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Prepayments and Other Receivables and Receivable from former subsidiaries
 9 Months Ended
Jun. 30, 2014
Prepayments and Other Receivables and Receivable from former subsidiaries [Text Block]

5. Prepayments and Other Receivables and Receivable from former subsidiaries

(i) Prepayments and other receivables were disposed as of September 30, 2013 and June 30, 2014 consisted of the following:

 

   Note     September 30, 2013     June 30, 2014  

Prepayments for raw materials and others

       $ 3,466,177   $   -  

Staff advances

         701,923     17,776  

Prepaid operating expenses

         292,049     1,934  

Advance to an unrelated third party

   (a)     1,169,798     -  

Advance to a related party

   (b)     885,052     -  

Consideration receivable

   (c)     6,483,507     -  

Net assets of BAK Canada held by trustee

   (d)     1,043,833     -  

Value added tax recoverable

         4,295,390     165,250  

Others

         1,371,790     9,044  

 

         19,709,519     194,004  

Less: Allowance for doubtful accounts

         (1,980,914 )   -  

 

       $ 17,728,605   $ 194,004  

(a)

Advance to an unrelated third party was interest-free, unsecured and repayable on demand.
(b)

As of September 30, the Company advanced to Tianjin BAK New Energy Research Institute Co., Ltd (“Tianjin New Energy”), a related party under the common control of Mr. Xiangqian Li (“Mr. Li”), the Company's CEO, an amount of $885,052 which was interest-free, unsecured and repayable on demand.

(c)

On August 27, 2013, the Company completed the equity transfer of Tianjin Meicai to Tianjin Zhantuo International Trading Co., Ltd. (“Tianjin Zhantuo”), an unrelated third party. As of September 30, 2013, the remaining consideration receivable was $6,483,507. The amount was interest-free, repayable on September 26, 2013 (30 days upon completion) and pledged for advance from Tianjin Zhantuo.

(d)

BAK Canada filed for bankruptcy on March 28, 2013. As of September 30, 2013, its net assets were held under the custody of its trustee.

(ii) Receivable from a former subsidiary

    June 30, 2014  
Receivable from a former subsidiary (Note 1) $ 11,511,694  
Less: Allowance for doubtful accounts (Note 1)   11,072,885  
  $ 438,809  

As of June 30, 2014, the amount due from Shenzhen BAK was interest free, unsecured and repayable on demand. An amount of $438,809 was repaid in August 2014.