| Note 2. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Basis of Presentation The accompanying consolidated financial
statements have been prepared in conformity with US GAAP. The basis of accounting differs from that used in the statutory accounts
of the Company, which are prepared in accordance with the accounting principles of the PRC (PRC GAAP). The Companys
functional currency is the Chinese Renminbi (RMB); however the accompanying consolidated financial statements have
been translated and presented in United States Dollars (USD). All significant intercompany transactions and balances
have been eliminated. Use of Estimates The preparation of these financial statements
in conformity with generally accepted accounting principles requires the Company to make estimates and assumptions that affect
the reported amounts of assets and liabilities and the related disclosure of contingent assets and liabilities at the date of these
financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates
on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Accordingly,
actual results may differ from these estimates. Significant estimates include the useful lives of property and equipment, land
use rights and biological assets, and assumptions used in assessing impairment for long-term assets. Principles of Consolidation We consolidate wholly-owned subsidiaries,
HCS, WFOE, Fengze, Tianzhili, as well as Hang-ao, and for the periods prior to their sales, Sanqiang, Optical Networking, and OV
Orange. All material intercompany accounts and transactions have been eliminated in consolidation. The 12% equity interest holders
in Hang-ao will be accounted as noncontrolling interest in the Companys consolidation financial statements. Cash and Cash Equivalents Cash and cash equivalents consist of
all cash balances and highly liquid investments with an original maturity of three months or less. Because of the short maturity
of these investments, the carrying amounts approximate their fair value. Restricted cash is excluded from cash and cash equivalents.
The Company maintained cash and cash equivalents with various financial institutions in the PRC. As of December 31, 2015 and 2014,
balances in banks in the PRC were $49,656,897 and $39,123,869, respectively. Accounts Receivable Accounts receivable is stated at cost,
net of an allowance for doubtful accounts. The Company maintains allowances for doubtful accounts for estimated losses resulting
from the failure of customers to make required payments. The Company reviews the accounts receivable on a periodic basis and makes
allowances where there is doubt as to the collectability of individual balances. In evaluating the collectability of individual
receivable balances, the Company considers many factors, including the age of the balance, the customers payment history,
its current credit-worthiness and current economic trends. Management accrued allowance for doubtful accounts of $0 and $5,735
at December 31, 2015 and 2014. Inventories Inventories, consisting of raw materials,
work in process and finished goods related to the Companys products, are stated at the lower of cost, as determined by the
weighted-average method, or market. Management compares the cost of inventories with the market value, and allowance is made for
writing down the inventories to their market value if that is lower. Costs of raised animals include proportionate costs of breeding,
including amortization of the breeding herd or biological assets, plus the costs of feed and other maintenance costs through the
balance sheet date. Management inspects and monitors inventory on a continual basis. The Company recorded an inventory reserve
of $0 and $85,518 at December 31, 2015 and 2014, respectively. Prepaid Expenses Prepaid expenses at December 31, 2015
and 2014 totaled $816,646 and $238,875, respectively, and includes prepayments to suppliers for services that had not yet been
provided to us. We recognize prepayments as expense as suppliers provide services, in compliance with our accounting policy. For
the years ended December 31, 2015 and 2014, the Company had amortized its prepaid insurance expense, warehouse leasing expense,
and service expense of $288,857 and $397,321, respectively. Advances to Suppliers Advances to suppliers are stated at cost,
net of an allowance for doubtful accounts and include prepayments to suppliers for merchandise and raw materials that had not yet
been shipped to us. We recognize prepayments as inventory or expense as suppliers make delivery of goods in compliance with our
accounting policy. The Company maintains allowances for doubtful accounts for estimated losses resulting from prepayments without
future economic benefits to the Company. The Company reviews the advances to suppliers on a periodic basis and makes allowances
where there is doubt as to the future economic benefits of individual balances. Advances to suppliers at December 31, 2015 and
2014 totaled $7,823,138 and $635,930, respectively, which included prepayments of $7,823,138 and $512,049 to the Companys
feed suppliers. Management accrued allowance for doubtful accounts of $115,215 and $0 at December 31, 2015 and 2014. Plant and Equipment The Company states plant and equipment
at cost less accumulated depreciation. Expenditures for maintenance and repairs are charged to operations as incurred; additions,
renewals and betterments are capitalized. When plant and equipment assets are retired or otherwise disposed of, the related cost
and accumulated depreciation are removed from the respective accounts, and any resulting gain or loss is recorded as an operating
expense. In accordance with US GAAP, the Company examines the possibility of decreases in the value of plant and equipment when
events or changes in circumstances reflect the fact that their recorded value may not be recoverable. The Company computes depreciation
using the straight-line method over the estimated useful lives of the assets with a residual value of 5% of plant and equipment. Estimated useful lives of the Companys
assets are as follows:
Useful Life
Buildings 20 years
Vehicles 5-10 years
Office equipment 3-5 years
Research equipment 3-20 years
Production equipment 3-20 years Construction in Progress Construction in progress consists of
amounts expended for building construction of new breeding and animal rearing facilities. Once the building construction is completed
and the facilities are approved for breeding and animal rearing activity, the construction in progress assets are categorized as
buildings and production equipment and are then accounted for in plant and equipment. Assets accounted for as plant and equipment
are used in the Companys production process, whereupon they are depreciated over their estimated useful lives. Biological Assets Biological assets consist primarily of
hogs purchased or selected from the Companys own production for breeding and farrowing, which management believes will produce
piglets that grow faster and have better quality breeding capabilities and carcasses with a high percentage of meat and a small
quantity of fat. The costs to purchase and cultivate these breeding hogs and the expenditures related to labor and materials to
feed the breeding hogs until they become commercially productive and breedable are capitalized. When these breeding hogs are entered
into breeding and farrowing production, amortization of the costs of these breeding hogs commences. The estimated production life
for breeding hogs is three years, and the costs are amortized to a residual value of $76 (RMB 500). After the breeding hogs have
completed their production life of breeding, these breeding hogs are then transferred into inventory as the vast majority of these
breeding hogs will then be sold for meat processing. Expenses incurred maintaining breeding hogs during gestation until piglets
are weaned are capitalized into inventory and included in Work in processbiological assets, a component of inventories.
If these breeding hogs produce piglets which are deemed appropriate for internal breeding purposes, the gestation and raising costs
until weaned for these piglets are then allocated into biological assets. Amortized expenses pertaining to biological
assets are included in inventory costs for those piglets to be sold and ultimately become a component of cost of goods sold. Intangible Assets Included in the intangible assets are
land use rights and distribution networks. According to the laws of the PRC, the government owns all the land in the PRC. Companies
or individuals are authorized to possess and use the land only through land use rights granted by the Chinese government. Intangible
assets are being amortized using the straight-line method over their lease terms or estimated useful life. The Company carries intangible assets
at cost less accumulated amortization. In accordance with US GAAP, the Company examines the possibility of decreases in the value
of intangible assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable.
The Company computes amortization using the straight-line method over the 50 year life of the land use rights and 10 year life
of acquired distribution network. Intangible assets consisted of the following:
December 31, 2015 December 31, 2014
Amortizable intangible assets:
Carrying amount:
Land use rights $ 1,633,132 $ 1,727,099
Distribution network 1,826,560 1,931,657
Total carrying amount 3,459,692 3,658,756
Accumulated amortization:
Land use rights (337,096 ) (304,869 )
Distribution network (319,648 ) (144,874 )
Total accumulated amortization (656,744 ) (449,743 )
Total intangible assets, net $ 2,802,948 $ 3,209,013 During the first quarter of 2014, we
made cash payments totaling $1.1 million to acquire 40% noncontrolling interest of Tianzhili, one of our consolidated entities.
These cash payments are reported as an investing activity in the Cash paid for purchase of noncontrolling interest
caption of our consolidated statement of cash flows. The estimated amortization expense of
intangible assets for the next five years is as follow:
Year Amount
2016 $ 241,993
2017 $ 241,993
2018 $ 241,993
2019 $ 241,993
2020 $ 241,993
Thereafter $ 1,592,983 Activity related to intangible assets
by business segments was as follows:
Hog Farming Retail Total
Land use rights $ 1,633,132 $ $ 1.633.132
Distribution network 1,826,560 1,826,560
Less: accumulated amortization (337,096 ) (319,648 ) (656,744 )
Balance as of December 31, 2015 $ 1,296,036 $ 1,506,912 $ 2,802,948
Hog Farming Retail Total
Land use rights $ 1,727,099 $ $ 1,727,099
Distribution network 1,931,657 1,931,657
Less: accumulated amortization (304,869 ) (144,874 ) (449,743 )
Balance as of December 31, 2014 $ 1,422,230 $ 1,786,783 $ 3,209,013 Impairment of Long-lived Assets In accordance with US GAAP, the Company
periodically reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying
amount of the assets may not be fully recoverable. The Company recognizes an impairment loss when the sum of expected undiscounted
future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between
the assets estimated fair value and its book value. For the years ended December 31, 2015 and 2014, the Company recorded
$11,838 and $0 as impairment charges against its plant and equipment. Fair Value of
Financial Instruments Effective January 1, 2008, the Company
adopted ASC 820, Fair Value Measurements and Disclosure (ASC 820) for assets and liabilities measured at fair value
on a recurring basis. ASC 820 establishes a common definition for fair value to be applied to existing generally accepted accounting
principles that require the use of fair value measurements, establishes a framework for measuring fair value and expands disclosure
about such fair value measurements. The adoption of ASC 820 did not have an impact on the Companys financial position or
operating results, but did expand certain disclosures. ASC 820 defines fair value as the price
that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants
at the measurement date. Additionally, ASC 820 requires the use of valuation techniques that maximize the use of observable inputs
and minimize the use of unobservable inputs. These inputs are prioritized below: Level 1: Observable inputs
such as quoted market prices in active markets for identical assets or liabilities Level 2: Observable market-based
inputs or unobservable inputs that are corroborated by market data Level 3: Unobservable inputs
for which there is little or no market data, which require the use of the reporting entitys own assumptions. The Company did not identify any assets
and liabilities that are required to be presented on the condensed consolidated balance sheets at fair value in accordance with
the relevant accounting standards. The carrying values of cash and cash
equivalents, trade receivables and payables, and short-term bank loans and debts approximate their fair values due to the short
maturities of these instruments. Non-controlling Interest Non-controlling interests in the Companys
subsidiaries are recorded in accordance with the provisions of ASC 810 and are reported as a component of equity, separate from
the parents equity. Purchase or sale of equity interests that do not result in a change of control are accounted for as
equity transactions. Results of operations attributable to the non-controlling interest are included in our consolidated results
of operations and, upon loss of control, the interest sold, as well as interest retained, if any, will be reported at fair value
with any gain or loss recognized in earnings. Revenue Recognition Pursuant to the guidance of ASC Topic
605 and ASC Topic 360, the Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred
or services have been rendered, the purchase price is fixed or determinable and collectability is reasonably assured. The Company
generates revenues from the business of breeding, raising, and selling hogs for use in Chinese pork meat production and the sale
of hogs for breeding by other hog producers. In the second quarter of 2013, the Company resumed selling specialty pork products
to retailers. Revenues generated from the sales of
breeding and meat hogs and specialty pork are recognized when these products are delivered to customers in accordance with previously
agreed upon pricing and delivery arrangements, and the collectability of these sales is reasonably assured. Cash payment, which
sometimes is in the form of wired cash transfers to the Companys bank account, is usually received by the Company at the
time the hogs are sold. Sold hogs and specialty pork are not returnable and accordingly, no provision has been made for returnable
goods. The customers are responsible for the shipping of the hogs that they have purchased. Segment Information The Company follows FASB ASC 280-Segment
Reporting, which requires that companies disclose segment data based on how management makes decision about allocating resources
to segments and evaluating their performance. In the second quarter of 2013, the Company
entered into distribution agreements with supermarkets whereby the Company is permitted to sell specialty pork products in the
supermarkets retail facilities. Consequently, management determined that as of the end of the second quarter of 2013, the
Company was operating in two segments, Hog Farming and Retail. After completion of the Hang-ao and OV
Orange acquisitions in 2014, the Company had determined to establish another segment, the emerging business segment, in which it
included its operations in electro-hydraulic servo control and optical fiber hardware and software solutions. During the fourth
quarter of 2015, the Company determined to sell its subsidiaries, Hang-ao and OV Orange. Subsequently, OV Orange was sold on December
29, 2015. Accordingly, the results of operations from Hang-ao and OV Orange were reflected as discontinued operations in the Companys
consolidated financial statements. As of December 31, 2015, the Company was operating in two segments, Hog Farming and Retail. Income Taxes The Company accounts for income taxes
under the provisions of Section 740-10-30 of the FASB Accounting Standards Codification, which is an asset and liability approach
that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have
been recognized in its financial statements or tax returns. The Company did not have any deferred tax assets or liabilities as
of December 31, 2015 and 2014. The Company is subject to the Enterprise
Income Tax law (EIT) of the Peoples Republic of China. However, according to the EIT, companies that are engaged
in the agricultural business and primary processing of agricultural products are exempt from the 25% enterprise income tax. The
Companys operations in breeding, raising, and selling hogs for use in Chinese pork meat production and hog breeding, are
exempt from the Chinese income tax. However, the Companys operations in servo-valve products, which are conducted through
Hang-ao and included in the Companys discontinued operations, are subject to the 25% enterprise income tax. Aoxin Tianli
is incorporated in the British Virgin Islands. Under the current tax laws of the British Virgin Islands, the Company is not subject
to income taxes. In addition the Companys hog sales
are not subject to the PRCs 17% VAT tax or the 5% business tax levied on incomes from services rendered. However, the Companys
operations in servo-valve products, conducted through Hang-ao, are subject to such taxes. According to the PRC tax regulations,
companies engaging in the agricultural business are exempt from these taxes. With respect to the Companys operations in
Retail segment, the Company is engaged in breeding, processing, and distributing black hogs and black hog meats which are exempt
from VAT taxes and corporate income tax as well. Related parties Parties are considered to be related
to the Company if the parties, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under
common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate
families of principal owners of the Company and its management and other parties with which the Company may deal with if one party
controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting
parties might be prevented from fully pursuing its own separate interests. The Company discloses all related party transactions.
All transactions are recorded at fair value of the goods or services exchanged. Basic and Diluted Earnings per Share The Company reports earnings per share
in accordance with FASB ASC 260 Earnings per share. The Companys basic earnings per share are computed using
the weighted average number of shares outstanding for the periods presented. Diluted earnings per share are computed based on the
assumption that any dilutive options or warrants were converted or exercised. Dilution is computed by applying the treasury stock
method. Under this method, the Companys outstanding stock warrants are assumed to be exercised, and funds thus obtained
were assumed to be used to purchase common stock at the average market price during the period. There were no dilutive instruments
outstanding during the years ended December 31, 2015 and 2014. Foreign Currency Translation As of December 31, 2015 and 2014, the
accounts of Aoxin Tianli were maintained and its financial statements were expressed in Chinese Renminbi (RMB). Such financial
statements were translated into United States Dollars (USD) in accordance with US GAAP, with the RMB as the functional currency.
All assets and liabilities are translated at the current exchange rates as of the balance sheet dates. These rates were RMB 6.4917
per US dollar and RMB 6.1385 per US dollar as of December 31, 2015 and 2014, respectively. Stockholders equity is translated
at the historical rates and items in the statements of operations and cash flows are translated at the average exchange rate for
the period. The resulting translation adjustments are reported under other comprehensive income in accordance with US GAAP as a
component of stockholders equity. During the years ended December 31, 2015
and 2014, the transactions of Aoxin Tianli were denominated and recorded in RMB and are translated at the average rates of exchange
for the period. There rates were RMB 6.2288 and RMB 6.1432 per US dollar for the years ended December 31, 2015 and 2014, respectively.
Exchange gains and losses are recognized for the different foreign exchange rates applied when the foreign currency assets and
liabilities are settled. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in
a currency other than the functional currency are included in the results of operations as incurred. Stock Based Compensation In December 2004, the Financial Accounting
Standards Board, or FASB, issued FASB ASC 718-10-55 - Compensation-Stock Compensation, or ASC 718-10-55. Under ASC 718-10-55, companies
are required to measure the compensation costs of share-based compensation arrangements based on the grant-date fair value and
recognize the costs in the financial statements over the period during which employees are required to provide services. Share-based
compensation arrangements include stock options, restricted share plans, performance-based awards, share appreciation rights and
employee share purchase plans. In addition, FASB ASC 825-10-50-10 Financial Instruments Overall Disclosures,
or ASC 825-10-50-10, expresses views of the Securities and Exchange Commission, or the SEC, staff regarding the interaction between
ASC 718-10-55 and certain SEC rules and regulations and provides the staff's views regarding the valuation of share-based payment
arrangements for public companies. The Companys compensation cost is measured on the date of grant at its fair value. Such
compensation amounts, if any, are amortized over the respective vesting periods or period of service of the option grant. During
the years ended December 31, 2015 and 2014, the Company reported $822,022 and $18,700 as stock based compensation. Contingencies Certain conditions may exist as of the
date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or
more future events occur or fail to occur. The Companys management and legal counsel assess such contingent liabilities,
and such assessments inherently involve an exercise of judgment. In assessing loss contingencies related to legal proceedings that
are pending against the Company or unasserted claims that may result in such proceedings, the Companys legal counsel evaluates
the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought
or expected to be sought. If the assessment of a contingency indicates
that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated
liability would be accrued in the Companys financial statements. If the assessment indicates that a potential material loss
contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent
liability, together with an estimate of the range of possible loss if determinable and material would be disclosed. Loss contingencies considered to be remote
by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed. Accrual of Environmental Obligations ASC Section 410-30-25 Recognition
of environmental obligations requires the accrual of a liability if both of the following conditions are met:
a) Information available before the financial statements are issued or
are available to be issued indicates that it is probable that an asset has been impaired or a liability has been incurred at the
date of the financial statements.
b) The amount of the loss can be reasonably estimated. As of December 31, 2015 and 2014, the
Company did not have any environmental remediation obligations, nor did it have any asset retirement obligations under ASC 410.
Furthermore, the Company did not have any environmental remediation loss contingencies requiring recognition or disclosure in its
financial statements. Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting
Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts
with Customers (ASU 2014-09). ASU 2014-09 provides for a single comprehensive principles-based standard for
the recognition of revenue across all industries through the application of the following five-step process: Step 1: Identify the contract(s)
with a customer. Step 2: Identify the performance
obligations in the contract. Step 3: Determine the transaction
price. Step 4: Allocate the transaction
price to the performance obligations in the contract. Step 5: Recognize revenue
when (or as) the entity satisfies a performance obligation. The updated guidance related to revenue
recognition which affects any entity that either enters into contracts with customers to transfer goods or services or enters into
contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The guidance
requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects
the consideration to which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB issued
ASU No. 2015-4, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which deferred the effective
date of ASU 2014-09 by one year for all entities. Accordingly, ASU 2014-09 is effective for annual reporting periods beginning
after December 15, 2017, including interim periods within that reporting period. Early application is permitted only for annual
reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently
assessing the timing of its adoption and the impact of adopting this guidance on its consolidated financial statements and the
implementation approach to be used. In April 2015, the FASB issued ASU No.
2015-03, InterestImputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The amendments
in ASU 2015-03 require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct
deduction from the carrying amount of that debt liability, consistent with debt discounts. This standard is effective for annual
and interim periods beginning after December 15, 2015, with early adoption permitted on a retrospective basis. The Company adopted
this new standard, effective in the year ended December 31, 2015. There was no impact from this adoption. In September 2015, the FASB issued ASU
No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. This standard requires
that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting
period in which the adjustment amounts are determined. Entities are currently required to retrospectively apply adjustments made
to provisional amounts recognized in a business combination. This standard is effective for fiscal years beginning after December
15, 2015, including interim periods within those fiscal years. The guidance is to be applied prospectively to measurement period
adjustments that occur after the effective date of the guidance with earlier application permitted for financial statements that
have not been issued. The Company adopted the standard, effective in the year ended December 31, 2015. There was no impact from
this adoption. In November 2015, the FASB issued ASU
No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. The standard requires that deferred tax
liabilities and assets be classified as noncurrent in a classified statement of financial position. Entities are currently required
to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial
position. The amendments, which require non-current presentation only (by jurisdiction), are effective for financial statements
issued for annual periods beginning after December 15, 2016 with earlier application permitted as of the beginning of an interim
or annual reporting period. The guidance is to be applied either prospectively to all deferred tax liabilities and assets or retrospectively
to all periods presented. The Company elected to early adopt this standard, effective as of December 31, 2015. There was no impact
from this adoption. In January 2016, the FASB issued ASU
No. 2016-01, Financial InstrumentsOverall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial
Liabilities. The standard requires several targeted changes including that equity investments (except those accounted for under
the equity method of accounting, or those that result in consolidation of the investee) be measured at fair value with changes
in fair value recognized in net income. The new guidance also changes certain disclosure requirements and other aspects of current
US GAAP. Amendments are to be applied as a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal
year of adoption. This standard is effective for fiscal years starting after December 15, 2017, including interim periods within
those fiscal years. The standard does not permit early adoption with the exception of certain targeted provisions. The Company
is currently assessing the impact and timing of adopting this guidance on its consolidated financial statements. Reclassification Certain prior year balances were reclassified
to conform to the current year's presentation with consideration of reflecting two of the Companys subsidiaries, Hang-ao
and OV Orange, as discontinued operations. None of these reclassifications had an impact on reported financial position or cash
flows for any of the periods presented. Repurchase of 40% Noncontrolling Interest
On March 22, 2014, the Company acquired
the 40% minority equity interest in Hubei Tianzhili Breeder Hog Co., Ltd. (Tianzhili) for RMB 6,666,700 or $1,083,100.
As a result of this purchase, Tianzhili became the wholly owned subsidiary of the Company. Tianzhili, which is based in Hubei Province,
China, is engaged in the business of raising and selling black hogs through several major Chinese retail channels located in Wuhan,
Hubei. The following table summarizes the fair
values of the assets acquired and liabilities assumed as of the date of the acquisition of the noncontrolling interest in Tianzhili.
The allocation of the purchase price reflects final values assigned and may differ from preliminary values reported in the consolidated
financials for prior periods.
March 22, 2014
Property, plant and equipment $ 10,129,629
Intangible asset land use right 262,913
Intangible asset - distribution network 1,926,417
Other assets, including cash of $185,531 519,845
Assets acquired $ 12,838,804
Accounts payable and other liabilities 3,496
Other payables 3,153,447
Liabilities assumed $ 3,156,943
Net assets acquired $ 9,681,861 The intangible asset arising from the
Tianzhili noncontrolling interest acquisition reflects the economic potential of the markets in which the acquired company operates
as well as the synergies and economies of scale expected from operating the business as part of Aoxin Tianli. Acquisitions On July 15, 2014, the Company acquired
Hang-ao, a Chinese limited liability company located in Xiangyang, Hubei Province. In accordance with the acquisition agreement,
Aoxin Tianli became the holder of 88% of the equity interest of Hang-ao for consideration of $9,055,605, including RMB 42 million
or approximately |
