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Note 1 - Organization and Basis of Presentation
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12 Months Ended |
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Dec. 31, 2011
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| Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] |
Note
1 – Organization and Basis of Presentation
Organization
and Line of Business
Deer
Consumer Products, Inc., formerly known as Tag Events
Corp., (hereinafter referred to as the
“Company” or “Deer”) was
incorporated in the State of Nevada on July 18,
2006.
On
September 3, 2008, the Company entered into a share
exchange agreement and plan of reorganization with Deer
International Group Ltd. (“Deer
International”), a corporation organized under the
laws of the British Virgin Islands on December 3, 2007,
and acquired 100% of the shares of Winder Electric Group
Ltd. (“Winder”) on March 11, 2008. Winder has
a 100% owned subsidiary, Delta International Limited
(“Delta”). Winder and Delta were formed and
incorporated in the Guangdong Province of the People
Republic of China (“PRC”) on July 20, 2001,
and February 23, 2006, respectively.
Pursuant
to the share exchange agreement, the Company acquired
from Deer International 50,000 ordinary shares,
consisting of all of its issued and outstanding capital
stock, for 15,695,706 shares of the Company’s
common stock. Concurrently with the closing of the
transactions contemplated by the share exchange agreement
and as a condition thereof, the Company entered into an
agreement with Crescent Liu, its former Director and
Chief Executive Officer, pursuant to which he returned
5,173,914 shares of the Company’s common stock to
the Company for cancellation. Mr. Liu was not compensated
for the cancellation of his shares of the Company’s
common stock. Upon completion of the foregoing
transactions, the Company had 19,652,226 shares of common
stock issued and outstanding. In connection with the
above transaction, the Company changed its name to Deer
Consumer Products, Inc. on September 3, 2008.
The
exchange of shares with Deer International was recorded
as a reverse acquisition under the purchase method of
accounting because Deer International obtained control of
the Company. Accordingly, the merger of Deer
International into the Company was recorded as a
recapitalization of Deer International, with Deer
International being treated as the continuing entity. The
historical financial statements presented are the
consolidated financial statements of Deer International.
The share exchange agreement was treated as a
recapitalization and not as a business combination;
therefore, no pro forma information is disclosed. At the
date of this transaction, the net liabilities of the
legal acquirer were $0.
The
Company is engaged in the manufacture, marketing,
distribution and sale of small home and kitchen electric
appliances (blenders, food processors, choppers, juicers,
etc.). The Company manufactures its products in
YangJiang, China and has corporate functions in Nanshan,
Shenzhen, China.
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