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Concentrations and Credit Risk
 12 Months Ended
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.