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Concentrations and Credit Risk
 3 Months Ended
Dec. 31, 2014
Concentrations and Credit Risk [Text Block]
18.

Concentrations and Credit Risk

     
  (a)

Concentrations

     
   

The Company had two customers that individually comprised 10% or more of net revenue for the three months ended December 31, 2013 and 2014 as follows:


      Three months ended December 31,  
      2013     2014  
  Jiangsu Huatiantong Technology Limited $ 4,805,932     11.66%   $  *     *  
  Tinno Mobile Technology Company Limited   7,545,750     18.31%     *     *  
  Guangdong Pisen Electronics Co., Ltd.   *     *     1,379,626     44.81%  
  Sichuan Pisen Electronics Co., Ltd. $  *     *   $ 1,440,041     46.77%  

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

The Company had two customers that individually comprised 10% or more of accounts receivable as of September 30, 2014 and December 31, 2014 as follows:

      September 30,     December 31,  
      2014     2014  
  Guangdong Pisen Electronics Co., Ltd. $ 569,444     56.20%   $ 1,845,108     45.44%  
  Sichuan Pisen Electronics Co., Ltd. $  *     *   $ 1,046,343     25.77%  

   

After the disposal of BAK International (Note 1) and prior to the completion of the new manufacturing site in Dalian, the Company generated its revenues from sale of batteries via subcontracting the production to BAK Tianjin, a former subsidiary. For the three months ended December 31, 2014, the Company purchased inventories of $1.7 million from BAK Tianjin. Also, during this period, the Company generated revenue of $21,442 from Shenzhen BAK.

     
  (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, 2014 and December 31, 2014, substantially all of the Company’s cash and cash equivalents were held by major financial institutions located in the PRC, which management believes are of high credit quality.