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Property, Plant and Equipment, net
 9 Months Ended
Jun. 30, 2014
Property, Plant and Equipment, net [Text Block]

6. Property, Plant and Equipment, net

Property, plant and equipment as of September 30, 2013 and June 30, 2014 consisted of the following:

 

   September 30, 2013     June 30, 2014  

Buildings

 $ 110,214,027   $   -  

Machinery and equipment

   125,617,004     7,816  

Office equipment

   2,520,480     2,396  

Motor vehicles

   1,722,492     116,842  

 

   240,074,003     127,054  

Accumulated depreciation

   (123,715,978 )   (8,292 )

Construction in progress

   11,321,396     11,960,099  

Prepayment for acquisition of property, plant and equipment

   558,013     -  

Carrying amount

 $ 128,237,434   $ 12,078,861  

(i)

Depreciation expense for the continuing operations is included in the condensed consolidated statements of operations and comprehensive loss as follows:


 

   Three months ended June 30,     Nine months ended June 30,  

 

   2013     2014     2013     2014  

Cost of revenues

 $ 3,634,835   $ 1,415,904   $ 11,029,359   $ 4,706,625  

Research and development expenses

   92,751     149,372     373,167     396,926  

Sales and marketing expenses

   34,820     27,357     101,673     84,194  

General and administrative expenses

   873,827     800,203     2,490,275     2,490,383  

 

 $ 4,636,233   $ 2,392,836   $ 13,994,474   $ 7,678,128  

(ii)

Construction in Progress

   
 

Construction in progress as of September 30, 2013 mainly comprised of capital expenditures for the automation production line of BAK Tianjin. Construction in progress as of June 30, 2014 was mainly comprised of capital expenditures for the site of Dalian BAK Power.
   
 

For the three months ended June 30, 2013 and 2014, the Company capitalized interest of $605,648 and $26,943, respectively, to the cost of construction in progress.

   
 

For the nine months ended June 30, 2013 and 2014, the Company capitalized interest of $1,975,311 and $345,443, respectively, to the cost of construction in progress.

   
(iii)

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 Company charged impairment losses of $3.2 million and $14.6 million for the three and nine months ended June 30, 2013, respectively. The impairment charge 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 in Shenzhen primarily for the production of aluminum-case cells. The Company believes that there was no further impairment for the three and nine months ended June 30, 2014.