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Payables to Former Subsidiaries, Net | 12 Months Ended
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Dec. 31, 2018
Payables To Former Subsidiaries Net |
Payables to former subsidiaries, net |
7. | Payables to former subsidiaries, net
Payables to former subsidiaries as of December 31, 2017 and 2018 consisted of the following:
|  | December 31, |  |  | December 31, |
|  | 2017 |  |  | 2018 |
BAK Tianjin |  | $ | 282,682 |  |  | $ | 972,913 |
BAK Shenzhen |  |  | 22,020,039 |  |  |  | 3,328,733 |
|  | $ | 22,302,721 |  |  | $ | 4,301,646 |
Balance as of December 31, 2017 and 2018 consisted of payables for purchase of inventories from BAK Tianjin and BAK Shenzhen. From time to time, the Company purchased from these former subsidiaries products that it did not produce to meet the needs of its customers. In the third quarter of 2018, the Company disposed of its patented proprietary technology of high capacity prismatic batteries to BAK Shenzhen at a cash consideration of $12,845,795 (approximately RMB85.1 million). The Company recognized a net gain of $12,118,675, which was included in other income for year ended December 31, 2018. The Company and BAK Shenzhen agreed to offset the cash consideration of $12,845,795 against the amount owed by the Company to BAK Shenzhen.

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