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CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY
 12 Months Ended
Dec. 31, 2020
Notes to Financial Statements  
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY
  22. Condensed financial information of the parent company

 

The Company performed a test on the restricted net assets of consolidated subsidiary in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08(e)(3), “General Notes to Financial Statements” and concluded that it was applicable for the Company to disclose the financial statements for the parent company.

 

The subsidiary did not pay any dividend to the Company for the years presented. For the purpose of presenting parent only financial information, the Company records its investment in its subsidiary under the equity method of accounting. Such investment is presented on the separate condensed balance sheets of the Company as “Investment in subsidiary” and the income of the subsidiary is presented as “share of income of subsidiary”. Certain information and footnote disclosures generally included in financial statements prepared in accordance with U.S. GAAP have been condensed and omitted.

 

The Company did not have significant capital and other commitments, long-term obligations, or guarantees as of December 31, 2019 and 2018.

 

PARENT COMPANY BALANCE SHEETS

 

    December 31,     December 31,  
    2020     2019  
ASSETS                
Current assets:                
Cash and cash equivalents   $ 712,894     $ 76,583  
Other receivables, net     600,000       600,000  
Restricted cash     -       5,000,000  
Total current assets     1,312,894       5,676,583  
Non-current assets:                
Property, plant and equipment, net     4,142,620       2,162,449  
Investment in subsidiaries     59,731,280       38,481,702  
Total non-current assets     63,873,900       40,644,151  
Total assets   $ 65,186,794     $ 46,320,734  
                 
LIABILITIES AND SHAREHOLDERS’ EQUITY                
                 
LIABILITIES                
Other payables and accrued liabilities   $ 2,495,595     $ 1,570,183  
Other payables - related party     3,308       269  
Short-term loans     2,998,994       -  
Convertible bonds payable     739,189       -  
Total liabilities     6,237,086       1,570,452  
                 
COMMITMENTS AND CONTINGENCIES                
                 
SHAREHOLDERS’ EQUITY                
Ordinary shares, $0.001 par value, 50,000,000 shares authorized, 38,553,808 and 35,141,114 shares issued and outstanding as of December 31, 2020 and 2019, respectively     38,554       35,141  
Additional paid-in capital     23,466,482       20,771,849  
Statutory reserves     2,204,174       1,289,765  
Retained earnings     31,387,398       24,132,194  
Accumulated other comprehensive losses     1,741,696       (1,478,667 )
Total Blue Hat Interactive Entertainment Technology shareholders’ equity     58,838,304       44,750,282  
Non-controlling interest     111,404       -  
Total equity     58,949,708          
Total liabilities and shareholders’ equity   $ 65,186,794     $ 46,320,734  

 

PARENT COMPANY STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

 

    Year ended     Year ended     Year ended  
    December 31,     December 31,     December 31,  
    2020     2019     2018  
Operating expenses:                        
General and administrative expenses   $ (1,307,167 )   $ (1,671,700 )   $ -  
                         
Other income (expenses):                        
Equity income of subsidiaries and VIEs     9,782,013       10,747,395       7,919,408  
(Interest expense)/interest income     (175,386 )     21       -  
Other finance expenses     (18,442 )     (1,762 )     -  
                         
NET INCOME     8,281,017       9,073,954       7,919,408  
FOREIGN CURRENCY TRANSLATION ADJUSTMENT     (3,220,363 )     (521,738 )     (1,474,126 )
COMPREHENSIVE INCOME   $ 5,060,654     $ 8,552,216     $ 6,445,282  
                         
Less: Comprehensive income attributable to non-controlling interest     111,404       -       -  
Comprehensive income attributable to Blue Hat Interactive Entertainment Technology shareholders   $ 4,946,250     $ 8,552,216     $ 6,445,282  

 

PARENT COMPANY STATEMENTS OF CASH FLOWS

 

    Year ended     Year ended     Year ended  
    December 31,     December 31,     December 31,  
    2020     2019     2018  
CASH FLOWS FROM OPERATING ACTIVITIES:                        
Net income   $ 8,281,017     $ 9,073,954     $ 7,919,408  
                         
Adjustments to reconcile net income to cash used in operating activities:                        
Equity income of subsidiaries and VIEs     (9,782,013 )     (10,747,395 )     (7,919,408 )
Changes in operating assets and liabilities:                        
Depreciation of property and equipment     179,740       -       -  
Other receivables     -       (600,000 )     -  
Other payables and accrued liabilities     925,410       1,570,183       -  
Net cash used in operating activities     (395,846 )     (703,258 )     -  
                         
CASH FLOWS FROM INVESTING ACTIVITIES:                        
Purchases of property and equipment     (2,159,910 )     (2,162,449 )     -  
Investment in subsidiary     (7,660,000 )     -       -  
Net cash used in investing activities     (9,819,910 )     (2,162,449 )     -  
                         
CASH FLOWS FROM FINANCING ACTIVITIES:                        
Proceeds from issue of new shares     2,110,845       -       -  
Proceeds from secured convertible promissory note Bonds     739,189       -       -  
Underwriter’s partial exercise of over-allotment option, net of issuance costs     -       524,944       -  
Proceeds from initial public offering, net of issuance costs     -       7,417,077       -  
Other payables – related party     3,039       269       -  
Proceeds from short-term loans     2,998,994       -       -  
Net cash used in investing activities     5,852,067       7,942,290       -  
                         
EFFECT OF EXCHANGE RATE ON CASH     -       -       -  
                         
NET CHANGES IN CASH AND CASH EQUIVALENTS     (4,363,689 )     5,076,583       -  
                         
CASH AND CASH EQUIVALENTS, Beginning of year     5,076,583       -       -  
                         
CASH AND CASH EQUIVALENTS, end of year   $ 712,894     $ 5,076,583     $ -  
                         
SUPPLEMENTAL CASH FLOW INFORMATION:                        
Cash and cash equivalents   $ 712,894     $ 76,583     $ -  
Restricted cash     -       5,000,000       -  
CASH AND CASH EQUIVALENTS, end of year   $ 712,894     $ 5,076,583     $ -