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Document and Entity Information	12 Months Ended
Document and Entity Information	Dec. 31, 2019 shares
Document Information [Line Items]
Document Type	20-F
Amendment Flag	false
Document Period End Date	Dec. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Entity Registrant Name	ECMOHO Ltd
Entity Central Index Key	0001763197
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Interactive Data Current	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Well-known Seasoned Issuer	No
Entity Shell Company	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity File Number	001-39121
Entity Incorporation, State or Country Code	E9
Entity Address, Address Line One	3rd Floor, 1000 Tianyaoqiao Road
Entity Address, Address Line Two	Xuhui District
Entity Address, City or Town	Shanghai
Entity Address, Country	CN
Entity Address, Postal Zip Code	200030
Document Annual Report	true
Document Transition Report	false
Document Shell Company Report	false
Document Registration Statement	false
Document Accounting Standard	U.S. GAAP
Business Contact
Document Information [Line Items]
Entity Address, Address Line One	3rd Floor, 1000 Tianyaoqiao Road
Entity Address, Address Line Two	Xuhui District
Entity Address, City or Town	Shanghai
Entity Address, Country	CN
Entity Address, Postal Zip Code	200030
Contact Personnel Name	Zoe Wang
City Area Code	+86
Local Phone Number	21 6113 2270
Contact Personnel Email Address	ir@ecmoho.com
Class A Ordinary Shares
Document Information [Line Items]
Entity Common Stock, Shares Outstanding	63,567,099
Title of 12(b) Security	Class A ordinary shares, par value US$0.00001 per share
Security Exchange Name	NASDAQ
No Trading Symbol Flag	true
Class B Ordinary Shares
Document Information [Line Items]
Entity Common Stock, Shares Outstanding	75,150,400
American Depositary Shares ("ADS")
Document Information [Line Items]
Title of 12(b) Security	American depositary shares, each representing four Class A ordinary shares
Trading Symbol	MOHO
Security Exchange Name	NASDAQ

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 49,098,841	$ 10,336,467
Restricted cash	2,000,054	2,628,392
Accounts receivable, net	49,829,419	33,839,528
Inventories, net	49,894,514	53,683,391
Prepayments and other current assets	21,366,262	11,259,410
Total current assets	172,189,090	111,747,188
Property and equipment, net	1,428,979	1,476,512
Intangible assets	1,311,653	1,502,231
Operating lease right-of-use assets	1,203,961
Deferred tax assets	787,697	1,056,211
Other non-current assets	1,538,996	1,990,266
Total assets	178,460,376	117,772,408
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ DEFICIT
Short term borrowings	34,515,953	21,956,149
Accounts payable	26,439,191	23,539,964
Amounts due to related parties	16,233,461	17,423,200
Operating lease liabilities, current	1,052,046
Advances from customers	1,043,004	2,957,026
Salary and welfare payable (including salary and welfare payable of the consolidated VIEs and VIE’s subsidiary without recourse to the Company of US$ 39,585 and US$ 21,695 as of December 31, 2018 and 2019, respectively)	718,698	1,751,571
Tax payable (including tax payable of the consolidated VIEs and VIE’s subsidiary without recourse to the Company of US$ 1,848 and US$ 1,010 as of December 31, 2018 and 2019, respectively)	3,042,834	2,906,972
Accrued liabilities and other current liabilities (including accrued liabilities and other current liabilities of the consolidated VIEs and VIE’s subsidiary without recourse to the Company of US$ 8,781 and US$ 7,238 as of December 31, 2018 and 2019, respectively)	10,516,988	4,294,370
Total current liabilities	93,562,175	74,829,252
Deferred taxes liabilities	138,406	210,076
Other non-current liabilities		108,594
Operating lease liabilities, non-current	69,347
Total liabilities	93,769,928	75,147,922
Commitments and contingencies (Note 26)
Mezzanine equity:
Redeemable non-controlling interests (redemption amount of US$ 6,993,038 as of December 31, 2018)		6,393,530
Total mezzanine equity		74,847,036
Stockholders’ (deficit)/equity:
Additional paid-in capital	105,944,278
Subscription receivables		(9,261,300)
Accumulated other comprehensive loss	(2,264,635)	(1,420,369)
Accumulated deficit	(19,556,137)	(21,852,692)
Total ECMOHO Limited shareholders’ (deficit)/equity	84,124,893	(32,533,454)
Non-controlling interests	565,555	310,904
Total shareholders’ (deficit)/equity	84,690,448	(32,222,550)
Total liabilities, mezzanine equity and shareholders’ (deficit)/equity	178,460,376	117,772,408
Class A-1 Convertible Redeemable Preferred Shares
Mezzanine equity:
Convertible Redeemable Preferred Shares		19,495,152
Class A-2 Convertible Redeemable Preferred Shares
Mezzanine equity:
Convertible Redeemable Preferred Shares		26,083,210
Series A Convertible Redeemable Preferred Shares
Mezzanine equity:
Convertible Redeemable Preferred Shares		22,875,144
Class A Ordinary Shares
Stockholders’ (deficit)/equity:
Ordinary Shares	635	155
Total shareholders’ (deficit)/equity	635	155
Class B Ordinary Shares
Stockholders’ (deficit)/equity:
Ordinary Shares	752	752
Total shareholders’ (deficit)/equity	$ 752	$ 752

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Salary and welfare payable	$ 718,698	$ 1,751,571
Tax payable	3,042,834	2,906,972
Accrued liabilities and other current liabilities	$ 10,516,988	4,294,370
Redeemable non-controlling interests redemption amount		$ 6,993,038
Treasury stock, par value	$ 0.00001	$ 0.00001
Treasury stock, shares	0	2,846,600
Class A-1 Convertible Redeemable Preferred Shares
Convertible redeemable preferred shares par value		$ 0.00001
Convertible redeemable preferred shares authorized		9,519,000
Convertible redeemable preferred shares issued		9,519,000
Convertible redeemable preferred shares outstanding		9,519,000
Convertible redeemable preferred shares redemption amount		$ 7,641,780
Class A-2 Convertible Redeemable Preferred Shares
Convertible redeemable preferred shares par value		$ 0.00001
Convertible redeemable preferred shares authorized		13,663,700
Convertible redeemable preferred shares issued		10,817,100
Convertible redeemable preferred shares outstanding		10,817,100
Convertible redeemable preferred shares redemption amount		$ 22,011,640
Series A Convertible Redeemable Preferred Shares
Convertible redeemable preferred shares par value		$ 0.00001
Convertible redeemable preferred shares authorized		7,938,915
Convertible redeemable preferred shares issued		7,938,915
Convertible redeemable preferred shares outstanding		7,938,915
Convertible redeemable preferred shares redemption amount		$ 22,926,600
Class A Ordinary Shares
Common stock, par value	$ 0.00001	$ 0.00001
Common stock, shares authorized	4,880,496,457	4,880,496,457
Common stock, shares issued	63,567,099	18,377,600
Common stock, shares outstanding	63,567,099	15,531,000
Class B Ordinary Shares
Common stock, par value	$ 0.00001	$ 0.00001
Common stock, shares authorized	75,150,400	75,150,400
Common stock, shares issued	75,150,400	75,150,400
Common stock, shares outstanding	75,150,400	75,150,400
Consolidated VIEs and VIE's Subsidiary
Salary and welfare payable	$ 21,695	$ 39,585
Tax payable	1,010	1,848
Accrued liabilities and other current liabilities	$ 7,238	$ 8,781

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Total net revenues	$ 329,479,916	$ 199,015,036	$ 98,237,569
Total cost of revenue	(257,431,074)	(140,153,462)	(69,124,047)
Gross profit	72,048,842	58,861,574	29,113,522
Operating expenses:
Fulfillment expenses	(16,956,520)	(13,096,731)	(6,217,307)
Sales and marketing expenses	(40,205,943)	(27,461,813)	(15,528,891)
General and administrative expenses	(8,496,574)	(9,068,864)	(4,004,065)
Research and development expenses	(1,808,422)	(1,669,323)	(484,089)
Other operating income	34,761
Total operating expenses	(67,432,698)	(51,296,731)	(26,234,352)
Operating income	4,616,144	7,564,843	2,879,170
Finance expense, net	(2,513,847)	(925,543)	(144,811)
Foreign exchange loss, net	(392,955)	(306,730)	105,976
Other income, net	475,195	234,421	(36,121)
Income before income tax expenses	2,184,537	6,566,991	2,804,214
Income taxes expenses	(249,639)	(417,124)	(80,576)
Net income	1,934,898	6,149,867	2,723,638
Less: Net income/(loss) attributable to the non-controlling interest shareholders and redeemable non-controlling interest shareholders	(361,657)	25,877	(101,819)
Net income attributable to ECMOHO Limited	2,296,555	6,123,990	2,825,457
Less: Accretion on convertible redeemable preferred shares to redemption value	(1,022,461)	(3,038,407)	(3,972,281)
Less: Accretion to redemption value of redeemable non-controlling interests	(311,757)	(129,896)
Less: Extinguishment of convertible redeemable preferred shares		(24,763,245)
Net (loss)/income attributable to ECMOHO Limited’s ordinary shareholders	962,337	(21,807,558)	(1,146,824)
Net income	1,934,898	6,149,867	2,723,638
Other comprehensive loss:
Foreign currency translation adjustment, net of nil tax	(887,407)	(681,407)	798,988
Less: Comprehensive income attributable to non-controlling interests	(404,798)	14,543	(94,976)
Comprehensive income attributable to ECMOHO Limited	$ 1,452,289	$ 5,453,917	$ 3,617,602
Net (loss)/earnings per share attributable to ECMOHO Limited’s ordinary shareholders
—basic	$ 0.01	$ (0.26)	$ (0.01)
—diluted	$ 0.01	$ (0.26)	$ (0.01)
Weighted average number of Ordinary Shares
—basic	98,104,216	84,970,000	81,162,400
—diluted	115,644,864	84,970,000	81,162,400
Product Sales
Total net revenues	$ 302,098,523	$ 176,097,737	$ 95,572,904
Total cost of revenue	(242,972,621)	(128,845,948)	(68,262,115)
Services
Total net revenues	27,381,393	22,917,299	2,664,665
Total cost of revenue	(14,458,453)	(11,307,514)	(861,932)
Round A Convertible Redeemable Preferred Shares
Operating expenses:
Less: Accretion on convertible redeemable preferred shares to redemption value		(1,018,493)	(1,559,285)
Round B Convertible Redeemable Preferred Shares
Operating expenses:
Less: Accretion on convertible redeemable preferred shares to redemption value		(1,574,737)	$ (2,412,996)
Series A Convertible Redeemable Preferred Shares
Operating expenses:
Less: Accretion on convertible redeemable preferred shares to redemption value	$ (1,022,461)	$ (445,177)

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' (DEFICIT)/EQUITY - USD ($)	Total	Class A Ordinary Shares	Class B Ordinary Shares	Treasury Stocks	Additional Paid-in Capital	Subscription Receivable	Accumulated Other Comprehensive Loss	Accumulated Deficit	Non-Controlling Interests
Balances at Dec. 31, 2016	$ (19,875,597)	$ 60	$ 752				$ (1,542,441)	$ (18,804,327)	$ 470,359
Balance, shares at Dec. 31, 2016		6,012,000	75,150,400
Accretion to redemption value of convertible redeemable preferred shares	(3,972,281)							(3,972,281)
Acquisition of non-controlling interests	(48,704)							(23,993)	(24,711)
Sale of equity interests in a subsidiary to non-controlling interests	16,235							78,404	(62,169)
Foreign currency translation adjustment, net of nil tax	798,988						792,145		6,843
Net income	2,723,638							2,825,457	(101,819)
Balances at Dec. 31, 2017	(20,357,721)	$ 60	$ 752				(750,296)	(19,896,740)	288,503
Balance, shares at Dec. 31, 2017		6,012,000	75,150,400
Issuance of treasury stock (Note 18)				2,846,600
Share-based compensation expense (Note 21)	356,549				$ 356,549
Capital contribution from non-controlling interests shareholders	104,159								104,159
Accretion to redemption value of convertible redeemable preferred shares	(3,038,407)				(356,549)			(2,681,858)
Accretion to redemption value of redeemable non-controlling interests and income attribution (Note 17)	(226,197)							(129,896)	(96,301)
Convertible redeemable preferred shares exchanged to Class A Ordinary Shares(Note 16)	19,495,152	$ 95			19,495,057
Convertible redeemable preferred shares exchanged to Class A Ordinary Shares(Note 16), shares		9,519,000
exchanged to Class A Ordinary Shares	(9,261,300)					$ (9,261,300)
(Note 16)	(24,763,245)				(19,495,057)			(5,268,188)
Foreign currency translation adjustment, net of nil tax	(681,407)						(670,073)		(11,334)
Net income	6,149,867							6,123,990	25,877
Balances at Dec. 31, 2018	(32,222,550)	$ 155	$ 752			(9,261,300)	(1,420,369)	(21,852,692)	310,904
Balance, shares at Dec. 31, 2018		15,531,000	75,150,400	2,846,600
Cancellation of treasury stock (Note 18)				(2,846,600)
Share-based compensation expense (Note 21)	1,575,029				1,575,029
Capital contribution from non-controlling interests shareholders	29,196								29,196
Accretion to redemption value of convertible redeemable preferred shares	(1,022,461)				(1,022,461)
Accretion to redemption value of redeemable non-controlling interests and income attribution (Note 17)	(284,689)				(311,757)				27,068
Acquisition of redeemable non-controlling interests (Note 17)	1,296,171				1,296,171
Convertible redeemable preferred shares exchanged to Class A Ordinary Shares(Note 16)	69,565,189	$ 293			69,564,896
Convertible redeemable preferred shares exchanged to Class A Ordinary Shares(Note 16), shares		29,336,099
exchanged to Class A Ordinary Shares	9,261,300					$ 9,261,300
Acquisition of non-controlling interests	(170,324)				(180,784)				10,460
Sale of equity interests in a subsidiary to non-controlling interests	595,482				2,757				592,725
Issuance of ordinary shares upon Initial Public Offering (“IPO”) and over-allotment option, net of cost of issuance (Note 18)	35,020,614	$ 187			35,020,427
Issuance of ordinary shares upon Initial Public Offering ("IPO") and over-allotment option, net of cost of issuance (Note 18), shares		18,700,000
Foreign currency translation adjustment, net of nil tax	(887,407)						(844,266)		(43,141)
Net income	1,934,898							2,296,555	(361,657)
Balances at Dec. 31, 2019	$ 84,690,448	$ 635	$ 752		$ 105,944,278		$ (2,264,635)	$ (19,556,137)	$ 565,555
Balance, shares at Dec. 31, 2019		63,567,099	75,150,400

CONSOLIDATED STATEMENTS OF CASH FLOWS	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Cash flows from operating activities:
Net income	$ 1,934,898	$ 6,149,867	$ 2,723,638
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	996,715	605,578	505,828
Provision for allowance of doubtful accounts	93,737	61,959	66,630
Inventory write down	1,194,496	639,679	1,211,131
Deferred tax (expenses)/benefit	192,741	(1,086,380)	(144,092)
Share-based compensation	1,575,029	356,549
Amortization of right-of-use asset and interest of lease liabilities	1,636,237
Changes in operating assets and liabilities:
Accounts receivable	(17,164,688)	(23,245,962)	269,686
Inventory	2,497,477	(37,639,680)	(9,737,761)
Prepayments and other current assets	(11,008,829)	(7,701,073)	2,283,341
Other non-current assets	(374,253)	347,501	(813,825)
Accounts payable	3,648,039	12,364,048	1,405,523
Amount due to related parties	488,186	561,907	225,152
Advance from customers	(1,911,843)	2,341,006	(709,079)
Tax payable	177,502	1,207,501	1,098,265
Salary and welfare payable	(1,058,214)	952,748	79,745
Operating lease liabilities, current	(1,494,644)
Accrued liabilities and other current liabilities	4,498,900	3,471,502	(1,157,860)
Other non-current liabilities	(110,431)	(142,266)	249,821
Net cash used in operating activities	(14,188,945)	(40,755,516)	(2,443,857)
Cash flows from investing activities:
Payments for acquisition of business license		(122,854)	(172,936)
Purchases of property and equipment	(557,627)	(1,423,064)	(52,477)
Payments for software procurement	(255,380)	(201,866)	(282,811)
Net cash used in investing activities	(813,007)	(1,747,784)	(508,224)
Cash flows from financing activities:
Cash payments for acquisition of equity interests of ECMOHO Shanghai for Reorganization purpose (Note 1(b))	(4,261,580)	(14,475,846)
Subscription fees received from the Founders of ECMOHO Shanghai for Reorganization purpose (Note 1(b))	9,261,300	6,000,376
Subscription fees received from the Round A and Round B Investors of ECMOHO Shanghai for Reorganization purpose (Note 1(b))	89,222	3,386,528
Cash receipts from issuance of Series A Convertible Redeemable Preferred Shares, net of issuance costs (Note 16)		22,429,967
Proceeds from borrowings	50,434,437	41,529,327	4,819,106
Repayments of borrowings	(37,295,468)	(23,469,501)	(5,233,691)
Cash received from maturity of loan deposits (Note 8)	861,268
Cash payment for loan deposits (Note 8)	(854,188)	(437,114)
Contribution from non-controlling interests shareholders	29,196	104,159
Payment for acquisition of non-controlling interests	(170,324)
Payment for acquisition of redeemable non-controlling interests (Note 17)	(2,215,392)
Proceeds from issuance of ordinary shares upon Initial Public Offering and over-allotment option, net of payment of cost of issuance/(Payment of Initial Public Offering costs)	35,020,614	(522,072)
Capital injection from non-controlling interests shareholders	595,482		16,235
Proceeds of borrowings from related parties	4,000,000	3,000,000	3,000,000
Proceeds of advances from related parties	9,436,151	8,964,847	15,304
Repayment of advances to related parties	(10,593,662)	(2,474,371)	(1,033,740)
Net cash provided by financing activities	54,337,056	44,036,300	1,583,214
Effects of exchange rate changes on cash and cash equivalents	(1,201,068)	742,397	(20,479)
Net increase/(decrease) in cash, cash equivalents and restricted cash	38,134,036	2,275,397	(1,389,346)
Cash, cash equivalents and restricted cash at beginning of year	12,964,859	10,689,462	12,078,808
Cash, cash equivalents and restricted cash at end of year	51,098,895	12,964,859	10,689,462
Supplemental disclosure of cash flow information:
Interests paid	(2,531,209)	(445,689)	(165,001)
Non-cash financing and investing activities
Accretion to redemption value of convertible redeemable preferred shares	1,022,461	3,038,407	3,972,281
Accretion to redemption value of redeemable non-controlling interests	311,757	129,896
Extinguishment of convertible redeemable preferred shares (Note 16)		24,763,245
Capital contribution from non-controlling interests shareholders (Note 13)		107,129
Subscription receivables due from Founders of ECMOHO Shanghai for Reorganization purpose (Note 24)		9,261,300
Subscription receivables due from Round B Investor of ECMOHO Shanghai for Reorganization purpose (Note 24)		89,222
Payables due to shareholders of ECMOHO Shanghai for Reorganization purpose (Note 24)		$ (4,261,580)
Payables for assets and business acquisition (Note 14)			$ (168,766)
Payables for the acquisition of redeemable non-controlling interests (Note 17)	$ (3,120,583)

Organization and Principal Activities

12 Months Ended

Dec. 31, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Organization and Principal Activities

1.	Organization and Principal Activities

(a)

Principal activities

Ecmoho Limited (the “Company”), an exempted company with limited liability incorporated in the Cayman Islands, together with (i) its various equity-owned consolidated subsidiaries, (ii) its controlled affiliate Shanghai Yibo Medical Device Co., Ltd (“Yibo or Yibo VIE”) and Yang Infinity (Shanghai) Biotechnology Co., Limited (“Yang or Yang VIE”) and Yang VIE’s subsidiary are collectively referred to as the “Group”. The Company serves as an investment holding company with no operations of its own. The Group is primarily engaged in e-commerce business and sells products to consumers and retailers. The Group also provides services including online store operating services, promotion and marketing services to its brand partners and other brand customers.

As of December 31, 2019, the Company’s principal subsidiaries and VIEs are as follows:

Name of subsidiaries and VIEs	Date of establishment/acquisition	Place of incorporation	Percentage of direct or indirect ownership			Principle activities
Subsidiaries of the Company:
ECMOHO (Hong Kong) Health Technology Limited (“ECMOHO HK”)	Established on June 27, 2018	Hong Kong		100.00	%	Investment holding
Shanghai ECMOHO Health Biotechnology Co. Limited (“ECMOHO Shanghai”)	Established on December 23, 2011	PRC		100.00	%	Product sales and services
Jianyikang Health Technology (Shanghai) Co., Limited	Established on May 21, 2018	PRC		100.00	%	Product sales
Ecmoho (Hong Kong) Limited	Established on April 1, 2015	Hong Kong		100.00	%	Product sales and services
Import It Corp.	Established on September 4, 2012	BVI		100.00	%	Product sales and services
Shanghai Tonggou Information Technology Co., Limited	Established on May 20, 2013	PRC		100.00	%	Product sales and services
Yijiasancan (Shanghai) E-commerce Co., Ltd.	Established on August 21, 2013	PRC		100.00	%	Product sales and services
Shanghai Hengshoutang Health Technology Co., Limited	Established on April 11, 2016	PRC		70.00	%	Product sales
Qinghai Hengshoutang Plateau Medicine Co., Limited	Acquired on March 21, 2017	PRC		70.00	%	Product sales
Shanghai Jieshi Technology Co., Limited	Acquired on December 16, 2016	PRC		100.00	%	Product sales
Shanghai ECMOHO Health Technology Co., Limited	Established on May 5, 2015	PRC		100.00	%	Product sales
Hangzhou Duoduo Supply Chain Management Co., Limited	Acquired on April 25, 2017	PRC		100.00	%	Bonded area warehousing
ECMOHO Co., Ltd. (Korea)	Established on August 27, 2018	Korea		100.00	%	Product sales
Yi Ling (Shanghai) Information Technology Co., Limited	Established on August 30, 2018	PRC		100.00	%	Intercompany services
Xianggui (Shanghai) Biotechnology Co., Ltd.	Established on September 28, 2018	PRC		60.00	%	Product sales and services
Shanghai Yuyun Information Technology Co., Ltd.	Established on October 15, 2018	PRC		100.00	%	Startup
Yipinda (Shanghai) Health Technology Co., Ltd.	Established on February 27, 2019	PRC		100.00	%	Product sales
ECMOHO Co., Ltd. (Japan)	Established on July 15, 2016	Japan		100.00	%	Inactive
Variable Interest Entity (“VIE”):
Shanghai Yibo Medical Device Co., Ltd (“Yibo or Yibo VIE”)*	Established on April 21, 2017	PRC		100.00	%	Operates the Company’s own online e-commerce platform
Yang Infinity (Shanghai) Biotechnology Co., Limited (“Yang or Yang VIE”)	Established on November 15, 2018	PRC		60.00	%	Product sales
Subsidiary of Variable Interest Entity (“VIE subsidiary”):
Yinchuan Xianggui Internet Hospital Co., Ltd	Established on May 17, 2019	PRC		60.00	%	Product sales

(b)

Reorganization

The Group commenced its operations in December 2011 through ECMOHO Shanghai, a People's Republic of China ("the PRC") company established by Ms. Zoe Wang and Mr. Leo Zeng, who are in spousal relationship (collectively known as “the Founders”).

In 2015 and 2016, ECMOHO Shanghai offered 19% and 12% of its equity interests with preferential rights to Round A and Round B Investors with the consideration of US$ 13,081,880 and US$ 24,000,000, respectively (Note 16).

In April 2018, one of the Round A Investors (“Exit Investor”) sold all its 8.36% equity interest with preferential rights to the Founders for cash (Note 16).

To facilitate offshore financing, an offshore corporate structure was formed in August 2018 (the “Reorganization”), which was carried out as follows:

In June 2018, the Company was incorporated in the Cayman Islands by the Founders.

In June 2018, ECMOHO HK was incorporated in Hong Kong with 100% ownership by the Company.

In July 2018, ECMOHO HK legally acquired 97.5% of the equity interest of ECMOHO Shanghai from the Founders and most of the Investors, except for 2.5% equity interests held by certain of the Investors (“NCI holders”), with the cash consideration of US$ 18,737,426. Such consideration shall be used by these Founders and Investors to subscribe ordinary shares and preferred shares of the Company to exchange its equity interests of ECMOHO Shanghai for Reorganization purpose. As of December 31, 2018, consideration of US$14,475,846 has been paid, and consideration of US$ 4,261,580 remained outstanding and was presented as amounts due to related parties on the consolidated balance sheets. The remaining consideration of US$ 4,261,580 was fully paid in 2019.

In August 2018, the Founders subscribed 9,519,000 Class A Ordinary Shares and 75,150,400 Class B Ordinary Shares of the Company with the cash consideration of US$ 15,261,676 (part of the above mentioned cash consideration of US$ 18,737,426), in the same proportions as the percentage of equity interest they held in ECMOHO Shanghai before the Reorganization. As of December 31, 2018, consideration of US$ 6,000,376 has been received, and consideration of US$ 9,261,300 remained outstanding and was presented as subscriptions receivable, a contra-equity balance on the consolidated balance sheets. The remaining consideration of US$ 9,261,300 was fully received in 2019.

The 9,519,000 Class A Ordinary Shares were in connection with the 8.36% equity interests the Founder purchased from the Exit Investor. The Founders gave up the preferential rights associated with the equity interests simultaneously with the issuance of such Class A Ordinary Shares (Note 16). In August 2018, the Founders sold 8,880,894 out of the 9,519,000 Class A Ordinary Shares to third party investors (Note 18).

In September 2018, the Round A and Round B Investors, except for the NCI holders, subscribed for 9,519,000 Class A-1 and 10,817,000 Class A-2 Ordinary Shares with preferential rights of the Company with the total cash consideration of US$ 3,475,750 (the remaining part of the above mentioned cash consideration of US$ 18,737,426), all in the same proportions, on an as converted basis, as the percentage of equity interest they held in ECMOHO Shanghai before the Reorganization. As of December 31, 2018, consideration of US$ 3,386,528 has been received, and consideration of US$ 89,222 remained outstanding and was presented as subscriptions receivable, a contra mezzanine equity balance on the consolidated balance sheets. The remaining consideration of US$ 89,222 was fully received in 2019 (Note 16).

The Reorganization was a recapitalization with no substantial changes in the shareholding of the Company. Therefore, it was accounted for using historical costs with assets and liabilities reflected at carryover basis. Accordingly, the accompanying consolidated financial statements have been prepared as if the current corporate structure had been in existence throughout the periods.

(c)

VIE arrangements

To comply with the relevant PRC laws and regulations, the Company operates its internet-based business in which foreign investment is restricted or prohibited through its Yibo VIE. To provide the Company the control of the Yibo VIE, ECMOHO Shanghai entered into a series of contractual arrangements with the Yibo VIE or its equity holders as follows:

Exclusive Technology Consulting and Service Agreement

Under the exclusive technology consulting and service agreement between ECMOHO Shanghai and Yibo VIE, ECMOHO Shanghai has the exclusive right to provide to Yibo VIE consulting and services related to, among other things, research and development, system operation, advertising, internal training and technical support. ECMOHO Shanghai has the exclusive ownership of intellectual property rights created as a result of the performance of this agreement. In exchange, Yibo VIE agrees to pay ECMOHO Shanghai an annual service fee, at an amount that is agreed by ECMOHO Shanghai. Unless ECMOHO Shanghai provides valid notice of termination 90 days prior to the term of agreement ending, this agreement will remain effective for 10-years to be automatically renewed for another 10 years thereafter.

Powers of Attorney

The shareholders of Yibo VIE, have each executed a power of attorney to irrevocably appoint ECMOHO Shanghai or its designated person as their attorney-in-fact to exercise all of their rights as shareholders of Yibo VIE, including, but not limited to, the right to convene and attend shareholder meetings, vote on any resolution that requires a shareholder vote, such as the appointment or removal of directors and executive officers, and other voting rights pursuant to the then-effective articles of association of Yibo VIE. The power of attorney will remain in force for so long as the controlling shareholders remain the shareholders of Yibo VIE.

Equity Pledge Agreement

Pursuant to the equity pledge agreement among ECMOHO Shanghai, Yibo VIE, and the shareholders of Yibo VIE, the shareholders pledged all of their equity interests in Yibo VIE to guarantee their and Yibo VIE’s performance of their obligations under the contractual arrangements including the exclusive technology consulting and service agreement, the exclusive option agreement and the power of attorney. In the event of a breach by Yibo VIE or its shareholders of contractual obligations under these agreements, ECMOHO Shanghai, as pledgee, will have the right to dispose of the pledged equity interests in Yibo VIE. The shareholders of Yibo VIE also undertake that, during the term of the equity pledge agreement, they will not dispose of the pledged equity interests or create or allow any encumbrance on the pledged equity interests. During the term of the equity pledge agreement, ECMOHO Shanghai has the right to receive all of the dividends and profits distributed on the pledged equity interests. As of the date of this prospectus, the equity pledge for the Company’s variable interest equity has been registered with local PRC authorities.

Spousal Consent Letters

Pursuant to the spousal consent letter, each of the respective spouse of the shareholders of Yibo VIE, unconditionally and irrevocably agreed that the equity interest in Yibo VIE held by and registered in the name of his/her spouse will be disposed of pursuant to the equity pledge agreement, the exclusive call option agreement and the power of attorney. The spouse agreed not to assert any rights over the equity interest in Yibo VIE held by his/her spouse. In addition, in the event that the spouse obtains any equity interest in Yibo VIE held by his/her spouse for any reason, the spouse agreed to be bound by the contractual arrangements.

Exclusive Call Option Agreement

Pursuant to the exclusive call option agreement between ECMOHO Shanghai, Yibo VIE and its shareholders, the shareholders of Yibo VIE irrevocably grant ECMOHO Shanghai an exclusive option to purchase, at its discretion, or have its designated person to purchase, to the extent permitted under PRC law, all or part of the equity interests in Yibo VIE. The purchase price shall be the lowest price permitted by applicable PRC law. In addition, Yibo VIE has granted ECMOHO Shanghai an exclusive option to purchase, at its discretion, or have its designated person to purchase, to the extent permitted under PRC law, all or part of Yibo VIE’s assets at the book value of such assets, or at the lowest price permitted by applicable PRC law, whichever is higher. The shareholders of Yibo VIE undertake that, without the Company’s prior written consent or the prior written consent of ECMOHO Shanghai, they may not increase or decrease the registered capital, dispose of its assets, incur any debt or guarantee liabilities, enter into any material purchase agreements, conduct any merger, acquisition or investments, amend its articles of association or provide any loans to third parties. The exclusive call option agreement will remain effective until all equity interest in Yibo VIE held by its shareholders and all assets of Yibo VIE are transferred or assigned to ECMOHO Shanghai or its designated representatives.

Yibo VIE, under Generally Accepted Accounting Principles in the United States (“US GAAP”), is considered to be a consolidated VIE in which the Company, or its subsidiaries, through contractual arrangements, bears the risks of, and enjoys the rewards normally associated with, ownership of the entity, and therefore the Company or one of its subsidiaries is the primary beneficiary of the entity. Through the aforementioned contractual agreements, the Company has the ability to:

•

exercise control over Yibo VIE whereby having the power to direct Yibo VIE’s activities that most significantly drive the economic results of Yibo VIE;

•

receive substantially all of the economic benefits and residual returns, and absorb substantially all the risks and expected losses from the Yibo VIE as if it was their sole shareholder; and

•

have an exclusive option to purchase all of the equity interests in Yibo VIE.

In June 2019, Yang VIE entered into the VIE Agreements, including Exclusive Technology Support and Consulting Services Agreement, Powers of Attorney, Equity Pledge Agreement, Spousal Consent Letters and Exclusive Call Option Agreement which contain terms substantially similar to those entered into between Yibo VIE and ECMOHO Shanghai in 2018.

Management therefore concluded that the Company, through the above contractual arrangements, has the power to direct the activities that most significantly impact the VIEs’ economic performance, bears the risks of and enjoys the rewards normally associated with ownership of the VIEs, and therefore the Company is the ultimate primary beneficiary of the VIEs. Consequently, the financial results of the VIEs were included in the Group’s consolidated financial statements.

The following table sets forth the assets, liabilities, results of operations and cash flows of VIEs and its subsidiary, which are included in the Group’s consolidated financial statements. Transactions between the VIEs and VIE subsidiary are eliminated in the balances presented below:

	As of December 31,
	2018	2019
	US$	US$
Assets
Current assets
Cash and cash equivalents	11,092	61,456
Amount due from subsidiaries of the Company	21,856	720,588
Inventory	—	6,608
Prepayments and other current assets	1,899	—
Total current assets	34,847	788,652
Total assets	34,847	788,652
Liabilities
Current liabilities
Salary and welfare payable	39,585	21,695
Accounts payable	—	26,485
Advance from customers	—	1,816
Tax payable	1,848	1,010
Amount due to subsidiaries of the Company	399,735	105,342
Accrued liabilities and other current liabilities	8,781	7,238
Total current liabilities	449,949	163,586
Total liabilities	449,949	163,586

	Year Ended December 31,
	2018	2019
	US$	US$
Net revenues	21,384	29,122
Net losses	(430,519)	(544,953)

	Year Ended December 31,
	2018	2019
	US$	US$
Net cash provided by/(used in) operating activities	11,092	(434,616)
Net cash provided by financing activities	—	484,980
Net increase in cash and cash equivalents	11,092	50,364

In accordance with the aforementioned VIE agreements, the Company has power to direct activities of the VIEs, and can have assets transferred out of VIEs. Therefore, the Company considers that there is no asset in VIEs that can be used only to settle obligations of the VIEs, except for registered capital, as of December 31, 2018 and 2019. As the VIEs and their subsidiaries were incorporated as limited liability Company under the PRC Company Law, the creditors do not have recourse to the general credit of the Company for all the liabilities of the VIEs.

There is currently no contractual arrangement that would require the Company to provide additional financial support to the VIEs. As the Group is conducting certain businesses in the PRC through the VIEs, the Group may provide additional financial support on a discretionary basis in the future, which could expose the Group to a loss.

There is no VIE where the Company has variable interest but is not the primary beneficiary.

The Group believes that the contractual arrangements among its shareholders and ECMOHO Shanghai comply with PRC law and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce these contractual arrangements and if the shareholders of the VIEs were to reduce their interest in the Company, their interests may diverge from that of the Company and that may potentially increase the risk that they would seek to act contrary to the contractual terms.

The Company’s ability to control the VIEs also depends on the voting rights proxy and the effect of the share pledge under the Equity Pledge Agreement and ECMOHO Shanghai has to vote on all matters requiring shareholder approval in the VIEs. As noted above, the Company believes this voting right proxy is legally enforceable but may not be as effective as direct equity ownership.

Principal Accounting Policies

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Principal Accounting Policies

2.Principal Accounting Policies

(a)Basis of preparation

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”).

The Reorganization was a recapitalization with no substantial changes in the shareholding of the Company. Accordingly, the accompanying consolidated financial statements have been prepared as if the current corporate structure had been in existence throughout the periods.

Significant accounting policies followed by the Company in the preparation of the accompanying consolidated financial statements are summarized below.

(b)Basis of consolidation

The Group’s consolidated financial statements include the financial statements of the Company, its subsidiaries and its VIEs for which the Company is the primary beneficiary. All transactions and balances among the Company, its subsidiaries, its VIEs have been eliminated upon consolidation.

A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting powers; or has the power to appoint or remove the majority of the members of the board of directors; or to cast a majority of votes at the meeting of directors; or has the power to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders.

A VIE is an entity in which the Company, through contractual agreements, has the power to direct activities of, bears the risks of, and enjoys the rewards normally associated with ownership of the entity. In determining whether the Company or its subsidiaries are the primary beneficiary, the Company considered whether it has the power to direct activities that are significant to the VIE’s economic performance, and also the Group’s obligation to absorb losses of the VIEs that could potentially be significant to the VIEs or the right to receive benefits from the VIEs that could potentially be significant to the VIEs. ECMOHO Shanghai and ultimately the Company hold all the variable interests of the VIEs, and has been determined to be the primary beneficiary of the VIEs.

(c)Use of estimates

The preparation of the Group’s consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

The Company believes that revenue recognition, sales return, sales incentive, inventory write-down, rebates, realization of deferred tax assets, assessment for useful life and impairment of long-lived assets, allowance for doubtful accounts, and valuation of ordinary shares and preferred shares requires significant judgments and estimates used in the preparation of its consolidated financial statements.

Management bases the estimates on historical experience and on various other assumptions as discussed elsewhere to the consolidated financial statements that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. On an ongoing basis, management evaluates its estimates based on information that is currently available. Changes in circumstances, facts and experience may cause the Company to revise its estimates. Changes in estimates are recorded in the period in which they become known. Actual results could materially differ from these estimates.

(d)Functional Currency and Foreign Currency Translation

The Group uses United States dollars ("US$" or "USD") as its reporting currency. The functional currency of the Company and its subsidiaries incorporated outside of PRC is US$, while the functional currency of the PRC entities in the Group is RMB as determined based on the criteria of ASC 830, Foreign Currency Matters.

Transactions denominated in other than the functional currencies are translated into the functional currency of the entity at the exchange rates prevailing on the transaction dates. Financial assets and liabilities denominated in other than the functional currency are translated at the balance sheet date exchange rate. The resulting exchange differences are included in the consolidated statements of comprehensive income as foreign exchange related gains.

The financial statements of the Group’s entities using functional currency other than US$ are translated from the functional currency to the reporting currency, US$. Assets and liabilities of the Group’s subsidiaries incorporated in PRC are translated into US$ at balance sheet date exchange rates, Income and expense items are translated at average exchange rates prevailing during the fiscal year, representing the index rates stipulated by the People’s Bank of China. Translation adjustments arising from these are reported as foreign currency translation adjustments and are shown as accumulated other comprehensive income/(loss) on the consolidated financial statement.

The exchange rates used for translation on December 31, 2018 and 2019 were US$1.00=RMB 6.8632 and US$1.00=RMB 6.9762, respectively, representing the index rates stipulated by the People’s Bank of China.

(e)Fair value of financial instruments

Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability.

The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

The three levels of inputs that may be used to measure fair value include:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Observable, market-based inputs, other than quoted prices, in active markets for identical assets or liabilities.

Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset.

The Group does not have any non-financial assets or liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis.

The Group’s financial instruments consist principally of cash and cash equivalents, restricted cash, accounts receivable, deposits, loan deposits, accounts payable, operating lease liabilities, accrued liabilities and other current liabilities, short-term borrowings, amounts due to related parties and other liabilities.

As of December 31, 2018 and 2019, the carrying values of cash and cash equivalents, restricted cash, accounts receivable, deposits, loan deposits, accounts payable, operating lease liabilities, accrued liabilities and other current liabilities, short-term borrowings, amounts due to related parties and other liabilities approximated their fair values reported in the consolidated balance sheets due to the short term maturities of these instruments.

(f)Cash, cash equivalents and restricted cash

Cash and cash equivalents include cash in bank and time deposits placed with banks, other financial institutions and third party payment processors, which have original maturities of three months or less at the time of purchase and are readily convertible to known amounts of cash.

Restricted

cash mainly represents secured deposits held in designated bank accounts for drawdown of bank loans.

Cash, cash equivalents and restricted cash as reported in the consolidated statements of cash flows are presented separately on the consolidated balance sheet as follows:

	As of December 31,
	2017		2018		2019
	US$		US$		US$
Cash and cash equivalents		10,689,462		10,336,467		49,098,841
Restricted cash		-		2,628,392		2,000,054
Total		10,689,462		12,964,859		51,098,895

(g)Accounts receivable, net

Accounts receivable are presented net of allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts which reflects its best estimate of amounts that potentially will not be collected. The Company determines the allowance for doubtful accounts on general basis taking into consideration various factors including but not limited to historical collection experience and credit-worthiness of the customers as well as the age of the individual receivables balance. Additionally, the Company makes specific bad debt provisions based on any specific knowledge the Company has acquired that might indicate that an account is uncollectible. The facts and circumstances of each account may require the Company to use substantial judgment in assessing its collectability.

(h)Inventories

Inventories are stated at the lower of cost or market. Cost is determined using the weighted average method. Provisions are made for excessive, slow moving, expired and obsolete inventories as well as for inventories with carrying values in excess of market. Certain factors could impact the realizable value of inventory, so the Group continually evaluates the recoverability based on assumptions about customer demand and market conditions. The evaluation may take into consideration historical usage, inventory aging, expiration date, expected demand, anticipated sales price, new product development schedules, the effect new products might have on the sale of existing products, product obsolescence, customer concentrations, and other factors. The reserve or write-down is equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory reserves or write-downs may be required that could negatively impact the Group’s gross margin and operating results. If actual market conditions are more favorable, the Group may have higher gross margin when products that have been previously reserved or written down are eventually sold.

(i)Property and equipment, net

Property and equipment are carried at cost less accumulated depreciation and amortization. Depreciation is calculated on a straight-line basis over the following estimated useful lives, taking into account any estimated residual value. Residual rate is determined based on the economic value of the property and equipment at the end of the estimated useful lives as a percentage of the original cost.

The estimated useful lives and residual rates are as follows:

Classification	Useful years	Residual rate
Warehouse equipment	3 years	5%
Furniture, computer and office equipment	2 - 5 years	0%-5%
Leasehold improvement	Over the shorter of the expected life of leasehold improvements or the lease term	0%

Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of comprehensive income.

(j)Intangible assets, net

Software purchased from third parties are initially recorded at cost and amortized on a straight-line basis over the shorter of the useful economic lives or stipulated period in the contract, which is usually 5 years.

Other separately identifiable intangible assets that have finite lives and continue to be amortized consist primarily of trademark and business license purchased from third parties in the years of 2017, 2018 and 2019. The Company amortizes these intangible assets on a straight-line basis over their estimated useful lives, which are 5 to 10 years.

The estimated life of amortized intangibles is reassessed if circumstances occur that indicate the life has changed.

(k)Impairment of long-lived assets

For long-lived assets including property and equipment, intangible assets and other non-current assets, the Group evaluates for impairment whenever events or changes (triggering events) indicate that the carrying amount of an asset may no longer be recoverable. The Group assesses the recoverability of the long-lived assets by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to receive from use of the assets and their eventual disposition. Such assets are considered to be impaired if the sum of the expected undiscounted cash flows is less than the carrying amount of the assets. The impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets.

(l)Advances from customers

Certain third party customers pay in advance to purchase product goods. Cash proceeds received from customers are initially recorded as advances from customers and are recognized as revenues when revenue recognition criteria are met.

(m)Deferred equity offering costs

The Company capitalizes certain legal, professional accounting and other third-party fees that are incremental and directly associated with in-process equity financings as deferred offering costs until such financings are consummated. After consummation of an equity financing, these costs are recorded in shareholders' (deficit)/equity as a reduction of additional paid-in capital generated as a result of the offering. Should the in-process equity financing be abandoned, the deferred offering costs will be expensed immediately as a charge to operating expenses in the consolidated statements of comprehensive income. As of December 31, 2018 and 2019, deferred offering costs of US$ 522,072 and nil were recorded in the consolidated balance sheet (Note 12).

(n)Mezzanine equity

Mezzanine equity represents the Round A, Round B, Class A-1, Class A-2 and Series A convertible redeemable preferred shares (collectively known as “Preferred Shares”) issued by the Company as well as redeemable non-controlling interests. Preferred Shares are redeemable at the holders' option any time after a certain date and were contingently redeemable upon the occurrence of certain liquidation events outside of the Company's control. Therefore, the Group classifies the Preferred Shares as mezzanine equity (Note 16). Redeemable non-controlling interests are redeemable at the holders' option under certain events, which are not solely within the control of the Company, and are recorded and accounted for outside of permanent equity as mezzanine equity (Note 17).

(o)Revenue recognition

In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)" ("ASU 2014-09") and subsequently, the FASB issued several amendments which amends certain aspects of the guidance in ASC 2014-09 (ASU No. 2014-09 and the related amendments are collectively referred to as "ASC 606"). According to ASC 606, revenue is recognized when control of the promised good or service is transferred to the customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those goods or services.

The Group adopted ASC 606 for all periods presented. Consistent with the criteria of Topic 606, the Group follows five steps for its revenue recognition: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation.

The Group’s revenues are primarily derived from (i) product sales and (ii) services including online store operating services, promotion and marketing services to its brand partners and other brand customers. Refer to Note 19 to the consolidated financial statements for disaggregation of the Group's revenue for the years ended December 31, 2017, 2018 and 2019.

When either party to a contract has performed, the Group presents the contract in the statement of financial position as a contract asset or a contract liability, depending on the relationship between the entity’s performance and the customer’s payment.

A receivable is recorded when the Group has an unconditional right to consideration. A right to consideration is unconditional if only the passage of time is required before payment of that consideration is due. A contract asset is recorded when the Group has transferred products or services to the customer before payment is received or is due, and the Group’s right to consideration is conditional on future performance or other factors in the contract. No contract asset was recorded as at December 31, 2018 and 2019.

If the Group recognizes a receivable before it transfers products to the customer, the Group will defer revenue, which is also defined as a contract liability under the new revenue guidance. A contract liability is recorded when the Group’s obligation to transfer goods or services to a customer has not yet occurred but for which the Group has received consideration from the customer. The Group presents such amounts as advances from customers on the consolidated balance sheet.

Product Sales

The Group selects, purchases and obtains direct control of the goods from its brand partners and/or their authorized distributors and sells goods directly to end consumers through online stores its operates or to secondary distributors in accordance with distribution agreements.

Revenue is recognized when consumers or secondary distributors physically accept the products after delivery, which is when the control of products is transferred, and is recorded net of return allowances, value added tax and sales incentives, if any.

A majority of the Group’s consumers make online payments through third-party payment platforms when they place orders on the Group’s online stores. The funds will not be released to the Group by these third-party payment platforms until the consumers accept the products on the online platform.

Shipping and handling charges paid by customers are included in net revenues. The Group typically does not charge shipping fees on orders exceeding a certain sale amount. Shipping and handling costs incurred by the Group are considered to be fulfillment activities which are presented as part of the Group’s operating expenses.

Product Sales Consignment arrangement

The Group also enters into arrangement with online platforms, where the Group retains control over the goods until a sale is made to the end consumer. The Group considers the arrangement meet the indicators of consignment arrangement under ASC 606-10-55-80, because (i) The Group does not relinquish control of the products, even though the online platform has physical possession of the goods. The products are considered to be the Group’s own inventory until they are sold to the end consumers; (ii) The Group retains the right to require the return of the goods held with the online platform; (iii) The online platforms have no obligation to pay for the products that are in its physical possession.

Revenue under consignment arrangements is recognized when a sale is made to the end customer and control is transferred to the end customer upon their acceptance in accordance with the sales report provided by the online platforms. Such revenues reflect the consideration paid by end consumers and do not take into account the sales commissions the Group pays to the relevant online platform, which are recorded as sales and marketing expenses.

Services

The Group offers its brand partners and other brand customers marketing solutions tailored to their needs and charge fixed project-based fees, including designing and operating online stores, running online promotional events, organizing online and offline marketing campaigns featuring social media influencers and circulating marketing messages to end consumers.

For services provided to customers of the Group, depending on the terms of the contract and the laws that apply to the contract, control of the services may be transferred over time or at a point in time. Control of the services is transferred over time if the Group’s performance:

•

provides all of the benefits received and consumed simultaneously by the customer;

•

creates and enhances an asset that the customer controls as the Group performs; or

•

does not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for performance completed to date.

If control of the services transfers over time, revenue is recognized over the period of the contract by reference to the progress towards complete satisfaction of that performance obligation. Otherwise, revenue is recognized at a point in time when the customer obtains control of services.

With respect to the Group’s marketing services, length of the periods over which services are provided are generally within months or less, the Group recognizes such revenues when service is rendered and service report is delivered to the customer (point in time), which marks the time when control of the service output has passed to the customer.

Consideration from brand partners of the Group is considered to be in exchange for distinct service that the Group transfers to the brand partners, as i) services provided to brand partners can be sufficiently separable from the Company’s procurement of products from those brand partners ii) consideration from the brand partner represents the standalone selling price of such service, and iii) the fees do not represent reimbursement of costs incurred by the Company to sell the brand partner’s products. The Group accounts for the service in the same way that it accounts for sales to other customers and revenues generated from these service arrangements are recognized on a gross basis and presented as services revenue on the consolidated statements of comprehensive income.

Practical expedients and exemption

Upon the election of the practical expedient under ASC 340-40-25-4, the incremental costs of obtaining a contract are expensed when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less. For the years ended December 31, 2017, 2018 and 2019, no incremental cost was capitalized as assets.

The Group also selected to apply the practical expedients allowed under ASC Topic 606 to omit the disclosure of remaining performance obligations for contracts with an original expected duration of one year or less. For the years ended December 31, 2017, 2018 and 2019, all contracts of the Group were with an original expected duration within one year.

Based on the considerations that there is no difference between the amount of promised consideration and the cash selling price of product sales and promised services, in addition the actual length of time between when the Group transfers products or promised services to the consumers and when the consumers pays for those products or services has been within one year, the Group has assessed and concluded that there is no significant financing component in place within its products sales or service arrangements as a practical expedient in accordance with ASC 606-10-32-18.

(p)Sales returns

The Group offers online consumers an unconditional right of return for a period of seven days upon receipt of products and offers its secondary distributors various rights of return after the acceptance of products. Return allowances, which reduce revenue and cost of sales, are estimated by categories of return policies offered to online customers and secondary distributors, based on historical data the Group has maintained, and subject to adjustments to the extent that actual returns differ or are expected to differ. The Group records liabilities for return allowances in refund obligation of sales returns of “Accrued liabilities and other current liabilities” in the consolidated balance sheet (Note 14) and were US$ 858,536 and US$ 2,422,155 as of December 31, 2018 and 2019, respectively. The Group recorded assets as “Sales return assets” included in “Prepayments and other current assets” in the consolidated balance sheet (Note 8) of US$ 639,846 and US$ 1,802,499 as of December 31, 2018 and 2019 for its right to recover products from customers associated with settling the refund liability.

(q)Sales incentives

The Group provides sales rebates to certain third-party online platforms/secondary distributors based on their purchase volume, which are accounted for as variable consideration. The Group estimates these amounts based on the expected amount to be provided to the third-party online platforms/secondary distributors considering the contracted rebate rates and estimated sales volume based on significant management judgments based on historical experience such as likelihood of reaching the purchase thresholds and sales forecasts, and account for it as a reduction of the transaction price. For the years ended December 31, 2017, 2018 and 2019, sales rebates provided by the Group amounted to US$ 929,339, US$ 2,509,679 and US$ 4,839,595 respectively.

(r)Value added taxes

Value added taxes ("VAT") on sales is calculated at 9% ~16% on revenue from products and 6% on revenue provided from services. The Group reports revenue net of VAT. Subsidiaries and VIEs of the Group that are VAT general tax payers are allowed to offset qualified VAT paid against their output VAT liabilities. Related surcharges, such as urban maintenance and construction tax as well as surtax for education expenses are recorded in cost of revenues.

(s)Cost of revenue

Cost of revenue consist of cost of product sales of US$ 68,262,115, US$ 128,845,948 and US$ 242,972,621 for the years ended December 31, 2017, 2018 and 2019, respectively, and cost of services of US$ 861,932, US$ 11,307,514 and US$ 14,458,453 for the years ended December 31, 2017, 2018 and 2019, respectively. Cost of product sales comprise the purchase price of products, purchase rebates, shipping charges to receive products from the suppliers when they are embedded in the purchase price and inventory write-downs. Cost of products does not include other direct costs related to cost of product sales such as shipping and handling expense, payroll and benefits of logistic staff, logistic centers rental expenses and depreciation expenses. Cost of service consists of the advertising and promotion costs, employee wages and benefits in connection with the Group’s provision of promotion and marketing services including fees the Group paid to third party vendors for advertising and promotion on various online and offline channels.

(t)Rebates

The Group periodically receives consideration from certain vendors, representing rebates for products sold over a period of time. The Group accounts for the rebates received from its vendors as a reduction to the price it pays for the products purchased. Rebates are earned based on reaching minimum purchased thresholds for a specified period. When volume rebates can be reasonably estimated based on the Group’s past experience, current forecasts and purchase volume, a portion of the rebate is recognized as the Group makes progress towards the purchase threshold.

(u)Fulfillment expenses

Fulfillment costs primarily represent warehousing, shipping and handling expenses for dispatching and delivering products to consumers, employee wages and benefits for the relevant personnel, and customs clearance expenses.

(v)Sales and marketing expenses

Sales and marketing expenses primarily consist of advertising costs for the products the Group offers, employee wages and benefits for sales and marketing staff, storefront fees paid to e-commerce platforms, and travel and entertainment expenses. Advertising costs consist primarily of costs for product marketing. The Group expenses all advertising costs as incurred and classifies these costs under sales and marketing expenses. For the years ended December 31, 2017, 2018 and 2019, advertising and marketing costs totaled US$ 445,256, US$ 573,272 and US$ 560,894, respectively.

(w)General and administrative expenses

General and administrative expenses consist of employee wages and benefits for corporate employees, rental expenses, audit and legal fees, amortization of both intangible assets and leasehold improvement, and other corporate overhead costs.

(x)Research and development expenses

Research and development expenses primarily consist of employee wages and benefits for research and development personnel, general expenses and depreciation expenses associated with research and development activities.

(y)Lease

-Prior to the adoption of ASC 842 on January 1, 2019:

Leases, including leases of offices and warehouses, where substantially all the rewards and risks of ownership of assets remain with the lessor are accounted for as operating leases. Payments made under operating leases are recognized as an expense on a straight-line basis over the lease term. The Group had no capital leases for any of the years stated herein.

-Upon and hereafter the adoption of ASC 842 on January 1, 2019:

The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liability, and operating lease liability, non-current in the Company’s consolidated balance sheets.

ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option, if any. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate, which it calculates based on the credit quality of the Company and by comparing interest rates available in the market for similar borrowings, and adjusting this amount based on the impact of collateral over the term of each lease.

The Company has elected to adopt the following lease policies in conjunction with the adoption of ASU 2016-02: (i) elect for each lease not to separate non-lease components from lease components and instead to account for each separate lease component and the non-lease components associated with that lease component as a single lease component; (ii) for leases that have lease terms of 12 months or less and does not include a purchase option that is reasonably certain to exercise, the Company elected not to apply ASC 842 recognition requirements; and (iii) the Company elected to apply the package of practical expedients for existing arrangements entered into prior to January 1, 2019 to not reassess (a) whether an arrangement is or contains a lease, (b) the lease classification applied to existing leases, and(c) initial direct costs.

(z)Employee social security and welfare benefits

Employees of the Group in the PRC are entitled to staff welfare benefits including pension, work-related injury benefits, maternity insurance, medical insurance, unemployment benefit and housing fund plans through a PRC government-mandated multi-employer defined contribution plan. The Group is required to contribute to the plan based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government.

The PRC government is responsible for the medical benefits and the pension liability to be paid to these employees and the Group’s obligations are limited to the amounts contributed and no legal obligation beyond the contributions made.

(aa)Income taxes

Current income taxes are provided on the basis of net income for financial reporting purposes, adjusted for income and expense items which are not assessable or deductible for income tax purposes, in accordance with the regulations of the relevant tax jurisdictions.

Deferred income taxes are accounted for using an asset and liability method. Under this method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The tax base of an asset or liability is the amount attributed to that asset or liability for tax purpose. The effect on deferred taxes of a change in tax rates is recognized in the consolidated statements of comprehensive income in the period of change. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all of the deferred tax assets will not be realized.

Uncertain tax positions

The guidance on accounting for uncertainties in income taxes prescribes a more likely than not threshold for financial statements recognition and measurement of a tax position taken or expected to be taken in a tax return. Guidance was also provided on derecognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. Significant judgment is required in evaluating the Group’s uncertain tax positions and determining its provision for income taxes. The Group recognizes interests and penalties, if any, under accrued expenses and other current liabilities on its consolidated balance sheets and under other expenses in its statements of operations and comprehensive income. The Group did not recognize any significant interest and penalties associated with uncertain tax positions for the years ended December 31, 2017, 2018 and 2019. As of December 31, 2018 and 2019, the Group did not have any significant unrecognized uncertain tax positions.

The Company adopted ASC 740-270-30-36 approach for interim period tax computation and reporting. Interim period tax (or benefit) related to consolidated ordinary income (or loss) for the year to date is computed using one overall estimated annual effective tax rate, except for jurisdiction if a subsidiary anticipates an ordinary loss for the fiscal year or has an ordinary loss for the year to date.

(ab)Government Grants

Government grants are recognized as other income when received. For the years ended December 31, 2017, 2018 and 2019, the Group recognized government grants of US$ 125,718, US$ 211,411 and US$ 463,253 from the local PRC government authorities, respectively. These subsidies were non-recurring, not refundable and with no conditions attached. There are no defined rules and regulations to govern the criteria necessary for companies to enjoy such benefits and the amount of financial subsidy is determined at the discretion of the relevant government authorities.

(ac)Share-based compensation

Share-based compensation costs are measured at the grant date. The share-based compensation expenses have been categorized as either fulfillment expenses, sales and marketing expenses, general and administrative expenses or research and development expenses depending on the job functions of the grantees.

For the restricted share units granted with service conditions, compensation expense is recognized using the straight-line method over the requisite service period. Forfeitures are estimated at the time of grant, with such estimate updated periodically and with actual forfeitures recognized currently to the extent they differ from the estimate.

For the restricted share units granted with performance conditions whose vesting is contingent upon meeting company-wide performance goals, compensation expenses are recognized using graded vesting method over the requisite service period in accordance with ASC 718 and will be adjusted for subsequent changes in the expected outcome of the performance-vesting condition. For restricted share units granted with service conditions and the occurrence of an initial public offering (“IPO”) as performance condition, cumulative share-based compensation expenses for the options that have satisfied the service condition will be recorded upon the completion of the IPO, using the graded vesting method.

For the restricted share units granted with market condition whose vesting is contingent on the Company’s market value exceeding a specific amount, Monte Carlo simulation has been applied to determine the fair value and requisite service period, compensation expense is recognized using the straight-line method over the estimated requisite service period unless the market condition is satisfied before the end of the initially estimated requisite service period.

(ad)Statutory reserves

The Group’s subsidiaries, consolidated VIEs incorporated in the PRC are required on an annual basis to make appropriations of retained earnings set at certain percentage of after-tax profit determined in accordance with PRC accounting standards and regulations (“PRC GAAP”).

Appropriation to the statutory general reserve should be at least 10% of the after tax net income determined in accordance with the legal requirements in the PRC until the reserve is equal to 50% of the entities’ registered capital. The Group is not required to make appropriation to other reserve funds and the Group does not have any intentions to make appropriations to any other reserve funds.

The general reserve fund can only be used for specific purposes, such as setting off the accumulated losses, enterprise expansion or increasing the registered capital. Appropriations to the general reserve funds are classified in the consolidated balance sheets as statutory reserves.

There are no legal requirements in the PRC to fund these reserves by transfer of cash to restricted accounts, and the Group has not done so.

Relevant laws and regulations permit payments of dividends by the PRC subsidiaries and affiliated companies only out of their retained earnings, if any, as determined in accordance with respective accounting standards and regulations. Accordingly, the above balances are not allowed to be transferred to the Company in terms of cash dividends, loans or advances.

As the Group’s subsidiaries in PRC had accumulated deficits in their functional currency, RMB, for the years ended December 31, 2017, 2018 and 2019, no statutory reserve was recorded as of December 31, 2018 and 2019.

(ae)Related parties

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or significant influence, such as a family member or relative, shareholder, or a related corporation.

(af)Dividends

Dividends are recognized when declared. No dividends were declared for the years ended December 31, 2018 and 2019, respectively. The Group does not have any present plan to pay any dividends on ordinary shares in the foreseeable future. The Group currently intends to retain the available funds and any future earnings to operate and expand its business.

(ag)Earnings/Loss per share

Basic earnings/loss per share is computed by dividing net profit/loss attributable to holders of ordinary shares by the weighted average number of ordinary shares outstanding during the year using the two class method. Using the two class method, net profit/loss is allocated between ordinary shares and other participating securities (i.e. preferred shares) based on their participating rights.

Diluted earnings/loss per share is calculated by dividing net profit/loss attributable to ordinary shareholders as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalents shares outstanding during the year/period. Dilutive equivalent shares are excluded from the computation of diluted earnings/loss per share if their effects would be anti-dilutive. Ordinary share equivalents consist of the ordinary shares issuable in connection with the Group’s convertible redeemable preferred shares using the if-converted method, and ordinary shares issuable upon the conversion of the stock options, using the treasury stock method. Except for voting rights, the Class A and Class B ordinary shares have all the same rights and therefore the earning/loss per share for both classes of shares are identical.

(ah)Comprehensive income

Comprehensive income is defined as the change in shareholders’ (deficit)/equity of the Company during a period arising from transactions and other events and circumstances excluding transactions resulting from investments by shareholders, distributions to shareholders, accretions on convertible redeemable preferred shares and extinguishment of convertible redeemable preferred shares.

Comprehensive income is reported in the consolidated statements of comprehensive income. Accumulated other comprehensive income of the Group include the foreign currency translation adjustments.

(ai)Segment reporting

Operating segments are defined as components of an enterprise engaging in businesses activities for which separate financial information is available that is regularly evaluated by the Group’s chief operating decision makers in deciding how to allocate resources and assess performance. The Group’s chief operating decision maker has been identified as the Chief Executive Officer, who reviews consolidated results including revenue, gross profit and operating profit at a consolidated level only. The Group does not distinguish between markets for the purpose of making decisions about resources allocation and performance assessment. Hence, the Group has only one operating segment and one reportable segment.

(aj)Recently issued accounting pronouncements

New and amended standards adopted by the Group:

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to classify leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification determines whether lease expense is recognized over the lease term based on an effective interest method for financing leases or on a straight-line basis for operating leases. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expenses for such lease generally on a straight-line basis over the lease term. For public entities, the guidance was effective for annual reporting periods beginning after December 15, 2018 and for interim periods within those fiscal years.

ASU 2016-02 initially required adoption using a modified retrospective approach, under which all years presented in the financial statements would be prepared under the revised guidance. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842), which added an optional transition method under which financial statements may be prepared under the revised guidance for the year of adoption, but not for prior years. Under the latter method, entities will recognize a cumulative catch-up adjustment to the opening balance of retained earnings in the period of adoption.

The Company adopted ASC 842 using the modified retrospective approach with an effective date of January 1, 2019 for leases that existed on that date. Prior period results continue to be presented under ASC 840 based on the accounting standards originally in effect for such periods. This standard provides a number of optional practical expedients in transition. The Company applied certain practical expedients to leases that commenced prior to the effective date as follows: (i) elect for each lease

not to separate non-lease components from lease components and instead to account for each separate lease component and the non-lease components associated with that lease component as a single lease component

; (ii) for leases that have lease terms of 12 months or less and does not include a purchase option that is reasonably certain to exercise, the Company

elected not to apply ASC 842 recognition requirements; and (iii) the Company elected to apply the package of practical expedients for existing arrangements entered into prior to January 1, 2019 to not reassess (a) whether an arrangement is or contains a lease, (b) the lease classification applied to existing leases, and(c) initial direct costs.

In connection with the adoption of ASC 842, on January 1, 2019, the Company recorded an impact of US$ 1,735,966 on its assets and US$ 1,735,966 on its liabilities for the recognition of operating lease right-of-use-assets and operating lease liabilities, respectively, which are primarily related to the lease of the Group’s offices and warehouses. The adoption of ASC 842 did not have a material impact on the Company’s results of operations or cash flows.

1.	ii. New and amended standards not yet adopted by the Group:

In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326), to provide financial statement users with more useful information about expected credit losses. ASU 2016-13 also changes how entities measure credit losses on financial instruments and the timing of when such losses are recorded. ASU 2016-13 is effective for fiscal years and interim periods within those years beginning after December 15, 2023 for the Company, with early adoption permitted. The Company is currently evaluating the impact ASU 2016-13 will have on its consolidated financial statements and associated disclosures.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. This standard eliminates, adds and modifies certain disclosure requirements for fair value measurements in ASC 820, Fair Value Measurement, as part of its disclosure framework project. ASU 2018-13 is effective for the Company beginning January 1, 2020. The amendments in ASU 2018-13 that relate to changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments in ASU 2018-13 should be applied retrospectively to all periods presented upon their effective date. The adoption of this standard is not expected to have a material impact on the Company’s disclosures.

In December 2019, the FASB issued ASU 2019-12—Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in ASU 2019-12 simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. ASU 2019-12 is effective for the Company beginning on January 1, 2021. Early adoption of the amendments is permitted. The Company is currently evaluating the impact of ASU 2019-12 on its consolidated financial statements.

Risks and Concentration

12 Months Ended

Dec. 31, 2019

Risks And Uncertainties [Abstract]

Risks and Concentration

3.	Risks and Concentration

(a)

Foreign exchange risk

The Group’s sales, purchase and expense transactions in domestic subsidiaries are generally denominated in RMB and a significant portion of the Group’s assets and liabilities are denominated in RMB. RMB is not freely convertible into foreign currencies.

In the PRC, foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China. In addition, the Group’s cash denominated in US$ subject the Group to risks associated with changes in the exchange rate of RMB against US$ and may affect the Group’s results of operations going forward.

(b)

Credit and Concentration risk

The Group’s credit risk arises from cash and cash equivalents, restricted cash, prepayments and other current assets, and accounts receivable. The carrying amounts of these financial instruments represent the maximum amount of loss due to credit risk.

The Group expects that there is no significant credit risk associated with the cash and cash equivalents and restricted cash which are held by reputable financial institutions in the jurisdictions where the Company, its subsidiaries and VIEs are located. The Group believes that it is not exposed to unusual risks as these financial institutions have high credit quality.

The Group has no significant concentrations of credit risk with respect to its prepayments.

Accounts receivable are typically unsecured and are derived from revenue earned through third party consumers. The risk with respect to accounts receivable is mitigated by credit evaluations performed on them.

(i) Concentration of revenues

For the years ended December 31, 2017, 2018 and 2019, Customer A contributed 14%, 17% and 19% of total net revenue of the Group, respectively.

For the years ended December 31, 2019, Customer C contributed 12% of total net revenue of the Group.

For the years ended December 31, 2017, 2018 and 2019, the Group, as a principal, earned net revenue, representing 52%, 34% and 23% of its total net revenue, respectively, through a third party online platform.

(ii) Concentration of accounts receivable

The Group has not experienced any significant recoverability issue with respect to its accounts receivables. The Group conducts credit evaluations on the third party consumers and generally does not require collateral or other security from such consumers.

The Group periodically evaluates the creditworthiness of the existing online platforms and distributors in determining an allowance for doubtful accounts primarily based upon the age of the receivables and factors surrounding the credit risk of specific customers.

The following table summarized customers with greater than 10% of the accounts receivables:

	Year Ended December 31,
	2018			2019
Customer A		14	%		24	%
Customer B		31	%		23	%

Significant Equity Transactions

12 Months Ended

Dec. 31, 2019

Significant Equity Transactions [Abstract]

Significant Equity Transactions

4.	Significant equity transactions

Initial public offering

In November 2019, the Company completed its initial public offering on the NASDAQ Global Select Market of 4,675,000 American Depositary Shares (“ADS”) (including 300,000 ADSs sold upon the exercise of the underwriters’ over-allotment option) (every ADS represents four Class A ordinary shares, for a total ordinary shares offering of 18,700,000 shares). The net proceeds raised from the IPO amounted to approximately US$35.0 million after deducting underwriting discounts and commissions and other offering expenses.

Upon the completion of the IPO, 9,519,000 Class A-1 and 10,817,100 Class A-2 preferred shares were converted and designated as 20,336,100 Class A ordinary shares on a one-for-one basis, and 7,938,915 Series A preferred shares were converted and designated as 8,999,999 Class A ordinary shares on an average basis of 1-for-1.13 due to the adjustment of initial conversion ratio in accordance with the terms of Series A preferred shares.

In respect of all matters subject to shareholders’ vote, each holder of Class A ordinary share is entitled to one and each holder of Class B ordinary share is entitled to ten votes.

Cash and Cash Equivalents

12 Months Ended

Dec. 31, 2019

Cash And Cash Equivalents [Abstract]

Cash and Cash Equivalents

5.	Cash and cash equivalents

Cash and cash equivalents represent cash on hand and demand deposits placed with banks, other financial institutions and third party payment processors, which are unrestricted as to withdrawal or use. The following table sets forth a breakdown of cash and cash equivalents by currency denomination and jurisdiction as of December 31, 2018 and 2019:

	US$						US$ equivalent (RMB)						US$ Equivalent (Others)						Total in US$
	Overseas		PRC				Overseas		PRC				Overseas		PRC
			Non VIE		VIE				Non VIE		VIE				Non VIE		VIE
December 31, 2018		3,324,971		359,796		-		1,037,629		3,690,184		11,092		1,912,795		-		-		10,336,467
December 31, 2019		44,865,166		103,214		-		997,219		2,177,509		61,456		894,277		-		-		49,098,841

Accounts Receivable, Net

12 Months Ended

Dec. 31, 2019

Receivables [Abstract]

Accounts Receivable, Net

6.	Accounts receivable, net

	As of December 31,
	2018			2019
	US$			US$
Accounts receivable, gross		33,979,863			50,063,491
Less: allowance for doubtful accounts		(140,335	)		(234,072	)
Accounts receivable, net		33,839,528			49,829,419

Movement of allowance of doubtful accounts

	Year ended December 31,
	2017	2018			2019
	US$	US$			US$
At beginning of period	11,746		78,376			140,335
Addition	79,068		114,913			483,130
Reversal	(12,438)		(52,954	)		(389,393	)
At end of period	78,376		140,335			234,072