Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Oct. 08, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | SHARING ECONOMY INTERNATIONAL INC. | |
Entity Central Index Key | 0000819926 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 9,278,106 | |
Entity File Number | 001-34591 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation State Country Code | NV |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 134,169 | $ 781,740 |
Restricted cash | 98,585 | 77,473 |
Notes receivable | 14,566 | 149,757 |
Accounts receivable, net of allowance for doubtful accounts | 1,028,702 | 4,327,980 |
Inventories, net of inventory reserve | 1,947,745 | 6,414,305 |
Advances to suppliers | 565,295 | |
Receivable from sale of subsidiary | 2,791,590 | |
Prepaid license fee - related party, net | 331,915 | 663,830 |
Prepaid expenses and other | 2,178,703 | 5,235,113 |
Assets of discontinued operations | 216,220 | 209,926 |
Total current assets | 5,950,605 | 21,217,009 |
OTHER ASSETS: | ||
Property and equipment, net | 6,882,656 | 21,563,420 |
Intangible assets, net | 3,455,878 | 3,562,513 |
Total other assets | 10,338,534 | 25,125,933 |
Total assets | 16,289,139 | 46,342,942 |
CURRENT LIABILITIES: | ||
Short-term bank loans | 2,000,017 | 2,182,960 |
Bank acceptance notes payable | 94,676 | 72,698 |
Convertible note payable | 745,903 | 710,504 |
Accounts payable | 2,596,468 | 4,254,598 |
Accrued expenses | 478,852 | 779,948 |
Advances from customers | 1,073,797 | |
Due to related parties | 1,525,779 | 1,257,505 |
Income taxes payable | 60,172 | 60,065 |
Liabilities of discontinued operations | 312,738 | 268,532 |
Total current liabilities | 7,814,605 | 10,660,607 |
LONG-TERM LIABILITIES: | ||
Long-term loan | 165,903 | 244,910 |
Total liabilities | 7,980,508 | 10,905,517 |
STOCKHOLDERS' EQUITY: | ||
Common stock ($0.001 par value; 12,500,000 shares authorized; 9,278,106 and 7,449,123 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively) | 9,278 | 7,449 |
Additional paid-in capital | 58,301,021 | 58,452,131 |
Retained earnings | (54,526,718) | (27,492,559) |
Statutory reserve | 2,352,592 | 2,352,592 |
Accumulated other comprehensive income - foreign currency translation adjustment | 2,975,370 | 2,657,614 |
Total stockholder's equity | 9,111,543 | 35,977,227 |
Non-controlling interest | (802,912) | (539,802) |
Total stockholders' equity | 8,308,631 | 35,437,425 |
Total liabilities and stockholders' equity | 16,289,139 | 46,342,942 |
Series A Preferred stock [Member] | ||
STOCKHOLDERS' EQUITY: | ||
Preferred stock, $0.001 par value; 10,000,000 shares authorized; Series A Preferred stock ($0.001 par value; 10,000,000 shares authorized; 0 and 0 issued and outstanding at June 30, 2019 and December 31, 2018, respectively) |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 12,500,000 | 12,500,000 |
Common stock, shares issued | 9,278,106 | 7,449,123 |
Common stock, shares outstanding | 9,278,106 | 7,449,123 |
Preferred Class A | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
REVENUES | $ 1,675,647 | $ 2,569,593 | $ 3,566,701 | $ 5,138,120 |
COST OF REVENUES | 2,345,420 | 3,289,480 | 8,232,011 | 6,217,372 |
GROSS LOSS | (669,773) | (719,887) | (4,665,310) | (1,079,252) |
OPERATING EXPENSES: | ||||
Depreciation and amortization | 98,474 | 345,745 | 375,807 | 588,748 |
Selling, general and administrative | 1,396,397 | 4,674,593 | 3,976,458 | 7,421,577 |
Research and development | 92,454 | 124,981 | 185,832 | 238,428 |
Bad debt expense | (25,318) | (2,214) | 4,356,123 | 1,315,990 |
Impairment loss | (78,506) | 13,507,553 | ||
Total operating expenses | 1,483,501 | 5,143,105 | 22,401,773 | 9,564,743 |
LOSS FROM OPERATIONS | (2,153,274) | (5,862,992) | (27,067,083) | (10,643,995) |
OTHER INCOME (EXPENSE): | ||||
Interest income | 703 | 7,617 | 798 | 9,078 |
Interest expense | (38,994) | (92,362) | (171,807) | (122,814) |
Loss on equity method investment | (73,433) | (145,845) | ||
Foreign currency transaction gain (loss) | 2 | (758) | (1,490) | (1,913) |
Other loss | (56,601) | (725) | (57,324) | (725) |
Total other expense, net | (94,890) | (159,661) | (229,823) | (262,219) |
LOSS FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES | (2,248,164) | (6,022,653) | (27,296,906) | (10,906,214) |
PROVISIONS FOR INCOME TAXES: | ||||
Current | ||||
Deferred | ||||
Total income taxes provision | ||||
LOSS FROM CONTINUING OPERATIONS | (2,248,164) | (6,022,653) | (27,296,906) | (10,906,214) |
DISCONTINUED OPERATIONS: | ||||
Gain (loss) from discontinued operations, net of income taxes | (28) | 16,871 | ||
GAIN (LOSS) FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES | (28) | 16,871 | ||
NET LOSS | (2,248,164) | (6,022,681) | (27,296,906) | (10,889,343) |
NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST | (60,679) | (219,905) | (262,747) | (306,153) |
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS | (2,187,485) | (5,802,776) | (27,034,159) | (10,583,190) |
COMPREHENSIVE LOSS: | ||||
Net loss | (2,248,164) | (6,022,681) | (27,296,906) | (10,889,343) |
Unrealized foreign currency translation gain (loss) | (364,636) | (2,952,028) | 317,393 | (902,393) |
Comprehensive loss | (2,612,800) | (8,974,709) | (26,979,513) | (11,791,736) |
Net loss attributable to non-controlling interest | (60,679) | (219,905) | (262,747) | (306,153) |
Unrealized foreign currency translation loss from non-controlling interest | (363) | |||
Comprehensive loss attributable to common stockholders | $ (2,552,121) | $ (8,754,804) | $ (26,716,403) | $ (11,485,583) |
NET LOSS PER COMMON SHARE: | ||||
Continuing operations - basic and diluted | $ (0.47) | $ (1.65) | $ (3.12) | $ (2.98) |
Discontinued operations - basic and diluted | ||||
Net loss per common share - basic and diluted | $ (0.47) | $ (1.65) | $ (3.12) | $ (2.98) |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||
Basic and diluted | 4,658,915 | 3,524,660 | 8,657,671 | 3,554,498 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) - USD ($) | Common Stock | Additional Paid-in Capital | Retained Earnings | Statutory Reserve | Accumulated Other Comprehensive Income | Non-controlling Interest | Total |
Beginning balance at Dec. 31, 2017 | $ 2,528 | $ 40,241,172 | $ 13,624,729 | $ 2,352,592 | $ 4,923,829 | $ 24,230 | $ 61,169,080 |
Beginning balance, shares at Dec. 31, 2017 | 2,527,720 | ||||||
Common stock issued for cash | $ 70 | 256,340 | 256,410 | ||||
Common stock issued for cash, shares | 69,676 | ||||||
Common stock issued for services to consultants and service providers | $ 2,564 | 11,590,365 | 11,592,929 | ||||
Common stock issued for services to consultants and service providers, shares | 2,564,151 | ||||||
Common stock issued for services to employees and directors | $ 251 | 822,696 | 822,947 | ||||
Common stock issued for services to employees and directors, shares | 251,070 | ||||||
Common stock issued upon conversion of debt | $ 200 | 670,135 | 670,335 | ||||
Common stock issued upon conversion of debt, shares | 200,100 | ||||||
Common stock issued for acquisition of majority-owned subsidiaries | $ 425 | 2,016,559 | 2,016,984 | ||||
Common stock issued for acquisition of majority-owned subsidiaries, shares | 425,074 | ||||||
Share of reserve arising from acquisition of a non-wholly owned subsidiaries | 402,412 | 402,412 | |||||
Share of reserve arising from acquisition of a non-wholly owned subsidiaries, shares | |||||||
Net loss | (10,583,190) | (306,153) | (10,889,343) | ||||
Foreign currency translation adjustment | (902,393) | (902,393) | |||||
Ending balance at Jun. 30, 2018 | $ 6,038 | 55,597,267 | 3,041,539 | 2,352,592 | 4,021,436 | 120,489 | 65,139,361 |
Ending balance, shares at Jun. 30, 2018 | 6,037,791 | ||||||
Beginning balance at Mar. 31, 2018 | $ 4,446 | 49,160,622 | 8,844,315 | 2,352,592 | 6,973,464 | 341,742 | 67,677,181 |
Beginning balance, shares at Mar. 31, 2018 | 4,445,709 | ||||||
Common stock issued for cash | |||||||
Common stock issued for cash, shares | |||||||
Common stock issued for services to consultants and service providers | $ 1,341 | 5,393,161 | 5,394,502 | ||||
Common stock issued for services to consultants and service providers, shares | 1,340,882 | ||||||
Common stock issued for services to employees and directors | $ 1 | 3,734 | 3,735 | ||||
Common stock issued for services to employees and directors, shares | 1,200 | ||||||
Common stock issued upon conversion of debt | |||||||
Common stock issued upon conversion of debt, shares | |||||||
Common stock issued for acquisition of majority-owned subsidiaries | $ 250 | 1,039,750 | 1,040,000 | ||||
Common stock issued for acquisition of majority-owned subsidiaries, shares | 250,000 | ||||||
Share of reserve arising from acquisition of a non-wholly owned subsidiaries | (1,348) | (1,348) | |||||
Share of reserve arising from acquisition of a non-wholly owned subsidiaries, shares | |||||||
Net loss | (5,802,776) | (219,905) | (6,022,681) | ||||
Foreign currency translation adjustment | (2,952,028) | (2,952,028) | |||||
Ending balance at Jun. 30, 2018 | $ 6,038 | 55,597,267 | 3,041,539 | 2,352,592 | 4,021,436 | 120,489 | 65,139,361 |
Ending balance, shares at Jun. 30, 2018 | 6,037,791 | ||||||
Beginning balance at Dec. 31, 2018 | $ 7,449 | 58,452,131 | (27,492,559) | 2,352,592 | 2,657,614 | (539,802) | 35,437,425 |
Beginning balance, shares at Dec. 31, 2018 | 7,449,123 | ||||||
Common stock issued for cash | $ 690 | 199,410 | 200,100 | ||||
Common stock issued for cash, shares | 690,000 | ||||||
Common stock issued for services to consultants and service providers | $ 1,349 | 287,620 | 288,969 | ||||
Common stock issued for services to consultants and service providers, shares | 1,349,347 | ||||||
Common stock surrendered for services from consultants and service providers | $ (562) | (947,386) | (947,948) | ||||
Common stock surrendered for services from consultants and service providers, shares | (562,501) | ||||||
Common stock issued upon conversion of debt | $ 267 | 49,733 | 50,000 | ||||
Common stock issued upon conversion of debt, shares | 266,667 | ||||||
Common stock issued for donation | $ 85 | 259,513 | 259,598 | ||||
Common stock issued for donation, shares | 85,470 | ||||||
Net loss | (27,034,159) | (262,747) | (27,296,906) | ||||
Foreign currency translation adjustment | 317,756 | (363) | 317,393 | ||||
Ending balance at Jun. 30, 2019 | $ 9,278 | 58,301,021 | (54,526,718) | 2,352,592 | 2,975,370 | (802,912) | 8,308,631 |
Ending balance, shares at Jun. 30, 2019 | 9,278,106 | ||||||
Beginning balance at Mar. 31, 2019 | $ 9,123 | 58,203,963 | (52,339,233) | 2,352,592 | 3,340,006 | (742,233) | 10,824,218 |
Beginning balance, shares at Mar. 31, 2019 | 9,122,729 | ||||||
Common stock issued for cash | |||||||
Common stock issued for cash, shares | |||||||
Common stock issued for services to consultants and service providers | $ 447 | 96,766 | 97,213 | ||||
Common stock issued for services to consultants and service providers, shares | 447,399 | ||||||
Common stock surrendered for services from consultants and service providers | $ (292) | 292 | |||||
Common stock surrendered for services from consultants and service providers, shares | (292,022) | ||||||
Common stock issued upon conversion of debt | |||||||
Common stock issued upon conversion of debt, shares | |||||||
Common stock issued for donation | |||||||
Common stock issued for donation, shares | |||||||
Net loss | (21,874,865) | (60,679) | (2,248,164) | ||||
Foreign currency translation adjustment | (364,636) | (364,636) | |||||
Ending balance at Jun. 30, 2019 | $ 9,278 | $ 58,301,021 | $ (54,526,718) | $ 2,352,592 | $ 2,975,370 | $ (802,912) | $ 8,308,631 |
Ending balance, shares at Jun. 30, 2019 | 9,278,106 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (27,296,906) | $ (10,889,343) |
Adjustments to reconcile net loss from operations to net cash provided by (used in) operating activities: | ||
Depreciation | 1,388,696 | 2,101,654 |
Amortization of intangible assets | 110,263 | 200,196 |
Bad debt allowance | 4,356,123 | 1,315,990 |
Bad debt recovery - discontinued operations | (16,899) | |
Impairment loss of property and equipment | 13,507,553 | |
Loss on equity method investment | 145,845 | |
Stock-based employment compensation | 933 | 878,325 |
Stock-based professional fees | 2,188,765 | 4,711,594 |
Stock-based donation | 259,598 | |
Amortization of debt discount | 69,502 | 46,334 |
Amortization of license fee | 331,915 | 65,000 |
Write-off of inventory | 3,650,801 | |
Changes in operating assets and liabilities: | ||
Notes receivable | 137,089 | 383,667 |
Accounts receivable | 1,820,260 | 2,610,324 |
Inventories | 881,420 | (2,263,041) |
Prepaid and other current assets | 383,834 | (963,721) |
Advances to suppliers | 573,119 | 1,090,783 |
Assets of discontinued operations | (5,989) | 135,792 |
Accounts payable | (1,688,122) | 110,153 |
Accrued expenses | (305,982) | 93,739 |
Advances from customers | (1,088,661) | (43,081) |
Liabilities of discontinued operations | 44,252 | (136,150) |
Net cash used in operating activities | (681,537) | (422,839) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (73,800) | |
Proceed received from acquisition | 2,341 | |
Net cash used in investing activities | (71,459) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceed from convertible note | 900,000 | |
Offering costs paid | (195,018) | |
Proceeds from bank loan | 442,223 | 706,425 |
Repayments of bank loan | (711,726) | (706,425) |
Increase (decrease) in bank acceptance notes payable | 22,111 | (274,721) |
Advance from related party | 299,878 | 874,413 |
Repayment of related party advances | (31,604) | |
Proceeds from sale of common stock, net | 200,100 | 256,410 |
Net cash provided by financing activities | 220,982 | 1,561,084 |
Effect of exchange rate changes | (165,904) | (100,418) |
Net change in cash, cash equivalents and restricted cash | (626,459) | 966,368 |
Cash, cash equivalents and restricted cash - beginning of period | 859,213 | 1,292,428 |
Cash, cash equivalents and restricted cash - end of period | 232,754 | 2,258,796 |
Cash paid in continuing operations for: | ||
Interest | 171,807 | 61,480 |
Income taxes | ||
Cash paid in discontinued operations for: | ||
Interest | ||
Income taxes | ||
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Stock issued for future services to consultants and vendors | 111,280 | 7,907,678 |
Stock issued for future services to employees and directors | 2,782 | |
Stock issued for repayment of convertible note | 670,335 | |
Stock issued for convertible note | 747,510 | |
Stock issued for acquisition of non-wholly owned subsidiaries | 976,984 | |
Stock issued for redemption of convertible note and accrued interest | 50,000 | |
Stock issued for prepayment of license fee – related party | 1,040,000 | |
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH | ||
Cash and cash equivalents at beginning of period | 781,740 | 1,019,437 |
Restricted cash at beginning of period | 77,473 | 272,991 |
Total cash, cash equivalents and restricted cash at beginning of period | 859,213 | 1,292,428 |
Cash and cash equivalents at end of period | 134,169 | 2,164,137 |
Restricted cash at end of period | 98,585 | 94,659 |
Total cash, cash equivalents and restricted cash at ended of period | $ 232,754 | $ 2,258,796 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | NOTE 1 – BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared by management in accordance with both accounting principles generally accepted in the United States (“GAAP”), and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and note disclosures normally included in audited financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. In the opinion of management, the consolidated balance sheet as of December 31, 2018 which has been derived from audited financial statements and these unaudited condensed consolidated financial statements reflect all normal and recurring adjustments considered necessary to state fairly the results for the periods presented. The results for the period ended June 30, 2019 are not necessarily indicative of the results to be expected for the entire fiscal year ending December 31, 2019 or for any future period. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the Management’s Discussion and the audited financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2018. |
Description of Business and Org
Description of Business and Organization | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
DESCRIPTION OF BUSINESS AND ORGANIZATION | NOTE 2 – DESCRIPTION OF BUSINESS AND ORGANIZATION Sharing Economy International Inc. (the “Company”) was incorporated in Delaware on June 24, 1987 under the name of Malex, Inc. On December 18, 2007, the Company’s corporate name was changed to China Wind Systems, Inc. and on June 13, 2011, the Company changed its corporate name to Cleantech Solutions International, Inc. On August 7, 2012, the Company was converted into a Nevada corporation. On January 8, 2018, the Company changed its corporate name to Sharing Economy International Inc. Through its affiliated companies, the Company manufactures and sells textile dyeing and finishing machines. The Company is the sole owner of Fulland Limited (“Fulland”), a Cayman Island limited liability company, which was organized on May 9, 2007. Fulland owns 100% of the capital stock of Green Power Environment Technology (Shanghai) Co., Ltd. (“Green Power”) and, until December 30, 2016, Fulland owned 100% of Wuxi Fulland Wind Energy Equipment Co., Ltd. (“Fulland Wind”). Green Power is and Fulland Wind was a wholly foreign-owned enterprise (“WFOE”) organized under the laws of the People’s Republic of China (“PRC” or “China”). Green Power is a party to a series of contractual arrangements, as fully described below, dated October 12, 2007 with Wuxi Huayang Heavy Industries, Co., Ltd. (“Heavy Industries”), formerly known as Wuxi Huayang Electrical Power Equipment Co., Ltd., and Wuxi Huayang Dyeing Machinery Co., Ltd. (“Dyeing”), both of which are limited liability companies organized under the laws of, and based in, the PRC. Heavy Industries and Dyeing are sometimes collectively referred to as the “Huayang Companies.” Dyeing, which was formed on August 17, 1995, produces and sells a variety of high and low temperature dyeing and finishing machinery for the textile industry. The Company refers to this segment as the dyeing and finishing equipment segment. On December 26, 2016, Dyeing and an unrelated individual formed Wuxi Shengxin New Energy Engineering Co., Ltd. (“Shengxin”), a limited liability company organized under the laws of the PRC in which Dyeing has a 30% equity interest and the unrelated third party holds a 70% interest, pursuant to an agreement dated December 23, 2016. Shengxin intends to develop, construct and maintain photovoltaic power generation projects, known as solar farms, in China, mainly in the provinces of GuiZhou and YunNan. In April 2018, Shengxin secured and invested in a large solar PV project in GuiZhou province. Shengxin paid RMB40 million for the project rights and also engaged a local contractor to proceed with building the project. However, on June 1, 2018, the Chinese government halted installation of new solar farms for the remainder of the year and reduced subsidies for projects already under construction. In September 2018, due to significant doubt about the status of this project and recoverability of the Company’s investment, the Company fully impaired the value of its investment in Shengxin (see Note 5). Fulland Wind was formed on August 27, 2008. In 2009, the Company began to produce and sell forged products through Fulland Wind. Through Fulland Wind, the Company manufactured and sold forged products, including wind products such as shafts, rolled rings, gear rims, gearboxes, bearings and other components and finished products and assemblies for the wind power and other industries, including large-scale equipment used in the manufacturing process for the various industries. The Company referred to this segment of its business as the forged rolled rings and related components segment. On December 30, 2016, Fulland sold the stock of Fulland Wind. Beginning in February 2015, Heavy Industries began to produce equipment for the petroleum and chemical industries. The Company referred to this segment of its business as the petroleum and chemical equipment segment. Because of a significant decline in revenues from this segment, the Company determined it would not continue to operate in this segment and accordingly, the petroleum and chemical equipment segment is reflected as discontinued operations for all periods presented (See Note 5). As a result of the discontinuation of the petroleum and chemical equipment business, the Company’s business primarily consists of the dyeing and finishing equipment business as its primary continuing operations since December 31, 2016. The Company’s latest business initiatives are focused on targeting the technology and global sharing economy markets, by developing online platforms and rental business partnerships that will drive the global development of sharing through economical rental business models. In connection with the new business initiatives, the Company formed or acquired the following subsidiaries: ● Vantage Ultimate Limited (“Vantage”), a company incorporated under the laws of British Virgin Islands on February 1, 2017 and is wholly-owned by the Company. ● Sharing Economy Investment Limited (“Sharing Economy”), a company incorporated under the laws of British Virgin Islands on May 18, 2017 and is wholly-owned by Vantage. ● EC Advertising Limited (“EC Advertising”), a company incorporated under the laws of Hong Kong on March 17, 2017 and is wholly-owned by Sharing Economy. ● EC Rental Limited (“EC Rental”), a company incorporated under the laws of British Virgin Islands on May 22, 2017 and is wholly-owned by Vantage. ● EC Assets Management Limited (“EC Assets”), a company incorporated under the laws of British Virgin Islands on May 22, 2017 and is wholly-owned by Vantage. ● Cleantech Solutions Limited (formerly known as EC (Fly Car) Limited), a company incorporated under the laws of British Virgin Islands on May 22, 2017 and is wholly-owned by Sharing Economy. ● Global Bike Share (Mobile App) Limited, a company incorporated under the laws of British Virgin Islands on May 23, 2017 and is wholly-owned by Sharing Economy. ● EC Power (Global) Technology Limited (“EC Power”), a company incorporated under the laws of British Virgin Islands on May 26, 2017 and is wholly-owned by EC Rental. ● EC Power (HK) Company Limited, a company incorporated under the laws of Hong Kong on June 23, 2017 and is wholly-owned by EC Power. ● EC Manpower Limited, a company incorporated under the laws of Hong Kong on July 3, 2017 and is wholly-owned by Vantage. ● EC Technology & Innovations Limited (“EC Technology”), a company incorporated under the laws of British Virgin Islands on September 1, 2017 and is wholly-owned by Vantage. ● Inspirit Studio Limited (“Inspirit Studios”), a company incorporated under the laws of Hong Kong on August 24, 2015, and 51% of its shareholding was acquired by EC Technology on December 8, 2017. ● EC Creative Limited (“EC Creative”), a company incorporated under the laws of British Virgin Islands on January 9, 2018 and is wholly-owned by Vantage. ● 3D Discovery Co. Limited (“3D Discovery”), a company incorporated under the laws of Hong Kong on February 24, 2015, and 60% of its shareholdings was acquired by EC Technology on January 19, 2018. ● Sharing Film International Limited, a company incorporated under the laws of Hong Kong on January 22, 2018 and is wholly-owned by EC Creative. ● AnyWorkspace Limited (“AnyWorkspace”), a company incorporated under the laws of Hong Kong on November 12, 2015, and 80% of its shareholding was acquired by Sharing Economy on January 30, 2018. ● Xiamen Great Media Company Limited (“Xiamen Great Media”), a company incorporated under the laws of the PRC on September 5, 2018 and is wholly-owned by EC Advertising. |
Going Concern Uncertainties
Going Concern Uncertainties | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
GOING CONCERN UNCERTAINTIES | NOTE 3 – GOING CONCERN UNCERTAINTIES These unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. As reflected in the accompanying condensed consolidated financial statements, the Company had a loss from continuing operations of approximately $27,297,000 for the six months ended June 30, 2019. The net cash used in operations was approximately $682,000 for the six months ended June 30, 2019. Additionally, during the six months ended June 30, 2019, revenues, substantially all of which are derived from the manufacture and sales of textile dyeing and finishing equipment, decreased by 30.6% as compared to the six months ended June 30, 2018. Management believes that its capital resources are not currently adequate to continue operating and maintaining its business strategy for twelve months from the date of this report. The Company may seek to raise capital through additional debt and/or equity financings to fund its operations in the future. Although the Company has historically raised capital from sales of equity and from bank loans, there is no assurance that it will be able to continue to do so. If the Company is unable to raise additional capital or secure additional lending in the near future, management expects that the Company will need to curtail or cease operations. Management believes that these matters raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying condensed consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or classification of liabilities that might be necessary should the Company be unable to continue as a going concern. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 4 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Listing status On November 26, 2018, Sharing Economy International Inc. (the “Company”) received a staff determination notice from The Nasdaq Stock Market (“Nasdaq”) informing the Company that as a result of its failure to comply with Nasdaq’s shareholder approval requirements set forth in Listing Rule 5635(c) (the “Rule”), the staff determined to deny the Company’s request for continued listing based on a plan of compliance submitted on October 26, 2018. The Company’s common stock was delisted from Nasdaq at the open of trading on December 5, 2018. The Company’s common stock is currently trading on the OTC Markets under the symbol “SEII”. Principles of consolidation The Company’s unaudited condensed consolidated financial statements include the financial statements of its wholly-owned and majority owned subsidiaries, as well as the financial statements of the Huayang Companies, including Dyeing, which conducts the Company’s continuing operations, and Heavy Industries, which operated discontinued operations. All significant intercompany accounts and transactions have been eliminated in consolidation. On December 30, 2016, the Company sold and transferred its 100% interest in Fulland Wind to an unrelated party. Additionally, the Company’s management decided to discontinue its petroleum and chemical equipment segment due to significant declines in revenues and the loss of its major customers. As such, petroleum and chemical segment’s assets and liabilities have been classified on the consolidated balance sheets as assets and liabilities of discontinued operations as of June 30, 2019 and December 31, 2018. The operating results of the petroleum and chemical segment have been classified as discontinued operations in our consolidated statements of operations for all periods presented. Unless otherwise indicated, all disclosures and amounts in the notes to the consolidated financial statements are related to the Company’s continuing operations. Pursuant to Accounting Standards Codification (“ASC”) Topic 810, the Huayang Companies are considered variable interest entities (“VIE”), and the Company is the primary beneficiary. The Company’s relationships with the Huayang Companies and their shareholders are governed by a series of contractual arrangements between Green Power, the Company’s wholly foreign-owned enterprise in the PRC, and each of the Huayang Companies, which are the operating companies of the Company in the PRC. Under PRC laws, each of Green Power, Dyeing and Heavy Industries is an independent legal entity and none of them is exposed to liabilities incurred by the other parties. The contractual arrangements constitute valid and binding obligations of the parties of such agreements. Each of the contractual arrangements and the rights and obligations of the parties thereto are enforceable and valid in accordance with the laws of the PRC. Because of the contractual arrangements, the Company has a pecuniary interest in the Huayang Companies that requires the Company to consolidate the Huayang Companies in its financial statements as if they are wholly-owned subsidiaries of the Company. Use of estimates The preparation of the unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and the related disclosures at the date of the financial statements and during the reporting period. Actual results could materially differ from these estimates. Significant estimates in the six months ended June 30, 2019 and 2018 include the allowance for doubtful accounts on accounts and other receivables, the allowance for inventory reserve, the useful life of property and equipment and intangible assets, assumptions used in assessing impairment of long-term assets, valuation of deferred tax assets, and the value of stock-based compensation. Cash and cash equivalents The Company considers all highly liquid instruments purchased with a maturity of three months or less and money market accounts to be cash equivalents. The Company maintains with various financial institutions mainly in the PRC, Hong Kong and the U.S. As of June 30, 2019 and December 31, 2018, cash balances held in PRC and Hong Kong banks of $129,301 and $774,316, respectively, are uninsured. Fair value of financial instruments The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, restricted cash, notes receivable, accounts receivable, inventories, advances to suppliers, receivable from sale of subsidiary, prepaid expenses and other, short-term bank loans, bank acceptance notes payable, convertible note payable, accounts payable, accrued expenses, advances from customers, amounts due to related parties, and income taxes payable approximate their fair market value based on the short-term maturity of these instruments. Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated. It is not, however, practical to determine the fair value of amounts due from/to related parties due to their related party nature. Concentrations of credit risk The Company’s operations are carried out in the PRC and Hong Kong. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC and Hong Kong, and by the general state of the economies in the PRC and Hong Kong. The Company’s operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivable. Substantially all of the Company’s cash is maintained with state-owned banks within the PRC and Hong Kong, and none of these deposits are covered by insurance. The Company has not experienced any losses in such accounts and believes it is not exposed to any risks on its cash in bank accounts. A significant portion of the Company’s sales are credit sales which are primarily to customers whose ability to pay is dependent upon the industry economics prevailing in these areas; however, concentrations of credit risk with respect to accounts receivables is limited due to generally short payment terms. The Company also performs ongoing credit evaluations of its customers to help further reduce credit risk. As of June 30, 2019 and December 31, 2018, the Company’s cash balances by geographic area were as follows: Country: June 30, December 31, United States $ 4,868 3.63 % $ 7,424 0.95 % Hong Kong 36,676 27.34 % 182,800 23.38 % China 92,625 69.03 % 591,516 75.67 % Total cash and cash equivalents $ 134,169 100.00 % $ 781,740 100.00 % Accounts receivable Accounts receivable are presented net of allowance for doubtful accounts. The Company maintains allowance for doubtful accounts for estimated losses. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, a customer’s historical payment history, its current credit-worthiness and current economic trends. Accounts are written off after exhaustive efforts at collection. At June 30, 2019 and December 31, 2018, the Company has established, based on a review of its outstanding balances, an allowance for doubtful accounts in the amounts of $11,051,884 and $9,527,060, respectively. Inventories Inventories, consisting of raw materials, work-in-process and finished goods related to the Company’s products are stated at the lower of cost or market utilizing the weighted average method. A reserve is established when management determines that certain inventories may not be saleable. If inventory costs exceed expected market value due to obsolescence or quantities in excess of expected demand, the Company will record reserves for the difference between the cost and the market value. These reserves are recorded based on estimates. The Company recorded an inventory reserve of $4,821,759 and $1,212,706 as of June 30, 2019 and December 31, 2018, respectively. Property and equipment Property and equipment are carried at cost and are depreciated on a straight-line basis over the estimated useful lives of the assets. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in the statements of operations in the year of disposition. The Company examines the possibility of decreases in the value of fixed assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable. Impairment loss has been recorded in current period (see note 9). Equity method investment Investments in which the Company has the ability to exercise significant influence, but do not control, are accounted for under the equity method of accounting and are included in the long-term assets on the consolidated balance sheets. Under this method of accounting, the Company’s share of the net earnings or losses of the investee is presented under other income (expense) on the consolidated statements of operations. The Company evaluates its equity method investment whenever events or changes in circumstance indicate that the carrying amounts of such investment may be impaired. A loss would be recorded if a decline in the value of an equity method investment is determined to be other than temporary (see Note 8). Stock-based compensation Stock-based compensation is accounted for based on the requirements of the Share-Based Payment topic of ASC Topic 718, which requires recognition in the financial statements of the cost of employee and director services received in exchange for an award of equity instruments over the vesting period or immediately if fully vested and non-forfeitable. The Financial Accounting Standards Board (“FASB”) also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award. Additionally, effective January 1, 2017, the Company adopted the Accounting Standards Update No. 2016-09 (“ASU 2016-09”), Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 permits the election of an accounting policy for forfeitures of share-based payment awards, either to recognize forfeitures as they occur or estimate forfeitures over the vesting period of the award. The Company has elected to recognize forfeitures as they occur and the cumulative impact of this change did not have any effect on the Company’s consolidated financial statements and related disclosures. In June 2018, the FASB issued ASU No. 2018-07, Improvements to Nonemployee Share-Based Payment Accounting, which simplifies several aspects of the accounting for nonemployee share-based payment transactions by expanding the scope of the stock-based compensation guidance in ASC 718 to include share-based payment transactions for acquiring goods and services from non-employees. ASU No. 2018-07 is effective for annual periods beginning after December 15, 2018, including interim periods within those annual periods. Early adoption is permitted, but entities may not adopt prior to adopting the new revenue recognition guidance in ASC 606. The Company early adopted ASU No. 2018-07 in the fourth quarter of 2018 and there was no cumulative effect of adoption. Employee benefits The Company’s operations and employees are all located in the PRC and Hong Kong. The Company makes mandatory contributions to the PRC and Hong Kong governments’ health, retirement benefit and unemployment funds in accordance with the relevant Chinese social security laws and law of Mandatory Provident Fund in Hong Kong. The costs of these payments are charged to the same accounts as the related salary costs in the same period as the related salary costs incurred. Employee benefit costs totaled $129,983 and $125,050 for the six months ended June 30, 2019 and 2018, respectively. Foreign currency translation The reporting currency of the Company is the U.S. dollar. The functional currency of the parent company is the U.S. dollar and the functional currency of the Company’s operating subsidiaries is the Chinese Renminbi (“RMB”) or Hong Kong dollars (HKD). For the subsidiaries and affiliates, whose functional currencies are the RMB or HKD, results of operations and cash flows are translated at average exchange rates during the period, assets and liabilities are translated at the unified exchange rate at the end of the period, and equity is translated at historical exchange rates. As a result, amounts relating to assets and liabilities reported on the statements of cash flows may not necessarily agree with the changes in the corresponding balances on the balance sheets. Translation adjustments resulting from the process of translating the local currency financial statements into U.S. dollars are included in determining comprehensive loss. The cumulative translation adjustment and effect of exchange rate changes on cash for the six months ended June 30, 2019 and 2018 was $(165,904) and $(100,418), respectively. The Company did not enter into any material transaction in foreign currencies. Transaction gains or losses have not had, and are not expected to have, a material effect on the results of operations of the Company. For operating subsidiaries and VIEs located in the People’s Republic of China (“PRC”), asset and liability accounts as of June 30, 2019 and December 31, 2018 were translated at 6.8655 RMB to $1.00 and at 6.8778 RMB to $1.00, respectively, which were the exchange rates on the balance sheet dates. For operating subsidiaries in Hong Kong, asset and liability accounts as of June 30, 2019 and December 31, 2018 were translated at 7.8498 and 7.8305 HKD to $1.00, respectively, which were the exchange rates on the balance sheet date. For operating subsidiaries and VIEs located in the PRC, the average translation rates applied to the statements of operations for the six months ended June 30, 2019 and 2018 were 6.7839 RMB and 6.3701 RMB to $1.00, respectively. For operating subsidiaries located in Hong Kong, the average translation rates applied to the statements of operations for the six months ended June 30, 2019 and December 31, 2018 were 7.8 HKD and 7.8 HKD to $1.00. Cash flows from the Company’s operations are calculated based upon the local currencies using the average translation rate. Loss per share of common stock Basic net loss per share is computed by dividing net loss available to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during each period. The Company did not have any common stock equivalents or potentially dilutive common stock outstanding during the three and six months ended June 30, 2019 and 2018. In a period in which the Company has a net loss, all potentially dilutive securities are excluded from the computation of diluted shares outstanding as they would have had an anti-dilutive impact. The following table presents a reconciliation of basic and diluted net loss per share: Three Months Ended Six Months Ended 2019 2018 2019 2018 Net loss for basic and diluted attributable to common shareholders $ (2,187,485 ) $ (5,802,776 ) $ (27,034,159 ) $ (10,583,190 ) From continuing operations (2,187,485 ) (5,802,748 ) (27,034,159 ) (10,600,061 ) From discontinued operations - (28 ) - 16,871 Weighted average common stock outstanding – basic and diluted 4,658,915 3,524,660 8,657,671 3,554,498 Net loss per share of common stock From continuing operations – basic and diluted $ (0.47 ) $ (1.65 ) $ (3.12 ) $ (2.98 ) From discontinued operations – basic and diluted - - - - Net loss per common share – basic and diluted $ (0.47 ) $ (1.65 ) $ (3.12 ) $ (2.98 ) Comprehensive loss Comprehensive loss is comprised of net loss and all changes to the statements of stockholders’ equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders. For the Company, comprehensive loss for the three and six months ended June 30, 2019 and 2018 included net loss and unrealized (loss) gain from foreign currency translation adjustments. Reclassification Certain reclassifications have been made in prior period’s consolidated financial statements to conform to the current year’s financial presentation. The reclassifications have no effect on previously reported net loss. Recent accounting pronouncements In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. Under ASU 2016-02, lessees will be required to recognize all leases (with the exception of short-term leases) at the commencement date including a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use (ROU) asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Leases with a term of twelve months or less will be accounted for similar to existing guidance for operating leases. In December 2017, January 2018, July 2018, December 2018 and March 2019, the FASB issued ASU 2017-13, ASU 2018-01, ASU 2018-10 & 11, ASU 2018-20 and ASU 2019-01, respectively, which contain modifications and improvements to ASU 2016-02. The amendments provide entities with an additional (and optional) transition method to adopt the new leases standard. Under the Optional Transition Method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. On January 1, 2019, the Company adopted ASC Topic 842 using the modified retrospective approach and elected to utilize the Optional Transition Method. In addition, the Company elected the land easement transition practical expedient and did not reassess whether an existing or expired land easement is a lease or contains a lease if it has not historically been accounted for as a lease. The adoption did not impact the Company’s previously reported consolidated financial statements nor did it result in a cumulative effect adjustment to retained earnings as of January 1, 2019. In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment. ASU 2018-07 aligns the accounting for share based payments granted to non-employees with that of share based payments granted to employees. The Company early adopted ASU No. 2018-07 in the fourth quarter of 2018 and there was no cumulative effect of adoption. The adoption of this ASU did not have a material impact on our financial position, results of operations, cash flows, or presentation thereof. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | NOTE 5 – DISCONTINUED OPERATIONS Pursuant to an agreement dated December 23, 2016, the Company, through its wholly-owned subsidiary Fulland, sold the stock of Fulland Wind to a third party for a sales price of RMB 48 million (approximately $6.9 million). The Company’s forging and related components business was conducted through Fulland Wind. The purchase price is payable in three installments. The Company received the first installment of RMB 14,400,000 (approximately $2.1 million) on December 28, 2016, and received the second installment of RMB 14,400,000 (approximately $2.1 million) on April 10, 2017. The Company delivered Fulland Wind’s business license, seals, books and records, business contracts and personnel roster to the third party buyer on December 30, 2016, effectively the sale date. If the equity transfer registration formalities are completed within one year without any third party claims on the equity transfer, a final payment of RMB 19,200,000 (approximately $2.7 million) was due 25 working days after the expiration of such period. Pursuant to extension agreement dated December 31, 2018, the Company agreed the above third party buyer could paid off the final payment of RMB 19,200,000 (approximately $2.7 million) by December 31, 2019. During the six months ended June 30, 2019, the Company believed that the final payment of RMB 19,200,000 (approximately $2.7 million) is uncollectible and the write off of such receivable is included in bad debt expense. Additionally, in December 2016, the Company’s management decided to discontinue its petroleum and chemical equipment segment under Heavy Industries due to significant decline in revenues and the loss of its major customers. Accordingly, the petroleum and chemical equipment segment business is treated as a discontinued operation. The results of operations from petroleum and chemical equipment segment of Heavy Industries for the three and six months ended June 30, 2019 and 2018 have been classified to the loss from discontinued operations line on the accompanying unaudited condensed consolidated statements of operations and comprehensive loss presented herein. The assets and liabilities classified as discontinued operations in the Company’s consolidated financial statements as of June 30, 2019 and December 31, 2018, and for the three and six months ended June 30, 2019 and 2018 is set forth below. June 30, December 31, (unaudited) (audited) Assets: Current assets: Accounts receivable, net $ 9,610 $ 9,593 Prepaid expenses and other 206,610 200,333 Total current assets 216,220 209,926 Total assets $ 216,220 $ 209,926 Liabilities: Current liabilities: Accounts payable $ 243,164 $ 242,555 Advances from customers 43,551 - Accrued expenses and other liabilities 26,023 25,977 Total current liabilities 312,738 268,532 Total liabilities $ 312,738 $ 268,532 The summarized operating result of discontinued operations included in the Company’s unaudited condensed consolidated statements of operations is as follows: Three months ended Six months ended 2019 2018 2019 2018 Revenues $ - $ - $ - $ - Operating income: Other operating income – bad debt recovery - (28 ) - 16,871 Total operating income - (28 ) - 16,871 (Loss) gain from operations - (28 ) - 16,871 Other income, net - - - - (Loss) gain from discontinued operations, net of income taxes $ - $ (28 ) $ - $ 16,871 |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | NOTE 6 – ACCOUNTS RECEIVABLE As of June 30, 2019 and December 31, 2018, accounts receivable consisted of the following: June 30, December 31, Accounts receivable $ 12,080,586 $ 13,855,040 Less: allowance for doubtful accounts (11,051,884 ) (9,527,060 ) $ 1,028,702 $ 4,327,980 The Company reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. For the six months ended June 30, 2019 and 2018, bad debt expense amounted to $4,356,123 and $1,315,990, respectively. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 7 – INVENTORIES As of June 30, 2019 and December 31, 2018, inventories consisted of the following: June 30, December 31, Raw materials $ 675,600 $ 1,207,334 Work-in-process 512,377 872,376 Finished goods 5,581,527 5,547,301 6,769,504 7,627,011 Less: inventory reserve (4,821,759 ) (1,212,706 ) $ 1,947,745 $ 6,414,305 The Company establishes a reserve to mark down its inventories for estimated unmarketable inventories equal to the difference between the cost of inventories and the estimated net realizable value based on assumptions about the usability of the inventories, future demand and market conditions. For the six months ended June 30, 2019 and 2018, the Company increased (decrease) its inventory reserve for $3,609,053 and $(3,737), respectively. |
Equity Method Investment
Equity Method Investment | 6 Months Ended |
Jun. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
EQUITY METHOD INVESTMENT | NOTE 8 – EQUITY METHOD INVESTMENT On December 26, 2016, Dyeing and Xue Miao, an unrelated individual, formed Shengxin pursuant to an agreement dated December 23, 2016. The agreement sets forth general terms relating to the proposed business, but does not set forth specific funding obligations for either party. Dyeing has agreed to invest RMB 60,000,000 (approximately $8.9 million) and had invested RMB 59.8 million (approximately $8.9 million as of June 30, 2019), for which it received a 30% interest, and Mr. Xue has a commitment to invest RMB 140,000,000 (approximately $20.9 million), of which Mr. Xue has contributed RMB 60,000,000 (approximately $8.9 million), for which Mr. Xue received a 70% interest in Shengxin. Shengxin's registered capital is RMB 200 million (approximately $29.8 million). Mr. Xue had advised Dyeing that he anticipated that he will fund the remaining RMB 80,000,000 (approximately $11.9 million) of his commitment during 2018. Since Mr. Xue did not make this payment by the end of 2017, Dyeing has the right to amend the contract, and both parties may adjust each side's equity interest to reflect the amount of capital each side has actually invested. In April 2018, Shengxin secured and invested in a large solar PV project in GuiZhou province. Shengxin paid RMB 40 million for the project rights and also engaged a local contractor to proceed with building the project. However, on June 1, 2018, the Chinese government halted installation of new solar farms for the remainder of the year and reduced subsidies for projects already under construction. Accordingly, there is no guarantee that the Chinese government will invest in new solar farm or provide the subsidies needed to fund projects. In September 2018, due to significant doubt about the status of this project and recoverability of our investment, the Company fully impaired the value of the investment in Shengxin. For the three months ended June 30, 2019 and 2018, the Company recorded a loss on equity method investment of $0 and $73,433, respectively. For the six months ended June 30, 2019 and 2018, the Company recorded a loss on equity method investment of $0 and $145,845, respectively. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 9 – PROPERTY AND EQUIPMENT As of June 30, 2019 and December 31, 2018, property and equipment consisted of the following: Useful life June 30, December 31, Office equipment and furniture 5 years $ 88,503 $ 86,724 Manufacturing equipment 5 - 10 years 11,257,906 20,297,029 Vehicles 5 years 177,071 176,884 Building and building improvements 5 - 20 years - 21,341,612 Manufacturing equipment in progress - 3,387,954 338,190 Construction in progress - 1,645,911 4,686,673 16,557,345 46,927,112 Less: accumulated depreciation (9,674,689 ) (25,363,692 ) $ 6,882,656 $ 21,563,420 For the three months ended June 30, 2019 and 2018, depreciation expense amounted to $694,953 and $1,049,914, respectively, of which $596,479 and $704,169, respectively, was included in cost of revenues, and the remainder was included in operating expenses. For the six months ended June 30, 2019 and 2018, depreciation expense amounted to $1,388,696 and $2,101,654, respectively, of which $1,012,889 and $1,512,906, respectively, was included in cost of revenues, and the remainder was included in operating expenses. As of June 30, 2019, the Company conducted an impairment assessment on property and equipment. Accordingly, the Company recorded an impairment loss of $13,507,553 on certain equipment and buildings for the six months ended June 30, 2019. For the six months ended June 30, 2018, the impairment loss was $0. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | NOTE 10 – INTANGIBLE ASSETS As of June 30, 2019 and December 31, 2018, intangible assets consisted of the following: Useful life June 30, December 31, Land use rights 45 - 50 years $ 3,932,823 $ 3,925,789 Other intangible assets 3 – 5 years 843,102 845,180 Goodwill - 27,353 27,421 4,803,278 4,798,390 Less: accumulated amortization (1,347,400 ) (1,235,877 ) $ 3,455,878 $ 3,562,513 Amortization of intangible assets attributable to future periods is as follows: Year ending June 30: Amount 2020 $ 355,278 2021 310,832 2022 103,891 2023 103,891 2024 89,067 Thereafter 2,465,566 $ 3,428,525 There is no private ownership of land in China. Land is owned by the government and the government grants land use rights for specified terms. The Company’s land use rights have terms of 45 and 50 years and expire on January 1, 2053 and October 30, 2053. The Company amortizes the land use rights over the term of the respective land use right. In January 2018, in connection with the acquisition of 3D Discovery, the Company acquired their technologies valued at $754,159. The technology of 3D Discovery covers a 3D virtual tour solution for the property industry. The Company amortizes this technology over a term of five years. For the three months ended June 30, 2019 and 2018, amortization of intangible assets amounted to $21,658 and $101,714, respectively. For the six months ended June 30, 2019 and 2018, amortization of intangible assets amounted to $110,263 and $200,196, respectively. |
Short-Term Bank Loans
Short-Term Bank Loans | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
SHORT-TERM BANK LOANS | NOTE 11 – SHORT-TERM BANK LOANS Short-term bank loans represent amounts due to various banks that are due within one year. These loans can be renewed with these banks upon maturities. As of June 30, 2019 and December 31, 2018, short-term bank loans consisted of the following: June 30, December 31, Loan from Bank of China, due on November 20, 2019 with annual interest rate of 4.60%, secured by certain assets of the Company and guaranteed by the Company's CEO, Jianhua Wu, and Wuxi Angyida Machinery Co., Ltd, a company whose corporate representative is a brother of the Company's CEO $ 364,140 $ 363,488 Loan from Bank of China, due on November 25, 2019 with annual interest rate of 4.60%, secured by certain assets of the Company and guaranteed by the Company's CEO, Jianhua Wu, and Wuxi Angyida Machinery Co., Ltd, a company whose corporate representative is a brother of the Company's CEO 364,140 363,488 Loan from Bank of Wuxi Nongshuang, due on February 22, 2019 with annual interest rate of 5.87%, secured by certain assets of the Company - 654,279 Loan from Bank of Wuxi Nongshuang, due on November 6, 2019 with annual interest rate of 5.87%, secured by certain assets of the Company 655,450 - Loan from Bank of Communication, due on September 25, 2019 with annual interest rate of 4.35%, secured by certain assets of the Company - 581,582 Loan from Bank of Communication, due on September 25, 2019 with annual interest rate of 4.35%, secured by certain assets of the Company 436,967 - Current portion of loan from Zhongli International Finance Corporation, credit line of RMB 4,500,000 (approximately $670,521), with a security deposit of RMB 900,000 (approximately $134,104) which will be returned in 36 months, monthly installment of RMB 210,000 (approximately $31,291) in the 1 st th th th th th 179,320 220,123 Total short-term bank loans $ 2,000,017 $ 2,182,960 * Long-term Loans represent amounts due to Zhongli International Finance Corporation that is due more than one year. Long-term loan amounts to $165,903 and $244,910 as of June 30, 2019 and December 31, 2018, respectively. Minimum 36-month installments for the loan from Zhongli International Finance Corporation under the loan agreement are as follows: 12-month periods ending June 30, Amount 2020 $ 272,668 2021 188,770 2022 42,823 Total minimum loan payments 504,261 Less: amount representing interest (72,654 ) Less: security deposit due (86,384 ) Present value of net minimum loan payment 345,223 Less: current portion (179,320 ) Long-term portion $ 165,903 Interest related to the bank loans, which was $38,994 and $92,362 for the three months ended June 30, 2019 and 2018, and $171,807 and $122,814 for the six months ended June 30, 2019 and 2018, respectively, is included in interest expense on the accompanying unaudited condensed consolidated statements of operations and comprehensive loss. |
Convertible Note Payable
Convertible Note Payable | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE NOTE PAYABLE | NOTE 12 – CONVERTIBLE NOTE PAYABLE Securities purchase agreement and related convertible note and warrants On May 2, 2018, pursuant to a securities purchase agreement, the Company closed a private placement of securities with Iliad Research and Trading, L.P. (the "Investor") pursuant to which the Investor purchased a Convertible Promissory Note (the "Iliad Note") in the original principal amount of $900,000, convertible into shares of common stock of the Company (the "Common Stock"), upon the terms and subject to the limitations and conditions set forth in the Iliad Note, and a two year Warrant to purchase 134,328 shares of Common Stock at an exercise price of $7.18 per share (the "Warrant"). In connection with the Iliad Note, the Company paid an original issue discount of $150,000 and paid issuance costs of $45,018 which will be reflected as a debt discount and amortized over the Iliad Note term. The Iliad Note bears interest at 10% per annum, is unsecured, and is due on the date that is fifteen months from May 2, 2018. The warrants shall expire on the last calendar day of the month in which the second anniversary of the Issue Date occurs. On November 8, 2018, the Company converted an aggregate of $27,811 and $47,189 outstanding principal and interest of the Iliad Note, respectively, into a total of 36,621 shares of its common stock. On January 11, 2019, the Company converted an aggregate of $34,103 and $15,897 outstanding principal and interest of the Iliad Note, respectively, into 266,667 shares of its common stock. The Investor has the right at any time after May 2, 2018 until the outstanding balance has been paid in full to convert all or any part of the outstanding balance into shares of common stock of the Company at conversion price of $6.70 per share (the "Lender Conversion Price"). The Lender Conversion Price is subject to certain adjustments set forth in the Iliad Note. The conversion price for each Redemption Conversion (the "Redemption Conversion Price") shall be the lesser of (a) the Lender Conversion Price, and (b) the Market Price; provided, however, in no event shall the Redemption Conversion Price be less than $2.00 per share ("Conversion Price Floor") unless the Company waive the Conversion Price Floor. This debt instrument includes embedded components including a put option. The Company evaluated these embedded components to determine whether they are embedded derivatives within the scope of ASC 815 that should be separately carried at fair value. ASC 815-15-25-1 provides guidance on when an embedded component should be separated from its host instrument and accounted for separately as a derivative. Based on this analysis, the Company believes that the put option is clearly and closely related to the debt instrument and does not meet the definition of a derivative. Accordingly, in connection with this Iliad Note, the Company recorded a debt discount for (a) the original issue discount of $150,000 (b) the relative fair value of the warrants issued of $152,490 and (c) legal fees and other fees paid in connection with the Iliad Note aggregating $45,018. There is no beneficial conversion feature on this Iliad Note. The debt discount shall be accreted on a straight line basis over the term of this Iliad Note. As of June 30, 2019 and December 31, 2018, convertible debt consisted of the following: June 30, December 31, Principal $ 838,571 $ 872,674 Unamortized discount (92,668 ) (162,170 ) Convertible debt, net $ 745,903 $ 710,504 For the six months ended June 30, 2019, amortization of debt discount and interest expenses amounted to $69,502 and $21,313 , respectively. For the six months ended June 30, 2018, amortization of debt discount and interest expenses amounted to $46,334 and $0, respectively. As of June 30, 2019 and December 31, 2018, accrued interest amounted to $18,603 and $13,187, respectively. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 13 – RELATED PARTY TRANSACTIONS License Agreement with ECrent Capital Holdings Limited On June 11, 2017, the Company entered into an Exclusivity Agreement (the "Exclusivity Agreement") with ECrent Capital Holdings Limited ("ECrent") the terms of which became effective on the same day. Pursuant to the Exclusivity Agreement, the Company and ECrent agreed to engage in exclusive discussions regarding a potential acquisition by the Company of ECrent and/or any of its subsidiaries or otherwise all or part of ECrent's business and potential business cooperation between the two companies (collectively, the "Potential Transactions") for a period of three months commencing from the date of the Exclusivity Agreement (the "Exclusive Period"). Ms. Deborah Yuen, an former affiliate of Chan Tin Chi Family Company Limited (formerly known as YSK 1860 Co., Limited), which is a major shareholder of the Company, controlled ECrent. ECrent agreed that, during the Exclusive Period, neither ECrent nor its agents, representatives or advisors will contact, solicit, discuss or negotiate with any third party with respect to any transaction relating to a transfer or pledge of securities of ECrent and/or its subsidiaries, a sale of ECrent's business, a business cooperation or any other matters that may adversely affect the Potential Transactions or the parties' discussion related thereto. The exclusivity period has been further extended to a period of 18 months commencing from June 20, 2018 pursuant to three amendment agreements dated September 11, 2017, January 23, 2018 and June 20, 2018. On January 25, 2019, Sharing Economy International, Inc. terminated the Exclusivity Agreement entered into with ECrent Capital Holdings Limited on June 11, 2017, as amended. On May 8, 2018, amended on May 24, 2018 and amended on August 30, 2018, Sharing Economy entered into a License Agreement (the "Agreement") with ECrent. In accordance with the terms of the Amendment, ECrent shall grant the Company an exclusive license to utilize certain software and trademarks in order to develop, launch, operate, commercialize, and maintain an online website platform in Taiwan, Thailand, India, Indonesia, Singapore, Malaysia, Philippines, Vietnam, Cambodia, Japan, and Korea until December 31, 2019. In consideration for the license, the Company granted ECrent 250,000 shares of common stock (the "Consideration Shares"), at an issue price of $1,040,000, or $4.16 per share, (based on the quoted market price of the Company's common stock on the amended Agreement date of May 24, 2018). Pursuant to the terms of the Agreement, ECrent shall provide a guarantee on revenue and profit of $13,000,000 and $2,522,000, respectively. The Consideration Shares shall be reduced on a pro rata basis if there is a shortfall in the guaranteed revenue and/or profit. In connection with this agreement, during the three and six months ended June 30, 2019, the Company recorded license fee expense of $165,958 and $331,915, respectively, which is included in cost of sales, and as of June 30, 2019, recorded a prepaid license fee – related party of $331,915 which will be amortized over the remaining license period. Due to related parties Mr. Chan Tin Chi owns 99% of the issued and outstanding ordinary shares of Chan Tin Chi Family Company Limited (formerly known as YSK 1860 Co., Limited). From time to time, during 2018 and 2019, the Company receive advances from Mr. Chan Tin Chi and Chan Tin Chi Family Company Limited, who is the major shareholder of the Company, for working capital purposes. These advances are non-interest bearing and are payable on demand. During the six months ended June 30, 2019 and 2018, the Company received advances from Mr. Chan Tin Chi and Chan Tin Chi Family Company Limited for working capital totaled $299,878 and $233,388, respectively, and repaid to Mr. Chan Tin Chi and Chan Tin Chi Family Company Limited a total of $31,604 and $0, respectively. At June 30, 2019 and December 31, 2018, amounts due to Mr. Chan Tin Chi and Chan Tin Chi Family Company Limited amounted to $1,525,779 and $1,257,505, respectively. Bank loans guaranteed by related parties The Company obtains two bank loans from Bank of China, due on November 20, 2019 and November 25, 2019, respectively. These loans are guaranteed by Jianhua Wu, CEO, and Wuxi Angyida Machinery Co., Ltd, a company whose corporate representative is a brother of the Company's CEO (see Note 8). |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 14 – STOCKHOLDERS’ EQUITY Common stock issued for cash In March 2019, pursuant to a stock purchase agreement, the Company sold 690,000 shares of common stock to an investor at a purchase price of $0.29 per share for net cash proceeds a total of $200,100. The Company did not engage a placement agent with respect to these sales. Common stock issued for services and common stock surrendered During the six months ended June 30, 2019, pursuant to consulting and service agreements, the Company issued an aggregate of 1,349,347 shares of common stock to twenty four consultants and vendors for the services rendered and to be rendered. These shares were valued at the fair market value on the grant date using the reported closing share price on the date of grant. At the end of each financial reporting period prior to issuance of these shares, the fair value of these shares is measured using the fair value of the Company’s common stock at reporting date. During the six months ended June 30, 2019, the fair value of the above mentioned shares issued and the change in value of the shares to be issued was $288,969. The Company recognizes stock-based professional fees over the period during which the services are rendered by such consultant or vendor. For the six months ended June 30, 2019, the Company recorded stock-based consulting and service fees to service provider and employees of $2,189,698. In connection with the issuance/future issuance of shares to consultants and vendors, the Company recorded prepaid expenses of $1,512,892 which will be amortized over the remaining service period. During the six months ended June 30, 2019, the Company terminated the consulting agreements of eleven consultants. The consultants surrendered an aggregate of 562,501 shares issued in prior periods. In addition, the Company also mutually agreed or terminated the consulting and service agreements of three consultants and vendors. Both parties forgo their respective rights as stated in the agreements; and the Company has no obligation to issue in aggregate of 223,135 shares in effect. As a result of the above mentioned transactions, the Company reversed the fair value of $947,948 recognized in stockholders’ equity in prior periods. Common stock issued for debt conversion In January 2019, the Company issued 266,667 shares of its common stock upon conversion of debt (see Note 12). Shares issued for donation In February 2019, the Company issued 85,470 shares as donation to Hong Kong Baptist University (“HKBU”). The Foundation would use the funds raised from the donation to support the delivery of education, operation, facilities enhancement and study of the Academy of Film of HKBU. These shares were valued at $259,598, or $3.04 per share. In connection with this donation, during the six months ended June 30, 2019, the Company recorded donation expense of $259,598, which is included in operating expenses. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | NOTE 15 – SEGMENT INFORMATION During the three and six ended June 30, 2019 and 2018, the Company operated in two reportable business segments - (1) the manufacture of textile dyeing and finishing equipment segment, and (2) the Sharing Economy Segment which targets the technology and global sharing economy markets, by developing online platforms and rental business partnerships that will drive the global development of sharing through economical rental business models. The Company's reportable segments were strategic business units that offered different products. They were managed separately based on the fundamental differences in their operations and locations. During the three and six months ended June 30, 2019 and 2018, the Company's dyeing and finishing equipment operations were conducted in the PRC. The Sharing Economy Segment is based in Hong Kong. Information with respect to these reportable business segments for the three and six months ended June 30, 2019 and 2018 was as follows: For the Three Months For the Six Months 2019 2018 2019 2018 Revenues: Dyeing and finishing equipment $ 1,652,644 $ 2,517,419 $ 3,539,909 $ 5,054,925 Sharing economy 23,003 52,174 26,792 83,195 1,675,647 2,569,593 3,566,701 5,138,120 Depreciation: Dyeing and finishing equipment 694,953 1,045,489 1,384,270 2,092,902 Sharing economy - 4,425 4,426 8,752 694,953 1,049,914 1,388,696 2,101,654 Interest expense Dyeing and finishing equipment 38,994 92,362 80,992 122,814 Sharing economy - - 90,815 - 38,994 92,362 171,807 122,814 Net loss Dyeing and finishing equipment (957,637 ) (1,500,791 ) (23,522,291 ) (4,071,732 ) Sharing economy 499,495 (2,610,566 ) (1,113,291 ) (3,729,969 ) Discontinued segments - (28 ) - 16,871 Other (a) (1,790,022 ) (1,911,296 ) (2,661,324 ) (3,104,513 ) $ (2,248,164 ) $ (6,022,681 ) $ (27,296,906 ) $ (10,889,343 ) June 30, December 31, Identifiable long-lived tangible assets as of June 30, 2019 and December 31, 2018 by segment Dyeing and finishing equipment $ 1,796,496 $ 16,481,795 Sharing economy 52,295 56,762 Other (b) 5,033,865 5,024,863 $ 6,882,656 $ 21,563,420 June 30, December 31, Identifiable long-lived tangible assets as of June 30, 2019 and December 31, 2018 by geographical location China $ 6,830,361 $ 21,506,658 Hong Kong 52,295 56,762 United States - - $ 6,882,656 $ 21,563,420 (a) The Company does not allocate any general and administrative expense of its U.S. activities to its reportable segments, because these activities are managed at corporate level. (b) Represents amount of net tangible assets not in use and to be used by for new segment being developed. |
Concentrations
Concentrations | 6 Months Ended |
Jun. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS | NOTE 16 – CONCENTRATIONS Customers Five customers accounted for approximately 80% (24%, 15%, 15%, 15% and 11%) of the Company's revenues for the three months ended June 30, 2019 and two customers accounted for approximately 65% (55% and 10%) of the Company's revenues for the three months ended June 30, 2018. Five customers accounted for approximately 45% (11%, 10%, 9%, 8% and 7%) of the Company's revenues for the six months ended June 30, 2019 and two customers accounted for approximately 40% (28% and 12%) of the Company's revenues for the six months ended June 30, 2018. The total outstanding accounts receivable balance of Customer A and B are $156,252 and 73,704 respectively as of June 30, 2019. Suppliers Five suppliers accounted for approximately 40% (13%,7%,7%,7% and 6%) of the Company's inventories purchases for the three months ended June 30, 2019 and four suppliers accounted for approximately 74% (22%, 22%, 18% and 12%) of the Company's revenues for the three months ended June 30, 2018. Five suppliers accounted for approximately 48% (22%, 8%, 7%, 6% and 5%) of the Company's inventories purchases for the six months ended June 30, 2019 and four suppliers accounted for approximately 61% (21%, 15%, 14% and 11%) of the Company's revenues for the six months ended June 30, 2018. The total outstanding accounts payable balance of Supplier A is $122,832 as of June 30, 2019. |
Commitment and Contingencies
Commitment and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENT AND CONTINGENCIES | NOTE 17 – COMMITMENT AND CONTINGENCIES Litigation: On April 25, 2019, ECPower (HK) Company Limited ("EC Power"), a subsidiary of SEII, filed a claim against The Dairy Farm Limited ("Dairy Farm") in respect of the cooperation agreement between the two parties for the battery rental business at 7-Eleven outlets in Hong Kong during the period from September 2017 to February 2018. The claim is for a total compensation of HK$1,395,000 (approximately $178,846) which comprises of (i) HK$45,000 (approximately $5,769) as compensation for interest and administration cost incurred as a result of Dairy Farm's delay in payment of EC Power's share of the rental income, and (ii) HK$1,350,000 (approximately $173,077) as compensation for Dairy Farm's early termination of the cooperation agreement without any valid proof of fault on the part of EC Power. From time to time the Company may become a party to litigation in the normal course of business. Management believes that there are no current legal matters that would have a material effect on the Company's financial position or results of operations. |
Restricted Net Assets
Restricted Net Assets | 6 Months Ended |
Jun. 30, 2019 | |
Restricted Net Assets [Abstract] | |
RESTRICTED NET ASSETS | NOTE 18 – RESTRICTED NET ASSETS Regulations in the PRC permit payments of dividends by the Company's PRC subsidiary and VIEs only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. Subject to certain cumulative limit, a statutory reserve fund requires annual appropriations of at least 10% of after-tax profit, if any, of the relevant PRC VIEs and subsidiary. Heavy Industries and Dyeing had reached the cumulative limit as of December 31, 2017. The statutory reserve funds are not distributable as cash dividends. As a result of these PRC laws and regulations, the Company's PRC VIEs and its PRC subsidiary are restricted in their abilities to transfer a portion of their net assets to the Company. Foreign exchange and other regulations in PRC may further restrict the Company's PRC VIEs and its subsidiary from transferring funds to the Company in the form of loans and/or advances. As of June 30, 2019 and December 31, 2018, substantially all of the Company's net assets are attributable to the PRC VIEs and its subsidiary located in the PRC. Accordingly, the Company's restricted net assets (liabilities) as of June 30, 2019 and December 31, 2018 were approximately ($190,000) and $21,923,000, respectively. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 19 – SUBSEQUENT EVENTS In accordance with ASC Topic 855, " Subsequent Events On September 13, 2019, the Company called for the annual shareholder's meeting to propose to the below matters: (1) The election of five (5) directors to serve until the next annual meeting of stockholders and until their successors are elected and qualified; (2) To amend the Company's 2016 Long-Term Incentive Plan (the "Plan") to increase the number of shares of common stock, par value $0.001 per share (the "Shares") authorized for issuance under the Plan from 125,000 to 2,500,000 Shares; (3) To amend the Company's Articles of Incorporation to increase the number of Shares which the Company is authorized to issue to 250,000,000 Shares, and to increase the number of shares of Preferred Stock which the Company is authorized to issue to 50,000,000 shares of Preferred Stock; and (4) The transaction of such other and further business as may properly come before the meeting. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Listing status | Listing status On November 26, 2018, Sharing Economy International Inc. (the “Company”) received a staff determination notice from The Nasdaq Stock Market (“Nasdaq”) informing the Company that as a result of its failure to comply with Nasdaq’s shareholder approval requirements set forth in Listing Rule 5635(c) (the “Rule”), the staff determined to deny the Company’s request for continued listing based on a plan of compliance submitted on October 26, 2018. The Company’s common stock was delisted from Nasdaq at the open of trading on December 5, 2018. The Company’s common stock is currently trading on the OTC Markets under the symbol “SEII”. |
Principles of Consolidation | Principles of consolidation The Company's unaudited condensed consolidated financial statements include the financial statements of its wholly-owned and majority owned subsidiaries, as well as the financial statements of the Huayang Companies, including Dyeing, which conducts the Company's continuing operations, and Heavy Industries, which operated discontinued operations. All significant intercompany accounts and transactions have been eliminated in consolidation. On December 30, 2016, the Company sold and transferred its 100% interest in Fulland Wind to an unrelated party. Additionally, the Company's management decided to discontinue its petroleum and chemical equipment segment due to significant declines in revenues and the loss of its major customers. As such, petroleum and chemical segment's assets and liabilities have been classified on the consolidated balance sheets as assets and liabilities of discontinued operations as of June 30, 2019 and December 31, 2018. The operating results of the petroleum and chemical segment have been classified as discontinued operations in our consolidated statements of operations for all periods presented. Unless otherwise indicated, all disclosures and amounts in the notes to the consolidated financial statements are related to the Company's continuing operations. Pursuant to Accounting Standards Codification ("ASC") Topic 810, the Huayang Companies are considered variable interest entities ("VIE"), and the Company is the primary beneficiary. The Company's relationships with the Huayang Companies and their shareholders are governed by a series of contractual arrangements between Green Power, the Company's wholly foreign-owned enterprise in the PRC, and each of the Huayang Companies, which are the operating companies of the Company in the PRC. Under PRC laws, each of Green Power, Dyeing and Heavy Industries is an independent legal entity and none of them is exposed to liabilities incurred by the other parties. The contractual arrangements constitute valid and binding obligations of the parties of such agreements. Each of the contractual arrangements and the rights and obligations of the parties thereto are enforceable and valid in accordance with the laws of the PRC. Because of the contractual arrangements, the Company has a pecuniary interest in the Huayang Companies that requires the Company to consolidate the Huayang Companies in its financial statements as if they are wholly-owned subsidiaries of the Company. |
Use of estimates | Use of estimates The preparation of the unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and the related disclosures at the date of the financial statements and during the reporting period. Actual results could materially differ from these estimates. Significant estimates in the six months ended June 30, 2019 and 2018 include the allowance for doubtful accounts on accounts and other receivables, the allowance for inventory reserve, the useful life of property and equipment and intangible assets, assumptions used in assessing impairment of long-term assets, valuation of deferred tax assets, and the value of stock-based compensation. |
Cash and cash equivalents | Cash and cash equivalents The Company considers all highly liquid instruments purchased with a maturity of three months or less and money market accounts to be cash equivalents. The Company maintains with various financial institutions mainly in the PRC, Hong Kong and the U.S. As of June 30, 2019 and December 31, 2018, cash balances held in PRC and Hong Kong banks of $129,301 and $774,316, respectively, are uninsured. |
Fair value of financial instruments | Fair value of financial instruments The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, restricted cash, notes receivable, accounts receivable, inventories, advances to suppliers, receivable from sale of subsidiary, prepaid expenses and other, short-term bank loans, bank acceptance notes payable, convertible note payable, accounts payable, accrued expenses, advances from customers, amounts due to related parties, and income taxes payable approximate their fair market value based on the short-term maturity of these instruments. Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated. It is not, however, practical to determine the fair value of amounts due from/to related parties due to their related party nature. |
Concentrations of credit risk | Concentrations of credit risk The Company's operations are carried out in the PRC and Hong Kong. Accordingly, the Company's business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC and Hong Kong, and by the general state of the economies in the PRC and Hong Kong. The Company's operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America. The Company's results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivable. Substantially all of the Company's cash is maintained with state-owned banks within the PRC and Hong Kong, and none of these deposits are covered by insurance. The Company has not experienced any losses in such accounts and believes it is not exposed to any risks on its cash in bank accounts. A significant portion of the Company's sales are credit sales which are primarily to customers whose ability to pay is dependent upon the industry economics prevailing in these areas; however, concentrations of credit risk with respect to accounts receivables is limited due to generally short payment terms. The Company also performs ongoing credit evaluations of its customers to help further reduce credit risk. As of June 30, 2019 and December 31, 2018, the Company's cash balances by geographic area were as follows: Country: June 30, December 31, United States $ 4,868 3.63 % $ 7,424 0.95 % Hong Kong 36,676 27.34 % 182,800 23.38 % China 92,625 69.03 % 591,516 75.67 % Total cash and cash equivalents $ 134,169 100.00 % $ 781,740 100.00 % |
Accounts receivable | Accounts receivable Accounts receivable are presented net of allowance for doubtful accounts. The Company maintains allowance for doubtful accounts for estimated losses. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, a customer’s historical payment history, its current credit-worthiness and current economic trends. Accounts are written off after exhaustive efforts at collection. At June 30, 2019 and December 31, 2018, the Company has established, based on a review of its outstanding balances, an allowance for doubtful accounts in the amounts of $11,051,884 and $9,527,060, respectively. |
Inventories | Inventories Inventories, consisting of raw materials, work-in-process and finished goods related to the Company’s products are stated at the lower of cost or market utilizing the weighted average method. A reserve is established when management determines that certain inventories may not be saleable. If inventory costs exceed expected market value due to obsolescence or quantities in excess of expected demand, the Company will record reserves for the difference between the cost and the market value. These reserves are recorded based on estimates. The Company recorded an inventory reserve of $4,821,759 and $1,212,706 as of June 30, 2019 and December 31, 2018, respectively. |
Property and equipment | Property and equipment Property and equipment are carried at cost and are depreciated on a straight-line basis over the estimated useful lives of the assets. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in the statements of operations in the year of disposition. The Company examines the possibility of decreases in the value of fixed assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable. Impairment loss has been recorded in current period (see note 9). |
Equity method investment | Equity method investment Investments in which the Company has the ability to exercise significant influence, but do not control, are accounted for under the equity method of accounting and are included in the long-term assets on the consolidated balance sheets. Under this method of accounting, the Company's share of the net earnings or losses of the investee is presented under other income (expense) on the consolidated statements of operations. The Company evaluates its equity method investment whenever events or changes in circumstance indicate that the carrying amounts of such investment may be impaired. A loss would be recorded if a decline in the value of an equity method investment is determined to be other than temporary (see Note 8). |
Stock-based compensation | Stock-based compensation Stock-based compensation is accounted for based on the requirements of the Share-Based Payment topic of ASC Topic 718, which requires recognition in the financial statements of the cost of employee and director services received in exchange for an award of equity instruments over the vesting period or immediately if fully vested and non-forfeitable. The Financial Accounting Standards Board ("FASB") also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award. Additionally, effective January 1, 2017, the Company adopted the Accounting Standards Update No. 2016-09 ("ASU 2016-09"), Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 permits the election of an accounting policy for forfeitures of share-based payment awards, either to recognize forfeitures as they occur or estimate forfeitures over the vesting period of the award. The Company has elected to recognize forfeitures as they occur and the cumulative impact of this change did not have any effect on the Company's consolidated financial statements and related disclosures. In June 2018, the FASB issued ASU No. 2018-07, Improvements to Nonemployee Share-Based Payment Accounting, which simplifies several aspects of the accounting for nonemployee share-based payment transactions by expanding the scope of the stock-based compensation guidance in ASC 718 to include share-based payment transactions for acquiring goods and services from non-employees. ASU No. 2018-07 is effective for annual periods beginning after December 15, 2018, including interim periods within those annual periods. Early adoption is permitted, but entities may not adopt prior to adopting the new revenue recognition guidance in ASC 606. The Company early adopted ASU No. 2018-07 in the fourth quarter of 2018 and there was no cumulative effect of adoption. |
Employee benefits | Employee benefits The Company's operations and employees are all located in the PRC and Hong Kong. The Company makes mandatory contributions to the PRC and Hong Kong governments' health, retirement benefit and unemployment funds in accordance with the relevant Chinese social security laws and law of Mandatory Provident Fund in Hong Kong. The costs of these payments are charged to the same accounts as the related salary costs in the same period as the related salary costs incurred. Employee benefit costs totaled $129,983 and $125,050 for the six months ended June 30, 2019 and 2018, respectively. |
Foreign currency translation | Foreign currency translation The reporting currency of the Company is the U.S. dollar. The functional currency of the parent company is the U.S. dollar and the functional currency of the Company's operating subsidiaries is the Chinese Renminbi ("RMB") or Hong Kong dollars (HKD). For the subsidiaries and affiliates, whose functional currencies are the RMB or HKD, results of operations and cash flows are translated at average exchange rates during the period, assets and liabilities are translated at the unified exchange rate at the end of the period, and equity is translated at historical exchange rates. As a result, amounts relating to assets and liabilities reported on the statements of cash flows may not necessarily agree with the changes in the corresponding balances on the balance sheets. Translation adjustments resulting from the process of translating the local currency financial statements into U.S. dollars are included in determining comprehensive loss. The cumulative translation adjustment and effect of exchange rate changes on cash for the six months ended June 30, 2019 and 2018 was $(165,904) and $(100,418), respectively. The Company did not enter into any material transaction in foreign currencies. Transaction gains or losses have not had, and are not expected to have, a material effect on the results of operations of the Company. For operating subsidiaries and VIEs located in the People's Republic of China ("PRC"), asset and liability accounts as of June 30, 2019 and December 31, 2018 were translated at 6.8655 RMB to $1.00 and at 6.8778 RMB to $1.00, respectively, which were the exchange rates on the balance sheet dates. For operating subsidiaries in Hong Kong, asset and liability accounts as of June 30, 2019 and December 31, 2018 were translated at 7.8498 and 7.8305 HKD to $1.00, respectively, which were the exchange rates on the balance sheet date. For operating subsidiaries and VIEs located in the PRC, the average translation rates applied to the statements of operations for the six months ended June 30, 2019 and 2018 were 6.7839 RMB and 6.3701 RMB to $1.00, respectively. For operating subsidiaries located in Hong Kong, the average translation rates applied to the statements of operations for the six months ended June 30, 2019 and December 31, 2018 were 7.8 HKD and 7.8 HKD to $1.00. Cash flows from the Company's operations are calculated based upon the local currencies using the average translation rate. |
Loss per share of common stock | Loss per share of common stock Basic net loss per share is computed by dividing net loss available to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during each period. The Company did not have any common stock equivalents or potentially dilutive common stock outstanding during the three and six months ended June 30, 2019 and 2018. In a period in which the Company has a net loss, all potentially dilutive securities are excluded from the computation of diluted shares outstanding as they would have had an anti-dilutive impact. The following table presents a reconciliation of basic and diluted net loss per share: Three Months Ended Six Months Ended 2019 2018 2019 2018 Net loss for basic and diluted attributable to common shareholders $ (2,187,485 ) $ (5,802,776 ) $ (27,034,159 ) $ (10,583,190 ) From continuing operations (2,187,485 ) (5,802,748 ) (27,034,159 ) (10,600,061 ) From discontinued operations - (28 ) - 16,871 Weighted average common stock outstanding – basic and diluted 4,658,915 3,524,660 8,657,671 3,554,498 Net loss per share of common stock From continuing operations – basic and diluted $ (0.47 ) $ (1.65 ) $ (3.12 ) $ (2.98 ) From discontinued operations – basic and diluted - - - - Net loss per common share – basic and diluted $ (0.47 ) $ (1.65 ) $ (3.12 ) $ (2.98 ) |
Comprehensive loss | Comprehensive loss Comprehensive loss is comprised of net loss and all changes to the statements of stockholders’ equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders. For the Company, comprehensive loss for the three and six months ended June 30, 2019 and 2018 included net loss and unrealized (loss) gain from foreign currency translation adjustments. |
Reclassification | Reclassification Certain reclassifications have been made in prior period’s consolidated financial statements to conform to the current year’s financial presentation. The reclassifications have no effect on previously reported net loss. |
Recent accounting pronouncements | Recent accounting pronouncements In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. Under ASU 2016-02, lessees will be required to recognize all leases (with the exception of short-term leases) at the commencement date including a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use (ROU) asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Leases with a term of twelve months or less will be accounted for similar to existing guidance for operating leases. In December 2017, January 2018, July 2018, December 2018 and March 2019, the FASB issued ASU 2017-13, ASU 2018-01, ASU 2018-10 & 11, ASU 2018-20 and ASU 2019-01, respectively, which contain modifications and improvements to ASU 2016-02. The amendments provide entities with an additional (and optional) transition method to adopt the new leases standard. Under the Optional Transition Method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. On January 1, 2019, the Company adopted ASC Topic 842 using the modified retrospective approach and elected to utilize the Optional Transition Method. In addition, the Company elected the land easement transition practical expedient and did not reassess whether an existing or expired land easement is a lease or contains a lease if it has not historically been accounted for as a lease. The adoption did not impact the Company’s previously reported consolidated financial statements nor did it result in a cumulative effect adjustment to retained earnings as of January 1, 2019. In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment. ASU 2018-07 aligns the accounting for share based payments granted to non-employees with that of share based payments granted to employees. The Company early adopted ASU No. 2018-07 in the fourth quarter of 2018 and there was no cumulative effect of adoption. The adoption of this ASU did not have a material impact on our financial position, results of operations, cash flows, or presentation thereof. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of cash balances by geographic area | Country: June 30, December 31, United States $ 4,868 3.63 % $ 7,424 0.95 % Hong Kong 36,676 27.34 % 182,800 23.38 % China 92,625 69.03 % 591,516 75.67 % Total cash and cash equivalents $ 134,169 100.00 % $ 781,740 100.00 % |
Schedule of reconciliation of basic and diluted net loss per share | Three Months Ended Six Months Ended 2019 2018 2019 2018 Net loss for basic and diluted attributable to common shareholders $ (2,187,485 ) $ (5,802,776 ) $ (27,034,159 ) $ (10,583,190 ) From continuing operations (2,187,485 ) (5,802,748 ) (27,034,159 ) (10,600,061 ) From discontinued operations - (28 ) - 16,871 Weighted average common stock outstanding – basic and diluted 4,658,915 3,524,660 8,657,671 3,554,498 Net loss per share of common stock From continuing operations – basic and diluted $ (0.47 ) $ (1.65 ) $ (3.12 ) $ (2.98 ) From discontinued operations – basic and diluted - - - - Net loss per common share – basic and diluted $ (0.47 ) $ (1.65 ) $ (3.12 ) $ (2.98 ) |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of discontinued operations in the Company's consolidated financial statements | June 30, December 31, (unaudited) (audited) Assets: Current assets: Accounts receivable, net $ 9,610 $ 9,593 Prepaid expenses and other 206,610 200,333 Total current assets 216,220 209,926 Total assets $ 216,220 $ 209,926 Liabilities: Current liabilities: Accounts payable $ 243,164 $ 242,555 Advances from customers 43,551 - Accrued expenses and other liabilities 26,023 25,977 Total current liabilities 312,738 268,532 Total liabilities $ 312,738 $ 268,532 |
Schedule of discontinued operations included in the Company's consolidated statements of operations | Three months ended Six months ended 2019 2018 2019 2018 Revenues $ - $ - $ - $ - Operating income: Other operating income – bad debt recovery - (28 ) - 16,871 Total operating income - (28 ) - 16,871 (Loss) gain from operations - (28 ) - 16,871 Other income, net - - - - (Loss) gain from discontinued operations, net of income taxes $ - $ (28 ) $ - $ 16,871 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Schedule of accounts receivable | June 30, December 31, Accounts receivable $ 12,080,586 $ 13,855,040 Less: allowance for doubtful accounts (11,051,884 ) (9,527,060 ) $ 1,028,702 $ 4,327,980 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | June 30, December 31, Raw materials $ 675,600 $ 1,207,334 Work-in-process 512,377 872,376 Finished goods 5,581,527 5,547,301 6,769,504 7,627,011 Less: inventory reserve (4,821,759 ) (1,212,706 ) $ 1,947,745 $ 6,414,305 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Useful life June 30, December 31, Office equipment and furniture 5 years $ 88,503 $ 86,724 Manufacturing equipment 5 - 10 years 11,257,906 20,297,029 Vehicles 5 years 177,071 176,884 Building and building improvements 5 - 20 years - 21,341,612 Manufacturing equipment in progress - 3,387,954 338,190 Construction in progress - 1,645,911 4,686,673 16,557,345 46,927,112 Less: accumulated depreciation (9,674,689 ) (25,363,692 ) $ 6,882,656 $ 21,563,420 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | Useful life June 30, December 31, Land use rights 45 - 50 years $ 3,932,823 $ 3,925,789 Other intangible assets 3 – 5 years 843,102 845,180 Goodwill - 27,353 27,421 4,803,278 4,798,390 Less: accumulated amortization (1,347,400 ) (1,235,877 ) $ 3,455,878 $ 3,562,513 |
Schedule of amortization of intangible assets attributable to future periods | Year ending June 30: Amount 2020 $ 355,278 2021 310,832 2022 103,891 2023 103,891 2024 89,067 Thereafter 2,465,566 $ 3,428,525 |
Short-Term Bank Loans (Tables)
Short-Term Bank Loans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of short-term bank loans | June 30, December 31, Loan from Bank of China, due on November 20, 2019 with annual interest rate of 4.60%, secured by certain assets of the Company and guaranteed by the Company's CEO, Jianhua Wu, and Wuxi Angyida Machinery Co., Ltd, a company whose corporate representative is a brother of the Company's CEO $ 364,140 $ 363,488 Loan from Bank of China, due on November 25, 2019 with annual interest rate of 4.60%, secured by certain assets of the Company and guaranteed by the Company's CEO, Jianhua Wu, and Wuxi Angyida Machinery Co., Ltd, a company whose corporate representative is a brother of the Company's CEO 364,140 363,488 Loan from Bank of Wuxi Nongshuang, due on February 22, 2019 with annual interest rate of 5.87%, secured by certain assets of the Company - 654,279 Loan from Bank of Wuxi Nongshuang, due on November 6, 2019 with annual interest rate of 5.87%, secured by certain assets of the Company 655,450 - Loan from Bank of Communication, due on September 25, 2019 with annual interest rate of 4.35%, secured by certain assets of the Company - 581,582 Loan from Bank of Communication, due on September 25, 2019 with annual interest rate of 4.35%, secured by certain assets of the Company 436,967 - Current portion of loan from Zhongli International Finance Corporation, credit line of RMB 4,500,000 (approximately $670,521), with a security deposit of RMB 900,000 (approximately $134,104) which will be returned in 36 months, monthly installment of RMB 210,000 (approximately $31,291) in the 1 st th th th th th 179,320 220,123 Total short-term bank loans $ 2,000,017 $ 2,182,960 * Long-term Loans represent amounts due to Zhongli International Finance Corporation that is due more than one year. Long-term loan amounts to $165,903 and $244,910 as of June 30, 2019 and December 31, 2018, respectively. |
Schedule of minimum installments under loan agreement | 12-month periods ending June 30, Amount 2020 $ 272,668 2021 188,770 2022 42,823 Total minimum loan payments 504,261 Less: amount representing interest (72,654 ) Less: security deposit due (86,384 ) Present value of net minimum loan payment 345,223 Less: current portion (179,320 ) Long-term portion $ 165,903 |
Convertible Note Payable (Table
Convertible Note Payable (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of convertible debt | June 30, December 31, Principal $ 838,571 $ 872,674 Unamortized discount (92,668 ) (162,170 ) Convertible debt, net $ 745,903 $ 710,504 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of segment information | For the Three Months For the Six Months 2019 2018 2019 2018 Revenues: Dyeing and finishing equipment $ 1,652,644 $ 2,517,419 $ 3,539,909 $ 5,054,925 Sharing economy 23,003 52,174 26,792 83,195 1,675,647 2,569,593 3,566,701 5,138,120 Depreciation: Dyeing and finishing equipment 694,953 1,045,489 1,384,270 2,092,902 Sharing economy - 4,425 4,426 8,752 694,953 1,049,914 1,388,696 2,101,654 Interest expense Dyeing and finishing equipment 38,994 92,362 80,992 122,814 Sharing economy - - 90,815 - 38,994 92,362 171,807 122,814 Net loss Dyeing and finishing equipment (957,637 ) (1,500,791 ) (23,522,291 ) (4,071,732 ) Sharing economy 499,495 (2,610,566 ) (1,113,291 ) (3,729,969 ) Discontinued segments - (28 ) - 16,871 Other (a) (1,790,022 ) (1,911,296 ) (2,661,324 ) (3,104,513 ) $ (2,248,164 ) $ (6,022,681 ) $ (27,296,906 ) $ (10,889,343 ) June 30, December 31, Identifiable long-lived tangible assets as of June 30, 2019 and December 31, 2018 by segment Dyeing and finishing equipment $ 1,796,496 $ 16,481,795 Sharing economy 52,295 56,762 Other (b) 5,033,865 5,024,863 $ 6,882,656 $ 21,563,420 June 30, December 31, Identifiable long-lived tangible assets as of June 30, 2019 and December 31, 2018 by geographical location China $ 6,830,361 $ 21,506,658 Hong Kong 52,295 56,762 United States - - $ 6,882,656 $ 21,563,420 (a) The Company does not allocate any general and administrative expense of its U.S. activities to its reportable segments, because these activities are managed at corporate level. (b) Represents amount of net tangible assets not in use and to be used by for new segment being developed. |
Description of Business and O_2
Description of Business and Organization (Details) - CNY (¥) | Apr. 30, 2018 | Jan. 19, 2018 | Dec. 08, 2017 | Dec. 30, 2016 | Dec. 26, 2016 | Dec. 23, 2016 | Jan. 30, 2016 |
Green Power Environment Technology (Shanghai) Co., Ltd.[Member] | |||||||
Description of Business and Organization (Textual) | |||||||
Percentage of shareholding or ownership | 100.00% | ||||||
Wuxi Fulland Wind Energy Equipment Co., Ltd. [Member] | |||||||
Description of Business and Organization (Textual) | |||||||
Percentage of shareholding or ownership | 100.00% | ||||||
EC Technology [Member] | 3D Discovery Co. Limited [Member] | |||||||
Description of Business and Organization (Textual) | |||||||
Percentage of shareholding or ownership | 60.00% | ||||||
EC Technology [Member] | Inspirit Studio Limited [Member] | |||||||
Description of Business and Organization (Textual) | |||||||
Percentage of shareholding or ownership | 51.00% | ||||||
Wuxi Shengxin New Energy Engineering Co., Ltd.[Memer] | |||||||
Description of Business and Organization (Textual) | |||||||
Equity interest percentage | 30.00% | 70.00% | |||||
AnyWorkspace Limited [Member] | |||||||
Description of Business and Organization (Textual) | |||||||
Percentage of shareholding or ownership | 80.00% | ||||||
Shengxin [Member] | RMB [Member] | |||||||
Description of Business and Organization (Textual) | |||||||
Company invested interest amount | ¥ 40,000,000 |
Going Concern Uncertainties (De
Going Concern Uncertainties (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Going Concern Uncertainties (Textual) | ||
Loss from continuing operation | $ 27,297,000 | |
Net cash used in operation | $ (681,537) | $ (422,839) |
Sales revenues percentage | 30.60% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Cash balances by geographic area | ||||
Total cash and cash equivalents | $ 134,169 | $ 781,740 | $ 2,164,137 | $ 1,019,437 |
Total cash and cash equivalents, percentage | 100.00% | 100.00% | ||
United States [Member] | ||||
Cash balances by geographic area | ||||
Total cash and cash equivalents | $ 4,868 | $ 7,424 | ||
Total cash and cash equivalents, percentage | 3.63% | 0.95% | ||
Hong Kong [Member] | ||||
Cash balances by geographic area | ||||
Total cash and cash equivalents | $ 36,676 | $ 182,800 | ||
Total cash and cash equivalents, percentage | 27.34% | 23.38% | ||
China [Member] | ||||
Cash balances by geographic area | ||||
Total cash and cash equivalents | $ 92,625 | $ 591,516 | ||
Total cash and cash equivalents, percentage | 69.03% | 75.67% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details 1) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Reconciliation of basic and diluted net loss per share | ||||
Net loss for basic and diluted attributable to common shareholders | $ (2,187,485) | $ (5,802,776) | $ (27,034,159) | $ (10,583,190) |
From continuing operations | (2,248,164) | (6,022,653) | (27,296,906) | (10,906,214) |
From discontinued operations | $ (28) | $ 16,871 | ||
Weighted average common stock outstanding - basic and diluted | 4,658,915 | 3,524,660 | 8,657,671 | 3,554,498 |
Net (loss) income per share of common stock | ||||
From continuing operations - basic and diluted | $ (0.47) | $ (1.65) | $ (3.12) | $ (2.98) |
From discontinued operations - basic and diluted | ||||
Net loss per common share - basic and diluted | $ (0.47) | $ (1.65) | $ (3.12) | $ (2.98) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details Textual) - USD ($) | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Summary of Significant Accounting Policies (Textual) | |||
Cash and cash equivalents uninsured amount | $ 129,301 | $ 774,316 | |
Allowance for doubtful accounts | 11,051,884 | 9,527,060 | |
Inventory reserve | 4,821,759 | $ 1,212,706 | |
Employee benefit costs | $ 129,983 | $ 71,503 | |
Foreign currency translation description | Asset and liability accounts as of June 30, 2019 and December 31, 2018 were translated at 6.8655 RMB to $1.00 and at 6.8778 RMB to $1.00, respectively, which were the exchange rates on the balance sheet dates. For operating subsidiaries in Hong Kong, asset and liability accounts as of June 30, 2019 and December 31, 2018 were translated at 7.8498 and 7.8305 HKD to $1.00, respectively, which were the exchange rates on the balance sheet date. For operating subsidiaries and VIEs located in the PRC, the average translation rates applied to the statements of operations for the six months ended June 30, 2019 and 2018 were 6.7839 RMB and 6.3701 RMB to $1.00, respectively. For operating subsidiaries located in Hong Kong, the average translation rates applied to the statements of operations for the six months ended June 30, 2019 and December 31, 2018 were 7.8 HKD and 7.8 HKD to $1.00. Cash flows from the Company's operations are calculated based upon the local currencies using the average translation rate. | ||
Cumulative translation adjustment and effect of exchange rate changes on cash | $ (165,904) | $ (100,418) |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Accounts receivable, net | $ 9,610 | $ 9,593 |
Prepaid expenses and other | 206,610 | 200,333 |
Total current assets | 216,220 | 209,926 |
Total assets | 216,220 | 209,926 |
Current liabilities: | ||
Accounts payable | 243,164 | 242,555 |
Advances from customers | 43,551 | |
Accrued expenses and other liabilities | 26,023 | 25,977 |
Total current liabilities | 312,738 | 268,532 |
Total liabilities | $ 312,738 | $ 268,532 |
Discontinued Operations (Deta_2
Discontinued Operations (Details 1) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | ||||
Revenues | ||||
Operating income: | ||||
Other operating income – bad debt recovery | (28) | 16,871 | ||
Total operating income | (28) | 16,871 | ||
(Loss) gain from operations | (28) | 16,871 | ||
Other income, net | ||||
(Loss) gain from discontinued operations, net of income taxes | $ (28) | $ 16,871 |
Discontinued Operations (Deta_3
Discontinued Operations (Details Textual) - Fulland Wind [Member] | Apr. 10, 2017USD ($) | Apr. 10, 2017CNY (¥) | Dec. 28, 2016USD ($) | Dec. 28, 2016CNY (¥) | Dec. 23, 2016USD ($)installments | Dec. 23, 2016CNY (¥)installments | Jun. 30, 2019USD ($) | Jun. 30, 2019CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) |
Discontinued Operations (Textual) | ||||||||||
Sale of stock to third party | $ 6,900,000 | |||||||||
Number of purchase price installments | installments | 3 | 3 | ||||||||
RMB [Member] | ||||||||||
Discontinued Operations (Textual) | ||||||||||
Sale of stock to third party | ¥ | ¥ 48,000,000 | |||||||||
Number of purchase price installments | installments | 3 | 3 | ||||||||
First installment [Member] | ||||||||||
Discontinued Operations (Textual) | ||||||||||
Sale of stock to third party | $ 2,100,000 | |||||||||
First installment [Member] | RMB [Member] | ||||||||||
Discontinued Operations (Textual) | ||||||||||
Sale of stock to third party | ¥ | ¥ 14,400,000 | |||||||||
Second installment [Member] | ||||||||||
Discontinued Operations (Textual) | ||||||||||
Sale of stock to third party | $ 2,100,000 | |||||||||
Second installment [Member] | RMB [Member] | ||||||||||
Discontinued Operations (Textual) | ||||||||||
Sale of stock to third party | ¥ | ¥ 14,400,000 | |||||||||
Third installment [Member] | ||||||||||
Discontinued Operations (Textual) | ||||||||||
Sale of stock to third party | $ 2,700,000 | $ 2,700,000 | ||||||||
Write off of receivable | 2,700,000 | |||||||||
Third installment [Member] | RMB [Member] | ||||||||||
Discontinued Operations (Textual) | ||||||||||
Sale of stock to third party | ¥ | ¥ 19,200,000 | ¥ 19,200,000 | ||||||||
Write off of receivable | $ 19,200,000 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Components of accounts receivable | ||
Accounts receivable | $ 12,080,586 | $ 13,855,040 |
Less: allowance for doubtful accounts | (11,051,884) | (9,527,060) |
Accounts receivable, net | $ 1,028,702 | $ 4,327,980 |
Accounts Receivable (Details Te
Accounts Receivable (Details Textual) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Accounts Receivable (Textual) | ||
Bad debt expense | $ 4,356,123 | $ 1,315,990 |
Inventories (Details)
Inventories (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Components of inventories | ||
Raw materials | $ 675,600 | $ 1,207,334 |
Work-in-process | 512,377 | 872,376 |
Finished goods | 5,581,527 | 5,547,301 |
Inventory, gross | 6,769,504 | 7,627,011 |
Less: inventory reserve | (4,821,759) | (1,212,706) |
Inventory, net | $ 1,947,745 | $ 6,414,305 |
Inventories (Details Textual)
Inventories (Details Textual) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Inventories (Textual) | ||
Increased (decrease) inventory reserve | $ 3,609,053 | $ (3,737) |
Equity Method Investment (Detai
Equity Method Investment (Details) | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Apr. 30, 2018USD ($) | Dec. 26, 2016USD ($) | Dec. 26, 2016CNY (¥) | |
Equity Method Investment (Textual) | ||||||||||
Remaining investment | $ 11,900,000 | |||||||||
Loss on equity method investment | $ 0 | $ 73,433 | $ 0 | $ 145,845 | ||||||
Mr. Xue [Member] | ||||||||||
Equity Method Investment (Textual) | ||||||||||
Equity method investment | $ 8,900,000 | |||||||||
Agreed to invest | $ 20,900,000 | |||||||||
Interest received | 70.00% | 70.00% | ||||||||
Shengxin [Member] | ||||||||||
Equity Method Investment (Textual) | ||||||||||
Equity method investment | $ 40,000,000 | |||||||||
Agreed to invest | $ 29,800,000 | |||||||||
Shengxin [Member] | RMB [Member] | ||||||||||
Equity Method Investment (Textual) | ||||||||||
Agreed to invest | ¥ | ¥ 200,000,000 | |||||||||
Dyeing [Member] | ||||||||||
Equity Method Investment (Textual) | ||||||||||
Equity method investment | 8,900,000 | 8,900,000 | ||||||||
Agreed to invest | $ 8,900,000 | $ 8,900,000 | ||||||||
Interest received | 30.00% | 30.00% | 30.00% | |||||||
Dyeing [Member] | RMB [Member] | ||||||||||
Equity Method Investment (Textual) | ||||||||||
Equity method investment | ¥ | ¥ 59,800,000 | |||||||||
Agreed to invest | ¥ | ¥ 60,000,000 | |||||||||
RMB [Member] | ||||||||||
Equity Method Investment (Textual) | ||||||||||
Remaining investment | ¥ | ¥ 80,000,000 | |||||||||
RMB [Member] | Mr. Xue [Member] | ||||||||||
Equity Method Investment (Textual) | ||||||||||
Equity method investment | ¥ | 60,000,000 | |||||||||
Agreed to invest | ¥ | ¥ 140,000,000 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Components of property and equipment | ||
Property and equipment, gross | $ 16,557,345 | $ 46,927,112 |
Less: accumulated depreciation | (9,674,689) | (25,363,692) |
Property and equipment, net | $ 6,882,656 | 21,563,420 |
Office equipment and furniture [Member] | ||
Components of property and equipment | ||
Property and equipment, useful life | 5 years | |
Property and equipment, gross | $ 88,503 | 86,724 |
Manufacturing equipment [Member] | ||
Components of property and equipment | ||
Property and equipment, gross | $ 11,257,906 | 20,297,029 |
Manufacturing equipment [Member] | Minimum [Member] | ||
Components of property and equipment | ||
Property and equipment, useful life | 5 years | |
Manufacturing equipment [Member] | Maximum [Member] | ||
Components of property and equipment | ||
Property and equipment, useful life | 10 years | |
Vehicles [Member] | ||
Components of property and equipment | ||
Property and equipment, useful life | 5 years | |
Property and equipment, gross | $ 177,071 | 176,884 |
Building and building improvements [Member] | ||
Components of property and equipment | ||
Property and equipment, gross | 21,341,612 | |
Building and building improvements [Member] | Minimum [Member] | ||
Components of property and equipment | ||
Property and equipment, useful life | 5 years | |
Building and building improvements [Member] | Maximum [Member] | ||
Components of property and equipment | ||
Property and equipment, useful life | 20 years | |
Manufacturing equipment in progress [Member] | ||
Components of property and equipment | ||
Property and equipment, gross | $ 3,387,954 | 338,190 |
Construction in progress [Member] | ||
Components of property and equipment | ||
Property and equipment, gross | $ 1,645,911 | $ 4,686,673 |
Property and Equipment (Detai_2
Property and Equipment (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Property and Equipment (Textual) | ||||
Depreciation expense | $ 694,953 | $ 1,049,914 | $ 1,388,696 | $ 2,101,654 |
Depreciation included in cost of revenues and operating expenses | $ 596,479 | $ 704,169 | 1,012,889 | 1,512,906 |
Impairment loss of disposition for manufacturing equipment | $ 13,507,553 | $ 0 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Components of intangible assets | ||
Intangible assets, Gross | $ 4,803,278 | $ 4,798,390 |
Less: accumulated amortization | (1,347,400) | (1,235,877) |
Intangible assets, Net | 3,455,878 | 3,562,513 |
Land use rights [Member] | ||
Components of intangible assets | ||
Intangible assets, Gross | 3,932,823 | 3,925,789 |
Other intangible assets [Member] | ||
Components of intangible assets | ||
Intangible assets, Gross | 843,102 | 845,180 |
Goodwill [Member] | ||
Components of intangible assets | ||
Intangible assets, Gross | $ 27,353 | $ 27,421 |
Minimum [Member] | Land use rights [Member] | ||
Components of intangible assets | ||
Intangible assets, useful life | 45 years | |
Minimum [Member] | Other intangible assets [Member] | ||
Components of intangible assets | ||
Intangible assets, useful life | 3 years | |
Maximum [Member] | Land use rights [Member] | ||
Components of intangible assets | ||
Intangible assets, useful life | 50 years | |
Maximum [Member] | Other intangible assets [Member] | ||
Components of intangible assets | ||
Intangible assets, useful life | 5 years |
Intangible Assets (Details 1)
Intangible Assets (Details 1) | Jun. 30, 2019USD ($) |
Amortization of intangible assets attributable to future periods | |
2020 | $ 355,278 |
2021 | 310,832 |
2022 | 103,891 |
2023 | 103,891 |
2024 | 89,067 |
Thereafter | 2,465,566 |
Intangible assets, Net | $ 3,428,525 |
Intangible Assets (Details Text
Intangible Assets (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Intangible Assets (Textual) | |||||
Amortization of intangible assets | $ 21,658 | $ 101,714 | $ 110,263 | $ 200,196 | |
Land use rights expiration date | Expire on January 1, 2053 and October 30, 2053. | ||||
Land use rights [Member] | Maximum [Member] | |||||
Intangible Assets (Textual) | |||||
Intangible assets, useful life | 50 years | ||||
Land use rights [Member] | Minimum [Member] | |||||
Intangible Assets (Textual) | |||||
Intangible assets, useful life | 45 years | ||||
3D Discovery [Member] | |||||
Intangible Assets (Textual) | |||||
Amortization period | 5 years | ||||
Intangible assets acquired | $ 754,159 |
Short-Term Bank Loans (Details)
Short-Term Bank Loans (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | |
Summary of short-term bank loans | |||
Total short-term bank loans | $ 2,000,017 | $ 2,182,960 | |
Loan from Bank of China, due on November 20, 2019 [Member] | |||
Summary of short-term bank loans | |||
Total short-term bank loans | 364,140 | 363,488 | |
Loan from Bank of China, due on November 25, 2019 One [Member] | |||
Summary of short-term bank loans | |||
Total short-term bank loans | 364,140 | 363,488 | |
Loan from Bank of Wuxi Nongshuang, due on February 22, 2019 [Member] | |||
Summary of short-term bank loans | |||
Total short-term bank loans | 654,279 | ||
Loan from Bank of Wuxi Nongshuang, due on November 6, 2019 [Member] | |||
Summary of short-term bank loans | |||
Total short-term bank loans | 655,450 | ||
Loan from Bank of Communication, due on September 25, 2019 [Member] | |||
Summary of short-term bank loans | |||
Total short-term bank loans | 581,582 | ||
Loan from Bank of Communication, due on September 25, 2019 [Member] | |||
Summary of short-term bank loans | |||
Total short-term bank loans | 436,967 | ||
Loan from Zhongli International Finance Corporation [Member] | |||
Summary of short-term bank loans | |||
Total short-term bank loans | [1] | $ 179,320 | $ 220,123 |
[1] | Long-term Loans represent amounts due to Zhongli International Finance Corporation that is due more than one year. Long-term loan amounts to $165,903 and $244,910 as of June 30, 2019 and December 31, 2018, respectively. |
Short-Term Bank Loans (Details
Short-Term Bank Loans (Details 1) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
2020 | $ 272,668 | |
2021 | 188,770 | |
2022 | 42,823 | |
Total minimum loan payments | 504,261 | |
Less: amount representing interest | (72,654) | |
Less: security deposit due | (86,384) | |
Present value of net minimum loan payment | 345,223 | |
Less: current portion | (179,320) | |
Long-term portion | $ 165,903 | $ 244,910 |
Short-Term Bank Loans (Detail_2
Short-Term Bank Loans (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Short-Term Bank Loans (Textual) | |||||
Interest related to the short-term bank loans | $ 38,994 | $ 92,362 | $ 171,807 | $ 122,814 | |
Terms of short term bank loans | 36 months | 36 months | |||
Long-term portion of loan | $ 165,903 | $ 165,903 | $ 244,910 | ||
25st - 36th month [Member] | |||||
Short-Term Bank Loans (Textual) | |||||
Monthly installment | 14,602 | ||||
25st - 36th month [Member] | RMB [Member] | |||||
Short-Term Bank Loans (Textual) | |||||
Monthly installment | 98,000 | ||||
13th - 24th month [Member] | |||||
Short-Term Bank Loans (Textual) | |||||
Monthly installment | 20,563 | ||||
13th - 24th month [Member] | RMB [Member] | |||||
Short-Term Bank Loans (Textual) | |||||
Monthly installment | 138,000 | ||||
1st - 12th month [Member] | |||||
Short-Term Bank Loans (Textual) | |||||
Monthly installment | 31,291 | ||||
1st - 12th month [Member] | RMB [Member] | |||||
Short-Term Bank Loans (Textual) | |||||
Monthly installment | $ 210,000 | ||||
Loan from Bank of China, due on November 20, 2019 One [Member] | |||||
Short-Term Bank Loans (Textual) | |||||
Short-term bank loans, maturity date | Nov. 20, 2019 | ||||
Loan from Bank of China, due on November 20, 2019 One [Member] | November 20, 2019 [Member] | |||||
Short-Term Bank Loans (Textual) | |||||
Short-term bank loans, interest rate, stated percentage | 4.60% | 4.60% | |||
Loan from Bank of Wuxi Nongshuang, due on February 22, 2018 [Member] | |||||
Short-Term Bank Loans (Textual) | |||||
Short-term bank loans, maturity date | Feb. 22, 2019 | ||||
Loan from Bank of Wuxi Nongshuang, due on February 22, 2018 [Member] | April 25, 2018 [Member] | |||||
Short-Term Bank Loans (Textual) | |||||
Short-term bank loans, interest rate, stated percentage | 5.87% | 5.87% | |||
Loan from Bank of China, due on November 25, 2019 [Member] | |||||
Short-Term Bank Loans (Textual) | |||||
Short-term bank loans, maturity date | Nov. 25, 2019 | ||||
Loan from Bank of China, due on November 25, 2019 [Member] | November 20, 2019 One [Member] | |||||
Short-Term Bank Loans (Textual) | |||||
Short-term bank loans, interest rate, stated percentage | 4.60% | 4.60% | |||
Loan from Bank of Wuxi Nongshuang, due on November 6, 2019 [Member] | |||||
Short-Term Bank Loans (Textual) | |||||
Short-term bank loans, maturity date | Nov. 6, 2019 | ||||
Loan from Bank of Wuxi Nongshuang, due on November 6, 2019 [Member] | February 22, 2019 [Member] | |||||
Short-Term Bank Loans (Textual) | |||||
Short-term bank loans, interest rate, stated percentage | 5.87% | 5.87% | |||
Loan from Bank of Communication, due on September 25, 2019 [Member] | |||||
Short-Term Bank Loans (Textual) | |||||
Short-term bank loans, maturity date | Sep. 25, 2019 | ||||
Loan from Zhongli International Finance Corporation [Member] | |||||
Short-Term Bank Loans (Textual) | |||||
Line of credit | $ 670,521 | $ 670,521 | |||
Security deposit | 134,104 | 134,104 | |||
Loan from Zhongli International Finance Corporation [Member] | RMB [Member] | |||||
Short-Term Bank Loans (Textual) | |||||
Line of credit | 4,500,000 | 4,500,000 | |||
Security deposit | $ 900,000 | $ 900,000 | |||
Loan from Bank of Communication, due on September 25, 2018 [Member] | |||||
Short-Term Bank Loans (Textual) | |||||
Short-term bank loans, maturity date | Sep. 25, 2019 | ||||
Loan from Bank of Communication, due on September 25, 2018 [Member] | September 25, 2019 [Member] | |||||
Short-Term Bank Loans (Textual) | |||||
Short-term bank loans, interest rate, stated percentage | 4.35% | 4.35% | |||
Loan from Bank of Communication, due on September 25, 2018 [Member] | September 25, 2019 [Member] | |||||
Short-Term Bank Loans (Textual) | |||||
Short-term bank loans, interest rate, stated percentage | 4.35% | 4.35% |
Convertible Note Payable (Detai
Convertible Note Payable (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Principal | $ 838,571 | $ 872,674 |
Unamortized discount | (92,668) | (162,170) |
Convertible debt, net | $ 745,903 | $ 710,504 |
Convertible Note Payable (Det_2
Convertible Note Payable (Details Textual) - USD ($) | Jan. 11, 2019 | Nov. 08, 2018 | May 02, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 |
Convertible Note Payable (Textual) | ||||||
Converted into common stock share | 266,667 | |||||
Original issue discount | $ 150,000 | |||||
Debt discount | 45,018 | |||||
Amortization of debt discount | 69,502 | $ 46,334 | ||||
Fair value of the warrants issued | 152,490 | |||||
Accrued interest | 18,603 | $ 13,187 | ||||
Interest expense | 21,313 | |||||
Convertible Debt [Member] | ||||||
Convertible Note Payable (Textual) | ||||||
Amortization of debt discount | 46,334 | |||||
Interest expense | $ 0 | |||||
Iliad Note [Member] | ||||||
Convertible Note Payable (Textual) | ||||||
Converted into common stock share | 34,103 | 36,621 | ||||
Aggregate of outstanding principal amount | $ 15,897 | $ 27,811 | ||||
Debt accrued interest | $ 47,189 | |||||
Iliad Note [Member] | Investor [Member] | ||||||
Convertible Note Payable (Textual) | ||||||
Common stock conversion price | $ 6.70 | |||||
Aggregate of outstanding principal amount | $ 900,000 | |||||
Warrants exercise price | $ 7.18 | |||||
Interest rate | 10.00% | |||||
Iliad Note [Member] | Convertible Debt [Member] | ||||||
Convertible Note Payable (Textual) | ||||||
Warrants to purchase common stock | 134,328 | |||||
Original issue discount | $ 150,000 | |||||
Debt discount | $ 45,018 | |||||
Due date description | The Iliad Note bears interest at 10% per annum, is unsecured, and is due on the date that is fifteen months from May 2, 2018. | |||||
Redemption conversion price description | (a) the Lender Conversion Price, and (b) the Market Price; provided, however, in no event shall the Redemption Conversion Price be less than $2.00 per share ("Conversion Price Floor"). | |||||
Term of warrants | 2 years |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Related Party Transactions (Textual) | ||||
Amounts due to related party | $ 1,525,779 | $ 1,525,779 | $ 1,257,505 | |
License fee expense included in cost of sales | 165,958 | 331,915 | $ 65,000 | |
Prepaid license fee - related party | $ 331,915 | $ 331,915 | $ 663,830 | |
Amendment agreements, description | The exclusivity period has been further extended to a period of 18 months commencing from June 20, 2018 pursuant to three amendment agreements dated September 11, 2017, January 23, 2018 and June 20, 2018 | |||
Ysk 1860 Co., Limited [Member] | ||||
Related Party Transactions (Textual) | ||||
Provisional agreement for purchase and sale description | Mr. Chan Tin Chi owns 99% of the issued and outstanding ordinary shares of Chan Tin Chi Family Company Limited (formerly known as YSK 1860 Co., Limited). From time to time, during 2018 and 2019, the Company receive advances from Mr. Chan Tin Chi and Chan | |||
Ecrent Capital Holdings Limited [Member] | ||||
Related Party Transactions (Textual) | ||||
Service agreements description | The Company granted ECrent 250,000 shares of common stock (the "Consideration Shares"), at an issue price of $1,040,000, or $4.16 per share, (based on the quoted market price of the Company's common stock on the amended Agreement date of May 24, 2018) | |||
Mr. Chan Tin Chi and Chan Tin Chi Family Company Limited [Member] | ||||
Related Party Transactions (Textual) | ||||
Working capital | $ 299,878 | 233,388 | ||
Repaid | $ 31,604 | $ 0 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2019 | Jan. 31, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Feb. 28, 2019 | |
Stockholders' Equity (Textual) | |||||||
Stock-based consulting and service fees | $ 2,189,698 | ||||||
Stock-based professional fees | 2,188,765 | $ 4,711,594 | |||||
Prepaid expenses | $ 1,512,892 | $ 1,512,892 | |||||
Aggregate shares | 223,135 | ||||||
Aggregate shares issued | 562,501 | 562,501 | |||||
Fair value of stockholders’ equity | $ 947,948 | ||||||
Common stock issued for cash | $ 200,100 | $ 200,100 | $ 256,410 | ||||
Purchase price of per share | $ 0.29 | ||||||
Common stock upon conversion of debt | 266,667 | ||||||
Shares issued for donation | 85,470 | ||||||
Shares issued for donation, price per share | $ 3.04 | $ 3.04 | |||||
Donation expense | $ 259,598 | ||||||
Shares issued for donation, value | 259,598 | ||||||
Common Stock [Member] | |||||||
Stockholders' Equity (Textual) | |||||||
Fair value shares issued | $ 288,969 | ||||||
Common stock issued for cash, shares | 690,000 | 690,000 | 69,676 | ||||
Common stock issued for cash | $ 690 | $ 70 |
Segment Information (Details)
Segment Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | ||
Segment reporting information | ||||||
Revenues | $ 1,675,647 | $ 2,569,593 | $ 3,566,701 | $ 5,138,120 | ||
Depreciation | 1,388,696 | 2,101,654 | 1,388,696 | 2,101,654 | ||
Interest expense | 38,994 | 92,362 | 171,807 | 122,814 | ||
Net loss | (2,248,164) | (6,022,681) | (27,296,906) | (10,889,343) | ||
Identifiable long-lived tangible assets by segment | 6,882,656 | 6,882,656 | $ 21,563,420 | |||
Identifiable long-lived tangible assets by geographical location | 6,882,656 | 6,882,656 | 21,563,420 | |||
China [Member] | ||||||
Segment reporting information | ||||||
Identifiable long-lived tangible assets by geographical location | 6,830,361 | 6,830,361 | 21,506,658 | |||
Hong Kong [Member] | ||||||
Segment reporting information | ||||||
Identifiable long-lived tangible assets by geographical location | 52,295 | 52,295 | 56,762 | |||
United States [Member] | ||||||
Segment reporting information | ||||||
Identifiable long-lived tangible assets by geographical location | ||||||
Dyeing and finishing equipment[Member] | ||||||
Segment reporting information | ||||||
Revenues | 1,652,644 | 2,517,419 | 3,539,909 | 5,054,925 | ||
Depreciation | 694,953 | 1,045,489 | 1,384,270 | 2,092,902 | ||
Interest expense | 38,994 | 92,362 | 80,992 | 122,814 | ||
Net loss | (957,637) | (1,500,791) | (23,522,291) | (4,071,732) | ||
Identifiable long-lived tangible assets by segment | 1,796,496 | 1,796,496 | 16,481,795 | |||
Sharing Economy [Member] | ||||||
Segment reporting information | ||||||
Revenues | 23,003 | 52,174 | 26,792 | 83,195 | ||
Depreciation | 4,425 | 4,426 | 8,752 | |||
Interest expense | 90,815 | |||||
Net loss | 499,495 | (2,610,566) | (1,113,291) | (3,729,969) | ||
Identifiable long-lived tangible assets by segment | 52,295 | 52,295 | 56,762 | |||
Discontinued segments[Member] | ||||||
Segment reporting information | ||||||
Net loss | (28) | 16,871 | ||||
Other [Member] | ||||||
Segment reporting information | ||||||
Net loss | [1] | (1,790,022) | $ (1,911,296) | (2,661,324) | $ (3,104,513) | |
Identifiable long-lived tangible assets by segment | [2] | $ 5,033,865 | $ 5,033,865 | $ 5,024,863 | ||
[1] | The Company does not allocate any general and administrative expense of its U.S. activities to its reportable segments, because these activities are managed at corporate level. | |||||
[2] | Represents amount of net tangible assets not in use and to be used by for new segment being developed. |
Segment Information (Details Te
Segment Information (Details Textual) - Segment | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Information (Textual) | ||||
Number of reportable business segments | 2 | 2 | 2 | 2 |
Concentrations (Details)
Concentrations (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($)CustomerSupplier | Jun. 30, 2018CustomerSupplier | Jun. 30, 2019USD ($)CustomerSupplier | Jun. 30, 2018CustomerSupplier | |
Suppliers A [Member] | Accounts Payable [Member] | ||||
Concentrations (Textual) | ||||
Outstanding accounts payable balance | $ 122,832 | $ 122,832 | ||
Customer A [Member] | Accounts Receivable [Member] | ||||
Concentrations (Textual) | ||||
Outstanding accounts receivable | 156,252 | 156,252 | ||
Customer B [Member] | Accounts Receivable [Member] | ||||
Concentrations (Textual) | ||||
Outstanding accounts receivable | $ 73,704 | $ 73,704 | ||
Revenues [Member] | ||||
Concentrations (Textual) | ||||
Concentration risk percentage | 80.00% | 65.00% | 45.00% | 40.00% |
Number of customers | Customer | 5 | 2 | 5 | 2 |
Revenues [Member] | Customer One [Member] | ||||
Concentrations (Textual) | ||||
Concentration risk percentage | 24.00% | 55.00% | 11.00% | 28.00% |
Revenues [Member] | Customer Two [Member] | ||||
Concentrations (Textual) | ||||
Concentration risk percentage | 15.00% | 10.00% | 10.00% | 12.00% |
Revenues [Member] | Customer Three [Member] | ||||
Concentrations (Textual) | ||||
Concentration risk percentage | 15.00% | 9.00% | ||
Revenues [Member] | Customer Four [Member] | ||||
Concentrations (Textual) | ||||
Concentration risk percentage | 15.00% | 8.00% | ||
Revenues [Member] | Customer Five [Member] | ||||
Concentrations (Textual) | ||||
Concentration risk percentage | 11.00% | 7.00% | ||
Purchase [Member] | ||||
Concentrations (Textual) | ||||
Concentration risk percentage | 40.00% | 74.00% | 48.00% | 61.00% |
Number of suppliers | Supplier | 5 | 4 | 5 | 4 |
Purchase [Member] | Supplier One [Member] | ||||
Concentrations (Textual) | ||||
Concentration risk percentage | 13.00% | 22.00% | 22.00% | 21.00% |
Purchase [Member] | Supplier Two [Member] | ||||
Concentrations (Textual) | ||||
Concentration risk percentage | 7.00% | 22.00% | 8.00% | 15.00% |
Purchase [Member] | Supplier Three [Member] | ||||
Concentrations (Textual) | ||||
Concentration risk percentage | 7.00% | 18.00% | 7.00% | 14.00% |
Purchase [Member] | Suppliers Four [Member] | ||||
Concentrations (Textual) | ||||
Concentration risk percentage | 7.00% | 12.00% | 6.00% | 11.00% |
Purchase [Member] | Suppliers Five [Member] | ||||
Concentrations (Textual) | ||||
Concentration risk percentage | 6.00% | 5.00% |
Commitment and Contingencies (D
Commitment and Contingencies (Details) | 1 Months Ended |
Apr. 25, 2019 | |
Commitment and Contingencies (Textual) | |
Description of lease agreement | The Dairy Farm Limited ("Dairy Farm") in respect of the cooperation agreement between the two parties for the battery rental business at 7-Eleven outlets in Hong Kong during the period from September 2017 to February 2018. The claim is for a total compensation of HK$1,395,000 (approximately $178,846) which comprises of (i) HK$45,000 (approximately $5,769) as compensation for interest and administration cost incurred as a result of Dairy Farm's delay in payment of EC Power's share of the rental income, and (ii) HK$1,350,000 (approximately $173,077) as compensation for Dairy Farm's early termination of the cooperation agreement without any valid proof of fault on the part of EC Power. |
Restricted Net Assets (Details)
Restricted Net Assets (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Restricted Net Assets (Textual) | ||
Company's restricted net assets | $ (190,000) | $ 21,923,000 |
Annual appropriations required by statutory reserve fund, description | Subject to certain cumulative limit, a statutory reserve fund requires annual appropriations of at least 10% of after-tax profit, if any, of the relevant PRC VIEs and subsidiary. |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | Sep. 13, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Subsequent Events (Textual) | |||
Common stock, par value | $ 0.001 | $ 0.001 | |
Common stock, shares authorized | 12,500,000 | 12,500,000 | |
Subsequent Event [Member] | |||
Subsequent Events (Textual) | |||
Common stock, par value | $ 0.001 | ||
Increase number of shares authorized | 250,000,000 | ||
Annual shareholders meeting, description | On September 13, 2019, the Company called for the annual shareholder's meeting to propose to the below matters: (1) The election of five (5) directors to serve until the next annual meeting of stockholders and until their successors are elected and qualified; (2) To amend the Company's 2016 Long-Term Incentive Plan (the "Plan") to increase the number of shares of common stock, par value $0.001 per share (the "Shares") authorized for issuance under the Plan from 125,000 to 2,500,000 Shares; (3) To amend the Company's Articles of Incorporation to increase the number of Shares which the Company is authorized to issue to 250,000,000 Shares, and to increase the number of shares of Preferred Stock which the Company is authorized to issue to 50,000,000 shares of Preferred Stock; and (4) The transaction of such other and further business as may properly come before the meeting. | ||
Subsequent Event [Member] | Preferred Stock [Member] | |||
Subsequent Events (Textual) | |||
Increase number of shares authorized | 50,000,000 | ||
Subsequent Event [Member] | Minimum [Member] | |||
Subsequent Events (Textual) | |||
Common stock, shares authorized | 125,000 | ||
Subsequent Event [Member] | Maximum [Member] | |||
Subsequent Events (Textual) | |||
Common stock, shares authorized | 2,500,000 |