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Condensed Financial Information of the Parent Company
 12 Months Ended
Dec. 31, 2021
Condensed Financial Information Disclosure [Abstract]  
Condensed Financial Information of the Parent Company

(25) Condensed Financial Information of the Parent Company

 

The condensed financial statements of IT Tech Packaging Inc. (“ITP”, the “parent company”) have been prepared in accordance with accounting principles generally accepted in the United States of America. Under the PRC laws and regulations, the Company’s PRC subsidiaries are restricted in their ability to transfer certain of their net assets to the parent company in the form of dividend payments, loans or advances. The amounts restricted include paid-in capital, capital surplus and statutory reserves, as determined pursuant to PRC generally accepted accounting principles, totaling $79,641,643 ad $47,589,643 as of December 31, 2021, and 2020.

 

The following represents condensed unconsolidated financial information of the parent company only:

 

   December 31,   December 31, 
   2021   2020 
ASSETS        
         
Current Assets        
Cash and cash equivalents  $9,135,996   $16,172 
           
Total current assets   9,135,996    16,172 
           
Investment in subsidiaries   213,804,439    181,194,669 
           
Total Assets  $222,940,435   $181,210,840 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
           
Current Liabilities          
Inter-company payable  $4,399,560   $4,287,974 
Due to related parties   727,433    727,433 
           
Total current liabilities   5,126,993    5,015,407 
           
Derivative liability   2,063,534    1,115,260 
           
Total liabilities  $7,190,527   $6,130,667 
           
Total stockholders’ equity   215,749,908    175,080,173 
           
Total Liabilities and Stockholders’ Equity  $222,940,435   $181,210,840 

 

CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS)

 

   Year Ended 
   December 31, 
   2021   2020 
         
Revenue   
-
    
-
 
Selling, general and administrative expenses  $761,596   $2,082,743 
Loss from Operations   (761,596)   (2,082,743)
Equity in earnings of unconsolidated subsidiaries   (4,198,678)   (3,030,487)
Loss on derivative liability   5,880,526    (426,055)
Other Income (Expense)   
-
    
-
 
Income before Income Taxes   920,252    (5,539,285)
Provision for Income Taxes   (14,717)   (14,717)
Net Income  $905,535   $(5,554,002)
Other comprehensive income /(loss)   4,755,446    11,798,259 
Total Comprehensive Income (loss)  $5,660,981   $6,244,257 

 

   Year Ended 
   December 31, 
   2021   2020 
Net Cash Used in Operating Activities  $(776,313)  $(846,820)
           
Net Cash Used in Investing Activities   (32,053,000)   (2,000,000)
           
Net Cash Provided by Financing Activities   41,949,138    2,791,000 
           
Net Increase (Decrease) in Cash and Cash Equivalents   9,119,824    (55,820)
           
Cash and Cash Equivalents - Beginning of Year   16,172    71,991 
           
Cash and Cash Equivalents - End of Year  $9,135,996   $16,172 

 

The condensed financial information has been prepared using the same accounting policies as set out in the Company’s consolidated financial statements except that the parent company has used equity method to account for its investments in the subsidiaries.