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SUBSEQUENT EVENT
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6 Months Ended |
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Jun. 30, 2011
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| SUBSEQUENT EVENT [Text Block] | NOTE 14: SUBSEQUENT EVENT On July 14, 2011, TMK Shenzhen set up its wholly owned subsidiary, Hubei TMK Battery Co., Ltd., in Hubei province, PRC. The subsidiary is expected to become a manufacturing center for the Company. At June 30, 2011, a deposit of RMB 10,000,000 (approximately $1,546,500) was made as the invested capital for TMK Hubei. The fund was recorded as restricted cash at June 30, 2011 and was later transferred to invested capital account of TMK Hubei when the registration of the subsidiary was approved by the local government in July 2011. The Company also made a payment of RMB 10,996,000 (approximately $1,700,531) to a contractor for the construction of the manufacturing site of TMK Hubei) in July 2011. On August 13, 2011, the Company entered into a Share Purchase Agreement (the "Purchase Agreement"), dated August 13, 2011, among the Company, its wholly-owned subsidiary, Leading Asia, and the shareholders of Loyal Top Capital Investment Limited (“Loyal Top”), for the purchase of Loyal Top and its wholly-owned Chinese subsidiary, Shenzhen Dongfang Hualian Technology Co., Ltd ("Hualian"), for an aggregate purchase price of RMB 72 million (approximately $11 million) in cash and 8,108,000 shares of the Company's common stock at $2 per share to be issued within 90 days of the closing of the Purchase Agreement. The closing of the transaction is expected to occur on or before September 15, 2011 following the registration of Loyal Top's ownership of Hualian with the Shenzhen Administration for Industry and Commerce. As of June 30, 2011, the Company had made an advance payment of RMB 67,838,925 (approximately $10.5 million) towards the purchase price on behalf of Leading Asia. The Purchase Agreement also contains a make good provision, pursuant to which, the Company is obligated to issue and deliver shares of the Company's common stock to the Seller if Hualian achieves a net profit of RMB 60 million (approximately $ 9.3 million) for the fiscal year ended December 31, 2011. |