Restatement (Tables)

6 Months Ended

Jun. 30, 2018

Schedule of restatement on consolidated balance sheet

	As Previously Reported			Restated			Net Adjustment
Accounts receivable	$	13,203,156		$	16,998,804		$	3,795,648
Current portion of investment in sales-type leases, net		14,234,089			12,220,921			(2,013,168	)
Interest receivable on sales type leases		10,295,813			9,845,608			(450,205	)
Other receivables		4,735,493			1,338,442			(3,397,051	)
								-
Investment in sales-type leases net (Non-current)		95,238,937			42,241,411			(52,997,526	)

Total Assets	$	286,031,716		$	230,969,414		$	(55,062,302	)

Deferred tax liability, net	$	8,115,286		$	1,500,680		$	(6,614,606	)

Total Liabilities		86,251,518			79,636,912			(6,614,606	)

Statutory reserve		14,791,889			14,561,911			(229,978	)
Accumulated other comprehensive income		(952,416	)		(1,119,916	)		(167,500	)
Retained earnings		74,788,797			26,738,579			(48,050,218	)

Total Company stockholders’ equity		200,433,393			151,985,697			(48,447,696	)

Total liabilities and equity	$	286,031,716		$	230,969,414		$	(55,062,302	)

Schedule of restatement on consolidated statement of income and comprehensive income

The following table presents the effects of the restatement on the accompanying consolidated statement of income and comprehensive income for the six months ended June 30, 2018:

	As Previously Reported			Restated			Net Adjustment
Contingent rental income	$	-		$	2,804,268		$	2,804,268

Interest income on sales-type leases		2,747,008			2,264,481			(482,527	)
Total operating income		2,747,008			5,068,749			2,321,741
General and administrative expenses		1,331,792			3,692,406			2,360,614
Income from operations		1,415,216			1,376,343			(38,873	)

Loss before income tax		(1,427,310	)		(1,466,183	)		(38,873	)
Income tax expense		493,490			267,918			(225,572	)

Net loss attributable to China Recycling Energy Corporation		(1,733,617	)		(1,546,918	)		186,699
Foreign currency translation loss		(2,587,043	)		(1,980,469	)		606,574
Comprehensive loss attributable to China Recycling Energy Corporation	$	(4,320,660	)	$	(3,527,387	)	$	793,273

The following table presents the effects of the restatement on the accompanying consolidated statement of income and comprehensive income for the six months ended June 30, 2017:

	As Previously Reported		Restated		Net Adjustment
Contingent rental income	$	-	$	3,309,272	$	3,309,272

Interest income on sales-type leases		4,331,011		3,327,583		(1,003,428	)
Total operating income		4,331,011		6,636,855		2,305,844
General and administrative expenses		339,301		2,534,750		2,195,449
Income from operations		3,991,710		4,102,105		110,395

Income before income tax		1,347,643		1,458,038		110,395
Income tax expense		781,966		610,995		(170,971	)

Net income attributable to China Recycling Energy Corporation		743,932		1,025,298		281,366
Foreign currency translation gain		4,632,435		3,484,452		(1,147,983	)
Comprehensive income attributable to China Recycling Energy Corporation	$	5,376,367	$	4,509,750	$	(866,617	)

The following table presents the effects of the restatement on the accompanying consolidated statement of income and comprehensive income for the three months ended June 30, 2018:

	As Previously Reported			Restated			Net Adjustment
Contingent rental income	$	-		$	1,381,437		$	1,381,437

Interest income on sales-type leases		740,969			657,866			(83,103	)
Total operating income		740,969			2,039,303			1,298,334
General and administrative expenses		978,285			2,186,175			1,207,890
Loss from operations		(237,316	)		(146,872	)		90,444

Loss before income tax		(1,690,677	)		(1,600,233	)		90,444
Income tax benefit		(14,669	)		(71,627	)		(56,958	)

Net loss attributable to China Recycling Energy Corporation		(1,580,083	)		(1,432,681	)		147,402
Foreign currency translation loss		(10,918,114	)		(8,385,747	)		2,532,367
Comprehensive loss attributable to China Recycling Energy Corporation	$	(12,498,197	)	$	(9,818,428	)	$	2,679,769

The following table presents the effects of the restatement on the accompanying consolidated statement of income and comprehensive income for the three months ended June 30, 2017:

	As Previously Reported		Restated		Net Adjustment
Contingent rental income	$	-	$	1,538,240	$	1,538,240

Interest income on sales-type leases		2,202,995		1,648,608		(554,387	)
Total operating income		2,202,995		3,186,848		983,853
General and administrative expenses		230,240		1,331,583		1,101,343
Income from operations		1,972,755		1,855,265		(117,490	)

Income before income tax		645,342		527,852		(117,490	)
Income tax expense		365,663		293,750		(71,913	)

Net income attributable to China Recycling Energy Corporation		369,511		323,934		(45,577	)
Foreign currency translation gain		3,526,451		4,327,559		801,108
Comprehensive income attributable to China Recycling Energy Corporation	$	3,895,962	$	4,651,493	$	755,531

Schedule of restatement on consolidated statement of cash flows

The following table presents the effects of the restatement on the accompanying consolidated statement of cash flows for the six months ended June 30, 2018:

	As Previously Reported			Restated			Net Adjustment
Loss including noncontrolling interest	$	(1,920,800	)	$	(1,734,101	)	$	186,699
Changes in deferred tax		(427,551	)		(653,123	)		(225,572	)
Interest receivable on sales type leases		(569,647	)		(358,904	)		210,743
Collection of principal on sales type leases		2,084,149			1,716,968			(367,181	)
Accounts receivable		-			(1,386,881	)		(1,386,881	)
Other receivables		(1,772,310	)		(190,118	)		1,582,192

Net cash provided by operating activities	$	1,752,281		$	1,752,281		$	-

The following table presents the effects of the restatement on the accompanying consolidated statement of cash flows for the six months ended June 30, 2018:

	As Previously Reported			Restated			Net Adjustment
Income including noncontrolling interest	$	565,677		$	847,043		$	281,366
Changes in deferred tax		117,315			(53,656	)		(170,971	)
Interest receivable on sales type leases		(2,922,393	)		(2,730,500	)		191,893
Collection of principal on sales type leases		574,006			370,139			(203,867	)
Accounts receivable		-			(1,469,996	)		(1,469,996	)
Other receivables		(1,692,112	)		(320,537	)		1,371,575

Net cash used in operating activities	$	(1,182,172	)	$	(1,182,172	)	$	-