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LOSSES FROM NATURAL DISASTER | 12 Months Ended
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Dec. 31, 2014
LOSSES FROM NATURAL DISASTER |
LOSSES FROM NATURAL DISASTER | NOTE 2 – LOSSES FROM NATURAL DISASTER On July 18, 2014, the Company’s manufacturing facilities and inventory sustained storm damage from a powerful tropical typhoon that hit Haikou on that date. The losses are comprised of $2,016,068 of inventory related costs and $260,451 of facilities damage costs. The Company received minor insurance compensation as only the building of new plant was insured and the damage to it was minor. The Company assessed whether any asset impairment had occurred as a result of the storm and decided no impairment necessary. In addition, the Company assessed whether the damage caused by the tropical typhoon exposed the Company to environmental remediation liability. Based on the assessment, the Company determined that no such exposure had occurred.

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