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Balances with Former Subsidiaries

12 Months Ended

Sep. 30, 2016

Balances with Former Subsidiaries [Text Block]

7.	Balances with Former Subsidiaries

Receivable from former subsidiaries as of September 30, 2015 and 2016 consisted of the following:

		2015		2016
Shenzhen BAK	$	62,963	$	-
BAK Tianjin		623,551		-
	$	686,514	$	-

These amounts are interest-free, unsecured and repayable on demand.

Upon disposal of the Disposal Group in June 2014, the Disposal Group owed the Company a sum of $17.8 million. Management of the Company evaluated the collectability of the remaining amount and determined that $1.8 million should be impaired and offset against the gain on disposal of subsidiaries from discontinued operations for the year ended September 30, 2014. During the years ended September 30, 2015, the Company determined that $1.8 million were recoverable. The recovery was treated as an adjustment to the gain on disposal of subsidiaries from discontinued operations for the year ended September 30, 2015.

Payable to former subsidiaries as of September 30, 2015 and 2016 consisted of the following:

		2015		2016
BAK Tianjin	$	-	$	56,188
Shenzhen BAK		-		4,326,046
		-		4,382,234

Balance as of September 30, 2016 consisted of payables for purchase of inventories from BAK Tianjin and Shenzhen BAK. From time to time, the Company purchased products from these former subsidiaries that they did not produce to meet the needs of its customers.