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Deferred Government Grants

3 Months Ended

Dec. 31, 2014

Deferred Government Grants [Text Block]

12.	Deferred Government Grants

	Deferred government grants as of September 30, 2014 and December 31, 2014 consist of the following:

			September 30,			December 31,
			2014			2014
	Total government grants	$	24,437,131		$	7,435,513
	Less: Current portion		(24,437,131	)		(185,888	)
	Non-current portion	$	-		$	7,249,625

	In September 2013, the Management Committee of Dalian Economic Zone Management Committee (the “Management Committee”) provided a subsidy of RMB150 million to finance the projected operating loss incurred during the move and construction of the new facilities in Dalian. During the three months ended December 31, 2014, the Company recognized $23,380,264 as income after offset of the directly related removal expenditures of $1,016,327.

	On October 17, 2014, the Company received a subsidy of $7,435,513 (RMB46,150,000) pursuant to an agreement with the Management Committee dated July 2, 2013 equivalent to the costs of land use rights and to be used to construct the new manufacturing site over the land use rights. The subsidy will be amortized on a straight-line basis over the estimated useful lives of the depreciable facilities constructed thereon. The Company expects that the facilities will be completed and put into operation in the second quarter of fiscal 2015.