exercise price of PIPE Warrants (in Dollars per share) | $ / shares | $ 3 | |||||||||||
Minimum [Member] | Private Placement [Member] | ||||||||||||
Stockholders’ Equity (Details) [Line Items] | ||||||||||||
Exercise price of PIPE Warrants (in Dollars per share) | $ / shares | $ 2 | |||||||||||
2020 Share Incentive Plan [Member] | Class A Ordinary Shares [Member] | ||||||||||||
Stockholders’ Equity (Details) [Line Items] | ||||||||||||
Ordinary shares issued | 1,486,504 | |||||||||||
Call Option [Member] | ||||||||||||
Stockholders’ Equity (Details) [Line Items] | ||||||||||||
Strategic Cooperation Agreement | the Company entered into a binding strategic cooperation framework agreement (the “Strategic Cooperation Agreement”) with Mr. Yao Yongjie (“Mr. Yao”) and engaged Mr. Yao as the chief technical adviser to provide technical advice and consultancy service in blockchain industry. The Company grants to Mr. Yao options (the “Call Options”) to subscribe for 6 million Class A ordinary shares, represented by ADSs at a price fixed at US$2 per share. Within 24 months of the signing of the Strategic Cooperation Agreement, Mr. Yao may exercise the right to subscribe for such shares by tranches if the following conditions are met:(i) if the closing price of the shares in the Company exceeds US$3 per share for 3 consecutive trading days, Mr. Yao may exercise 2 million call options;(ii) if the closing price of the shares in the Company exceeds US$5 per share for 3 consecutive trading days, Mr. Yao may exercise 2 million call options;(iii) if the closing price of the shares in the Company exceeds US$7.50 per share for 3 consecutive trading days, Mr. Yao may exercise 2 million call options. | |||||||||||
Fair value call options (in Dollars) | $ | $ 1,909,000 | |||||||||||
Recognized in expenses (in Dollars) | $ | 191,000 | |||||||||||
Exercise of call options (in Dollars) | $ | $ 4,000,000 | |||||||||||
Call Option [Member] | Class A Ordinary Shares [Member] | ||||||||||||
Stockholders’ Equity (Details) [Line Items] | ||||||||||||
Ordinary shares issued | 2,000,000 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - shares | Dec. 01, 2020 | Jun. 30, 2020 | Jun. 30, 2021 | Dec. 31, 2020 |
Stock-Based Compensation (Details) [Line Items] | ||||
Ordinary shares issued | 1,486,504 | |||
Shares remained available for future awards | 3,145,945 | |||
Deferred shares granted to employees, non-employee directors and consultants | 1,486,504 | |||
Contractual term | 10 years | |||
2020 Share Incentive Plan [Member] | ||||
Stock-Based Compensation (Details) [Line Items] | ||||
Ordinary shares issued | 4,632,449 | 1,486,504 |
Stock-Based Compensation (Det_2
Stock-Based Compensation (Details) - Schedule of stock-based compensation expenses | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Schedule of stock-based compensation expenses [Abstract] | |
Communication and technology | $ 335,000 |
Marketing | 363,000 |
Services fees | 294,000 |
Compensation and benefits | 934,800 |
Professional fees | 228,000 |
General and administrative | 1,502,000 |
Total stock-based compensation | $ 3,656,800 |
Income Taxes (Details)
Income Taxes (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Applicable tax rate, description | the applicable tax rate was 8.25% on the first HK $2,000,000 of assessable profits and 16.5% on any assessable profits above that threshold. The 8.25% tax rate can only be utilized by one entity in a controlled group. All other Hong Kong entities in the Group utilize the 16.5% tax rate. | the applicable tax rate was 8.25% on the first HK $2,000,000 of assessable profits and 16.5% on any assessable profits above that threshold. The 8.25% tax rate can only be utilized by one entity in a controlled group. All other Hong Kong entities in the Group utilize the 16.5% tax rate. |
Tax rate for Singapore entity | 17.00% | 17.00% |
Federal tax rate | 21.00% | 21.00% |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of current and deferred portions of the income tax expense - USD ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of current and deferred portions of the income tax expense [Abstract] | |||||
Current | $ 53,239 | $ 2,842 | $ 1,767 | $ 66,299 | $ 26,962 |
Deferred | 1,128 | 479 | (451) | (1,827) | (628) |
Income tax expense | $ 54,367 | $ 3,321 | $ 1,316 | $ 64,472 | $ 26,334 |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of reconciliation of the difference between the expected income tax expense or benefit computed at applicable statutory income tax rates and the group’s income tax expense - USD ($) | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Schedule of reconciliation of the difference between the expected income tax expense or benefit computed at applicable statutory income tax rates and the group’s income tax expense [Abstract] | ||||||
Income tax expense (benefit) at applicable statutory rate | [1] | $ (1,688,110) | $ 9,738 | $ (348,782) | $ 1,345,164 | $ (473,951) |
(Income) loss not subject to tax | [2] | 1,151,121 | (323,006) | (214,313) | (1,716,553) | 313,015 |
Current year change in valuation allowance | 940,626 | 311,499 | 558,859 | 406,506 | 195,420 | |
Others | 5,552 | 29,355 | (8,150) | |||
Reported income taxes | $ 54,367 | $ 3,321 | $ 1,316 | $ 64,472 | $ 26,334 | |
[1] | The applicable statutory rate applied is based on the profits tax rates in Hong Kong. Effective for tax years ended on or after December 31, 2018, the applicable tax rate was 8.25% on the first HK $2,000,000 of assessable profits and 16.5% on any assessable profits above that threshold. The 8.25% tax rate can only be utilized by one entity in a controlled group. All other Hong Kong entities in the Group utilize the 16.5% tax rate. The Singapore entity within the Group has an applicable tax rate of 17.0%. The entity in the United States within the Group has a federal tax rate of 21.0%. | |||||
[2] | The Group also has entities domiciled in the British Virgin Islands and the Cayman Islands, but such entities are not subject to income or capital gains taxes. |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of significant components of the group’s deferred tax assets (liabilities) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax asset | |||
Others | $ 1,477 | $ 1,128 | $ 677 |
Net operating loss carryforwards | 2,323,105 | 1,367,309 | 808,450 |
Less: Valuation allowance | $ (2,324,700) | (1,367,309) | (808,450) |
Net deferred tax asset | $ 1,128 | $ 677 |
Commitments (Details)
Commitments (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent expenses under operating leases | $ 683,000 | $ 592,000 | $ 548,000 |
Commitments (Details) - Schedul
Commitments (Details) - Schedule of future minimum payments under non-cancelable operating leases - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of future minimum payments under non-cancelable operating leases [Abstract] | ||
2021 | $ 272,089 | $ 646,930 |
2022 | 209,556 | |
2023 | 3,912 | 3,736 |
Total future minimum payments | $ 484,971 | $ 860,222 |
Regulatory Requirements (Detail
Regulatory Requirements (Details) - Schedule of the minimum regulatory capital required and the actual amounts of capital maintained - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Regulatory Assets [Line Items] | ||
Minimum Regulatory Capital Requirements | $ 10,503,319 | $ 1,336,814 |
Capital Levels Maintained | 14,927,333 | 10,914,773 |
Excess Net Capital | $ 4,424,014 | $ 9,577,959 |
Percent of requirement Maintained | 142.00% | 816.00% |
Lion International Securities Group Limited [Member] | ||
Regulatory Assets [Line Items] | ||
Minimum Regulatory Capital Requirements | $ 386,292 | $ 386,927 |
Capital Levels Maintained | 1,171,495 | 1,043,803 |
Excess Net Capital | $ 785,203 | $ 656,876 |
Percent of requirement Maintained | 303.00% | 270.00% |
Lion Futures Limited [Member] | ||
Regulatory Assets [Line Items] | ||
Minimum Regulatory Capital Requirements | $ 386,292 | $ 386,927 |
Capital Levels Maintained | 1,039,855 | 948,872 |
Excess Net Capital | $ 653,563 | $ 561,945 |
Percent of requirement Maintained | 269.00% | 245.00% |
Lion Asset Management Limited [Member] | ||
Regulatory Assets [Line Items] | ||
Minimum Regulatory Capital Requirements | $ 12,876 | $ 12,898 |
Capital Levels Maintained | 43,415 | 27,770 |
Excess Net Capital | $ 30,539 | $ 14,872 |
Percent of requirement Maintained | 337.00% | 215.00% |
BC Wealth Management Limited [Member] | ||
Regulatory Assets [Line Items] | ||
Minimum Regulatory Capital Requirements | $ 12,876 | $ 12,898 |
Capital Levels Maintained | 177,081 | 468,279 |
Excess Net Capital | $ 164,205 | $ 455,381 |
Percent of requirement Maintained | 1375.00% | 3631.00% |
Lion Broker Limited (Cayman) [Member] | ||
Regulatory Assets [Line Items] | ||
Minimum Regulatory Capital Requirements | $ 9,704,983 | $ 537,164 |
Capital Levels Maintained | 12,495,487 | 8,426,049 |
Excess Net Capital | $ 2,790,504 | $ 7,888,885 |
Percent of requirement Maintained | 129.00% | 1569.00% |
Segment Reporting (Details)
Segment Reporting (Details) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting [Abstract] | ||||
Operating segments, description | Reportable segments are defined as an operating segment that either (a) exceeds 10% of revenue, or (b) reported profit or loss in absolute amount exceeds 10% of profit of all operating segments that did not report a loss or (c) exceeds 10% of the combined assets of all operating segments. | Reportable segments are defined as an operating segment that either (a) exceeds 10% of revenue, or (b) reported profit or loss in absolute amount exceeds 10% of profit of all operating segments that did not report a loss or (c) exceeds 10% of the combined assets of all operating segments. | ||
Aggregate generated income | $ 211,000 | |||
Number of operating segments | 3 | |||
Trading gains/(losses) | $ 3,600,000 | $ 1,833,875 | $ 1,782,750 | $ (897,812) |
Interest commissions | 400,000 | |||
CFD trading commissions | 1,000,000 | |||
CFD Bid Gains(losses) | $ (2,100,000) |
Segment Reporting (Details) - S
Segment Reporting (Details) - Schedule of operating segments - USD ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Revenue | $ 3,600,297 | $ 6,430,516 | $ 10,230,135 | $ 18,526,850 | $ 6,568,263 |
Commissions and fees | 1,845,994 | 3,355,205 | 5,471,602 | ||
Compensation and benefits | 3,802,793 | 2,430,636 | 1,639,288 | ||
Occupancy | 347,660 | 323,224 | 683,160 | 591,936 | 548,331 |
Communication and technology | 947,292 | 469,662 | 1,454,050 | 823,433 | 588,353 |
General and administrative | 630,059 | 292,788 | 2,264,318 | 692,648 | 539,773 |
Professional fees | 990,011 | 153,853 | 1,565,834 | 761,238 | 227,998 |
Service fees | 2,474,122 | 231,785 | 833,864 | 384,840 | 53,592 |
Interest | 942,264 | 79,343 | 183,157 | 731,812 | 118 |
Depreciation | 279,680 | 21,992 | 40,556 | 52,852 | 32,743 |
Marketing | 553,758 | 199,948 | 651,324 | 55,378 | 195,933 |
Payment service charge | 292,630 | 245,030 | 355,585 | ||
Other operating expenses | 11,464 | 10,463 | 15,406 | ||
Total operating expenses | 11,269,402 | 4,053,318 | 13,581,544 | 10,246,026 | 9,313,137 |
Income (loss) from operations | (7,669,105) | 2,377,198 | (3,351,409) | 8,280,824 | (2,744,874) |
Total segment assets | $ 86,517,677 | $ 15,070,603 | 22,906,069 | 13,418,348 | 15,672,761 |
Futures and securities brokerage services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 2,029,669 | 2,215,867 | 2,066,354 | ||
Commissions and fees | 1,316,800 | 1,526,852 | 1,293,577 | ||
Compensation and benefits | 1,110,192 | 1,154,378 | 882,887 | ||
Occupancy | 202,467 | 420,732 | |||
Communication and technology | 455,323 | 469,818 | 505,152 | ||
General and administrative | 55,028 | 72,403 | 85,208 | ||
Professional fees | 26,690 | 7,369 | 21,081 | ||
Service fees | |||||
Interest | |||||
Depreciation | 13,000 | 26,845 | 26,487 | ||
Marketing | 222 | 2,608 | 8,736 | ||
Payment service charge | |||||
Other operating expenses | 5,739 | 3,063 | |||
Total operating expenses | 2,977,255 | 3,468,479 | 3,246,923 | ||
Income (loss) from operations | (947,586) | (1,252,612) | (1,180,569) | ||
Total segment assets | 4,624,325 | 4,823,056 | 12,243,072 | ||
Insurance brokerage services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 959,299 | 2,648,141 | 5,378,679 | ||
Commissions and fees | 413,351 | 1,506,223 | 4,157,668 | ||
Compensation and benefits | 256,529 | 334,964 | 363,523 | ||
Occupancy | 277,414 | 198,637 | 1,021 | ||
Communication and technology | 5,160 | 7,269 | 4,596 | ||
General and administrative | 48,210 | 69,765 | 93,880 | ||
Professional fees | 16,813 | 702 | 28,710 | ||
Service fees | |||||
Interest | |||||
Depreciation | 4,128 | 4,087 | 4,086 | ||
Marketing | 222 | 185,019 | |||
Payment service charge | |||||
Other operating expenses | 1,359 | ||||
Total operating expenses | 1,021,827 | 2,121,647 | 4,839,862 | ||
Income (loss) from operations | (62,528) | 526,494 | 538,817 | ||
Total segment assets | 213,495 | 352,377 | 370,114 | ||
Market making (CFD) trading and other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 7,034,447 | 12,843,574 | |||
Commissions and fees | 115,843 | 322,130 | |||
Compensation and benefits | |||||
Occupancy | 6,600 | 1,200 | |||
Communication and technology | 643,630 | 343,556 | |||
General and administrative | 243,172 | 140,598 | |||
Professional fees | 278,719 | 118,929 | |||
Service fees | 314,342 | 119,711 | |||
Interest | 52,240 | ||||
Depreciation | |||||
Marketing | 166,013 | 51,714 | |||
Payment service charge | 245,030 | 355,585 | |||
Other operating expenses | |||||
Total operating expenses | 2,065,589 | 1,453,423 | |||
Income (loss) from operations | 4,968,858 | 11,390,151 | |||
Total segment assets | 14,636,139 | 5,307,525 | |||
Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 206,720 | 819,268 | (876,770) | ||
Commissions and fees | 20,357 | ||||
Compensation and benefits | 2,436,072 | 941,294 | 392,878 | ||
Occupancy | 399,146 | 189,632 | 126,578 | ||
Communication and technology | 349,937 | 2,790 | 78,605 | ||
General and administrative | 1,917,908 | 409,882 | 360,685 | ||
Professional fees | 1,243,612 | 634,238 | 178,207 | ||
Service fees | 519,522 | 265,129 | 53,592 | ||
Interest | 130,917 | 731,812 | 118 | ||
Depreciation | 23,428 | 21,920 | 2,170 | ||
Marketing | 484,867 | 1,056 | 2,178 | ||
Payment service charge | |||||
Other operating expenses | 11,464 | 4,724 | 10,984 | ||
Total operating expenses | 7,516,873 | 3,202,477 | 1,226,352 | ||
Income (loss) from operations | (7,310,153) | (2,383,209) | (2,103,122) | ||
Total segment assets | $ 3,432,110 | $ 2,935,390 | $ 3,059,575 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Sep. 07, 2021 | Feb. 05, 2021 | Jan. 06, 2021 | Feb. 28, 2021 | Jan. 31, 2021 | Jan. 29, 2021 | Feb. 15, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2021 | Jul. 24, 2020 | Jun. 16, 2020 |
Subsequent Events (Details) [Line Items] | |||||||||||||
Share price per share (in Dollars per share) | $ 0.2 | ||||||||||||
Securities purchase agreement, description | the Company entered into a Securities Purchase Agreement (the “Securities Purchase Agreement) with one third party investor (the “Purchaser”), pursuant to which the Company received $6,440,000 in consideration of the issuance of: (a) Series A Convertible Preferred Shares (the “Series A Convertible Preferred Shares”) with a stated value of $7,000,000; (b) a warrant (the “Series D Warrant”) to purchase 2,333,333 American Depositary Shares (“ADS”) of the Company until the fifth year anniversary of the closing date at an exercise price of $3.00 per ADS; (c) a one-year warrant to purchase 13,333,333 ADS (the “Series E Warrant”) at an exercise price of $3.00 per ADS, each exercise of which entitles the Warrant holder to receive one ADS and a 8% cash discount; and d) a 5-year warrant to purchase 13,333,333 ADS (the “Series F Warrant”, together with the Series D Warrant and the Series E Warrant, the “February 2021 Warrants”) at an exercise price of $3.00 per ADS. The exercisability of Series F Warrant shall vest ratably from time to time in proportion to the exercise of the Series E Warrant by the holder. The transactions contemplated under the Securities Purchase Agreement were closed on February 18, 2021. The Series A Convertible Preferred Shares bear dividend rights at a rate of 8% per annum commencing on the six month anniversary of the closing date, and is convertible into the ADSs, beginning after its original date of issuance at an initial conversion price of $3.00 per share. Dividend is payable quarterly in cash, or the Company may pay accrued interest in its ADSs. | ||||||||||||
Shares issued | 17,600,000 | ||||||||||||
Aggregate proceeds (in Dollars) | $ 508,750 | ||||||||||||
Subsequent event, description | the Company entered into a framework strategic partnership agreement with Grandshores Technology Group Limited (“Grandshores”) (HKEX: 01647). In March 2021, Lion Brokers Limited subscribed 64,500,000 shares of Grandshores at a total subscription price of approximately $3.5 million, representing approximately 5.89% of the total issued share capital of Grandshores. | ||||||||||||
Aggregate purchase price (in Dollars) | $ 8,000,000 | $ 743,500 | |||||||||||
Yun Tian [Member] | |||||||||||||
Subsequent Events (Details) [Line Items] | |||||||||||||
Shares issued | 217,273 | ||||||||||||
Aggregate proceeds (in Dollars) | $ 500,000 | ||||||||||||
August 2020 Private Placement [Member] | Subsequent Event [Member] | |||||||||||||
Subsequent Events (Details) [Line Items] | |||||||||||||
Shares issued | 770,833 | ||||||||||||
Aggregate proceeds (in Dollars) | $ 1,500,000 | ||||||||||||
December 2020 Warrants [Member] | Subsequent Event [Member] | |||||||||||||
Subsequent Events (Details) [Line Items] | |||||||||||||
Shares issued | 889,667 | 14,200,000 | |||||||||||
Aggregate proceeds (in Dollars) | $ 27,400,000 | ||||||||||||
Ordinary shares issued for conversion of debenture | 809,667 | ||||||||||||
Class A Ordinary shares [Member] | |||||||||||||
Subsequent Events (Details) [Line Items] | |||||||||||||
Shares issued | 4,507,574 | ||||||||||||
Class A Ordinary shares [Member] | Subsequent Event [Member] | |||||||||||||
Subsequent Events (Details) [Line Items] | |||||||||||||
Call options | 6,000,000 | ||||||||||||
Share price per share (in Dollars per share) | $ 2 | ||||||||||||
Class A Ordinary shares [Member] | 2020 Share Incentive Plan [Member] | Subsequent Event [Member] | |||||||||||||
Subsequent Events (Details) [Line Items] | |||||||||||||
Shares issued | 1,486,504 |
SPAC Warrants (Details)
SPAC Warrants (Details) - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
SPAC Warrants (Details) [Line Items] | ||
Ordinary share price (in Dollars per share) | $ 2.41 | |
Description of warrants for redemption | The Company may call the warrants for Redemption (excluding the private warrants), in whole and not in part, at a price of $0.01 per warrant,• at any time while the warrants are exercisable;• upon not less than 30 days’ prior written notice of Redemption to each warrant holder;• if, and only if, the reported last sale price of the Company’s ADSs equals or exceeds $18.00 per ADS, for any 20 trading days within a 30-day trading period ending on the third business day prior to the notice of Redemption to warrant holders; and• if, and only if, there is a current registration statement in effect with respect to the Class A Ordinary Shares underlying such warrants commencing five business days prior to the 30-day trading period and continuing each day thereafter until the date of Redemption. | The Company may call the warrants for Redemption (excluding the private warrants), in whole and not in part, at a price of $0.01 per warrant,• at any time while the warrants are exercisable;• upon not less than 30 days’ prior written notice of Redemption to each warrant holder;• if, and only if, the reported last sale price of the Company’s ADSs equals or exceeds $18.00 per ADS, for any 20 trading days within a 30-day trading period ending on the third business day prior to the notice of Redemption to warrant holders; and• if, and only if, there is a current registration statement in effect with respect to the Class A Ordinary Shares underlying such warrants commencing five business days prior to the 30-day trading period and continuing each day thereafter until the date of Redemption. |
Public Warrants [Member] | ||
SPAC Warrants (Details) [Line Items] | ||
Warrants issued | 11,500,000 | 11,500,000 |
Warrants outstanding | 11,500,000 | 11,500,000 |
Private Warrants [Member] | ||
SPAC Warrants (Details) [Line Items] | ||
Warrants issued | 5,375,000 | 5,375,000 |
Warrants outstanding | 5,375,000 | 5,375,000 |
Underwriters’ Warrants [Member] | ||
SPAC Warrants (Details) [Line Items] | ||
Warrants issued | 920,000 | 920,000 |
Warrants outstanding | 920,000 | 920,000 |
Exercise price of warrants (in Dollars per share) | $ 12 | $ 12 |
Proficient Alpha Acquisition Corp [Member] | ||
SPAC Warrants (Details) [Line Items] | ||
Ordinary share price (in Dollars per share) | 11.5 | 11.5 |
ADS [Member] | ||
SPAC Warrants (Details) [Line Items] | ||
Ordinary share price (in Dollars per share) | $ 11.5 | $ 11.5 |
Restatement of Previously Iss_3
Restatement of Previously Issued Audited and Unaudited Consolidated Financial Statements (Details) - Schedule of consolidated statements of operations and comprehensive income (loss) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2020 | |
As Previously Reported [Member] | ||
Restatement of Previously Issued Audited and Unaudited Consolidated Financial Statements (Details) - Schedule of consolidated statements of operations and comprehensive income (loss) [Line Items] | ||
Change in fair value of warrant liabilities | ||
(Loss) income before income taxes | 2,377,198 | (3,351,409) |
Net (loss) income | 2,373,877 | (3,352,725) |
Comprehensive income (loss) | $ 2,394,437 | $ (3,332,238) |
Basic and diluted (in Dollars per share) | $ 0.32 | $ (0.33) |
Restatement Impact [Member] | ||
Restatement of Previously Issued Audited and Unaudited Consolidated Financial Statements (Details) - Schedule of consolidated statements of operations and comprehensive income (loss) [Line Items] | ||
Change in fair value of warrant liabilities | $ 414,440 | $ 777,266 |
(Loss) income before income taxes | 414,440 | 777,266 |
Net (loss) income | 414,440 | 777,266 |
Comprehensive income (loss) | $ 414,440 | $ 777,266 |
Basic and diluted (in Dollars per share) | $ 0.05 | $ 0.08 |
As Restated [Member] | ||
Restatement of Previously Issued Audited and Unaudited Consolidated Financial Statements (Details) - Schedule of consolidated statements of operations and comprehensive income (loss) [Line Items] | ||
Change in fair value of warrant liabilities | $ 414,440 | $ 777,266 |
(Loss) income before income taxes | 2,791,638 | (2,574,143) |
Net (loss) income | 2,788,317 | (2,575,459) |
Comprehensive income (loss) | $ 2,808,877 | $ (2,554,972) |
Basic and diluted (in Dollars per share) | $ 0.37 | $ (0.25) |
Restatement of Previously Iss_4
Restatement of Previously Issued Audited and Unaudited Consolidated Financial Statements (Details) - Schedule of consolidated balance sheets - USD ($) | Dec. 31, 2020 | Jun. 30, 2020 |
As Previously Reported [Member] | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Warrant liabilities | ||
Total current liabilities | 11,318,364 | 5,439,512 |
Total liabilities | 12,134,370 | 5,439,512 |
Additional paid-in-capital | 14,516,848 | 7,649,772 |
Accumulated deficit | (3,729,628) | 1,996,974 |
Total stockholders' equity | 10,771,699 | 9,631,091 |
Restatement Impact [Member] | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Warrant liabilities | 1,469,821 | 1,832,647 |
Total current liabilities | 1,469,821 | 1,832,647 |
Total liabilities | 1,469,821 | 1,832,647 |
Additional paid-in-capital | (2,247,087) | (2,247,087) |
Accumulated deficit | 777,266 | 414,440 |
Total stockholders' equity | (1,469,821) | (1,832,647) |
As Restated [Member] | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Warrant liabilities | 1,469,821 | 1,832,647 |
Total current liabilities | 12,788,185 | 7,272,159 |
Total liabilities | 13,604,191 | 7,272,159 |
Additional paid-in-capital | 12,269,761 | 5,402,685 |
Accumulated deficit | (2,952,362) | 2,411,414 |
Total stockholders' equity | $ 9,301,878 | $ 7,798,444 |
Restatement of Previously Iss_5
Restatement of Previously Issued Audited and Unaudited Consolidated Financial Statements (Details) - Schedule of consolidated statements of cash flow - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2020 | |
As Previously Reported [Member] | ||
Cash Flows from Operating Activities | ||
Net (loss) income | $ 2,373,877 | $ (3,352,725) |
Change in fair value of warrant liabilities | ||
Restatement Impact [Member] | ||
Cash Flows from Operating Activities | ||
Net (loss) income | 414,440 | 777,266 |
Change in fair value of warrant liabilities | (414,440) | (777,266) |
As Restated [Member] | ||
Cash Flows from Operating Activities | ||
Net (loss) income | 2,788,317 | (2,575,459) |
Change in fair value of warrant liabilities | $ (414,440) | $ (777,266) |
Organization and Principal Ac_7
Organization and Principal Activities (Details) - Schedule of consummation of the reverse recapitalization - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Schedule of consummation of the reverse recapitalization [Abstract] | ||
Cash | $ 2,476,198 | $ 2,476,198 |
Prepaid expenses and other current assets | 209 | 209 |
Warrant liabilities | (2,247,087) | |
Accrued expenses | (57,963) | (57,963) |
Net assets acquired by LGHL as of June 16, 2020 | $ 171,357 | $ 171,357 |
Organization and Principal Ac_8
Organization and Principal Activities (Details) - Schedule of subsidiaries | 6 Months Ended |
Jun. 30, 2021 | |
June 16, 2015 [Member] | |
Organization and Principal Activities (Details) - Schedule of subsidiaries [Line Items] | |
Company Name | Lion Financial Group Limited |
Date of Incorporation or Acquisition | Jun. 16, 2015 |
Place of Incorporation or Establishment | British Virgin Islands |
Ownership Interest | 100.00% |
Principal Activities | Investment holding |
February 16, 2017 [Member] | |
Organization and Principal Activities (Details) - Schedule of subsidiaries [Line Items] | |
Company Name | Lion Wealth Management Limited |
Date of Incorporation or Acquisition | Feb. 16, 2017 |
Place of Incorporation or Establishment | British Virgin Islands |
Ownership Interest | 100.00% |
Principal Activities | Investment holding |
May 20, 2016 [Member] | |
Organization and Principal Activities (Details) - Schedule of subsidiaries [Line Items] | |
Company Name | Lion International Securities Group Limited |
Date of Incorporation or Acquisition | May 20, 2016 |
Place of Incorporation or Establishment | Hong Kong |
Ownership Interest | 100.00% |
Principal Activities | Securities brokerage |
May 20, 2016 [Member] | |
Organization and Principal Activities (Details) - Schedule of subsidiaries [Line Items] | |
Company Name | Lion Futures Limited |
Date of Incorporation or Acquisition | May 20, 2016 |
Place of Incorporation or Establishment | Hong Kong |
Ownership Interest | 100.00% |
Principal Activities | Futures brokerage |
May 20, 2016 [Member] | |
Organization and Principal Activities (Details) - Schedule of subsidiaries [Line Items] | |
Company Name | Lion Investment (Hong Kong) Limited (F/K/A Lion Foreign Exchange Limited) |
Date of Incorporation or Acquisition | May 20, 2016 |
Place of Incorporation or Establishment | Hong Kong |
Ownership Interest | 100.00% |
Principal Activities | Dormant |
May 20, 2016 [Member] | |
Organization and Principal Activities (Details) - Schedule of subsidiaries [Line Items] | |
Company Name | Lion Asset Management Limited (F/K/A Lion Capital Management Limited) |
Date of Incorporation or Acquisition | May 20, 2016 |
Place of Incorporation or Establishment | Hong Kong |
Ownership Interest | 100.00% |
Principal Activities | Asset management |
October 14, 2014 [Member] | |
Organization and Principal Activities (Details) - Schedule of subsidiaries [Line Items] | |
Company Name | BC Wealth Management Limited |
Date of Incorporation or Acquisition | Oct. 14, 2014 |
Place of Incorporation or Establishment | Hong Kong |
Ownership Interest | 100.00% |
Principal Activities | Insurance brokerage |
October 4, 2018 [Member] | |
Organization and Principal Activities (Details) - Schedule of subsidiaries [Line Items] | |
Company Name | Lion Wealth Limited |
Date of Incorporation or Acquisition | Oct. 4, 2018 |
Place of Incorporation or Establishment | Hong Kong |
Ownership Interest | 100.00% |
Principal Activities | Marketing and support service |
May 2, 2017 [Member] | |
Organization and Principal Activities (Details) - Schedule of subsidiaries [Line Items] | |
Company Name | Lion Brokers Limited |
Date of Incorporation or Acquisition | May 2, 2017 |
Place of Incorporation or Establishment | Cayman Islands |
Ownership Interest | 100.00% |
Principal Activities | Broker dealer and market maker |
June 11, 2019 [Member] | |
Organization and Principal Activities (Details) - Schedule of subsidiaries [Line Items] | |
Company Name | Lion Investment Fund SPC |
Date of Incorporation or Acquisition | Jun. 11, 2019 |
Place of Incorporation or Establishment | Cayman Islands |
Ownership Interest | 100.00% |
Principal Activities | Dormant |
July 26,2019 [Member] | |
Organization and Principal Activities (Details) - Schedule of subsidiaries [Line Items] | |
Company Name | Lion International Financial (Singapore) Pte. LTD. |
Date of Incorporation or Acquisition | Jul. 26, 2019 |
Place of Incorporation or Establishment | Singapore |
Ownership Interest | 100.00% |
Principal Activities | Dormant |
June 16, 2020 [Member] | |
Organization and Principal Activities (Details) - Schedule of subsidiaries [Line Items] | |
Company Name | Lion Group North America Corp. (F/K/A Proficient Alpha Acquisition Corp.) |
Date of Incorporation or Acquisition | Jun. 16, 2020 |
Place of Incorporation or Establishment | Nevada, USA |
Ownership Interest | 100.00% |
Principal Activities | Dormant |
April 13, 2021 [Member] | |
Organization and Principal Activities (Details) - Schedule of subsidiaries [Line Items] | |
Company Name | Lion Fintech Group Limited |
Date of Incorporation or Acquisition | Apr. 13, 2021 |
Place of Incorporation or Establishment | British Virgin Islands |
Ownership Interest | 100.00% |
Principal Activities | Investment holding |
April 13, 2021 [Member] | |
Organization and Principal Activities (Details) - Schedule of subsidiaries [Line Items] | |
Company Name | Royal Lion Investment Limited (“Royal Lion”) |
Date of Incorporation or Acquisition | Apr. 13, 2021 |
Place of Incorporation or Establishment | Cayman Islands |
Ownership Interest | 70.00% |
Principal Activities | Investment holding |
April 13, 2021 [Member] | |
Organization and Principal Activities (Details) - Schedule of subsidiaries [Line Items] | |
Company Name | Royal Lion Middle East DMCC (“Lion DMCC”) |
Date of Incorporation or Acquisition | Apr. 13, 2021 |
Place of Incorporation or Establishment | Dubai |
Ownership Interest | 70.00% |
Principal Activities | Trading in crypto-commodities |
May 7, 2021 [Member] | |
Organization and Principal Activities (Details) - Schedule of subsidiaries [Line Items] | |
Company Name | Lion NFT Limited (“Lion NFT”) |
Date of Incorporation or Acquisition | May 7, 2021 |
Place of Incorporation or Establishment | British Virgin Islands |
Ownership Interest | 60.00% |
Principal Activities | Investment and innovation in digital assets |
June 17, 2021 [Member] | |
Organization and Principal Activities (Details) - Schedule of subsidiaries [Line Items] | |
Company Name | Flying Lion Limited (“Flying Lion”) |
Date of Incorporation or Acquisition | Jun. 17, 2021 |
Place of Incorporation or Establishment | Cayman Islands |
Ownership Interest | 70.00% |
Principal Activities | Investment and innovation in digital assets |
May 7, 2021 [Member] | |
Organization and Principal Activities (Details) - Schedule of subsidiaries [Line Items] | |
Company Name | Lion Group (Hangzhou) Investment Limited |
Date of Incorporation or Acquisition | May 7, 2021 |
Place of Incorporation or Establishment | China |
Ownership Interest | 100.00% |
Principal Activities | Technology development, consulting, conference and exhibition services |
April 12, 2021 [Member] | |
Organization and Principal Activities (Details) - Schedule of subsidiaries [Line Items] | |
Company Name | Aquarius Sponsor Ltd. |
Date of Incorporation or Acquisition | Apr. 12, 2021 |
Place of Incorporation or Establishment | British Virgin Islands |
Ownership Interest | 51.00% |
Principal Activities | Investment holding |
May 4, 2021 [Member] | |
Organization and Principal Activities (Details) - Schedule of subsidiaries [Line Items] | |
Company Name | Aquarius II Sponsor Ltd. |
Date of Incorporation or Acquisition | May 4, 2021 |
Place of Incorporation or Establishment | British Virgin Islands |
Ownership Interest | 51.00% |
Principal Activities | Investment holding |
April 15, 2021 [Member] | |
Organization and Principal Activities (Details) - Schedule of subsidiaries [Line Items] | |
Company Name | Aquarius I Acquisition Corp. |
Date of Incorporation or Acquisition | Apr. 15, 2021 |
Place of Incorporation or Establishment | Cayman Islands |
Ownership Interest | 51.00% |
Principal Activities | Special purpose acquisition company |
May 5, 2021 [Member] | |
Organization and Principal Activities (Details) - Schedule of subsidiaries [Line Items] | |
Company Name | Aquarius II Acquisition Corp. |
Date of Incorporation or Acquisition | May 5, 2021 |
Place of Incorporation or Establishment | Cayman Islands |
Ownership Interest | 51.00% |
Principal Activities | Special purpose acquisition company |
Significant Accounting Polici_5
Significant Accounting Policies (Details) - Schedule of activities of the crypto currencies | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Schedule of activities of the crypto currencies [Abstract] | |
Crypto currencies beginning balance | |
Additions of crypto currencies | 201,152 |
Realized gain on sale of crypto currencies | |
Impairment of crypto currencies | |
Crypto currencies ending balance | $ 201,152 |
Significant Accounting Polici_6
Significant Accounting Policies (Details) - Schedule of potential dilutive securities denominated in ordinary shares equivalents that were excluded from the computation of diluted earnings (loss) per share - shares | Jun. 30, 2021 | Jun. 30, 2020 |
SPAC Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total basic and diluted earnings (loss) per ordinary share | 17,795,000 | 17,795,000 |
August 2020 PIPE Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total basic and diluted earnings (loss) per ordinary share | 1,500,000 | |
Convertible Debenture [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total basic and diluted earnings (loss) per ordinary share | 800,000 | |
December 2020 Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total basic and diluted earnings (loss) per ordinary share | 13,700,000 | |
February 2021 Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total basic and diluted earnings (loss) per ordinary share | 26,666,667 | |
Series A Convertible Preferred Shares [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total basic and diluted earnings (loss) per ordinary share | 2,333,333 |
Revenue Recognition (Details)_2
Revenue Recognition (Details) - Schedule of revenue from contracts with customers - USD ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue Recognition (Details) - Schedule of revenue from contracts with customers [Line Items] | |||||
Insurance brokerage commissions | $ 295,343 | $ 638,574 | $ 959,299 | $ 2,648,119 | $ 5,375,531 |
Securities brokerage commissions | 1,178,062 | 565,517 | |||
Market making commissions and fees | 1,069,656 | 2,717,614 | 4,940,623 | 11,056,431 | |
Total revenue from contracts with customers | 2,543,061 | 3,921,705 | |||
Geographic revenue | 2,543,061 | 3,921,705 | 7,790,424 | 15,915,465 | 7,401,181 |
HONG KONG | |||||
Revenue Recognition (Details) - Schedule of revenue from contracts with customers [Line Items] | |||||
Geographic revenue | 1,473,405 | 1,204,091 | 2,777,831 | 4,859,034 | 7,401,181 |
CAYMAN ISLANDS | |||||
Revenue Recognition (Details) - Schedule of revenue from contracts with customers [Line Items] | |||||
Geographic revenue | $ 1,069,656 | $ 2,717,614 | $ 5,012,593 | $ 11,056,431 |
Cash and Restricted Cash (Det_2
Cash and Restricted Cash (Details) - Schedule of cash and restricted cash - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of cash and restricted cash [Abstract] | |||||
Cash | $ 14,888,644 | $ 3,426,467 | $ 8,111,409 | $ 6,388,978 | $ 3,116,209 |
Restricted Cash | 808,923 | 1,367,630 | 1,470,486 | 2,192,201 | 3,991,949 |
Total cash and restricted cash presented in the consolidated statement of cash flows | $ 15,697,567 | $ 4,794,097 | $ 9,581,895 | $ 8,581,179 | $ 7,108,158 |
Fair Value (Details) - Schedu_4
Fair Value (Details) - Schedule of financial instruments, as their value is derived using quoted market prices as of the measurement date - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Fair Value (Details) - Schedule of financial instruments, as their value is derived using quoted market prices as of the measurement date [Line Items] | ||
Stock price (in Dollars per share) | $ 2.41 | |
Exercise price (in Dollars per share) | $ 11.5 | $ 11.5 |
Expected term in years | 3 years 11 months 15 days | |
Expected dividend yield | 0.00% | 0.00% |
Volatility | 61.28% | |
Risk-free interest Rate | 0.781% | |
Minimum [Member] | ||
Fair Value (Details) - Schedule of financial instruments, as their value is derived using quoted market prices as of the measurement date [Line Items] | ||
Stock price (in Dollars per share) | $ 1.89 | |
Expected term in years | 4 years 5 months 15 days | |
Volatility | 54.44% | |
Risk-free interest Rate | 0.364% | |
Maximum [Member] | ||
Fair Value (Details) - Schedule of financial instruments, as their value is derived using quoted market prices as of the measurement date [Line Items] | ||
Stock price (in Dollars per share) | $ 2.43 | |
Expected term in years | 5 years | |
Volatility | 54.92% | |
Risk-free interest Rate | 0.373% |
Fair Value (Details) - Schedu_5
Fair Value (Details) - Schedule of fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis - USD ($) | 6 Months Ended | |||
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Assets | ||||
Listed equity securities | $ 30,325,800 | [1] | $ 17,622 | $ 180,201 |
Total Assets | 30,325,800 | |||
Liabilities | ||||
Derivatives | (5,653) | |||
Warrant liabilities | (3,881,250) | (1,469,821) | ||
Total Liabilities | (1,475,474) | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Assets | ||||
Listed equity securities | 30,325,800 | [1] | 17,622 | 180,201 |
Total Assets | 30,325,800 | |||
Liabilities | ||||
Derivatives | ||||
Warrant liabilities | (2,645,000) | (1,000,500) | ||
Total Liabilities | (1,000,500) | |||
Significant Observable Inputs (Level 2) [Member] | ||||
Assets | ||||
Listed equity securities | [1] | |||
Total Assets | ||||
Liabilities | ||||
Derivatives | (5,653) | |||
Warrant liabilities | (1,236,250) | (469,321) | ||
Total Liabilities | (474,974) | |||
Significant Unobservable Inputs (Level 3) [Member] | ||||
Assets | ||||
Listed equity securities | [1] | |||
Total Assets | ||||
Liabilities | ||||
Derivatives | ||||
Warrant liabilities | ||||
Total Liabilities | ||||
[1] | In February 2021, the Group entered into a framework strategic partnership agreement with Grandshores Technology Group Limited (“Grandshores”). The amount includes the fair value of 64,500,000 shares of Grandshores (“Grandshores Shares”) at a total subscription price of approximately $3.5 million (representing approximately 5.89% of the total issued share capital of Grandshores). As of June 30, 2021, the fair value of the Grandshores Shares was $2.4 million and the Group recorded unrealized trading loss of approximately $1.1 million. |
Fair Value (Details) - Schedu_6
Fair Value (Details) - Schedule of fair values of financial assets and liabilities, excluding financial instruments - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Aug. 31, 2019 | Dec. 31, 2018 |
Assets | |||||||
Cash and cash equivalents | $ 14,888,644 | $ 3,426,467 | $ 8,111,409 | $ 6,388,978 | $ 3,116,209 | ||
Bank balances held on behalf of customers | 808,923 | 1,367,630 | 2,192,201 | ||||
Receivables from broker-dealers and clearing organizations | 23,689,967 | 8,089,193 | 1,684,961 | ||||
Short-term loans receivable | 508,756 | 2,239,378 | 1,637,310 | ||||
Commissions receivable | 71,253 | 88,560 | |||||
Other receivables | 67,475 | 724,708 | 166,064 | ||||
Total assets in fair value | 39,963,765 | 15,918,629 | |||||
Liabilities | |||||||
Payables to customers | 14,362,840 | 5,221,270 | 3,853,693 | ||||
Payable to broker-dealers | 24,270,558 | 3,845,740 | |||||
Commissions payable | 39,180 | 29,439 | |||||
Accrued expenses and other payables | 1,169,408 | 1,763,094 | 417,445 | ||||
Short-term borrowings | 293,905 | 1,412,570 | $ 20,409,250 | $ 20,409,250 | |||
Due to director | 152,472 | 149,522 | |||||
Total liabilities | 39,955,278 | 11,312,711 | 6,227,463 | ||||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||||||
Assets | |||||||
Cash and cash equivalents | 14,888,644 | 3,426,467 | 6,388,978 | ||||
Bank balances held on behalf of customers | 808,923 | 1,367,630 | 2,192,201 | ||||
Receivables from broker-dealers and clearing organizations | |||||||
Short-term loans receivable | |||||||
Commissions receivable | |||||||
Other receivables | |||||||
Total assets in fair value | 15,697,567 | 4,794,097 | |||||
Liabilities | |||||||
Payables to customers | |||||||
Payable to broker-dealers | |||||||
Commissions payable | |||||||
Accrued expenses and other payables | |||||||
Short-term borrowings | |||||||
Due to director | |||||||
Total liabilities | |||||||
Significant Observable Inputs (Level 2) [Member] | |||||||
Assets | |||||||
Cash and cash equivalents | |||||||
Bank balances held on behalf of customers | |||||||
Receivables from broker-dealers and clearing organizations | 23,689,967 | 8,089,193 | 1,684,961 | ||||
Short-term loans receivable | 508,756 | 2,239,378 | 1,637,310 | ||||
Commissions receivable | 71,253 | 88,560 | |||||
Other receivables | 67,475 | 724,708 | 166,064 | ||||
Total assets in fair value | 24,266,198 | 11,124,532 | |||||
Liabilities | |||||||
Payables to customers | 14,362,840 | 5,221,270 | 3,853,693 | ||||
Payable to broker-dealers | 24,270,558 | 3,845,740 | |||||
Commissions payable | 39,180 | 29,439 | |||||
Accrued expenses and other payables | 1,169,408 | 1,763,094 | 417,445 | ||||
Short-term borrowings | 293,905 | ||||||
Due to director | 152,472 | 149,522 | |||||
Total liabilities | 39,955,278 | 11,312,711 | 6,227,463 | ||||
Significant Unobservable Inputs (Level 3) [Member] | |||||||
Assets | |||||||
Cash and cash equivalents | |||||||
Bank balances held on behalf of customers | |||||||
Receivables from broker-dealers and clearing organizations | |||||||
Short-term loans receivable | |||||||
Commissions receivable | |||||||
Other receivables | |||||||
Total assets in fair value | |||||||
Liabilities | |||||||
Payables to customers | |||||||
Payable to broker-dealers | |||||||
Commissions payable | |||||||
Accrued expenses and other payables | |||||||
Short-term borrowings | |||||||
Due to director | |||||||
Total liabilities | |||||||
Estimated Fair Value [Member] | |||||||
Assets | |||||||
Cash and cash equivalents | 14,888,644 | 3,426,467 | |||||
Bank balances held on behalf of customers | 808,923 | 1,367,630 | |||||
Receivables from broker-dealers and clearing organizations | 23,689,967 | 8,089,193 | |||||
Short-term loans receivable | 508,756 | 2,239,378 | |||||
Commissions receivable | 71,253 | ||||||
Other receivables | 67,475 | 724,708 | |||||
Total assets in fair value | 39,963,765 | 15,918,629 | |||||
Liabilities | |||||||
Payables to customers | 14,362,840 | 5,221,270 | |||||
Payable to broker-dealers | 24,270,558 | 3,845,740 | |||||
Commissions payable | 39,180 | ||||||
Accrued expenses and other payables | 1,169,408 | 1,763,094 | |||||
Short-term borrowings | 293,905 | ||||||
Due to director | 152,472 | 149,522 | |||||
Total liabilities | $ 39,955,278 | $ 11,312,711 |
Long-term Investment (Details)
Long-term Investment (Details) | May 31, 2021USD ($) | May 31, 2021CNY (¥) |
Hangzhou [Member] | ||
Long-term Investment (Details) [Line Items] | ||
Amount of investment | $ 1,580,000 | ¥ 10,000,000 |
Qianlan [Member] | ||
Long-term Investment (Details) [Line Items] | ||
Percentage of equity interest | 20.00% | 20.00% |
Tunlan Hongyi [Member] | ||
Long-term Investment (Details) [Line Items] | ||
Percentage of equity interest | 62.00% | 62.00% |
Shenzhen Yuhe Chuangzhi Technology Limited Company [Member] | ||
Long-term Investment (Details) [Line Items] | ||
Total investment | ¥ 64,500,000 |
Fixed Assets, Net (Details)
Fixed Assets, Net (Details) ¥ in Millions | Sep. 07, 2021USD ($) | Apr. 19, 2021USD ($) | Apr. 19, 2021CNY (¥) | Jan. 31, 2021USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) |
Fixed Assets, Net (Details) [Line Items] | ||||||
Aggregate Purchases Price | $ 8,000,000 | $ 743,500 | ||||
Depreciation expense | $ 367,851 | $ 21,992 | ||||
Minebaba [Member] | ||||||
Fixed Assets, Net (Details) [Line Items] | ||||||
Mining machines | $ 5,000 | |||||
Aggregate Purchases Price | 2,600,000 | ¥ 17 | ||||
Costs payable | $ 200,000 |
Fixed Assets, Net (Details) - S
Fixed Assets, Net (Details) - Schedule of fixed assets - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | |||
Total cost of fixed assets | $ 10,783,327 | $ 186,511 | |
Less: accumulated depreciation | (519,128) | (151,592) | |
Fixed assets, net | 10,264,199 | 34,919 | $ 73,688 |
Cryptocurrency mining machines [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total cost of fixed assets | 2,594,524 | ||
Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total cost of fixed assets | 8,000,000 | ||
Leasehold improvement [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total cost of fixed assets | 38,399 | 38,463 | |
Office and computer equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total cost of fixed assets | $ 150,405 | $ 148,048 |
Accrued Expenses and Other Pa_4
Accrued Expenses and Other Payables (Details) - Schedule of accrued expenses and other payables - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of accrued expenses and other payables [Abstract] | |||
Accrued professional fees | $ 212,525 | $ 1,376,450 | $ 188,749 |
Accrued vacation and benefits | 342,187 | 174,771 | 127,999 |
Accrued communication and technology expenses | 182,963 | 114,754 | 83,724 |
Accrued electricity expenses for crypto mining | 131,410 | ||
Payable to Grandshore on Sponsor entities | 179,764 | ||
Other payables | 64,195 | 97,119 | 16,973 |
Accrued expenses and other payables | $ 1,113,045 | $ 1,763,094 | $ 417,445 |
December 2020 Convertible Deb_5
December 2020 Convertible Debenture and Warrants (Details) - Schedule of assumptions used to measure the fair value of December 2020 Warrants on the date of issuance | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Series A [Member] | ||
December 2020 Convertible Debenture and Warrants (Details) - Schedule of assumptions used to measure the fair value of December 2020 Warrants on the date of issuance [Line Items] | ||
Expected term in years | 7 years | 7 years |
Expected dividend yield | 0.00% | 0.00% |
Volatility | 46.68% | 46.68% |
Risk-free interest Rate | 0.63% | 0.63% |
Series B [Member] | ||
December 2020 Convertible Debenture and Warrants (Details) - Schedule of assumptions used to measure the fair value of December 2020 Warrants on the date of issuance [Line Items] | ||
Expected term in years | 2 years | 2 years |
Expected dividend yield | 0.00% | 0.00% |
Volatility | 49.61% | 49.61% |
Risk-free interest Rate | 0.197% | 0.197% |
Series C [Member] | ||
December 2020 Convertible Debenture and Warrants (Details) - Schedule of assumptions used to measure the fair value of December 2020 Warrants on the date of issuance [Line Items] | ||
Expected term in years | 7 years | 7 years |
Expected dividend yield | 0.00% | 0.00% |
Volatility | 46.68% | 46.68% |
Risk-free interest Rate | 0.63% | 0.63% |
February 2021 Convertible Pre_3
February 2021 Convertible Preferred Shares and Warrants (Details) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |
Feb. 15, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
February 2021 Convertible Preferred Shares and Warrants (Details) [Line Items] | ||||
Purchase agreement description | On February 15, 2021, the Company entered into a Securities Purchase Agreement (the “Securities Purchase Agreement) with one third party investor (the “Purchaser”), pursuant to which the Company received $6,440,000 in consideration of the issuance of: a) Series A Convertible Preferred Shares (the “Series A Convertible Preferred Shares”) with a stated value of $7,000,000; b) a warrant (the “Series D Warrant”) to purchase 2,333,333 American Depositary Shares (“ADS”) of the Company until the fifth year anniversary of the closing date at an exercise price of $3.00 per ADS; c) a one-year warrant to purchase 13,333,333 ADS (the “Series E Warrant”) at an exercise price of $3.00 per ADS, each exercise of which entitles the Warrant holder to receive one ADS and a 8% cash discount; and d) a 5-year warrant to purchase 13,333,333 ADS (the “Series F Warrant”, together with the Series D Warrant and the Series E Warrant, the “February 2021 Warrants”) at an exercise price of $3.00 per ADS. The exercisability of Series F Warrant shall vest ratably from time to time in proportion to the exercise of the Series E Warrants by the holder. The transactions contemplated under the Securities Purchase Agreement were closed on February 18, 2021. | |||
Series A convertible Preferred Shares (in Shares) | 0 | 0 | ||
Series A convertible preferred shares par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | |
Series A convertible Preferred share, Value | $ 1,000 | |||
Dividend rights rate | 8.00% | |||
Conversion price (in Dollars per share) | $ 3 | |||
Net proceeds of convertible preferred shares | $ 6,299,000 | |||
Prefer stock discount | 1,563,000 | |||
Additional paid in capital | 81,000 | |||
Net of debt discounts paid | 620,000 | |||
Series one [Member] | ||||
February 2021 Convertible Preferred Shares and Warrants (Details) [Line Items] | ||||
Aggregate Proceeds | $ 737,000 | $ 737,000 | ||
Series one [Member] | February 2021Warrants [Member] | ||||
February 2021 Convertible Preferred Shares and Warrants (Details) [Line Items] | ||||
Warrant price (in Shares) | 2,509,000 | |||
Series Two [Member] | ||||
February 2021 Convertible Preferred Shares and Warrants (Details) [Line Items] | ||||
Aggregate Proceeds | $ 803,000 | $ 803,000 | ||
Series Two [Member] | February 2021Warrants [Member] | ||||
February 2021 Convertible Preferred Shares and Warrants (Details) [Line Items] | ||||
Warrant price (in Shares) | 7,114,000 | |||
Series Three [Member] | February 2021Warrants [Member] | ||||
February 2021 Convertible Preferred Shares and Warrants (Details) [Line Items] | ||||
Warrant price (in Shares) | 11,952,000 | |||
Series D [Member] | ||||
February 2021 Convertible Preferred Shares and Warrants (Details) [Line Items] | ||||
Aggregate Proceeds | $ 2,149,000 | |||
Series E [Member] | ||||
February 2021 Convertible Preferred Shares and Warrants (Details) [Line Items] | ||||
Aggregate Proceeds | $ 4,231,000 | |||
Series A Convertible Preferred Shares [Member] | ||||
February 2021 Convertible Preferred Shares and Warrants (Details) [Line Items] | ||||
Series A convertible Preferred Shares (in Shares) | 7,000 | 0 | ||
Series A convertible preferred shares par value (in Dollars per share) | $ 1,000 | $ 1,000 | ||
Series A Convertible Preferred Shares [Member] | February 2021Warrants [Member] | ||||
February 2021 Convertible Preferred Shares and Warrants (Details) [Line Items] | ||||
Net proceeds of convertible preferred shares | $ 1,563,000 | |||
Series D Convertible Preferred Shares [Member] | February 2021Warrants [Member] | ||||
February 2021 Convertible Preferred Shares and Warrants (Details) [Line Items] | ||||
Net proceeds of convertible preferred shares | 560,000 | |||
Series E Convertible Preferred Shares [Member] | February 2021Warrants [Member] | ||||
February 2021 Convertible Preferred Shares and Warrants (Details) [Line Items] | ||||
Net proceeds of convertible preferred shares | 1,588,000 | |||
Series F Convertible Preferred Shares [Member] | February 2021Warrants [Member] | ||||
February 2021 Convertible Preferred Shares and Warrants (Details) [Line Items] | ||||
Net proceeds of convertible preferred shares | $ 2,669,000 |
February 2021 Convertible Pre_4
February 2021 Convertible Preferred Shares and Warrants (Details) - Schedule of assumptions used to measure the fair value of February 2021 Warrants on the date of issuance | 6 Months Ended |
Jun. 30, 2021 | |
Series D [Member] | |
February 2021 Convertible Preferred Shares and Warrants (Details) - Schedule of assumptions used to measure the fair value of February 2021 Warrants on the date of issuance [Line Items] | |
Expected term in years | 5 years |
Expected dividend yield | 0.00% |
Volatility | 43.05% |
Risk-free interest Rate | 0.63% |
Series E [Member] | |
February 2021 Convertible Preferred Shares and Warrants (Details) - Schedule of assumptions used to measure the fair value of February 2021 Warrants on the date of issuance [Line Items] | |
Expected term in years | 1 year |
Expected dividend yield | 0.00% |
Volatility | 50.45% |
Risk-free interest Rate | 0.208% |
Series F [Member] | |
February 2021 Convertible Preferred Shares and Warrants (Details) - Schedule of assumptions used to measure the fair value of February 2021 Warrants on the date of issuance [Line Items] | |
Expected term in years | 5 years |
Expected dividend yield | 0.00% |
Volatility | 43.05% |
Risk-free interest Rate | 0.63% |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - Schedule of stock-based compensation expense over the requisite service period - Call Option [Member] | 6 Months Ended |
Jun. 30, 2021 | |
Stockholders' Equity (Details) - Schedule of stock-based compensation expense over the requisite service period [Line Items] | |
Expected term in years | 2 years |
Expected dividend yield | 0.00% |
Volatility | 51.69% |
Risk-free interest Rate | 0.21% |
Income Taxes (Details) - Sche_4
Income Taxes (Details) - Schedule of current and deferred portions of the income tax expense - USD ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of current and deferred portions of the income tax expense [Abstract] | |||||
Current | $ 53,239 | $ 2,842 | $ 1,767 | $ 66,299 | $ 26,962 |
Deferred | 1,128 | 479 | (451) | (1,827) | (628) |
Income tax expense | $ 54,367 | $ 3,321 | $ 1,316 | $ 64,472 | $ 26,334 |
Income Taxes (Details) - Sche_5
Income Taxes (Details) - Schedule of reconciliation of the difference between the expected income tax expense or benefit computed at applicable statutory income tax rates and the Group’s income tax expense - USD ($) | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Schedule of reconciliation of the difference between the expected income tax expense or benefit computed at applicable statutory income tax rates and the group’s income tax expense [Abstract] | ||||||
Income tax expense (benefit) at applicable statutory rate | [1] | $ (1,688,110) | $ 9,738 | $ (348,782) | $ 1,345,164 | $ (473,951) |
Nondeductible expenses | (402,509) | 5,090 | ||||
(Income) loss not subject to tax | [2] | 1,151,121 | (323,006) | (214,313) | (1,716,553) | 313,015 |
Current year change in valuation allowance | 940,626 | 311,499 | 558,859 | 406,506 | 195,420 | |
Prior year examination adjustment | 53,239 | |||||
Reported income taxes | $ 54,367 | $ 3,321 | $ 1,316 | $ 64,472 | $ 26,334 | |
[1] | The applicable statutory rate applied is based on the profits tax rates in Hong Kong. Effective for tax years ended on or after December 31, 2018, the applicable tax rate was 8.25% on the first HK $2,000,000 of assessable profits and 16.5% on any assessable profits above that threshold. The 8.25% tax rate can only be utilized by one entity in a controlled group. All other Hong Kong entities in the Group utilize the 16.5% tax rate. The Singapore entity within the Group has an applicable tax rate of 17.0%. The entity in the United States within the Group has a federal tax rate of 21.0%. | |||||
[2] | The Group also has entities domiciled in the British Virgin Islands and the Cayman Islands, but such entities are not subject to income or capital gains taxes. |
Income Taxes (Details) - Sche_6
Income Taxes (Details) - Schedule of components of the Group’s deferred tax assets - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax asset | |||
Others | $ 1,477 | $ 1,128 | $ 677 |
Fixed assets | 118 | ||
Net operating loss carryforwards | 2,323,105 | 1,367,309 | 808,450 |
Less: Valuation allowance | $ (2,324,700) | (1,367,309) | $ (808,450) |
Net deferred tax asset | $ 1,128 |
Commitments (Details)_2
Commitments (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Rent expenses | $ 348,000 | $ 323,000 |
Commitments (Details) - Sched_2
Commitments (Details) - Schedule of future minimum payments under non-cancelable operating leases - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of future minimum payments under non-cancelable operating leases [Abstract] | ||
2021 | $ 272,089 | $ 646,930 |
2022 | 208,970 | |
2023 | 3,912 | 3,736 |
Total future minimum payments | $ 484,971 | $ 860,222 |
Regulatory Requirements (Deta_2
Regulatory Requirements (Details) - Schedule of the minimum regulatory capital required and the actual amounts of capital maintained - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Regulatory Assets [Line Items] | ||
Minimum Regulatory Capital Requirements | $ 10,503,319 | $ 1,336,814 |
Capital Levels Maintained | 14,927,333 | 10,914,773 |
Excess Net Capital | $ 4,424,014 | $ 9,577,959 |
Percent of requirement Maintained | 142.00% | 816.00% |
Lion International Securities Group Limited [Member] | ||
Regulatory Assets [Line Items] | ||
Minimum Regulatory Capital Requirements | $ 386,292 | $ 386,927 |
Capital Levels Maintained | 1,171,495 | 1,043,803 |
Excess Net Capital | $ 785,203 | $ 656,876 |
Percent of requirement Maintained | 303.00% | 270.00% |
Lion Futures Limited [Member] | ||
Regulatory Assets [Line Items] | ||
Minimum Regulatory Capital Requirements | $ 386,292 | $ 386,927 |
Capital Levels Maintained | 1,039,855 | 948,872 |
Excess Net Capital | $ 653,563 | $ 561,945 |
Percent of requirement Maintained | 269.00% | 245.00% |
Lion Asset Management Limited [Member] | ||
Regulatory Assets [Line Items] | ||
Minimum Regulatory Capital Requirements | $ 12,876 | $ 12,898 |
Capital Levels Maintained | 43,415 | 27,770 |
Excess Net Capital | $ 30,539 | $ 14,872 |
Percent of requirement Maintained | 337.00% | 215.00% |
BC Wealth Management Limited [Member] | ||
Regulatory Assets [Line Items] | ||
Minimum Regulatory Capital Requirements | $ 12,876 | $ 12,898 |
Capital Levels Maintained | 177,081 | 468,279 |
Excess Net Capital | $ 164,205 | $ 455,381 |
Percent of requirement Maintained | 1375.00% | 3631.00% |
Lion Broker Limited (Cayman) [Member] | ||
Regulatory Assets [Line Items] | ||
Minimum Regulatory Capital Requirements | $ 9,704,983 | $ 537,164 |
Capital Levels Maintained | 12,495,487 | 8,426,049 |
Excess Net Capital | $ 2,790,504 | $ 7,888,885 |
Percent of requirement Maintained | 129.00% | 1569.00% |
Segment Reporting (Details) -_2
Segment Reporting (Details) - Schedule of operating segments - USD ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Revenue | $ 3,600,297 | $ 6,430,516 | $ 10,230,135 | $ 18,526,850 | $ 6,568,263 |
Commissions and fees | 1,189,243 | 762,061 | 1,845,994 | 3,355,205 | 5,471,602 |
Compensation and benefits | 2,383,547 | 1,486,160 | |||
Occupancy | 347,660 | 323,224 | 683,160 | 591,936 | 548,331 |
Communication and technology | 947,292 | 469,662 | 1,454,050 | 823,433 | 588,353 |
General and administrative | 630,059 | 292,788 | |||
Crypto currencies | 219,662 | ||||
Professional fees | 990,011 | 153,853 | 1,565,834 | 761,238 | 227,998 |
Service fees | 2,474,122 | 231,785 | |||
Interest | 942,264 | 79,343 | 183,157 | 731,812 | 118 |
Depreciation | 279,680 | 21,992 | |||
Marketing | 553,758 | 199,948 | 651,324 | 55,378 | 195,933 |
Payment service charge | 292,630 | 245,030 | 355,585 | ||
Other operating expenses | 19,474 | 32,502 | |||
Total operating expenses | 11,269,402 | 4,053,318 | |||
Income (loss) from operations | (7,669,105) | 2,377,198 | (3,351,409) | 8,280,824 | (2,744,874) |
Total segment assets | 86,517,677 | 15,070,603 | $ 22,906,069 | $ 13,418,348 | $ 15,672,761 |
Futures And Securities Brokerage Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 1,212,222 | 617,242 | |||
Commissions and fees | 814,295 | 387,439 | |||
Compensation and benefits | 594,038 | 607,139 | |||
Occupancy | 3,119 | ||||
Communication and technology | 224,232 | 208,672 | |||
General and administrative | 40,133 | 34,396 | |||
Professional fees | 773 | 800 | |||
Depreciation | 1,476 | 10,484 | |||
Marketing | 1,010 | 222 | |||
Other operating expenses | 1,526 | 3,847 | |||
Total operating expenses | 1,677,483 | 1,256,118 | |||
Income (loss) from operations | (465,261) | (638,876) | |||
Total segment assets | 4,412,577 | 3,793,041 | |||
Insurance Brokerage Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 295,340 | 638,574 | |||
Commissions and fees | 84,902 | 315,083 | |||
Compensation and benefits | 135,183 | 135,312 | |||
Occupancy | 119,301 | 142,052 | |||
Communication and technology | 3,126 | 2,393 | |||
General and administrative | 21,225 | 24,502 | |||
Marketing | 222 | ||||
Total operating expenses | 363,737 | 619,564 | |||
Income (loss) from operations | (68,397) | 19,010 | |||
Total segment assets | 182,524 | 214,252 | |||
Market making (CFD) trading and other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 2,949,525 | 5,126,239 | |||
Commissions and fees | 290,046 | 59,539 | |||
Occupancy | 4,200 | 3,600 | |||
Communication and technology | 563,526 | 257,311 | |||
General and administrative | 164,709 | 105,853 | |||
Professional fees | 190,128 | 112,506 | |||
Service fees | 2,311,018 | 119,379 | |||
Interest | 109,268 | 4,989 | |||
Depreciation | 266,666 | ||||
Marketing | 55,000 | 105,013 | |||
Payment service charge | 292,630 | ||||
Other operating expenses | 19,309 | ||||
Total operating expenses | 4,247,191 | 787,499 | |||
Income (loss) from operations | (1,297,666) | 4,338,740 | |||
Total segment assets | 63,259,609 | 7,987,408 | |||
Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | (856,790) | 48,461 | |||
Compensation and benefits | 1,654,326 | 743,709 | |||
Occupancy | 224,159 | 174,453 | |||
Communication and technology | 156,408 | 1,286 | |||
General and administrative | 403,992 | 128,037 | |||
Crypto currencies | 219,662 | ||||
Professional fees | 799,110 | 40,547 | |||
Service fees | 163,104 | 112,406 | |||
Interest | 832,996 | 74,354 | |||
Depreciation | 11,538 | 11,508 | |||
Marketing | 497,748 | 94,491 | |||
Other operating expenses | 17,948 | 9,346 | |||
Total operating expenses | 4,980,991 | 1,390,137 | |||
Income (loss) from operations | (5,837,781) | (1,341,676) | |||
Total segment assets | $ 18,662,967 | $ 3,075,902 |