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Discontinued Operations | 12 Months Ended
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Dec. 31, 2019
Discontinued Operations and Disposal Groups [Abstract] |
DISCONTINUED OPERATIONS | 12. DISCONTINUED OPERATIONS HeDeTang HK On September 18, 2019, HeDeTang Holdings (HK) Ltd. ("HeDeTang HK") entered into a Share Transfer Agreement (the "Agreement") with New Continent International Co., Ltd., (the "Buyer") a company incorporated in the British Virgin Islands. Pursuant to the terms of the Agreement, the Buyer purchased 100% ownership of HeDeTang HK, which value is primarily derived from HeDeTang HK's wholly-owned subsidiary HeDeJiaChuan Holdings Co., Ltd. and 73.41% owned subsidiary SkyPeople Juice Group Co., Ltd., for a total price of RMB 600,000 (approximately $85,714) (the "Sale Transaction"). The Sale Transaction was closed on February 27, 2020. In accordance with ASC Topic 205, Presentation of Financial Statement Discontinued Operations ("ASC Topic 205"), the Company presented the operation results from HeDeTang HK's and subsidiaries as a discontinued operation, as the Company believed that no continued cash flow would be generated by the discontinued component and that the Company would have no significant continuing involvement in the operations of the discontinued component. The total assets of HeDeTang HK was $64.37 million as of December 31,2019 and the total liabilities of HeDeTang HK was $196.87 million as of December 31, 2019. Huludao Wonder The Company's Huludao Wonder operation, a subsidiary which produces concentrated apple juice, suffered continued operating losses since 2014 and its cash flow was minimal for these three years. In December 2016, the Company established a winding-down plan to close this operation. Based on the restructuring plan and in accordance with ASC 205-20, the Company presented the operating results from Huludao Wonder as a discontinued operation, as the Company believed that no continued cash flow would be generated by the disposed component (Huludao Wonder) and that the Company would have no significant continuing involvement in the operation of the discontinued component. Management of the Company initiated a plan to sell the property located in Huludao in December 2016, and ceased the depreciation of the property in accordance with ASC 205-20. In accordance with the restructuring plan, the Company intends to transfer the concentrated fruit juice production equipment in Huludao Wonder to another subsidiary and to sell the land and facilities upon favorable circumstances. In year 2016, Huludao Wonder stopped payment of interest on the loan it obtained from Suizhong Branch of Huludao Banking Co. Ltd. ("Suizhong Branch") in 2016. Suizhong Branch sued Huludao Wonder in the Intermediate People's Court (the "Huludao Court"), and as a result, in accordance with of the ruling of the Huludao court, the Company's fixed assets will offset long-term borrowings, along with its owed interest. Since the loan amount is larger than the remaining value of the fixed assets, the transaction became non-operating income for this subsidiary. Loss from discontinued operations for fiscal years 2019 and 2018 was as follows:
|  | December 31, |  |  | December 31, |
|  | 2019 |  |  | 2018 |
REVENUES |  | $ | 330,195 |  |  | $ | 756,838 |
COST OF SALES |  |  | 315,737 |  |  |  | 891,154 |
GROSS PROFIT |  |  | 14,459 |  |  |  | (134,316 | )
OPERATING EXPENSES: |  |  |  |  |  |  |  |
General and administrative |  |  | 2,994,965 |  |  |  | 10,308,627 |
Selling expenses |  |  | 172,449 |  |  |  | 174,097 |
Bad debt expenses |  |  | 3,026,472 |  |  |  |  |
Impairment loss |  |  | - |  |  |  | 133,631,129 |
Total |  |  | 6,193,885 |  |  |  | 144,113,852 |
OTHER INCOME (EXPENSE) |  |  |  |  |  |  |  |
Interest income |  |  | 116 |  |  |  | - |
Interest expense |  |  | (7,300,070 | ) |  |  | (1,721,012 | )
other income (expenses) |  |  | 90,149 |  |  |  | 6,770,498 | )
Total |  |  | (7,209,805 | ) |  |  | (5,050,147 | )
Loss from discontinued operations before income tax |  |  | (13,389,231 | ) |  |  | (139,198,021 | )
Income tax provision |  |  | - |  |  |  | 31 |
Loss from discontinued operation before Minority Interest |  | $ | (13,389,231 | ) |  | $ | (139,198,052 | )
Less: Net loss attributable to non-controlling interests |  |  | (1,681,738 | ) |  |  | 15,618,798 |
LOSS FROM DISCONTINUED OPERATION |  | $ | (11,707,493 | ) |  | $ | (123,579,254 |
The non-operating loss from discontinued operations was $11.71 million for fiscal year 2019 and $4.01 million for fiscal year 2018. The major components of assets and liabilities related to discontinued operations are summarized below:
|  | December 31, 2019 |  |  | December 31, 2018 |
Cash |  | $ | 123,087 |  |  | $ | 220,342 |
Accounts receivable |  |  | 11,720 |  |  |  | 73,244 |
Other receivables |  |  | 1,861 |  |  |  | 15,381,465 |
Inventory |  |  | 454,269 |  |  |  | 63,017 |
Advances to suppliers and other current assets |  |  | 97,539 |  |  |  | - |
Property and equipment, net |  |  | 1,176,163 |  |  |  | 2,276,704 |
Right of use assets |  |  | 57,571,254 |  |  |  |  |
Intangible assets, net |  |  | 15,347,535 |  |  |  | 15,968,625 |
Amount due from related parties |  |  | 17,989,358 |  |  |  |  |
Total assets related to discontinued operations |  | $ | 92,772,786 |  |  |  | 33,933,396 |
Accounts payable |  | $ | 2,084,735 |  |  | $ | 9,002,384 |
Accrued expenses |  |  | 81,279,952 |  |  |  | 78,644,119 |
Advances from customers |  |  | 815,382 |  |  |  | 772,078 |
Short-term bank loans |  |  | 37,245,139 |  |  |  | 5,828,185 |
Lease liabilities |  |  | 60,613,970 |  |  |  | - |
Amount due from related parties |  |  | 14,222,570 |  |  |  | - |
Long-term loan |  |  | 14,222,570 |  |  |  | 32,450,867 |
Total liabilities related to discontinued operations |  | $ | 196,261,748 |  |  | $ | 126,697,633 |

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
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