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Property, Plant and Equipment, net

12 Months Ended

Sep. 30, 2015

Property, Plant and Equipment, net [Text Block]

8.	Property, Plant and Equipment, net

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

			2014			2015
	Buildings	$	-		$	18,440,000
	Machinery and equipment		-			4,020,238
	Office equipment		19,999			37,050
	Motor vehicles		118,821			147,197
			138,820			22,644,485
	Accumulated depreciation		(14,565	)		(369,665	)
	Carrying amount	$	124,255		$	22,274,820

Depreciation expense for the years ended September 30, 2014 and 2015 is included in the consolidated statements of operations as follows:

			2014			2015
	Cost of revenues	$	4,706,625		$	225,355
	Research and development expenses		396,926			68,991
	Sales and marketing expenses		84,194			-
	General and administrative expenses		2,496,549			68,911
		$	7,684,294		$	363,257

The Company has not yet obtained the property ownership of the buildings in its Dalian manufacture facilities with a carrying amount of $18,318,313 as of September 30, 2015. The management expects that they will obtain the property ownership rights by March 2016.

The Company believes that there was no impairment of its property, plant and equipment for the years ended September 30, 2014 and 2015.

During the years ended September 30, 2014 and 2015, the Company purchased machinery and equipment from BAK Tianjin in the amount of $4.3 million and $6.8 million (inclusive of VAT) respectively.