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Condensed Financial Information of the Parent Company
 12 Months Ended
Dec. 31, 2023
Condensed Financial Information of the Parent Company [Abstract]  
Condensed Financial Information of the Parent Company

(24) 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 $86,641,643 and $86,141,643 as of December 31, 2023, and 2022.

 

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

 

   December 31,   December 31, 
   2023   2022 
ASSETS        
         
Current Assets        
Cash and cash equivalents  $678,347   $1,930,241 
Prepayments and other current assets   　-    　- 
           
Total current assets   678,347    1,930,241 
           
Investment in subsidiaries   172,382,428    184,806,532 
           
Total Assets  $173,060,775   $186,736,773 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
           
Current Liabilities          
Inter-company payable  $4,026,904   $4,070,160 
Due to related parties   727,433    727,433 
Accrued payroll and employee benefit   -    - 
Accrued liabilities   -    - 
Income tax payable   　-    　- 
           
Total current liabilities   　4,754,337    　4,797,593 
           
Derivative liability   54    646,283 
           
Total liabilities  $4,754,391   $5,443,876 
           
Total stockholders’ equity   
168,306,384
    181,292,897 
           
Total Liabilities and Stockholders’ Equity  $173,060,775   $186,736,773 

 

CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS)

 

   Year Ended 
   December 31, 
   2023   2022 
         
Revenue 
-
  
-
 
Selling, general and administrative expenses  $708,638   $515,294 
Loss from Operations   (708,638)   (515,294)
Equity in earnings of unconsolidated subsidiaries   (9,883,626)   (17,489,197)
Loss on derivative liability   646,229    1,417,251 
Other Income (Expense)   　-    
-
 
Income before Income Taxes   (9,946,035)   (16,587,240)
Provision for Income Taxes   
-
      　(15,062)
Net Income  $(9,946,035)  $(16,602,302)
Other comprehensive income /(loss)   (3,040,994)   (18,010,708)
Total Comprehensive Income (loss)  $(12,987,029)  $(34,613,010)

 

   Year Ended 
   December 31, 
   2023   2022 
Net Cash Used in Operating Activities  $(708,641)  $(374,357)
           
Net Cash Used in Investing Activities   (500,000)   (6,502,000)
           
Net Cash Provided by Financing Activities    　(43,253)     　(329,399)
           
Net Increase (Decrease) in Cash and Cash Equivalents   (1,251,894)   (7,205,755)
           
Cash and Cash Equivalents - Beginning of Year    　1,930,241      　9,135,996 
           
Cash and Cash Equivalents - End of Year  $678,347   $1,930,241 

 

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.