Property, Plant and Equipment, net

9 Months Ended

Jun. 30, 2015

Property, Plant and Equipment, net [Text Block]

6.	Property, Plant and Equipment, net

Property, plant and equipment as of September 30, 2014 and June 30, 2015 consisted of the following:

		September 30,			June 30,
		2014			2015
Buildings	$	-		$	8,536,704
Machinery and equipment		-			3,603,616
Office equipment		19,999			20,747
Motor vehicles		118,821			126,484
		138,820			12,287,551
Accumulated depreciation		(14,565	)		(134,583	)
Carrying amount	$	124,255		$	12,152,968

Depreciation expense for the three and nine months ended June 30, 2014 and 2015 is included in the condensed consolidated statements of operations as follows:

		Three months ended June 30,				Nine months ended June 30,
		2014		2015		2014		2015
Cost of revenues	$	1,415,904	$	-	$	4,706,625	$	-
Research and development expenses		149,372		99,917		396,926		99,917
Sales and marketing expenses		27,357		-		84,194		-
General and administrative expenses		800,203		7,050		2,490,383		20,309
	$	2,392,836	$	106,967	$	7,678,128	$	120,226

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 impairment charge, if any, 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. The Company believes that there was no impairment of its property, plant and equipment for the three and nine months ended June 30, 2014 and 2015.

During the three and nine months ended June 30, 2015, the Company purchased machinery and equipment from BAK Tianjin totaled $2.0 million and $6.4 million, respectively.