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Concentrations and Credit Risk | 12 Months Ended
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Sep. 30, 2015
Concentrations and Credit Risk [Text Block] |
20. | Concentrations and Credit Risk
| (a) | Concentrations
The Company had the following customers that individually comprised 10% or more of net revenue for the years ended September 30, 2014 and 2015 as follows:
|  |  | 2014 |  |  | 2015 |
| Tinno Mobile Technology Company Limited | $ | 13,278,638 |  |  | 10.79% |  | $ | * |  |  | * |
| Sichuan Pisen Electronics Co., Ltd |  | * |  |  | * |  |  | 6,036,173 |  |  | 43.41% |
| Guangdong Pisen Electronics Co., Ltd |  | * |  |  | * |  |  | 2,252,816 |  |  | 16.20% |
| BAK Tianjin |  | * |  |  | * |  |  | 1,470,579 |  |  | 10.58% |
| * | Comprised less than 10% of net revenue for the respective period.
The Company had the following customers that individually comprised 10% or more of accounts receivable as of September 30, 2014 and 2015 as follows:
|  |  | 2014 |  |  | 2015 |
| Sichuan Pisen Electronics Co., Ltd. | $ | * |  |  | * |  | $ | 3,146,177 |  |  | 65.93% |
| Guangdong Pisen Electronics Co., Ltd. |  | 569,444 |  |  | 56.17% |  |  | 763,738 |  |  | 16.01% |
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 years ended September 30, 2014 and 2015, the Company purchased inventories of $3.3 million and $10.5 million from BAK Tianjin. For the years ended September 30, 2014 and 2015, the Company generated revenue of
| – | $18,030 and $1,377,004 from Shenzhen BAK, respectively;
| – | $98,459 and $1,470,579 from BAK Tianjin, respectively;
| – | nil and $17,063 from Zhengzhou BAK Battery Co., Ltd, a company with the common director of Mr. Li, the Company’s CEO; and
| – | nil and $298,983 from Tianjin New Energy (Note 12).
For the years ended September 30, 2014 and 2015, the Company purchased inventories of $19,411 and $395,593 from Tianjin BAK New Energy, a company with the common director of Mr. Li, the Company’s CEO.
| (b) | Credit Risk
As of September 30, 2014 and 2015, 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. For the credit risk related to trade accounts receivable, the Company performs ongoing credit evaluations of its customers and, if necessary, maintains reserves for potential credit losses. Historically, such losses have been within management’s expectations.

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- Definition The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 275 -SubTopic 10 -Section 50 -Paragraph 16 -URI http://asc.fasb.org/extlink&oid=51801978&loc=d3e6327-108592 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 20 -URI http://asc.fasb.org/extlink&oid=49121117&loc=d3e13531-108611 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 275 -SubTopic 10 -Section 50 -Paragraph 20 -URI http://asc.fasb.org/extlink&oid=51801978&loc=d3e6404-108592 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 275 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=51801978&loc=d3e6442-108592 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 275 -SubTopic 10 -Section 50 -Paragraph 18 -URI http://asc.fasb.org/extlink&oid=51801978&loc=d3e6351-108592 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=49121117&loc=d3e13537-108611 + Details
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