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Property, Plant and Equipment, net
 3 Months Ended
Dec. 31, 2013
Property, Plant and Equipment, net [Text Block]

6. Property, Plant and Equipment, net

Property, plant and equipment as of September 30, 2013 and December 31, 2013 consisted of the following:

    September 30,     December 31,  
    2013     2013  
Buildings $ 152,128,751   $ 157,266,353  
Machinery and equipment   125,617,004     126,226,956  
Office equipment   2,520,480     2,936,618  
Motor vehicles   1,722,492     1,782,062  
    281,988,727     288,211,989  
Accumulated depreciation   (123,715,978 )   (127,671,824 )
Construction in progress   11,321,396     11,850,816  
Prepayment for acquisition of property, plant and equipment   558,013     2,342,721  
Carrying amount $ 170,152,158   $ 174,733,702  

(i)

Depreciation expense for the three months ended December 31, 2012 and 2013 is included in the condensed consolidated statements of operations as follows:


      Three months ended December 31,  
      2012     2013  
  Cost of revenues $ 3,941,806   $ 1,574,651  
  Research and development expenses   136,717     115,511  
  Sales and marketing expenses   32,582     28,776  
  General and administrative expenses   806,665     849,766  
    $ 4,917,770   $ 2,568,704  
   
(ii)

The Company's Research and Development Test Centre in Shenzhen was completed in July 2013. The Company leased out a substantial part of the Research and Development Test Centre to third party tenants, for a period from three to ten years, and recognized rental income of $1.2 million for the three months ended December 31, 2013. As of September 30, 2013 and December 31, 2013, the Company had also received $715,398 and $1,109,950, respectively in rental deposits from its tenants .

   
 

The following schedule provides an analysis of the Company's investment in property on operating leases by major classes as of December 31, 2013:

  Buildings $ 45,816,029  
  Less: Accumulated depreciation   (310,894 )
    $ 45,505,135  

The following is a schedule by years of minimum future rentals on noncancelable operating leases as of December 31, 2013. Year ending September 30,

  2014 $ 4,314,481  
  2015   5,752,641  
  2016   5,740,618  
  2017   5,509,647  
  2018   5,113,120  
  Later years   7,067,278  
    $ 33,497,785  

(iii)

Construction in Progress

   
 

Construction in progress as of September 30, 2013 and December 31, 2013 was mainly comprised of capital expenditures for the automation production line of BAK Tianjin.
   
 

For the three months ended December 31, 2012 and 2013, the Company capitalized interest of $709,860 and $233,080 respectively to the cost of construction in progress.

   
(iv)

Impairment charge

   
 

During the course of the Company’s strategic review of its operations, the Company assessed the recoverability of the carrying value of the Company’s property, plant and equipment. The impairment charge, if any, represented the excess of carrying amounts of the Company’s property, plant and equipment over the estimated discounted cash flows expected to be generated by the Company’s production facilities. The Company believes that there was no further impairment of its property, plant and equipment for the quarters ended December 31, 2012 and 2013.