XML 52 R7.htm IDEA: XBRL DOCUMENT v3.20.1
Consolidated Statements of Cash Flows - USD ($)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
OPERATING ACTIVITIES      
Net (loss) income $ (3,594,261) $ 1,878,786 $ 939,309
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:      
Provision for losses on accounts receivable and other current assets 3,628,544 830,266 422,388
Provision for obsolete inventories 115,191 30,403 176,570
Depreciation 2,842,787 2,940,387 2,036,438
Amortization of intangible assets 58,164 734,150 820,468
Amortization of convertible note discount 46,165
Loss (gain) on sale of property and equipment and land use rights 4,243 (7,845)
Loss from disposal of inventories 62,732 189,861 138,316
Stock-based payments for consulting services 86,326 43,788 96,313
Stock-based compensation 494,316 584,629 487,407
Gain from write-off of long aged payables (278,099) (678,012)
Impairment of long-term investments 45,400
Change in fair value of warrants liability (3,720)
Changes in operating assets and liabilities:      
Accounts receivable 923,873 (5,156,120) (2,145,097)
Accounts receivable from related parties (5,262,357) (5,137,222) (4,694,068)
Inventories 207,233 (320,267) 652,921
Increase in other non-current assets (4,343,311)
Other receivables and prepaid expenses 4,385,133 2,497,105 6,962,862
Advances to suppliers (598,082) 1,123,765 (1,423,441)
Amounts due to/from related parties (870,859) (118,771)
Other payables and accrued expenses 663,584 652,149 1,497,312
Advances from customers 122,720 38,951 (1,442,928)
Advances from customers from related parties 91,233 (939,957) 2,111,157
Accounts payable and bills payable (503,267) 3,963,341 (239,628)
Accounts payable from related party 68,845
Income tax payable (237,968) (1,201,831) (1,166,473)
Net cash (used in) provided by operating activities (1,682,104) 2,473,802 4,540,249
INVESTING ACTIVITIES      
Proceeds from sale of property and equipment 133 577 7,845
Purchases of property and equipment (1,619,325) (1,797,510) (3,783,064)
Disbursement of loan receivable - related party (400,608)
Proceeds(disbursement) of Loan receivable 2,171,655 (2,270,006)
Net cash provided by (used in) investing activities 151,855 (4,066,939) (3,775,219)
FINANCING ACTIVITIES      
Proceeds from borrowings under short-term loans 7,817,959 6,810,017 8,880,840
Proceeds from exercise of consultants stock options 44,843
Proceeds from issuance of convertible note, net of debt issuance costs 1,000,000
Proceeds from issuance of ordinary shares in connection with private placement 1,500,000
Repayment of short-term loans (7,231,612) (8,178,074) (9,366,326)
Net cash provided by (used in) financing activities 1,586,347 176,786 (485,486)
Effect of exchange rate changes on cash and cash equivalents (189,692) (191,197) (771,111)
NET DECREASE IN CASH AND CASH EQUIVALENTS (133,594) (1,607,548) (491,567)
CASH AND CASH EQUIVALENTS, BEGINNING 1,653,260 3,260,808 3,752,375
CASH AND CASH EQUIVALENTS, ENDING 1,519,666 1,653,260 3,260,808
Cash paid during the year      
Income taxes 600 3,057
Interest 445,582 484,403 450,024
Supplemental disclosure of significant non-cash transactions:      
Issuance of 479,004 ordinary shares as a result of cashless exercise of stock options 626,000
Purchase of software 1,600,000 1,500,000
Issuance 240,000 ordinary shares as compensation of a consultant's service 110,000
Issuance an individual investor warrant to purchase 160,000 shares of the Company's ordinary share in connection with the issuance of a convertible promissory note. 1,040,000    
Issuance warrant to purchase 150,000 shares of the Company's ordinary shares as compensation of a consultant's service. $ 58,000