| 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. This 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 Cash 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. The Company maintained cash and cash equivalents with
various financial institutions in the PRC. As of March 31, 2016 and December 31, 2015, balances in banks in the PRC were $51,719,456
and $49,656,897, 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 did not accrue any allowance for doubtful accounts at March 31, 2016
and December 31, 2015. Inventories Inventories 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 did not record
any inventory reserve at March 31, 2016 and December 31, 2015, respectively. Prepaid Expenses Prepaid expenses at March 31, 2016 and December
31, 2015 totaled $334,734 and $816,646, 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 three months ended March 31, 2016 and 2015, the Company had amortized its prepaid insurance expense, warehouse leasing expense,
and service expense of $130,844 and $684,115, 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 March 31, 2016 and December 31, 2015
totaled $5,847,964 and $7,823,138, respectively, which represented prepayments to the Companys feed suppliers. Management
accrued allowance for doubtful accounts of $115,972 and $115,215 at March 31, 2016 and December 31, 2015. Restricted Cash Restricted
cash consists of cash deposits held by a bank and a guarantee service provider to secure bank acceptance notes payable. 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 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. 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 three months ended March 31, 2016 and 2015, the Company did not record 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 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 decisions about allocating resources to segments
and evaluates 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 servovalves 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 March 31, 2016 and 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 March
31, 2016 and December 31, 2015. 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 A Party is considered to be related to the Company
if the party, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is 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 and 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 three month periods ended March 31, 2016 and 2015. Foreign Currency Translation As of March 31, 2016 and December 31, 2015,
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 6.4494
and RMB 6.4917 per US dollar as of March 31, 2016 and December 31, 2015, 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 three months ended March 31, 2016
and 2015, the transactions of Tianli were denominated and recorded in RMB and are translated at the average rates of exchange for
the period. These rates were RMB6.5405 and RMB 6.1361 per US dollar for the three months ended March 31, 2016 and 2015, 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. Contingencies Certain conditions may exist as of the date
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 March 31, 2016 and December 31, 2015,
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, as part of its ongoing efforts
to assist in the convergence of U.S. GAAP and International Financial Reporting Standards, the Financial Accounting Standards Board
(FASB) issued a new standard related to revenue recognition. FASB issued Accounting Standards Update (ASU)
No. 2014-9, Revenue from Contracts with Customers (ASU 2014-9). ASU 2014-9 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
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. The guidance is effective for the Company starting
on January 1, 2017. The Company is currently evaluating the impact this guidance will have on its combined financial position,
results of operations and cash flows. In April 2015, the FASB issued guidance to simplify
the presentation of debt issuance costs. This new guidance requires 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 new guidance will be effective for us beginning July 1, 2016. We are currently evaluating the impact of this standard on our
consolidated financial statements. In September 2015, the FASB issued ASU No. 2015-16,
Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. ASU 2015-16 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. ASU 2015-16 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 elected to adopt ASU 2015-16 early, effective in the year ended December 31, 2015. 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. In February 2016, the FASB issued a new standard
related to leases to increase transparency and comparability among organizations by requiring the recognition of lease assets and
lease liabilities on the balance sheet. Most prominent among the amendments is the recognition of assets and liabilities by lessees
for those leases classified as operating leases under previous U.S. GAAP. Under the new standard, disclosures are required to meet
the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from
leases. We anticipate this standard will have a material impact on our consolidated balance sheets, and we are currently evaluating
its impact. In March 2016, the Financial Accounting Standards
Board (FASB) issued a new standard that changes the accounting for certain aspects of share-based payments to employees.
The new guidance requires excess tax benefits and tax deficiencies to be recorded in the income statement when the awards vest
or are settled. In addition, cash flows related to excess tax benefits will no longer be separately classified as a financing activity
apart from other income tax cash flows. The standard also allows us to repurchase more of an employees shares for tax withholding
purposes without triggering liability accounting, clarifies that all cash payments made on an employees behalf for withheld
shares should be presented as a financing activity on our cash flows statement, and provides an accounting policy election to account
for forfeitures as they occur. The Company is currently assessing the impact and timing of adopting this guidance on its consolidated
financial statements. Based on the Companys initial assessment
of the standard, the Company expects that any potential future disposals of individual hog farms will not be reported as discontinued
operations and that the results of operations of any disposed hog farm, including revenues, costs and any gains or losses on disposal,
will be classified as continuing operations within the Consolidated Statements of Operations and Comprehensive Income for all periods
presented through the date of disposition. Reclassification Certain prior year balances were reclassified
to conform to the current period 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
$6.8 million in cash and 1,047,000 common shares of Aoxin Tianli. Hang-ao, at the time of the acquisition, was the sole shareholder
of Beijing Sanqiang Tongwei Electromechanical Hydraulic Technology Development Co., Ltd. and engaged in the business of manufacturing
and marketing electro-hydraulic servo-valves and related servo systems and components. The acquisition agreement includes a three
year earn out payment provision which requires Hang-ao to reach certain levels of net income for the years 2014,
2015, and 2016 for the sellers to retain the 1,047,000 common shares of Aoxin Tianli. The net income targets are RMB 4.5 million
($733,000), 9 million ($1.5 million), and RMB 15 million ($2.4 million) for the years 2014, 2015, and 2016. The following is a reconciliation of the purchase:
Shares Price per Share Amount
Fair value of the Companys stock issued 1,047,000 $ 2.13 $ 2,230,110
Cash 6,825,495
Total purchase price $ 9,055,605
Acquired assets and liabilities:
Cash $ 215,236
Current assets 8,121,512
Fixed assets 2,036,448
Intangible assets 3,684,084
Liabilities (3,766,820 )
10,290,460
Percentage of acquired equity 88 %
88% of acquired assets and liabilities 9,055,605
Purchase price 9,055,605
Goodwill $ -
Amount
Acquired assets and liabilities, net $ 10,290,460
Percentage of equity 12 %
Noncontrolling Interest $ 1,234,855 On August 26, 2014, the Company entered into
and consummated a stock purchase agreement (the Stock Purchase Agreement) whereby it acquired 95% of the outstanding
equity of Wuhan Optical Valley Orange Technology Co., Ltd., a corporation organized under the laws of the Peoples Republic
of China (OV Orange), from certain of the former shareholders of OV Orange in exchange for 2,552,000 of the Companys
common shares, of which 403,000 shares |
