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Note 1 - Organization and Basis of Presentation
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3 Months Ended |
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Mar. 31, 2012
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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 was 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.
The
unaudited financial statements included herein were
prepared by the Company, pursuant to the rules and
regulations of the Securities and Exchange Commission
(“SEC”). The information furnished herein
reflects all adjustments (consisting of normal recurring
accruals and adjustments) that are, in the opinion of
management, necessary to fairly present the operating results
for the respective periods. Certain information and footnote
disclosures normally present in annual financial statements
prepared in accordance with accounting principles generally
accepted in the United States of America (“US
GAAP”) have been omitted pursuant to such rules and
regulations. These financial statements should be read
in conjunction with the audited financial statements and
footnotes included in the Company’s 2011 audited
financial statements included in the Company’s Annual
Report on Form 10-K. The results for the three months
ended March 31, 2012 are not necessarily indicative of the
results to be expected for the full year ending December 31,
2012.
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