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Concentrations and Credit Risk | 12 Months Ended
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Dec. 31, 2017
Concentrations and Credit Risk [Text Block] |
23. | Concentrations and Credit Risk
| (a) | Concentrations
The Company had the following customers that individually comprised 10% or more of net revenue for the year ended September 30, 2016, three months ended December 31, 2016 and year ended December 31, 2017 as follows:
|  | Year ended |  |  | Three months ended |  |  | Year ended |
|  | September 30, 2016 |  |  | December 31, 2016 |  |  | December 31, 2017 |
Customer A | $ | 3,574,273 |  |  | 34.47% |  | $ | * |  |  | * |  | $ | * |  |  | * |
Customer B |  | 2,442,816 |  |  | 23.56% |  |  | * |  |  | * |  |  | * |  |  | * |
Customer C (Tianjin New Energy) |  | * |  |  | * |  |  | 2,352,577 |  |  | 67.21% |  |  | * |  |  | * |
Customer D |  | * |  |  | * |  |  | 559,646 |  |  | 15.99% |  |  | 12,869,446 |  |  | 22.05% |
Customer E |  | * |  |  | * |  |  | * |  |  | * |  |  | 29,837,878 |  |  | 38.15% |
* 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, 2016, December 31, 2016 and 2017 as follows:
|  | September 30, 2016 |  |  | December 31, 2016 |  |  | December 31, 2017 |
Customer A | $ | 1,529,703 |  |  | 64.21% |  | $ | 1,286,206 |  |  | 52.11% |  | $ | * |  |  | * |
Customer D |  | * |  |  | * |  |  | 857,180 |  |  | 34.73% |  |  | * |  |  | * |
Customer E |  | * |  |  | * |  |  | * |  |  | * |  |  | 23,835,201 |  |  | 62.08% |
Customer F |  | * |  |  | * |  |  | * |  |  | * |  |  | 4,855,518 |  |  | 12.65% |
Customer G |  | * |  |  | * |  |  | * |  |  | * |  |  | 4,664,285 |  |  | 12.15% |
For the years ended September 30, 2016, three months ended December 31, 2016 and December 31, 2017, the Company recorded the following transactions:
|  | September 30, 2016 |  |  | December 31, 2016 |  |  | December 31, 2017 |
Purchase of inventories from |  |  |  |  |  |  |  |  |
BAK Tianjin | $ | 2,743,618 |  | $ | - |  | $ | 126,567 |
Shenzhen BAK |  | 5,565,461 |  |  | 1,547,424 |  |  | 27,903,206 |
Sales of finished goods to |  |  |  |  |  |  |  |  |
BAK Tianjin |  | 636,331 |  |  | 7,296 |  |  | 141,117 |
Shenzhen BAK |  | 102,322 |  |  | 30,601 |  |  | 61,961 |
Tianjin BAK New Energy (Note 14) |  | - |  |  | 2,352,577 |  |  | - |
Zhengzhou BAK Battery Co., Ltd* |  | 576 |  |  | 2,693 |  |  | 29,867 |
Sales of raw materials to |  |  |  |  |  |  |  |  |
Shenzhen BAK | $ | 836,425 |  | $ | - |  | $ | - |
*Mr. Xiangqian Li, the former CEO, is a director of this company.
| (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, 2016, December 31, 2016 and 2017, 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. 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.

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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 -URI http://asc.fasb.org/topic&trid=2134479 + Details
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