Discontinued Operations

12 Months Ended

Dec. 31, 2021

Discontinued Operations [Abstract]

DISCONTINUED OPERATIONS

25. DISCONTINUED OPERATIONS

HeDeTang HK

On September 18, 2019, SkyPeople Foods Holdings Limited (“SkyPeople Foods”) entered into a Share Transfer Agreement (the “Agreement”) with New Continent International Co., Ltd., (the “Buyer”) a company incorporated in the British Virgin Islands. Pursuant to the terms of the Agreement, the Buyer purchased 100% ownership of HeDeTang Holdings (HK) Ltd. (“HeDeTang HK”) from SkyPeople Foods, which value is primarily derived from HeDeTang HK’s wholly-owned subsidiary HeDeJiaChuan Holdings Co., Ltd. and 73.41% owned subsidiary SkyPeople Juice Group Co., Ltd., for a total price of RMB 600,000 (approximately $85,714) (the “Sale Transaction”). The Sale Transaction was closed on February 27, 2020. In accordance with ASC Topic 205, Presentation of Financial Statement Discontinued Operations (“ASC Topic 205”), the Company presented the operation results of HeDeTang HK and its subsidiaries as a discontinued operation, as the Company believed that no continued cash flow would be generated by the discontinued component and that the Company would have no significant continuing involvement in the operations of the discontinued component. The total assets of HeDeTang HK were $106.85 million as of February 27, 2020 and the total liabilities of HeDeTang HK were $212.80 million as of February 27, 2020, resulting in a gain on disposal of $101.05 million. There was no income or loss from HeDeTang HK from January 1, 2020 to the close of the Sale Transaction.

On March 11, 2020, the Company’s Board of Directors passed a resolution to sell the operation of Globalkey Supply Chain Limited and Zhonglian Hengxin Assets Management Co., Ltd (“Zhonglian Hengxin”) and close the operation of Digital Online Marketing Limited, SkyPeople Foods Holdings Limited. and Chain Future Digital Tech (Beijing) Co., Ltd. On March 18, 2021, Chain Future Digital Tech (Beijing) Co., Ltd. was deregistered, resulting in a gain on disposal of $0.18 million. Based on the disposal plan and in accordance with ASC 205-20, the Company presented the operating results from these operations as a discontinued operation. On May 7, 2020, Future Business Management Co., Ltd. completed the transfer of its ownership of Zhonglian Hengxin Assets Management Co., Ltd to an individual third party, resulting in a gain on disposal of $0.18million.

On July 24, 2020, the Company’s Board of Directors passed a resolution to sell the operation of Hedetang Farm Products Trading Markets (Mei County) Co., Ltd. resulting in a gain on disposal of $18.20 million and close the operation of Chain Cloud Mall Logistics Center (Shaanxi) Co., Ltd. On July 27,2020, Skypeople Foods Holdings Limited was dissolved; On July 28, 2020 Digital Online Marketing Limited was dissolved; On November 12, 2020, Chain Cloud Mall Network and Technology (Tianjin) Co., Limited and Chain Cloud Mall Logistics Center (Shanxi) Co., Ltd. entered into agreements to transfer their ownership of Hedetang Farm Products Trading Markets (Mei country) Co., Ltd. to third parties.

On April 9, 2021, FT Commercial Management (Beijing) Co., Ltd was deregistered, resulting in a loss on disposal of $22,623.

On August 2, 2021, Guangchengji (Guangdong) Industrial Co., Ltd was sold to a third party, resulting in a loss on disposal of $3.68 million.

On November 4, 2021, Future Supply Chain Co., Ltd was transferred to a third party, resulting in a gain on disposal of $ 1.14 million.

Loss from discontinued operations for fiscal years 2021 and 2020 was as follows: 

	December 31,		December 31,
	2021		2020
REVENUES	$	-	$	1,931
COST OF SALES		-		265
GROSS PROFIT		-		1,666
OPERATING EXPENSES:
General and administrative		-		456,682
Selling expenses		-		3,656
Bad debt expenses		-		(10,548	)
Total		-		449,790
OTHER INCOME (EXPENSE)
Interest income		-		217,752
Interest expense		-		-
other income (expenses)		-		8,186
Total		-		225,938
Loss from discontinued operations before income tax		-		(222,186	)
Income tax provision				-
Loss from discontinued operation before noncontrolling interest	$	-		(222,186	)
Gain on disposal of discontinued operations		-		145
Less: Net loss attributable to non-controlling interests		-		-
LOSS FROM DISCONTINUED OPERATION	$	-	$	(222,041	)

The major components of assets and liabilities related to discontinued operations are summarized below:

	December 31, 2021		December 31, 2020
Cash	$	-	$	365,714
Other current assets		-		243,586
Loan receivables		-		5,355,944
Property, plant and equipment, net		-		14,049
Amount due from related parties		157		62,552
Total assets related to discontinued operations	$	157	$	6,041,845
Accounts payable	$	-	$	250,288
Accrued expenses		-		556,407
Loan payables		-		379,522
Amount due to related parties		-		1,068,878
Total liabilities related to discontinued operations	$	-	$	2,255,095