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Concentrations and Credit Risk
 12 Months Ended
Sep. 30, 2014
Concentrations and Credit Risk [Text Block]
20.

Concentrations and Credit Risk


  (a)

Concentrations

The Company had two customers that individually comprised 10% or more of net revenue for the years ended September 30, 2013 and 2014 as follows:

 

 

   2013     2014  
 

Tinno Mobile Technology Company Limited.

 $  *     *   $ 13,278,638     10.8%  
 

Dongguan Yulong Telecom Technology Co., Ltd.

 $ 21,269,794     11.4%   $ *     *  

* Comprised less than 10% of net revenue for the respective year.

The Company had three customers that individually comprised 10% or more of accounts receivable as of September 30, 2013 and 2014 as follows:

 

 

   2013     2014  
 

Shenzhen DRN Battery Co., Ltd.

 $ 5,787,787     11.6%   $  *     *  
 

Beijing Beny Wave Technology Co., Ltd.

   6,811,680     13.7%     *     *  
 

Guangdong Pisen Electronics Co., Ltd.

 $ *     *   $ 569,444     56.2%  

** Comprised less than 10% of accounts receivable as of the respective year end date.

After the disposal of BAK International (Note 1) and prior to the completion of the new manufacturing site in Dalian, the Company continued its business and continued to generate revenues from sale of batteries via subcontracting the production to BAK Tianjin, a former subsidiary. From July 1, 2014 to September 30, 2014, the Company purchases inventories of $3.3 million from BAK Tianjin.

  (b)

Credit Risk

Financial instruments that potentially subject the Company to a significant concentration of credit risk consist primarily of cash and cash equivalents and pledged deposits. As of September 30, 2013 and 2014, substantially all of the Company’s cash and cash equivalents and pledged deposits were held by major financial institutions located in the PRC, which management believes are of high credit quality.