Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended |
Dec. 31, 2013 | |
Document Type | '20-F |
Amendment Flag | 'false |
Document Period End Date | 31-Dec-13 |
Trading Symbol | 'cnit |
Entity Registrant Name | 'China Information Technology, Inc. |
Entity Central Index Key | '0001552670 |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 29,366,528 |
Entity Current Reporting Status | 'Yes |
Entity Voluntary Filers | 'No |
Entity Well Known Seasoned Issuer | 'No |
Document Fiscal Year Focus | '2013 |
Document Fiscal Period Focus | 'FY |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | $11,083,592 | $10,747,998 |
Restricted cash | 10,345,825 | 10,347,015 |
Accounts receivable: | ' | ' |
Accounts receivable, net of allowance for doubtful accounts of $60,699,000 and $29,518,000, respectively | 22,716,298 | 85,958,886 |
Bills receivable | 1,097,025 | 1,531,772 |
Advances to suppliers | 8,331,149 | 6,089,210 |
Amounts due from related parties | 508,355 | 1,212,226 |
Inventories, net of provision of $1,543,000 and $5,976,000, respectively | 15,655,723 | 16,797,673 |
Other current assets | 10,975,335 | 8,801,985 |
Deferred tax assets | 498,459 | 2,297,617 |
TOTAL CURRENT ASSETS | 81,211,761 | 143,784,382 |
Deposit for purchase of land use rights | 18,237,303 | 19,085,878 |
Long-term investments | 2,661,385 | 2,580,096 |
Property, plant and equipment, net | 31,531,027 | 66,269,320 |
Land use rights, net | 13,222,442 | 13,122,363 |
Intangible assets, net | 14,307,939 | 14,416,976 |
Goodwill | 27,719,869 | 27,622,490 |
Deferred tax assets | 347,264 | 540,384 |
TOTAL ASSETS | 189,238,990 | 287,421,889 |
CURRENT LIABILITIES | ' | ' |
Short-term bank loans | 58,948,332 | 50,813,046 |
Accounts payable | 17,857,866 | 20,289,783 |
Bills payable | 26,549,982 | 33,686,488 |
Advances from customers | 4,623,283 | 3,754,442 |
Accrued payroll and benefits | 2,845,977 | 2,945,323 |
Amounts due to related parties | 900,350 | 0 |
Other payables and accrued expenses | 12,544,571 | 6,907,622 |
Income tax payable | 3,720,807 | 3,660,926 |
TOTAL CURRENT LIABILITIES | 127,991,168 | 122,057,630 |
Long-term bank loans | 312,547 | 74,175 |
Amounts due to related parties | 13,129 | 12,728 |
Deferred tax liabilities | 742,696 | 1,263,423 |
TOTAL LIABILITIES | 129,059,540 | 123,407,956 |
COMMITMENTS AND CONTINGENCIES | 0 | 0 |
Common stock, par $0.01; shares issued and outstanding at December 31, 2013; 725,000 shares | 2,175,000 | 0 |
EQUITY | ' | ' |
Common stock, par $0.01; authorized capital 100,000,000 shares; shares issued and outstanding 2013: 28, 641,528 shares, 2012: 27,007,608 shares | 309,076 | 286,326 |
Treasury stock, 2013: 1,225,311 shares, 2012: 584,231 shares | -4,814,775 | -1,011,091 |
Additional paid-in capital | 115,668,644 | 101,261,307 |
Reserve | 14,629,369 | 14,532,587 |
Retained (deficit) earnings | -113,513,766 | 5,804,023 |
Accumulated other comprehensive income | 25,070,226 | 21,811,064 |
Total equity of the Company | 37,348,774 | 142,684,216 |
Non-controlling interest | 20,655,676 | 21,329,717 |
Total equity | 58,004,450 | 164,013,933 |
TOTAL LIABILITIES AND EQUITY | $189,238,990 | $287,421,889 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for Doubtful Accounts Receivable, Current | $60,699,000 | $29,518,000 |
Provision Of Inventories | $1,543,000 | $5,976,000 |
Common Stock, Par Value Per Share | $0.01 | $0.01 |
Common Stock, Shares, Issued | 725,000 | 0 |
Common Stock, Shares, Outstanding | 725,000 | 0 |
Common Stock, Par Value Per Share | $0.01 | $0.01 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 28,641,528 | 27,007,608 |
Common Stock, Shares, Outstanding | 28,641,528 | 27,007,608 |
Treasury Stock, Shares | 1,225,311 | 584,231 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Revenue - Products | $46,649,847 | $45,690,706 | $46,435,133 |
Revenue - Software | 16,172,885 | 18,597,383 | 39,301,812 |
Revenue - System integration | 11,701,929 | 20,905,251 | 27,678,685 |
Revenue - Others | 1,620,723 | 1,184,115 | 1,119,923 |
TOTAL REVENUE | 76,145,384 | 86,377,455 | 114,535,553 |
Cost - Products sold | 38,829,515 | 40,119,790 | 36,815,966 |
Cost - Software sold | 10,309,838 | 8,904,134 | 13,302,464 |
Cost - System integration | 8,477,128 | 15,964,817 | 19,625,349 |
Cost - Others | 1,253,759 | 889,234 | 472,270 |
TOTAL COST | 58,870,240 | 65,877,975 | 70,216,049 |
GROSS PROFIT | 17,275,144 | 20,499,480 | 44,319,504 |
Administrative expenses | 92,930,409 | 52,800,320 | 22,785,631 |
Research and development expenses | 2,915,641 | 4,951,166 | 4,483,754 |
Selling expenses | 8,820,434 | 9,786,220 | 7,522,986 |
Impairment of property, plant and equipment | 29,976,990 | 11,809,432 | 0 |
Impairment of intangible assets and goodwill | 2,008,249 | 26,901,574 | 0 |
(LOSS) INCOME FROM OPERATIONS | -119,376,579 | -85,749,232 | 9,527,133 |
Subsidy income | 3,063,005 | 1,709,246 | 1,939,787 |
Other income (loss), net | 1,097,233 | -1,466,789 | 538,624 |
Interest income | 460,381 | 343,289 | 317,190 |
Interest expense | -5,553,522 | -4,646,818 | -2,948,406 |
(LOSS) INCOME BEFORE INCOME TAXES | -120,309,482 | -89,810,304 | 9,374,328 |
Income tax expense | -1,896,545 | -812,254 | -804,149 |
NET (LOSS) INCOME | -122,206,027 | -90,622,558 | 8,570,179 |
Less: Net loss (income) attributable to the non-controlling interest | 2,969,204 | 992,050 | -660,781 |
NET (LOSS) INCOME ATTRIBUTABLE TO THE COMPANY | ($119,236,823) | ($89,630,508) | $7,909,398 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | ' | ' | ' |
Basic | 27,356,504 | 27,017,780 | 26,737,638 |
Diluted | 27,356,504 | 27,017,780 | 26,965,006 |
(LOSS) EARNINGS PER SHARE | ' | ' | ' |
Basic | ($4.36) | ($3.32) | $0.30 |
Diluted | ($4.36) | ($3.32) | $0.29 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Net (loss) income | ($122,206,027) | ($90,622,558) | $8,570,179 |
Other comprehensive (loss) income: | ' | ' | ' |
Foreign currency translation gain | 3,935,119 | 2,128,770 | 8,903,913 |
Comprehensive (loss) income | -118,270,908 | -88,493,788 | 17,474,092 |
Comprehensive loss (income) attributable to the non-controlling interest | 2,293,247 | 749,085 | -964,475 |
Comprehensive (loss) income attributable to the Company | ($115,977,661) | ($87,744,703) | $16,509,617 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (USD $) | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-In Capital [Member] | Reserve [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Noncontrolling Interest [Member] | Total |
Beginning Balance at Dec. 31, 2010 | $255,115 | ($11,468) | $92,294,350 | $12,968,985 | $90,240,665 | $11,325,040 | $18,503,007 | $225,575,694 |
Beginning Balance (Shares) at Dec. 31, 2010 | 26,030,894 | -3,000 | ' | ' | ' | ' | ' | ' |
Purchase of treasury stock | ' | -684,046 | ' | ' | ' | ' | ' | -684,046 |
Purchase of treasury stock (Shares) | ' | -357,627 | ' | ' | ' | ' | ' | ' |
Common stock issued upon the settlement of earn-out target | 6,887 | ' | 957,303 | ' | ' | ' | ' | 964,190 |
Common stock issued upon the settlement of earn-out target (Shares) | 344,353 | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation | 2,500 | ' | 1,142,499 | ' | ' | ' | ' | 1,144,999 |
Stock-based compensation (Shares) | 125,000 | ' | ' | ' | ' | ' | ' | ' |
Common stock released upon achieving earn out target | 3,306 | ' | 1,719,006 | ' | ' | ' | ' | 1,722,312 |
Common stock released upon achieving earn out target (Shares) | 165,289 | ' | ' | ' | ' | ' | ' | ' |
Common stock issued on conversion of shareholders loan | 18,518 | ' | 4,981,482 | ' | ' | ' | ' | 5,000,000 |
Common stock issued on conversion of shareholders loan (Shares) | 925,926 | ' | ' | ' | ' | ' | ' | ' |
Net income for the year | ' | ' | ' | ' | 7,909,398 | ' | 660,781 | 8,570,179 |
Changes in an ownership interest in Zhongtian | ' | ' | ' | ' | -1,029,896 | ' | 1,029,896 | ' |
Foreign currency translation gain | ' | ' | ' | ' | ' | 8,600,219 | 303,694 | 8,903,913 |
Imputed interests in relation to shareholders loan | ' | ' | 166,667 | ' | ' | ' | ' | 166,667 |
Capital injection to Zhongtian by minority shareholders | ' | ' | ' | ' | ' | ' | 1,175,778 | 1,175,778 |
Transfer to reserve | ' | ' | ' | 1,519,548 | -1,519,548 | ' | ' | ' |
Ending Balance at Dec. 31, 2011 | 286,326 | -695,514 | 101,261,307 | 14,488,533 | 95,600,619 | 19,925,259 | 21,673,156 | 252,539,686 |
Ending Balance (Shares) at Dec. 31, 2011 | 27,591,462 | -360,627 | ' | ' | ' | ' | ' | ' |
Purchase of treasury stock | ' | -315,577 | ' | ' | ' | ' | ' | -315,577 |
Purchase of treasury stock (Shares) | ' | -223,604 | ' | ' | ' | ' | ' | ' |
Rounding impact of share changes due to one for two reverse stock split of common stock (shares) | 377 | ' | ' | ' | ' | ' | ' | ' |
Net income for the year | ' | ' | ' | ' | -89,630,508 | ' | -992,050 | -90,622,558 |
Changes in an ownership interest in Zhongtian | ' | ' | ' | ' | -122,034 | ' | 122,034 | ' |
Foreign currency translation gain | ' | ' | ' | ' | ' | 1,885,805 | 242,965 | 2,128,770 |
Capital injection to Zhongtian by minority shareholders | ' | ' | ' | ' | ' | ' | 283,612 | 283,612 |
Transfer to reserve | ' | ' | ' | 44,054 | -44,054 | ' | ' | ' |
Ending Balance at Dec. 31, 2012 | 286,326 | -1,011,091 | 101,261,307 | 14,532,587 | 5,804,023 | 21,811,064 | 21,329,717 | 164,013,933 |
Ending Balance (Shares) at Dec. 31, 2012 | 27,591,839 | -584,231 | ' | ' | ' | ' | ' | ' |
Purchase of treasury stock | ' | -3,803,684 | ' | ' | ' | ' | ' | -3,803,684 |
Purchase of treasury stock (Shares) | ' | -641,080 | ' | ' | ' | ' | ' | ' |
Issuance of common stock to employees for cash | 30,000 | ' | 8,970,000 | ' | ' | ' | ' | 9,000,000 |
Issuance of common stock to employees for cash (shares) | 3,000,000 | ' | ' | ' | ' | ' | ' | ' |
Reclass to temporary stock | -7,250 | ' | -2,167,750 | ' | ' | ' | ' | -2,175,000 |
Stock-based compensation | ' | ' | 6,900,000 | ' | ' | ' | ' | 6,900,000 |
Net income for the year | ' | ' | ' | ' | -119,236,823 | ' | -2,969,204 | -122,206,027 |
Changes in an ownership interest in Zhongtian | ' | ' | ' | ' | 211,410 | ' | -211,410 | ' |
Foreign currency translation gain | ' | ' | ' | ' | ' | 3,259,162 | 675,957 | 3,935,119 |
Transfer to reserve | ' | ' | ' | 96,782 | -96,782 | ' | ' | ' |
Purchase of shares by iASPEC from minority shareholders in Zhongstian | ' | ' | ' | ' | ' | ' | -381,420 | -381,420 |
Changes in Parent's Ownership Interests in Geo | ' | ' | ' | ' | -195,594 | ' | 195,594 | ' |
Capital injections by minority shareholders to Geo | ' | ' | 705,087 | ' | ' | ' | 2,016,442 | 2,721,529 |
Ending Balance at Dec. 31, 2013 | $309,076 | ($4,814,775) | $115,668,644 | $14,629,369 | ($113,513,766) | $25,070,226 | $20,655,676 | $58,004,450 |
Ending Balance (Shares) at Dec. 31, 2013 | 30,591,839 | -1,225,311 | ' | ' | ' | ' | ' | ' |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
OPERATING ACTIVITIES | ' | ' | ' |
Net (loss) income | ($122,206,027) | ($90,622,558) | $8,570,179 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ' | ' | ' |
Provision for losses on accounts receivable and other current assets | 68,212,239 | 27,882,120 | 4,072,406 |
Impairment of property, plant and equipment | 29,976,990 | 11,809,432 | 0 |
Depreciation | 8,114,611 | 11,532,635 | 10,853,984 |
Stock-based compensation | 6,900,000 | 0 | 0 |
Amortization of intangible assets and land use rights | 2,486,809 | 2,292,518 | 1,757,655 |
Change in deferred income tax | 1,501,645 | 306,838 | -1,694,374 |
Provision for obsolete inventories | 887,525 | 2,235,574 | 4,627,598 |
Loss on disposal of property and equipment, net | 89,885 | 2,915,708 | 578,265 |
Change in fair value of contingent consideration | 0 | 0 | -1,481,756 |
Impairment of intangible assets and goodwill | 2,008,249 | 26,901,574 | 0 |
Impairment of long-term investment | 0 | 0 | 1,002,755 |
Imputed interest on shareholder's loan | 0 | 0 | 166,667 |
Changes in operating assets and liabilities | ' | ' | ' |
Increase (decrease) in other payables and accrued expenses and other liabilities | 4,294,228 | -64,095 | 1,245,553 |
Increase (decrease) in amounts due to/from related parties | 1,629,891 | -1,825,311 | -401,392 |
Decrease (increase) in restricted cash | 942,495 | 250,306 | -2,772,004 |
Decrease (increase) in inventories | 773,293 | 3,579,538 | -6,171,310 |
Increase (decrease) in advances from customers | 740,933 | -2,700,713 | -1,329,076 |
Decrease (increase) in accounts receivable | 510,419 | -7,460,031 | -4,538,402 |
(Decrease) increase in accounts payable and bills payable | -11,124,374 | 7,175,522 | 7,101,150 |
(Increase) decrease in advances to suppliers | -2,352,897 | -1,551,504 | 3,973,915 |
Increase in other receivables and prepaid expenses | -4,711,757 | -2,031,433 | -8,944,900 |
(Decrease) increase in income tax payable | -51,697 | 106,370 | -275,586 |
Net cash (used in) provided by operating activities | -11,377,540 | -9,267,510 | 16,341,327 |
INVESTING ACTIVITIES | ' | ' | ' |
Deposit refunded (for purchase) of land use rights | 1,437,368 | -47,561 | 0 |
Proceeds from sale of property and equipment | 226,369 | 18,549 | 0 |
Capitalized and purchased software development costs | -2,472,624 | -2,159,866 | -1,850,595 |
Purchases of property and equipment | -2,041,270 | -778,691 | -16,776,095 |
Investment in Zhongtian | -378,144 | 0 | 0 |
Dividends received from Xiamen Yili Geo Information Technology Co., Ltd. | 0 | 79,268 | 0 |
Purchase of land use rights | 0 | -2,513,648 | 0 |
Investment in Hubei Information Science and Technology | 0 | -158,600 | 0 |
Net cash used in investing activities | -3,228,301 | -5,560,549 | -18,626,690 |
FINANCING ACTIVITIES | ' | ' | ' |
Borrowings under short-term loans | 107,825,953 | 99,000,812 | 87,474,985 |
Common stock issued for cash | 9,000,000 | 0 | 0 |
Capital injection by minority shareholders | 2,585,600 | 283,612 | 1,157,551 |
Decrease (increase) in restricted cash in relation to bank borrowings | -619,509 | 2,042,836 | -1,048,220 |
Repayment of short-term loans | -101,276,350 | -89,499,942 | -87,299,684 |
Repayment of long-term loans | -147,923 | -35,576 | -1,769,920 |
Borrowings under long-term loans | 350,534 | 0 | 0 |
Repurchase of common stock | -3,000,000 | -315,577 | -684,046 |
Net cash provided (used in) by financing activities | 14,718,305 | 11,476,165 | -2,169,334 |
Effect of exchange rate changes on cash and cash equivalents | 223,130 | 80,258 | 307,474 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 335,594 | -3,271,636 | -4,147,223 |
CASH AND CASH EQUIVALENTS, BEGINNING | 10,747,998 | 14,019,634 | 18,166,857 |
CASH AND CASH EQUIVALENTS, ENDING | 11,083,592 | 10,747,998 | 14,019,634 |
Income taxes | 405,948 | 493,378 | 2,708,313 |
Interest | $5,537,477 | $4,537,517 | $2,725,058 |
ORGANIZATION_AND_PRINCIPAL_ACT
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended |
Dec. 31, 2013 | |
ORGANIZATION AND PRINCIPAL ACTIVITIES [Text Block] | ' |
1. ORGANIZATION, PRINCIPAL ACTIVITIES AND MANAGEMENT'S PLANS | |
China Information Technology Inc, together with its subsidiaries (the "Company" or "CNIT"), a provider of integrated cloud-based solutions including Internet-of-Things (“IoT”), public InfoCloud, WeMedia platform, Smart City and other Internet-related services in the People’s Republic of China ("PRC"). The Company’s total solutions include specialized software, hardware, systems integration, and related services. These services are provided through the Company’s wholly-owned PRC subsidiaries, Information Security Technology (China) Co., Ltd ("IST"), and its subsidiary, Dongguan Information Security Technology (China) Co., Ltd ("IST DG"), Information Security Software (China) Co., Ltd. ("ISS"), and Information Security IoT Tech.Co.,Ltd ("ISIOT ) (formerly,Huipu Electronics (Shenzhen) Co., Ltd), and through the Company’s variable interest entity ("VIE"), iASPEC Geo Information Technology Co., Ltd ("iASPEC") ( formerly, iASPEC Software Company Limited ), and its subsidiaries, Wuda Geoinformatics Co., Ltd ("Geo"), iASPEC Zhongtian Software Company Ltd ("Zhongtian") (formerly, Shenzhen iASPEC Zhongtian Software Company Ltd) and iASPEC Bocom IoT Technology Co. Ltd. ("Bocom") (formerly, Shenzhen Bocom Multimedia Display Technology Co., Ltd) . | |
On October 31, 2012, the Company completed a reorganization of the Company as a British Virgin Islands (“BVI”) company. Each outstanding share of the common stock of the Company was converted into the right to receive on ordinary share of China Information Technology Inc., a BVI company (“CNIT BVI”). The shares of CNIT BVI are listed on the NASDAQ Global Select Market under the trading symbol “CNIT,” the same symbol under which the shares of common stock of the Company were listed. | |
Management Service Agreement | |
iASPEC is a VIE of the Company. To comply with PRC laws and regulations that restrict foreign ownership of companies that provide public security information technology and Geographic Information Systems software operating services to certain government and other customers, the Company operates the restricted aspect of its business through iASPEC. | |
Pursuant to the terms of a management service agreement by and among IST, iASPEC and its shareholders, dated July 1, 2007 ("MSA"), iASPEC granted IST a ten-year, exclusive, royalty-free, transferable worldwide license to use and install certain iASPEC software, along with copies of source and object codes relating to such software. In addition, IST licensed back to iASPEC a royalty-free, limited, non-exclusive license to the software, without right of sub-license, for the sole purpose of permitting iASPEC to carry out its business as presently conducted. IST has the right to designate two Chinese citizens to serve as senior managers of iASPEC, to serve as a majority on iASPEC’s Board of Directors, and to assist in managing the business and operations of iASPEC. In addition, both iASPEC and IST will require the affirmative vote of a majority of the Company’s Board of Directors, including at least one non-insider director, for certain material actions, as defined, with respect to iASPEC. | |
Option Agreement | |
In connection with the MSA, on July 1, 2007, IST also entered into an immediately exercisable purchase option agreement (the "Option Agreement") with iASPEC and its shareholders, pursuant to which the iASPEC shareholder granted IST or its designee(s) an exclusive, irrevocable option to purchase, from time to time, all or a part of iASPEC’s shares or iASPEC’s assets from the iASPEC shareholder for $1,800,000 in the aggregate. The option may not be exercised if the exercise would violate any applicable laws and regulations in the PRC or cause any license or permit held by, and necessary for the operation of iASPEC, to be cancelled or invalidated. The Option Agreement will terminate on the date IST exercises its purchase option and acquires all the shares or assets of iASPEC pursuant to the terms of the Option Agreement. The Option Agreement may be rescinded by IST upon 30 days’ notice without costs to terminate. The Option Agreement does not have renewal provisions. | |
Equity Transfer Agreement | |
On July 1, 2008, Mr. Jiang Huai Lin entered into an equity transfer agreement (the "Equity Transfer Agreement") with Mr. Jin Zhu Cai ("Mr. Cai"), the then owner of a 24% minority interest (the “Minority Interest”) in iASPEC, pursuant to which Mr. Lin purchased the Minority Interest from Mr. Cai for a total consideration of RMB60 million (approximately $8.72 million). The transaction was closed in September 2008 and as a result, Mr. Lin became the sole owner of iASPEC. | |
Amended and Restated MSA | |
The Amended and Restated MSA was entered into as of December 13, 2009, by and among IST, iASPEC and iASPEC’s sole shareholder, Mr. Lin. Pursuant to the Amended and Restated MSA, IST will provide management and consulting services to iASPEC, under the following terms: | |
iASPEC agreed that IST will be entitled to receive ninety five percent ( 95%) of the Net Received Profit, as defined, of iASPEC during the term of the Agreement. iASPEC is obligated to calculate and pay the Net Received Profit due to IST no later than the last day of the first month following the end of each fiscal quarter; Mr. Lin, agreed to enter into a pledge agreement with IST to pledge all of his equity interests in iASPEC as security for his and iASPEC’s fulfillment of their respective obligations under the MSA, and to register the pledge agreement with the local AIC (Administration for Industry and Commerce). After the Amended and Restated MSA was executed on December 13, 2009, based on the advice of the Company’s PRC legal counsel, in January 2010 all the parties to the agreement decided not to enter into a pledge agreement. | |
Mr. Lin confirmed his status as the sole iASPEC shareholder and his assumption of all of the obligations of the iASPEC shareholder under the agreement, including a confirmation of his continuing obligation under a written guaranty, executed by the then iASPEC shareholders; and | |
Based on iASPEC’s needs for its development and operation, IST has the right, from time to time, at its sole discretion, to provide iASPEC with capital support. | |
IST agreed that it will not interfere in any business of iASPEC covered by iASPEC’s PRC State Secret related Computer Information System Integration Certificate, including but not limited to, seeking access to relevant documents regarding such business; provided, however, that iASPEC agreed that it will cooperate with the requests of the Company as necessary to comply with the Company’s reporting obligations to the Securities and Exchange Commission. | |
The Amended and Restated MSA amended certain terms of the original Management Service Agreement which became effective on July 1, 2007 and has a term of 30 years unless otherwise earlier terminated by the parties by one of the following means: | |
Either iASPEC or IST may terminate the Amended and Restated MSA immediately (a) upon the material breach by the other of its obligations and the failure of such party to cure such breach within 30 working days after written notice from the non-breaching party; or (b) upon the filing of a voluntary or involuntary petition in bankruptcy by the other or of which the other is the subject, or the insolvency of the other, or the commencement of any proceedings placing the other in receivership, or of any assignment by the other for the benefit of creditors; or | |
The Amended and Restated MSA may be terminated at any time by IST upon 90 calendar days’ written notice delivered to all other parties. | |
Upon any effective date of any termination of the Amended and Restated MSA: (a) IST will cease providing management services to iASPEC; (ii) IST will deliver to iASPEC all chops and seals of iASPEC; (iii) IST will deliver to iASPEC all of the financial and other books and records of iASPEC, including any and all permits, licenses, certificates and other proprietary and operational documents and instruments; (iv) the senior managers who are recommended by IST and elected as directors of iASPEC will resign from the Board of Directors of iASPEC in a lawful way; and (v) the software license that iASPEC granted to IST according to the Amended and Restated MSA will terminate unless otherwise agreed by the parties. In addition, any amounts owing from any party to any other party on the effective date of any termination under the terms of the Amended and Restated MSA will continue to be due and owing despite such termination. | |
The Amended and Restated MSA does not have renewal provisions. We expect that the parties to the Amended and Restated MSA will negotiate to extend the term of the agreement before its expiration. | |
The substance of the Amended and Restated MSA and the Option Agreement is to: | |
Allow the Company to utilize the business licenses, contacts, permits and other resources of iASPEC in order for the Company to be able to expand its operations and business model; | |
Provide the Company with effective control over all of iASPEC’s operations; and allow the shareholders of iASPEC an opportunity to monetize a portion of their investment through the $1.8 million purchase option. | |
Non-controlling interest transactions | |
On May 5, 2011, Kwong Tai International Technology Ltd. (“Kwong Tai”), our wholly-owned subsidiary, and iASPEC entered into an equity transfer agreement, pursuant to which Kwong Tai agreed to transfer 100% of equity interests in Zhongtian, also our wholly-owned PRC subsidiary, to iASPEC, for a purchase price of RMB20.2 million (approximately $3.1 million). The purchase price is equal to the PRC registered capital of Zhongtian. | |
On December 29, 2011, Zhongtian, increased its registered capital from RMB33.2 million (approximately $5.2 million) to RMB40.7 million (approximately $6.4 million). The RMB7.5 million (approximately $1.2 million) was contributed by new shareholders, comprising the management teams of Zhongtian, including Mr. Lin, the Company’s chief executive officer. As a result of the capital increase, the equity interest owned by iASPEC in Zhongtian was reduced from 100% to 81.65%, and resulted in approximately $1 million of Zhongtian's equity being reclassified to non-controlling interest. | |
On February 20, 2012, Zhongtian, increased its registered capital from RMB40.7 million (approximately $6.2 million) to RMB42.5 million (approximately $6.5 million). The RMB1.79 million (approximately $0.28 million) was contributed by new shareholders, comprising the management teams of Zhongtian, including Mr. Lin, the Company’s chief executive officer. As a result of the capital increase, the equity interest owned by iASPEC in Zhongtian was reduced from 81.65% to 78.21% and resulted in approximately $0.12 million of Zhongtian’s equity being reclassified to non-controlling interest. | |
On July 16, 2012, Information Security Software Investment Limited (“ISSI”), our wholly-owned subsidiary, and iASPEC entered into an equity transfer agreement, pursuant to which ISSI agreed to transfer 100% of equity interests in ISS, also our wholly-owned PRC subsidiary, to iASPEC, for a purchase price of RMB53.98 million (approximately $8.57 million). | |
On September 10, 2013,iASPEC purchased additional equity interests in Zhongtian for a total of RMB2.34 million (approximately $0.38 million). As a result, the equity interest owned by iASPEC in Zhongtian was increased from 78.21% to 83.72% and resulted in approximately $0.21 million of Zhongtian’s equity being reclassified from non-controlling interest. | |
On August 30, 2013, a minority shareholder disposed of its interest in Geo totaling RMB7 million (approximately $1.13 million). In addition, during 2013 various individual shareholders injected capital in Geo totaling of RMB21.50 million (approximately $3.53 million) and four individual shareholders contributed patent rights valued at RMB2 million (approximately $0.32 million) which reinforced Geo’s operating business. As a result of the capital increase, Geo’s minority interest increased from 47.46% to 49.63% while the equity interest owned by iASPEC in Geo was decreased from 52.54% to 50.37%, and resulted in approximately $0.20 million of Geo’s equity being reclassified to non-controlling interest with iASPEC still remaining as the controlling shareholder in Geo thereafter. | |
On September 18, 2013, Information Security Technology (PRC) Co., Ltd ("IST"), our wholly-owned subsidiary, and iASPEC entered into an equity transfer agreement, pursuant to which iASPEC agreed to transfer 100% of equity interests in ISS, to IST, for a purchase price of RMB53.98 million (approximately $8.84 million). | |
On October 22, 2013, Information Security International Investment and Development Limited ("ISIID"), our wholly-owned subsidiary, and iASPEC entered into an equity transfer agreement, pursuant to which ISIID agreed to transfer 100% of equity interests in Bocom, to iASPEC, for a purchase price of RMB50.0 million (approximately $8.19 million). | |
Management’s Plans | |
For the years ended December 31, 2013 and 2012, the Company reported negative cash flows from operations of $11.38 million and $9.27 million, respectively. In addition, the Company had a working capital deficiency of $46.78 million as of December 31, 2013, which was primarily driven by a non-cash increase in the allowance for doubtful accounts in 2013 of $65.5 million. Management has developed the Company's operating plans for 2014 based on its new business model, which focuses on internet-related products and services, to emphasize cash flow and under which the Company is also implementing various cost modifications to reduce expenses. As of March 31, 2014, the Company has approximately $17.8 million of additional borrowing availability under its credit facilities. In addition, in order to improve the Company's liquidity, certain of the Company's real estate and plant assets were re-appraised in 2013. These assets have been appraised at a market value of RMB351.3 million (approximately $57.5 million), which is approximately $33.9 million above their carrying value, allowing the Company to more easily access additional bank borrowing availability if there is future working capital need. Management believes that the Company's current cash and cash equivalents, anticipated cash flows from operations in 2014, and additional availability under its borrowing facilities will be sufficient to meet the Company's operating and financial obligations for the remainder of 2014. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Text Block] | ' | ||||||
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
(a) Basis of Consolidation | |||||||
The consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles. The consolidated financial statements include the accounts of the Company, its subsidiaries and its VIE for which the Company is the primary beneficiary. All significant intercompany accounts and transactions have been eliminated in consolidation. | |||||||
(b) Use of Estimates | |||||||
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Management makes these estimates using the best information available at the time the estimates are made; however actual results could differ from those estimates. | |||||||
(c) Economic and Political Risks | |||||||
The majority of the Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC economy. The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation. | |||||||
(d) Cash and Cash Equivalents | |||||||
The Company considers all highly liquid investments purchased and cash deposits with financial institutions with original maturities of three months or less to be cash equivalents (Level 1). | |||||||
The Company maintains its cash accounts at credit worthy financial institutions and closely monitors the movements of its cash positions. At December 31, 2013 and 2012, approximately $11.08 million and $10.75 million, respectively was held in bank accounts in the PRC. | |||||||
(e) Restricted Cash | |||||||
Restricted cash as of December 31, 2013 and 2012 consists of security deposits in bank accounts in the PRC that serve as collateral for the Company’s revolving working capital facility, which are included in short-term loans, bills payable, as well as letter of credit facilities. | |||||||
(f) Accounts Receivable, Bills Receivable and Concentration of Risk | |||||||
The Company evaluates the creditworthiness of each customer before accepting them and continuously monitors their recoverability. If there are any indicators that the customer may not make payment, then we may consider making provision for non-collectability for that particular customer. At the same time, we may cease further sales or services to such customer. The following are some of the factors that we consider in determining whether to discontinue sales or record an allowance: | |||||||
the customer fails to comply with its payment schedule; | |||||||
the customer is in serious financial difficulty; | |||||||
a significant dispute with the customer has occurred regarding job progress or other matters; | |||||||
the customer breaches any of the contractual obligations; | |||||||
the customer appears to be financially distressed due to economic or legal factors; | |||||||
the business between the customer and the Company is not active; and | |||||||
other objective evidence which indicates non-collectability of the accounts receivable. | |||||||
We consider the following factors when determining whether to permit a longer payment period or provide other concessions to customers: | |||||||
the customer’s past payment history; | |||||||
the customer’s general risk profile, including factors such as the customer’s size, age, and public or private status; | |||||||
macroeconomic conditions that may affect a customer’s ability to pay; and | |||||||
the relative importance of the customer relationship to our business. | |||||||
Bills receivable represent bank undertakings that essentially guarantee payment of amounts thereunder. The undertakings are provided by banks upon receipt of collateral deposits from the Company’s customers or debtors. Bills receivable can be sold at a discount before maturity, which is typically within three months. | |||||||
The Company’s top five customers accounted for 14% of accounts receivable as of December 31, 2013, of which no single customer accounted for greater than 10% or more of accounts receivable. The Company’s top five customers accounted for 22% of accounts receivable as of December 31, 2012, of which no single customer accounted for greater than 10% or more of accounts receivable. | |||||||
For the years ended December 31, 2013, 2012 and 2011, the Company’s top five customers accounted for 16%,17% and 17% of revenue respectively, and no single customer accounted for 10% or more of total revenue. The allowance for doubtful accounts at December 31, 2013 and 2012, totaled $60.70 million and $29.52 million respectively, representing management’s best estimate. The increase in the allowance for doubtful accounts was due primarily to the continued sluggishness in the Company’s government client sector relating to its digital public security business. | |||||||
Accounts receivable as at December 31, 2013 and 2012 are as follows: | |||||||
December 31, | December 31, | ||||||
2013 | 2012 | ||||||
Accounts Receivable | $ | 83,414,977 | $ | 115,476,500 | |||
Bad Debt Provision | (60,698,679 | ) | (29,517,614 | ) | |||
Accounts Receivable – Net | $ | 22,716,298 | $ | 85,958,886 | |||
The following table describes the movements in the allowance for doubtful accounts during the years ended December 31, 2013 and 2012: | |||||||
Balance at January 1, 2012 | $ | 9,373,327 | |||||
Increase in allowance for doubtful accounts | 24,708,326 | ||||||
Amounts written off as uncollectible | (4,598,552 | ) | |||||
Amounts recovered during the year | (55,548 | ) | |||||
Foreign exchange difference | 90,061 | ||||||
Balance at December 31, 2012 | $ | 29,517,614 | |||||
Increase in allowance for doubtful accounts | 65,499,431 | ||||||
Amounts written off as uncollectible | (35,234,491 | ) | |||||
Amounts recovered during the year | (399,309 | ) | |||||
Foreign exchange difference | 1,315,434 | ||||||
Balance at December 31, 2013 | $ | 60,698,679 | |||||
(g) Advances to Suppliers | |||||||
Advances to suppliers represent cash deposits for the purchase of inventory items from suppliers. | |||||||
(h) Advances from Customers | |||||||
Advances from customers represent cash received from customers as advance payments for the purchase of the Company’s products. (i) Fair Value of Financial Instruments and Fair Value Measurement Fair Value of Financial Instruments | |||||||
Management has estimated that the carrying amounts of non-related party financial instruments approximate fair values for all periods presented due to their short-term maturities. The carrying amount of long-term debt approximates fair value because of its variable interest rate. The fair value of the amounts due from (to) related parties is not practicable to estimate due to the related party nature of the underlying transactions. | |||||||
(i) Fair Value Accounting | |||||||
Financial Accounting Standards Board (FASB) Accounting Standards Codifications (ASC) 820-10 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). As required by FASB ASC 820-10, assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The three levels of the fair value hierarchy under FASB ASC 820-10 are described below: | |||||||
Level 1 | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; | ||||||
Level 2 | Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and | ||||||
Level 3 | Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). | ||||||
As of December 31, 2013 and 2012, goodwill, property, plant and equipment, and purchased software were measured at fair value on a non-recurring basis using level 3 inputs, which resulted in impairment on certain assets. Refer to Notes 5 and Note 9 for impairment detail. | |||||||
(j) Inventories | |||||||
Inventories are valued at the lower of cost or market. Market is the estimated selling price in the ordinary course of business less the estimated cost of completion and the estimated costs necessary to make the sale. | |||||||
The Company performs an analysis of slow-moving or obsolete inventory periodically and any necessary valuation reserves, which could potentially be significant, are included in the period in which the evaluations are completed. As of December 31, 2013 and 2012, the inventory impairment was mainly from raw materials, and results in a new cost basis for accounting purposes. | |||||||
For the years ended December 31, 2013 and 2012, approximately 26% and 36%, respectively of total inventory purchases were from five unrelated suppliers and no supplier account for greater than 10% of total inventory purchase in 2013. Two suppliers accounted for 22.8% of total inventory purchases in 2012 and no other suppliers accounted for greater than 10% of total inventory purchases. | |||||||
(k) Long-term Investments | |||||||
Long-term investments (level 3) are carried at cost. If a decline in the fair value of a cost method investment is determined to be other than temporary, an impairment charge is recorded and the fair value becomes the new cost basis of the investment. Management evaluates all cost method investments for impairment; however, the fair value of the cost method investments is not required to be determined unless impairment indicators are present. When impairment indicators exist, discounted cash flow analyses are generally used to estimate the fair value. | |||||||
(l) Property, plant and equipment | |||||||
Property, plant and equipment are stated at cost less accumulated amortization and depreciation. Amortization and depreciation is provided over the assets’ estimated useful lives, using the straight-line method. Estimated useful lives of property, plant and equipment are as follows: | |||||||
Office buildings | 20 - 50 years | ||||||
Plant and machinery | 3 - 20 years | ||||||
Electronics equipment, furniture and fixtures | 3 - 5 years | ||||||
Motor vehicles | 5 years | ||||||
Purchased software | 3 - 10 years | ||||||
Maintenance and repairs costs are expensed as incurred, whereas significant renewals and betterments are capitalized. | |||||||
(m) Land use rights | |||||||
All land in the PRC is owned by the PRC government. The government in the PRC, according to the PRC law, may sell the right to use the land for a specified period of time. Thus, all of the Company’s land purchases in the PRC are considered to be leasehold land under operating lease arrangements and are stated at cost less accumulated amortization and any recognized impairment loss. The cost of the land use right is amortized on a straight-line basis over the beneficial period of 46 years. | |||||||
(n) Intangible assets | |||||||
Intangible assets represent technology and customer base intangible assets acquired in connection with business acquisitions, and software development costs capitalized by the Company’s subsidiaries. | |||||||
Intangible assets are amortized using the straight-line method over the following estimated useful lives: | |||||||
Software development costs | 2 - 5 years | ||||||
Technology | 10 - 20 years | ||||||
Trademarks | 20 years | ||||||
Customer base | 2 years | ||||||
(o) Goodwill | |||||||
ASC 350-30-50, “Goodwill and Other Intangible Assets”, requires the testing of goodwill and indefinite-lived intangible assets for impairment at least annually. The Company tests goodwill for impairment in the fourth quarter each year or earlier if an indicator of impairment exists. | |||||||
Under applicable accounting guidance, the goodwill impairment analysis is a two-step test. The first step of the goodwill impairment test involves comparing the fair value of each reporting unit with its carrying amount including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired; however, if the carrying amount of the reporting unit exceeds its fair value, the second step must be performed to measure potential impairment. | |||||||
The second step involves calculating an implied fair value of goodwill for each reporting unit for which the first step indicated possible impairment. If the implied fair value of goodwill exceeds the goodwill assigned to the reporting unit, there is no impairment. If the goodwill assigned to a reporting unit exceeds the implied fair value of goodwill, an impairment charge is recorded for the excess. | |||||||
(p) Long-Lived Assets | |||||||
Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. It is reasonably possible that these assets could become impaired as a result of technology or other industry changes. Determination of recoverability of assets to be held and used is determined by comparing the carrying amount of an asset to future net undiscounted cash flows to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets held for disposal, if any, are reported at the lower of the carrying amount or fair value less costs to sell. | |||||||
(q) Revenue Recognition | |||||||
The Company generates its revenues primarily from three sources, (1) hardware sales, (2) software sales, and (3) system integration services. The Company’s revenue recognition policies are in accordance with SEC Staff Accounting Bulletin No. 104, "Revenue Recognition", FASB ASC No. 605-35 "Construction-Type and Production-Type Contracts" ("FASB ASC 605-35"), and FASB ASC No. 605-25 “Multiple-Element Arrangements” (“FASB ASC 605-25”). | |||||||
Hardware revenues are generated primarily from the sale of display technology products and are recognized only when persuasive evidence of an arrangement exists, delivery has occurred and upon receipt of customers’ acceptance, the price to the customer is fixed or determinable in accordance with the contract, and collectability is reasonably assured. Hardware sales do not include software or system integration, and are classified on the “Revenue-Products” line on the Company’s consolidated statement of (loss) income. | |||||||
Software revenues are generated from fixed-price contracts which include the designing, building and development of software products, and services to customize such software to meet customers’ needs. Software development projects usually include developing software, integrating various isolated software systems into one, and testing the system. The design and build services, together with the integration of the various elements, are generally determined to be essential to the functionality of the delivered software, and accordingly revenue is recognized using the percentage of completion method of accounting in accordance with FASB ASC 605-35. The percentage of completion for each contract is estimated based on the ratio of direct labor hours incurred to total estimated direct labor hours. Software sales do not include either hardware or system integration, and are classified on the “Revenue-Software” line on the Company’s consolidated statement of (loss) income. | |||||||
System integration revenues are generated from fixed-price contracts which combines both of the foregoing elements (customized software development and integration, and non-customized hardware). System integration projects usually include the purchase of hardware, developing software, and integrating various systems into one, and testing the system. Accordingly, system integration revenues contain multiple deliverables consisting of two separate units of account (1) software development and integration, and (2) hardware, both of which are clearly outlined in contracts executed with customers. Revenue from the software element is recognized using the percentage of completion method of accounting outlined above under software revenues. Revenue from the hardware element is recognized when all four revenue recognition criteria are met, as outlined above under hardware revenues, which generally occurs upon customer acceptance. The hardware component of system integration projects consists of standard products and requires only minor modification and an insignificant amount of labor to meet customers’ needs. Collectively, revenues from system integration projects are recognized using percentage of completion based on the ratio of costs incurred to total estimated costs, and are classified on the “Revenue-System integration” line on the Company’s consolidated statement of (loss) income. | |||||||
The Company accounts for system integration projects in accordance with FASB ASC 605-25. To determine the selling price of each unit of account included within the system integration contracts, the Company uses vendor-specific objective evidence (VSOE) for the software component, and third-party evidence for the hardware component. | |||||||
In addition, the Company provides post contract support (PCS), which includes telephone technical support that is not essential to the functionality of the software or hardware elements. Although VSOE does not exist for PCS, because (1) the PCS fees are included in the total contract amount, (2) the PCS service period is for less than one year, (3) the estimated cost of providing PCS is not significant, and (4) unspecified upgrades enhancements offered are minimal and infrequent; the Company recognizes PCS revenue after delivery and customer acceptance. | |||||||
Contract periods are usually less than six months, and typical contract periods for PCS are 12 months. | |||||||
Customers are billed in accordance with contract terms, which typically require partial payment at the signing of the contract, partial payment at delivery and customer acceptance dates, with the remainder due within a stated period of time not exceeding 12 months. Occasionally, the Company enters into contracts which allow a percentage of the total contract price to be paid one to three years after completion of a system integration project. Revenues on these extended payments are recognized upon completion of the terms specified in the contract and when collectability is reasonably assured. | |||||||
No rights of return are allowed except for non-conforming products, which have been insignificant based on historical experiences. If nonconforming products are returned due to software issues, the Company will provide upgrades or additional customization to suit customers’ needs. In cases where nonconformity is a result of integrated hardware, the Company returns the hardware to the original vendor for replacement. | |||||||
Unbilled accounts receivable consist of estimated future billings for work performed but not yet invoiced to the customer. Unbilled accounts receivable are generally invoiced within one year of completion of the work performed. Changes in estimates for revenues, costs and profits are recognized in the period in which they are determinable. When the Company’s estimates indicate that the entire contract will be performed at a loss, a provision for the entire loss is recorded in the current accounting period. | |||||||
(r) Treasury Stock | |||||||
The Company repurchases its common stock from time to time in the open market and holds such shares as treasury stock. The Company applies the “cost method” and presents the cost to repurchase such shares as a reduction in shareholders’ equity. During the years ended December 31, 2013, 2012 and 2011, the Company repurchased total of 641,080, 223,604 and 357,627 shares of common stock, respectively. | |||||||
(s) Stock-based compensation | |||||||
The Company applies ASC No. 718, “Compensation — Stock Compensation”, which requires that share-based payment transactions with employees, such as share options, be measured based on the grant-date fair value of the equity instrument issued and recognized as compensation expense over the requisite service period, with a corresponding addition to equity. Under this method, compensation cost related to employee share options or similar equity instruments is measured at the grant date based on the fair value of the award and is recognized over the period during which an employee is required to provide service in exchange for the award, which generally is the vesting period. | |||||||
During the years ended December 31, 2013, 2012 and 2011, the Company recognized $6.9 million, $0 million and $0 million, respectively of compensation expense. | |||||||
(t) Foreign Currency Translation | |||||||
The functional currency of the US and BVI companies is the United States dollar. The functional currency of the Company’s Hong Kong subsidiaries is the Hong Kong dollar. | |||||||
The functional currency of the Company’s wholly-owned PRC subsidiaries and its VIE is the Chinese Renminbi Yuan, (“RMB”). RMB is not freely convertible into foreign currencies. The Company’s PRC subsidiaries’ and their VIE’s financial statements are maintained in the functional currency. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at rates of exchange prevailing at the balance sheet date. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transactions. Exchange gains or losses arising from foreign currency transactions are included in the determination of net income for the respective periods. | |||||||
For financial reporting purposes, the financial statements of the Company have been translated into United States dollars. Assets and liabilities are translated at exchange rates at the balance sheet dates, revenue and expenses are translated at average exchange rates, and equity is translated at historical exchange rates. Any resulting translation adjustments are not included in determining net income but are included in other comprehensive income, a component of equity. | |||||||
The exchange rates adopted are as follows: | |||||||
December 31, | December 31, | ||||||
2013 | 2012 | ||||||
Year end exchange rate | 6.1087 | 6.3012 | |||||
Average yearly exchange rate | 6.1881 | 6.3052 | |||||
The average yearly exchange rate adopted for the year ended December 31, 2011 was 6.4533. | |||||||
No representation is made that the RMB amounts could have been, or could be, converted into United States dollars at the rates used in translation. | |||||||
(u) Subsidy Income | |||||||
Subsidy income mainly represents income received from the local governmental agency in China for development and designated activities. We have no continuing obligation under the subsidy provision. | |||||||
(v) Income Taxes | |||||||
Income taxes are provided on an asset and liability approach for financial accounting and reporting of income taxes. Deferred income taxes are recognized for all significant temporary differences at enacted rates and classified as current or non-current based upon the classification of the related asset or liability in the financial statements. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion, or all of, the deferred tax asset will not be realized. The Company classifies interest and/or penalties related to unrecognized tax benefits, if any, as a component of income tax expense. | |||||||
The Company applies the provisions of ASC No. 740 “Income Taxes” (“ASC 740”), which clarifies the accounting for uncertainty in income taxes recognized by prescribing a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides accounting guidance on de-recognition, classification, interest and penalties, and disclosure. | |||||||
(w) Segment reporting | |||||||
Segment information is consistent with how management reviews the businesses, makes investing and resource allocation decisions and assesses operating performance. Transfers and sales between reportable segments, if any, are recorded at cost. | |||||||
In connection with the changes in the Company’s business portfolio and realignment of management, management conducted a review of its operating business segments during the first quarter of 2011. The review resulted in changing the segment reporting from four to two new segments, Information Technology (“IT”), and Display Technology (“DT”). | |||||||
The Company’s change in segment reporting, which has been used for all periods presented, follows the organizational structure as reflected in its internal management reporting systems, which are the basis for assessing the financial performance of the business segments and for allocating resources to the business segments. | |||||||
The Company reports financial and operating information in the following two segments: | |||||||
(a) | IT includes revenues from products and services surrounding the Company’s variety of software core competencies currently primarily in Geographic Information Systems, Digital Public Security Technologies and Hospital Information Systems. IT segment revenues are generated from the sales of software and system integration services, as well as hardware other than display products. | ||||||
(b) | DT includes revenues from products and services surrounding the Company’s display technology core competencies currently primarily in Geographic Information Systems, Digital Public Security Technologies, Education and Media Solutions and consumer products. DT segment revenues are generated from sales of hardware and total solutions of hardware integrated with proprietary software and content, as well as services. | ||||||
(x) Sales, use and other value added tax | |||||||
Revenue is recorded net of applicable sales, use and value added tax. | |||||||
(y) Recent Accounting Pronouncements | |||||||
In July 2013, the FASB, issued Accounting Standards Update (ASU) No. 2013-11 “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” Under ASU 2013 - 11, an entity is required to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. If a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. ASU 2013 - 11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this guidance affects presentation only and, therefore, it is not expected to have a material impact on the Company's financial condition, results of operations or cash flows. | |||||||
(z) Reclassifications | |||||||
Certain amounts in the 2012 consolidated financial statements have been reclassified to conform to the current year presentation. |
VARIABLE_INTEREST_ENTITY
VARIABLE INTEREST ENTITY | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
VARIABLE INTEREST ENTITY [Text Block] | ' | ||||||
3. VARIABLE INTEREST ENTITY | |||||||
The Company is the primary beneficiary of iASPEC, pursuant to the Amended and Restated MSA, and iASPEC qualifies as a variable interest entity of the Company subject to consolidation. Accordingly, the assets and liabilities and revenues and expenses of iASPEC have been included in the accompanying consolidated financial statements. In the opinion of management, (i) the ownership structure of the Company, and the VIEs are in compliance with existing PRC laws and regulations; (ii) the contractual arrangements with the VIEs and its shareholder are valid and binding, and do not result in any violation of PRC laws or regulations currently in effect; and (iii) the Company’s business operations are in compliance with existing PRC laws and regulations in all material respects. | |||||||
However, there are substantial uncertainties regarding the interpretation and application of current and future PRC laws and regulations. China’s legal system is a civil law system based on written statutes and unlike common law systems, it is a system in which decided legal cases have little value as precedent. As a result, China’s administrative and judicial authorities have significant discretion in interpreting and implementing statutory and contractual terms, and it may be more difficult to evaluate the outcome of administrative and judicial proceedings and the level of legal protection available than in more developed legal systems. Accordingly, the Company cannot be assured that PRC regulatory authorities will not ultimately take a contrary view to its opinion with respect to the contractual arrangements with its VIEs. Because all of these contractual arrangements are governed by PRC law and provide for the resolution of disputes through arbitration in the PRC, these contracts would be interpreted in accordance with PRC law and any disputes would be resolved in accordance with PRC legal procedures. If the VIEs or their respective shareholders fail to perform their respective obligations under the contractual arrangements of which they are a party, the Company may have to incur substantial costs and resources to enforce its rights under the contracts and rely on legal remedies under PRC law, which may not be sufficient or effective. Under PRC law, rulings by arbitrators are final, parties cannot appeal the arbitration results in courts, and the prevailing parties may only enforce the arbitration awards in PRC courts through arbitration award recognition proceedings, which would cause the Company to incur additional expenses and delays. As a result, uncertainties in the PRC legal system could limit the Company’s ability to enforce these contractual arrangements. In the event the Company is unable to enforce these contractual arrangements, it may not be able to exert effective control over the VIEs, and its ability to conduct its business may be negatively affected. | |||||||
In addition, if the PRC government determines that the Company is not in compliance with applicable laws, it may revoke the Company’s business and operating licenses, require the Company to discontinue or restrict its operations, deconsolidate the Company’s interests in the VIEs, restrict its right to collect revenues, require it to restructure its operations, impose additional conditions with which it may not be able to comply, impose restrictions on its business operations or on its customers, or take other regulatory or enforcement actions against the Company that could be harmful to its business. The Company believes that the contractual arrangements with its VIEs are in compliance with current PRC laws and are legally enforceable. In the opinion of management, the likelihood of loss in respect to the Company’s current ownership structure or the contractual arrangements with VIEs is remote based on current facts and circumstances. | |||||||
In order to facilitate iASPEC’s expansion and also to provide financing for iASPEC to complete the acquisition of Geo, the Company advanced RMB38 million (approximately $5.4 million) to iASPEC in two installments in 2007 and 2008, to increase iASPEC’s registered capital. In order to comply with PRC laws and regulations, the advance was made to Mr. Lin, iASPEC’s then majority shareholder, who, upon the authority and direction of the Board of Directors, forwarded the funds to iASPEC. The Company has recorded the advance of these funds as an interest-free loan to iASPEC, which was eliminated against additional capital of iASPEC in consolidation. The increase in iASPEC’s registered capital does not affect IST’s exclusive option to purchase iASPEC’s assets and shares under the MSA. | |||||||
For the years ended December 31, 2013, 2012 and 2011, net loss of $2,969,204 (net loss of $3,188,700 from iASPEC, net income of $448,279 from Geo and net loss of $228,783 from Zhongtian), net loss of $992,050 (net loss of $1,038,176 from iASPEC, net income of $164,920 from Geo and net loss of $118,794 from Zhongtian), and net income of $660,781 ($385,099 from iASPEC and $275,682 from Geo) respectively have been attributed to non-controlling interest in the consolidated statements of (loss) income of the Company. | |||||||
At December 31, 2013 and 2012, the consolidation of iASPEC, Geo, Bocom and Zhongtian resulted in an increase in assets of approximately $45 million and $97.17 million, respectively, an increase in liabilities (consisting primarily of accounts payable and short-term bank loans) of approximately $45.10 million and $35.62 million, respectively, and an increase in non-controlling interest of approximately $20.66 million and $21.33 million, respectively, and for the years ended December 31, 2013, 2012 and 2011 the consolidation resulted in an increase in net loss attributable to the Company of approximately $60.6 million $14.22 million, and $7.32 million respectively. | |||||||
Government licenses, permits and certificates represent substantially all of the unrecognized revenue-producing assets held by the VIEs. Recognized revenue producing assets held by the VIEs consist of property, plant and equipment, and intangible assets. | |||||||
The VIE’s assets and liabilities were as follows for the years ended December 31, 2013 and 2012: | |||||||
December 31, | December 31, | ||||||
2013 | 2012 | ||||||
Total current assets | $ | 50,909,402 | $ | 81,536,006 | |||
Property, plant and equipment | 4,189,867 | 19,550,872 | |||||
Intangible assets | 15,172,049 | 11,950,110 | |||||
Total assets | 74,333,391 | 117,886,782 | |||||
Intercompany payable to the WFOE | 8,957,179 | 14,594,613 | |||||
Total current liabilities | 54,130,721 | 51,023,219 | |||||
Total liabilities | 54,130,721 | 51,152,086 | |||||
Total equity | 20,655,676 | 21,329,717 |
EARNINGS_LOSS_PER_SHARE
EARNINGS (LOSS) PER SHARE | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
EARNINGS (LOSS) PER SHARE [Text Block] | ' | |||||||||
4. EARNINGS (LOSS) PER SHARE | ||||||||||
Basic earnings (loss) per share are computed by dividing income (loss) available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, or resulted in the issuance of common stock that shared in the earnings of the entity. | ||||||||||
Components of basic and diluted earnings per share were as follows for the years ended December 31, 2013, 2012 and 2011: | ||||||||||
2013 | 2012 | 2011 | ||||||||
Net (loss) income attributable to the Company | $ | (119,236,823 | ) | $ | (89,630,508 | ) | $ | 7,909,398 | ||
Weighted average outstanding shares of common stock | 27,356,504 | 27,017,780 | 26,737,638 | |||||||
Effect of dilutive securities | ||||||||||
Warrants | - | - | - | |||||||
Contingently issuable shares | - | - | 227,368 | |||||||
Earnings per share: | ||||||||||
Basic | $ | (4.36 | ) | $ | (3.32 | ) | $ | 0.3 | ||
Diluted | $ | (4.36 | ) | $ | (3.32 | ) | $ | 0.29 | ||
Warrants for the purchase of 200,000 shares were not included in 2013 and 2012 as their effect would have been anti-dilutive. |
GOODWILL
GOODWILL | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
GOODWILL [Text Block] | ' | |||||||||
5. GOODWILL | ||||||||||
Goodwill by segment as at December 31, 2013 and 2012 is as follows: | ||||||||||
Foreign | ||||||||||
Exchange | ||||||||||
December 31, | rate | December 31, | ||||||||
2012 | adjustment | 2013 | ||||||||
IT | $ | 24,459,797 | $ | 86,193 | $ | 24,545,990 | ||||
DT | 3,162,693 | 11,186 | 3,173,879 | |||||||
Total | $ | 27,622,490 | $ | 97,379 | $ | 27,719,869 | ||||
In accordance with FASB ASC Topic 350, management reviews goodwill impairment annually or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. Management used the discounted cash flow method to estimate the fair value of its reporting units. Determining the fair value of a reporting unit involves the use of significant estimates and assumptions, such as revenue growth rate, gross profit rate, and discount rate. | ||||||||||
Due to the Chinese government's implementation of its macroeconomic tightening policies, our revenue decreased significantly during the fiscal year ended December 31, 2012 form 2011. As a result, we performed the goodwill impairment test during the second and fourth quarters of 2012. | ||||||||||
Based on the impairment test performed in 2012, step one of the test results indicated that the carrying amount of the DT segment exceeded its fair value, and therefore an impairment of goodwill was probable. Management then determined the implied fair value of goodwill for the DT and IT segments. As a result, the Company recognized a goodwill impairment loss of $26.83 million in the DT segment in 2012. | ||||||||||
Based on the above calculation in the cash flow models, step one of the test results indicated that the fair value of the reporting units exceeded their carrying value. Accordingly, no impairment loss was charged against earnings during the year ended 2013. |
RELATED_PARTY_BALANCES_AND_TRA
RELATED PARTY BALANCES AND TRANSACTIONS | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS [Text Block] | ' | |||||||||
6. RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||
(a) Related party balances | ||||||||||
As of December 31, 2013 and 2012, amounts due from/to related parties consist of: | ||||||||||
December 31, | December 31, | |||||||||
2013 | 2012 | |||||||||
Due from related companies | ||||||||||
- Xiamen Yili Geo Information Technology Co., Ltd. | $ | 115,248 | $ | 810,982 | ||||||
- Wuhan Geo Navigation and Communication Technology Co., Ltd. | 393,107 | 401,244 | ||||||||
$ | 508,355 | $ | 1,212,226 | |||||||
Due to related party | ||||||||||
- Shareholder | $ | 913,479 | $ | 12,728 | ||||||
Due from related companies, current portion | ||||||||||
Approximately 8% of Xiamen Yili Geo Information Technology Co., Ltd. (“Yili”) is owned by Geo. The balance consists of accounts receivable from sales. | ||||||||||
Approximately 9% of Wuhan Geo Navigation and Communication Technology Co., Ltd. (“Geo Navigation”) is owned by Geo. The balance due from Geo Navigation as of December 31, 2013 represents advances from Geo to Geo Navigation. These balances are non-interest bearing and due on demand. | ||||||||||
Due to related party | ||||||||||
The balance due to shareholder represents the balance of personal loans from Mr. Jianghuai Lin (“Mr. Lin”), the CEO of the Company, to the Company. These advances will be due on December 26, 2014 bearing interest rate of 6% per annum. | ||||||||||
(b) Revenue - related party | ||||||||||
Amounts recognized from Yili during the years ended December 31, 2013, 2012 and 2011 were as follows: | ||||||||||
2013 | 2012 | 2011 | ||||||||
Revenue | $ | 539,130 | $ | 860,156 | $ | 14,334 | ||||
Cost of sales | (550,945 | ) | (299,295 | ) | - | |||||
Gross (loss) profit | $ | (11,815 | ) | $ | 560,861 | $ | 14,334 | |||
(c) Rental expenses - related party | ||||||||||
Rental expenses from renting buildings and offices from Mr. Lin charged to operations during the years ended December 31, 2013, 2012 and 2011 were approximately $166,638, $250,661 and $248,653 respectively. |
INVENTORIES
INVENTORIES | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
INVENTORIES [Text Block] | ' | ||||||
7. INVENTORIES | |||||||
As of December 31, 2013 and 2012, inventories consist of: | |||||||
December 31, | December 31, | ||||||
2013 | 2012 | ||||||
Raw materials | $ | 2,973,152 | $ | 3,584,355 | |||
Work in Process | 390,128 | 240,693 | |||||
Finished goods | 4,514,190 | 4,292,975 | |||||
Installations in process | 7,778,253 | 8,679,650 | |||||
$ | 15,655,723 | $ | 16,797,673 |
LONGTERM_INVESTMENTS
LONG-TERM INVESTMENTS | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
LONG-TERM INVESTMENTS [Text Block] | ' | ||||||
8. LONG-TERM INVESTMENTS | |||||||
As of December 31, 2013 and 2012, long-term investments consist of: | |||||||
December 31, | December 31, | ||||||
2013 | 2012 | ||||||
Tianhe Navigation and Communication Technology Co., Ltd. (" Tianhe ") | $ | 1,106,235 | $ | 1,072,446 | |||
Tianditu Co., Ltd.( "Tianditu") | 1,309,600 | 1,269,600 | |||||
Xiamen Yili Geo Information Technology Co., Ltd. (" Yili ") | 81,850 | 79,350 | |||||
Hubei Information Science and Technology Co., Ltd.( " HIST") | 163,700 | 158,700 | |||||
$ | 2,661,385 | $ | 2,580,096 | ||||
Geo holds a 20% ownership interest in Tianhe. Although Geo owns 20% of Tianhe, Geo’s management does not have the ability to exercise significant influence over operating and financial policies of Tianhe due to the following factors: | |||||||
a. | The Company and Geo do not participate in the policy making, operations, or financial processes of Tianhe; | ||||||
b. | There are no intercompany transactions between the Company or Geo and Tianhe; | ||||||
c. | There is no interchange of managerial personnel; | ||||||
d. | The Company and Geo do not nominate or hold a board position at Tianhe; and | ||||||
e. | There is no technological or financial dependence between the Company or Geo and Tianhe. | ||||||
Geo holds an 8% ownership interest in Tianditu which was set up in 2010 to provide online map services. | |||||||
Geo holds an approximately 8% ownership interest in Yili which was set up in 2002 to provide GIS solution services. | |||||||
Geo holds a 10% ownership interest in HIST which was set up in 2012 to provide geographic information data gathering and processing, and geographic information software development business. | |||||||
Management regularly evaluates the impairment of the cost method investments based on performance and financial position of the investee as well as other evidence of market value. Such evaluation includes, but is not limited to, reviewing the investee’s cash position, recent financing, projected and historical financial performance, cash flow forecasts and financing needs. As of December 31, 2013 and 2012, management assessed the possible impairment of its investments and determined that there was no other-than-temporary impairment in the value of its investments. |
PROPERTY_PLANT_AND_EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
PROPERTY, PLANT AND EQUIPMENT [Text Block] | ' | ||||||
9. PROPERTY, PLANT AND EQUIPMENT | |||||||
As of December 31, 2013 and 2012, property, plant and equipment consist of: | |||||||
December 31, | 31-Dec | ||||||
2013 | 2012 | ||||||
Office buildings | $ | 8,926,101 | $ | 8,514,301 | |||
Plant and machinery | 26,757,195 | 26,149,466 | |||||
Electronic equipment, furniture and fixtures | 11,145,045 | 10,799,484 | |||||
Motor vehicles | 1,347,842 | 1,020,480 | |||||
Purchased software | 13,071,230 | 55,331,553 | |||||
61,247,413 | 101,815,284 | ||||||
Less: accumulated depreciation | (29,716,386 | ) | (35,545,964 | ) | |||
$ | 31,531,027 | $ | 66,269,320 | ||||
Depreciation expense for the years ended December 31, 2013, 2012 and 2011 was approximately $8.11 million, $11.53 million and $10.85 million, respectively. | |||||||
Management regularly evaluates property, plant and equipment for impairment if an event occurs or circumstances change that would potentially indicate that the carrying value of the property, plant and equipment and exceeded its fair value. Management utilizes the discounted cash flow method to estimate the fair value of the property, plant and equipment. | |||||||
Based on the discounted cash flow method, management determined approximately $29.98 million and $11.81 million of purchased software was impaired during the years ended December 31, 2013 and 2012, respectively. |
LAND_USE_RIGHTS_AND_INTANGIBLE
LAND USE RIGHTS AND INTANGIBLE ASSETS | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
LAND USE RIGHTS AND INTANGIBLE ASSETS [Text Block] | ' | ||||||
10. LAND USE RIGHTS AND INTANGIBLE ASSETS | |||||||
(a) Deposits for purchase of land use rights | |||||||
As of December 31, 2013 and 2012, deposits for the purchase of land use rights represent deposits for purchase of land use rights in Dongguan City of approximately $18.24 million (RMB111.37 million) and $19.09 million (RMB120.26 million) by IST. | |||||||
(b) Land use rights | |||||||
As of December 31, 2013 and 2012, land use rights consist of: | |||||||
December 31, | 31-Dec | ||||||
2013 | 2012 | ||||||
Land use rights | $ | 13,760,722 | $ | 13,340,419 | |||
Less: accumulated amortization | (538,280 | ) | (218,056 | ) | |||
Land use rights, net | $ | 13,222,442 | $ | 13,122,363 | |||
Amortization expense for the years ended December 31, 2013, 2012 and 2011 was $309,000, $120,000 and $44,000, respectively. | |||||||
Estimated amortization for the next five years and thereafter is as follows: | |||||||
2013 | $ | 313,356 | |||||
2014 | 313,356 | ||||||
2015 | 313,356 | ||||||
2016 | 313,356 | ||||||
2017 | 313,356 | ||||||
Thereafter | 11,655,662 | ||||||
Total | $ | 13,222,442 | |||||
(c) Intangible assets | |||||||
As of December 31, 2013 and 2012, intangible assets consist of: | |||||||
December 31, | 31-Dec | ||||||
2013 | 2012 | ||||||
Software development costs | $ | 15,607,305 | $ | 11,611,432 | |||
Technology | 2,717,420 | 7,779,315 | |||||
Trademarks | 4,677,891 | 4,489,623 | |||||
Customer base | 329,037 | 318,988 | |||||
Sub-Total | 23,331,653 | 24,199,358 | |||||
Less: accumulated amortization | (9,023,714 | ) | (9,782,382 | ) | |||
Intangible assets, net | $ | 14,307,939 | $ | 14,416,976 | |||
Amortization expense for the years ended December 31, 2013, 2012 and 2011 was approximately $1.09 million, $2.17 million and $1.71 million, respectively. | |||||||
Based on the discounted cash flow method, management determined approximately $2.01 million technology was impaired during the year ended December 31, 2013. | |||||||
Estimated amortization for the next five years and thereafter is as follows: | |||||||
2013 | $ | 2,079,532 | |||||
2014 | 1,993,265 | ||||||
2015 | 1,655,626 | ||||||
2016 | 1,643,301 | ||||||
2017 | 1,353,382 | ||||||
Thereafter | 5,582,833 | ||||||
Total | $ | 14,307,939 |
BANK_LOANS
BANK LOANS | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
BANK LOANS [Text Block] | ' | ||||||
11. BANK LOANS | |||||||
(a) Short-term bank loans | |||||||
December 31, | December 31, | ||||||
2013 | 2012 | ||||||
Secured short-term loans (1) | $ | 51,160,152 | $ | 48,714,342 | |||
Unsecured short-term loans (2) | 7,693,901 | 2,063,100 | |||||
Add: amounts due within one year under long-term loan contracts | 94,279 | 35,604 | |||||
Total short-term bank loans | $ | 58,948,332 | $ | 50,813,046 | |||
(1) Detailed information of secured short-term loan balances as of December 31, 2013 and 2012 were as follows: | |||||||
December 31, | December 31, | ||||||
2013 | 2012 | ||||||
Secured by IST, Zhongtian, iASPEC, Mr. Lin and guaranteed by plants | $ | 32,740,000 | $ | 17,456,207 | |||
Collateralized by land and office buildings | 3,274,000 | 3,332,700 | |||||
Secured by Huipu’s trade receivables and guaranteed by IST | 2,716,126 | 4,730,963 | |||||
Guaranteed by Huipu | 2,455,500 | 2,380,500 | |||||
Collateralized by office buildings and guaranteed by iASPEC and Mr.Lin. | 2,455,500 | - | |||||
Collateralized by land and office buildings and guaranteed by iASPEC and Huipu. | 2,455,500 | - | |||||
Guaranteed by iASPEC and IST | 1,735,220 | - | |||||
Secured by Zhongtian’s trade receivables | 1,003,953 | 365,010 | |||||
Secured by Huipu’s trade receivables and guaranteed by the Company and Huipu | 940,667 | 2,642,114 | |||||
Secured by Zhongtian’s intangible assets | 523,840 | - | |||||
Secured by Bocom’s trade receivables and guaranteed by the Company | 478,540 | 581,568 | |||||
Guaranteed by Mr. Lin | 381,306 | - | |||||
Guaranteed by iASPEC | - | 6,348,000 | |||||
Secured by iASPEC’s trade receivables | - | 5,014,920 | |||||
Guaranteed by IST | - | 4,126,200 | |||||
Guaranteed by the Company, CITH and Bocom | - | 942,660 | |||||
Secured by Geo's trade receivables and bank deposits | - | 793,500 | |||||
Total | $ | 51,160,152 | $ | 48,714,342 | |||
(2) Unsecured short-term loans are fiduciary bank loans, bearing interest rates from 6.44% to 6.9%, due within one year. | |||||||
(b) Long-term bank loans | |||||||
December 31, | December 31, | ||||||
2013 | 2012 | ||||||
Secured long-term loans | $ | 406,826 | $ | 109,779 | |||
Less: amounts due within one year under long-term loan contracts | (94,279 | ) | (35,604 | ) | |||
Total long-term bank loans | $ | 312,547 | $ | 74,175 | |||
As of December 31, 2013, the Company has borrowings from banks, expiring at various dates from January 8, 2014 to January 8, 2018, primarily used to finance working capital requirements. The bank borrowings are in the form of credit facilities. Amounts available to the Company from the banks are based on the amount of collateral pledged or the amount guaranteed by our subsidiaries. These borrowings bear interest rates ranging from 1.65% to 7.91% per annum. The weighted average interest rate on short term debt is approximately 7.00%, 7.01% and 7.37% for the years ended December 31, 2013, 2012 and 2011, respectively. |
BILLS_PAYABLE
BILLS PAYABLE | 12 Months Ended |
Dec. 31, 2013 | |
BILLS PAYABLE [Text Block] | ' |
12. BILLS PAYABLE | |
The Company has total available bills payable facilities of $33.16 million and $38.61 million with various banks, of which $6.61 million and $4.91 million were unutilized as of December 31, 2013 and 2012 respectively. The funds borrowed under these facilities are generally repayable within 1 year. Bills payable are non-interest bearing and generally repaid within 1 year. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
INCOME TAXES [Text Block] | ' | ||||||||||||
13. INCOME TAXES | |||||||||||||
Pre-tax (loss) income for the years ended December 31, 2013, 2012 and 2011 was taxable in the following jurisdictions: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
PRC | $ | (112,653,429 | ) | $ | (88,771,964 | ) | $ | 8,250,896 | |||||
Others | (7,656,053 | ) | (1,038,340 | ) | 1,123,432 | ||||||||
Total income before income taxes | $ | (120,309,482 | ) | $ | (89,810,304 | ) | $ | 9,374,328 | |||||
United States | |||||||||||||
Because of the redomestication transaction in 2012 by which CNIT BVI became the parent of our group, under Section 7874 of the Internal Revenue Code of 1986, as amended, the Company is treated for U.S. federal tax purposes as a U.S. corporation and, among other consequences, is subject to U.S. federal income tax on its worldwide income. It is management’s intention to reinvest all the income attributable to the Company earned by its operations outside the U.S. Accordingly, no U.S. corporate income taxes are provided in these consolidated financial statements. | |||||||||||||
BVI | |||||||||||||
Under the current laws of the BVI, dividends and capital gains arising from the Company’s investments in the BVI are not subject to income taxes. | |||||||||||||
Hong Kong | |||||||||||||
Under the current laws of Hong Kong, ISSI, ISSID and HPC are subject to a profit tax of 16.5%. | |||||||||||||
PRC | |||||||||||||
The income tax provision consists of the following: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current taxes | $ | 394,900 | $ | 503,416 | $ | 2,498,523 | |||||||
Deferred taxes | 1,501,645 | 308,838 | (1,694,374 | ) | |||||||||
Provision for income taxes | $ | 1,896,545 | $ | 812,254 | $ | 804,149 | |||||||
2013 | 2012 | 2011 | |||||||||||
PRC statutory tax rate | 25% | 25% | 25% | ||||||||||
Computed expected income tax (benefit) expense | $ | (30,077,370 | ) | $ | (22,452,576 | ) | $ | 2,343,582 | |||||
Tax rate differential benefit from tax holiday | 11,593,511 | 5,224,798 | (1,544,604 | ) | |||||||||
Permanent differences | 6,624,016 | 6,538,685 | (172,271 | ) | |||||||||
Increase in valuation allowance | 12,024,326 | 11,271,912 | 197,672 | ||||||||||
Non-deductible tax loss | 1,914,013 | 259,585 | 158,541 | ||||||||||
Other differences | (181,951 | ) | (30,150 | ) | (178,771 | ) | |||||||
Income tax expense | $ | 1,896,545 | $ | 812,254 | $ | 804,149 | |||||||
The significant components of deferred tax assets and deferred tax liabilities were as follows as of December 31, 2013 and December 31, 2012: | |||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||
Deferred | Deferred | Deferred | Deferred | ||||||||||
Tax | Tax | Tax | Tax | ||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||
Allowance for doubtful accounts | $ | 10,388,922 | $ | - | $ | 6,100,285 | $ | - | |||||
Loss carry-forwards | 8,937,288 | - | 5,047,767 | - | |||||||||
Long-term investments impairment | 347,264 | - | 343,496 | - | |||||||||
Fixed assets | 203,092 | (202,865 | ) | 3,469,686 | (196,669 | ) | |||||||
Inventory valuation | 148,860 | - | 768,535 | - | |||||||||
Subsidy income | 112,616 | - | - | (93,245 | ) | ||||||||
Salary payable | 28,085 | - | 11,934 | - | |||||||||
Intangible assets | - | (539,831 | ) | - | (973,509 | ) | |||||||
Gross deferred tax assets and liabilities | 20,166,127 | (742,696 | ) | 15,741,703 | (1,263,423 | ) | |||||||
Valuation allowance | (19,320,404 | ) | - | (12,903,702 | ) | - | |||||||
Total deferred tax assets and liabilities | $ | 845,723 | $ | (742,696 | ) | $ | 2,838,001 | $ | (1,263,423 | ) | |||
The Company has net operating loss carry forwards totaling RMB94.77 million ($15.51 million) as of December 31, 2013, substantially all of which were from PRC subsidiaries and will expire on various dates through December 31, 2018. | |||||||||||||
The breakdown between current and long-term deferred tax assets and liabilities was as follows as of December 31, 2013 and December 31, 2012: | |||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Current deferred tax assets | $ | 498,459 | $ | 2,297,617 | |||||||||
Long-term deferred tax assets | 347,264 | 540,384 | |||||||||||
Long-term deferred tax liabilities | (742,696 | ) | (1,263,423 | ) | |||||||||
Total net deferred tax assets | $ | 103,027 | $ | 1,574,578 | |||||||||
iASPEC, Zhongtian, ISIOT, IST DG and Bocom are all governed by the Income Tax Laws of the PRC, and are approved as high-technology enterprises subject to PRC enterprise income tax (“EIT”) at 15% in 2013 and 2012, while Geo enjoyed a 10% EIT and ISS enjoyed a 12.5% EIT in 2013. | |||||||||||||
As a wholly-owned foreign investment enterprise, IST is entitled to enjoy a two-year tax exemption, followed by a 50% exemption for three years thereafter as approved by PRC tax authorities. Under the EIT Law, companies that were previously exempt from taxes or that had concessional rates are to retain their preferences until the original expiration date. IST was subject to PRC EIT at 12% in 2011. EIT exemptions claimed by IST may become payable if IST were to dissolve within the next 10 years. However, management believes that the PRC tax authorities will not request payment of any such amounts. IST had a 25% tax rate in 2012 and 2013. | |||||||||||||
The Company recognizes that virtually all tax positions in the PRC are not free of some degree of uncertainty due to tax law and policy changes by the State. However, the Company cannot reasonably quantify political risk factors and thus must depend on guidance issued by current State officials. | |||||||||||||
Based on all known facts and circumstances and current tax law, the Company believes that the total amount of unrecognized tax benefits as of December 31, 2013, is not material to its results of operations, financial condition or cash flows. The Company also believes that the total amount of unrecognized tax benefits as of December 31, 2013, if recognized, would not have a material effect on its effective tax rate. The Company further believes that there are no tax positions for which it is reasonably possible, based on current Chinese tax law and policy, that the unrecognized tax benefits will significantly increase or decrease over the next 12 months producing, individually or in the aggregate, a material effect on the Company’s results of operations, financial condition or cash flows. | |||||||||||||
The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. The Company did not have any accrued interest or penalty associated with any unrecognized tax benefits, nor was any interest expense recognized for the years ended 2013, 2012 and 2011. | |||||||||||||
Since the Company intends to reinvest its earnings to further expand its businesses in the PRC, PRC subsidiaries do not intend to declare dividends to their parent companies in the foreseeable future. Accordingly, the Company has not recorded any withholding tax on the cumulative amount of distributed and undistributed retained earnings. Should the Company’s PRC subsidiaries distribute all of their profits generated after December 31, 2007, there would be an aggregate withholding tax amount. It is the Company's position that it is impracticle to calculate the amount at this time. |
OTHER_CURRENT_ASSETS
OTHER CURRENT ASSETS | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
OTHER CURRENT ASSETS [Text Block] | ' | ||||||
14. OTHER CURRENT ASSETS | |||||||
As of December 31, 2013 and 2012, other currents assets consist of: | |||||||
December 31, | 31-Dec | ||||||
2013 | 2012 | ||||||
Advances to unrelated third-parties | $ | 6,753,665 | $ | 5,623,896 | |||
Advances to employees | 2,466,155 | 1,726,326 | |||||
Installation contract deposits | 1,256,474 | 997,447 | |||||
Other current assets | 499,041 | 454,316 | |||||
$ | 10,975,335 | $ | 8,801,985 | ||||
The advances to unrelated parties are non-interest bearing. As of March 31, 2014, approximately $2.22 million of these advances were collected. | |||||||
Installation contract deposits are made time-to-time by the Company to demonstrate capital and resources in connection with bidding on certain projects. Such amounts are refundable upon the grant of the contract. |
RESERVE_AND_DISTRIBUTION_OF_PR
RESERVE AND DISTRIBUTION OF PROFIT | 12 Months Ended |
Dec. 31, 2013 | |
RESERVE AND DISTRIBUTION OF PROFIT [Text Block] | ' |
15. RESERVE AND DISTRIBUTION OF PROFIT | |
In accordance with relevant PRC regulations and the Articles of Association of our PRC subsidiaries, our PRC subsidiaries are required to allocate at least 10% of their annual after-tax profits determined in accordance with PRC statutory financial statements to a statutory general reserve fund until the amounts in said fund reaches 50% of their registered capital. As of December 31, 2013, the balance of general reserve is $14.77 million. | |
Under applicable PRC regulations, the Company may pay dividends only out of the accumulated profits, if any, determined in accordance with PRC accounting standards and regulations. As the statutory reserve funds can only be used for specific purposes under PRC laws and regulations, the general reserves are not distributable as cash dividends. | |
Our after-tax profits or losses with respect to the payment of dividends out of accumulated profits and the annual appropriation of after-tax profits as calculated pursuant to PRC accounting standards and regulations do not result in significant differences as compared to after-tax earnings as presented in our consolidated financial statements. However, there are certain differences between PRC accounting standards and regulations and U.S. generally accepted accounting principles, arising from different treatment of items such as amortization of intangible assets and change in fair value of contingent consideration arising from business combinations. |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2013 | |
EQUITY [Text Block] | ' |
16. EQUITY | |
(a) Issuance of new shares | |
On February 8, 2011, the Company issued 125,000 shares of common stock to eligible employees under the Company’s 2007 Equity Incentive Plan (see (c) below). | |
On May 3, 2011, upon achievement of 2010 earn out targets, the Company issued 165,289 shares of common stock valued at $1.7 million in connection with the acquisition of ISIOT. | |
On August 16, 2011, the Company issued a total of 925,926 shares of the Company’s common stock at a conversion price of $5.4 per share upon conversion of the $5 million shareholder’s loan. | |
On August 30, 2011, the Company waived the requirement for earn out targets by ISIOT for fiscal years 2011 and 2012 and issued 344,353 shares of the Company’s common stock valued at $964,000 in connection with the acquisition of ISIOT. | |
(b) Repurchase of common shares | |
On September 16, 2011, the Company announced a $5 million share repurchase program. The amount, timing and extent of any repurchases were dependent on market conditions, the trading price of the Company’s common stock and other factors and it was subject to restrictions relating to volume, price and timing under applicable law, including Rule 10 b- 18 promulgated under the Securities Exchange Act of 1934, as amended. | |
On March 15, 2012, the Company announced that its Board of Directors approved the termination of the share repurchase plan. At the same time, the Company chairman and CEO, Mr. Lin, entered into a new $2 million purchase plan. Mr. Lin also agreed to purchase 1,084,895 shares in a private transaction outside the purchase plan at a purchase price per share of $1.20. | |
Before the termination of repurchase plan, during years ended December 31, 2012 and 2011, a net total of 223,604 and 357,627 shares of the Company’s common stock were repurchased in accordance with the program at a cost of $315,577 and $684,046, respectively. | |
On October 4, 2013, the Company announced a $9 million share repurchase program. | |
Repurchases may be in open-market transactions or through privately negotiated transactions. The timing and extent of any purchases will depend upon market conditions, the trading price of the Company’s ordinary shares and other factors, and are subject to the restrictions relating to volume, price and timing under applicable laws, including but not limited to, Rule 10 b- 18 promulgated under the Securities Exchange Act of 1934, as amended. The Company’s Board of Directors will review the share repurchase program periodically, and may authorize adjustment of its terms and size accordingly. During year ended December 31, 2013, a total 641,080 shares of the Company’s common stock were repurchased in accordance with the program at a cost of $3.8 million, of which $3.0 million was paid in cash and $0.8 million is recorded within other payables as of December 31, 2013. | |
(c) Stock-based compensation | |
Effective September 13, 2007, the Board of Directors of the Company adopted the China Information Technology, Inc. 2007 Equity Incentive Plan (the “Plan”). The Plan provides for grants of stock options, stock appreciation rights, performance units, restricted stock, restricted stock units and performance shares. This plan expired on September 13, 2012. | |
On September 25, 2010, the Company granted eligible employees a total of 125,000 shares of the Company’s common stock as compensation under the Plan. The fair value of these shares of approximately $1.13 million based on the quoted market price was recognized as stock-based compensation for the year ended December 31, 2010. | |
On February 8, 2011, the Company granted eligible employees a total of 125,000 shares of the Company’s common stock as compensation under the Plan. The fair value of these shares of approximately $1.10 million, based on the quoted market price, was accrued as of December 31, 2010 as the compensation was for services provided in 2010. | |
On September 11, 2013, the Board of Directors of the Company adopted the 2013 Equity Incentive Plan, or the 2013 Plan, pursuant to which the Company may offer up to five million ordinary shares as equity incentives to its directors, employees and consultants. Such number of shares is subject to adjustment in the event of certain reorganizations, mergers, combinations, recapitalizations, stock splits, stock dividends, or other change in the corporate structure of the Company affecting the shares issuable under the 2013 Plan. As of December 31, 2013, we have issued 3 million shares of restricted stock to our officers and employees under the 2013 Plan. | |
On November 15, 2013, the Company granted eligible employees a total of 3,000,000 shares of the Company’s common stock as compensation under the 2013 Equity Incentive Plan. The fair value of these shares was approximately $15.90 million at the date of the grant, based on the quoted market price of the Company’s common stock. The employees paid the Company $9 million in cash resulting in $6.90 million being recorded as the compensation for services provided in 2013. | |
For the purpose of acquiring the shares from the Company, certain employees have entered into loan contracts with local banks. The Company has agreed to guarantee the employee's repayment of these bank loans in the event of a default. Of the 3,000,000 shares issued to employees, a total of 725,000 shares were purchased from the Company using proceeds from these guaranteed bank loans. None of the bank loans are in default as of December 31, 2013 or the date of this report. However, as a result of the guarantee, the Company has classified $2.175 million of the total proceeds received as temporary equity in the accompanying balance sheet. Amounts will be reclassified to permanent equity at such time that the employee repays the bank loan and the Company's guarantee is legally relinquished. |
CONSOLIDATED_SEGMENT_DATA
CONSOLIDATED SEGMENT DATA | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
CONSOLIDATED SEGMENT DATA [Text Block] | ' | |||||||||
17. CONSOLIDATED SEGMENT DATA | ||||||||||
Segment information is consistent with how management reviews the businesses, makes investing and resource allocation decisions and assesses operating performance. Transfers and sales between reportable segments, if any, are recorded at cost. | ||||||||||
The Company reports financial and operating information in the following two segments: | ||||||||||
Selected information by segment is presented in the following tables for the years ended December 31, 2013, 2012 and 2011. | ||||||||||
2013 | 2012 | 2011 | ||||||||
Revenues (1) | ||||||||||
IT Segment | $ | 28, 424,862 | $ | 39,869,397 | $ | 68,281,729 | ||||
DT Segment | 47,720,522 | 46,508,058 | 46,253,824 | |||||||
$ | 76,145,384 | $ | 86,377,455 | $ | 114,535,553 | |||||
(1) Revenues by operating segments exclude intercompany transactions. | ||||||||||
2013 | 2012 | 2011 | ||||||||
(Loss)Income from operations: | ||||||||||
IT Segment | $ | (73,626,439 | ) | $ | (25,274,513 | ) | $ | 13,528,609 | ||
DT Segment | (45,416,,339 | ) | (59,348,773 | ) | (3,294,203 | ) | ||||
Corporate and others (2) | (333,801 | ) | (1,056,627 | ) | (707,273 | ) | ||||
(Loss) income from operations | (119,376,579 | ) | (85,679,913 | ) | 9,527,133 | |||||
Corporate other (expenses) income, net | 4,160,238 | 173,138 | 2,478,411 | |||||||
Corporate interest income | 460,381 | 343,289 | 317,190 | |||||||
Corporate interest expense | (5,553,522 | ) | (4,646,818 | ) | (2,948,406 | ) | ||||
(Loss) Income from operations before income taxes | (120,309,482 | ) | (89,810,304 | ) | 9,374,328 | |||||
Income tax expense | (1,896,545 | ) | (812,254 | ) | (804,149 | ) | ||||
Net (loss) income | (122,206,027 | ) | (90,622,558 | ) | 8,570,179 | |||||
Net lo ss ( income) attributable to the non-controlling interest | 2,969,204 | 992,050 | (660,781 | ) | ||||||
Net (loss) income attributable to the Company | $ | (119,236,823 | ) | $ | (89,630,508 | ) | $ | 7,909,398 | ||
(2) Includes non-cash compensation, professional fees and consultancy fees for the Company. Non-cash employee compensation by segment as of December 31, 2013, 2012 and 2011 are as follows: | ||||||||||
2013 | 2012 | 2011 | ||||||||
Non-cash employee compensation: | ||||||||||
IT Segment | $ | 575,000 | $ | - | $ | - | ||||
DT Segment | 6,325,000 | - | - | |||||||
$ | 6,900,000 | $ | - | $ | - | |||||
Depreciation and amortization by segment for the years ended December 31, 2013, 2012 and 2011 are as follows: | ||||||||||
2013 | 2012 | 2011 | ||||||||
Depreciation and amortization: | ||||||||||
IT Segment | $ | 5,026,735 | $ | 8,726,746 | $ | 7,967,090 | ||||
DT Segment | 5,470,520 | 5,055,823 | 4,605,605 | |||||||
Corporate and others | 104,165 | 42,584 | 38,944 | |||||||
$ | 10,601,420 | $ | 13,825,153 | $ | 12,611,639 | |||||
2013 | 2012 | 2011 | ||||||||
Provisions for losses on accounts receivable: | ||||||||||
IT Segment | $ | 37,557,081 | $ | 11,378,371 | $ | 3,876,572 | ||||
DT Segment | 30,655,158 | 16,503,749 | 195,834 | |||||||
$ | 68,212,239 | $ | 27,882,120 | $ | 4,072,406 | |||||
2013 | 2012 | 2011 | ||||||||
Inventory (recovery) provision: | ||||||||||
IT Segment | $ | (45,900 | ) | $ | 33,833 | $ | 647,073 | |||
DT Segment | 933,425 | 2,201,741 | 3,980,525 | |||||||
$ | 887,525 | $ | 2,235,574 | $ | 4,627,598 | |||||
2013 | 2012 | 2011 | ||||||||
Long-term investment impairment: | ||||||||||
IT Segment | $ | - | $ | - | $ | 1,002,755 | ||||
DT Segment | - | - | - | |||||||
$ | - | $ | - | $ | 1,002,755 | |||||
2013 | 2012 | 2011 | ||||||||
Investment in long-lived assets | ||||||||||
IT Segment | $ | 2,714,684 | $ | 2,426,602 | $ | 14,902,240 | ||||
DT Segment | 1,204,281 | 3,073,164 | 3,722,136 | |||||||
Corporate and others | 594,929 | - | 2,314 | |||||||
$ | 4,513,894 | $ | 5,499,766 | $ | 18,626,690 | |||||
Total assets by segment as at December 31, 2013 and 2012 are as follows: | ||||||||||
2013 | 2012 | |||||||||
Total assets | ||||||||||
IT Segment | $ | 88,072,260 | $ | 156,538,182 | ||||||
DT Segment | 99,721,203 | 130,706,354 | ||||||||
Corporate and others | 1,445,527 | 177,353 | ||||||||
$ | 189,238,990 | $ | 287,421,889 |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | |||
Dec. 31, 2013 | ||||
COMMITMENTS AND CONTINGENCIES [Text Block] | ' | |||
18. COMMITMENTS AND CONTINGENCIES | ||||
iASPEC, Bocom, Zhongtian, and Geo lease offices, employee dormitories and factory space in Shenzhen, Guangzhou, Beijing, Nanning and Chongqing in the PRC, under lease agreements that will expire on various dates through November 2015. For the years ended December 31, 2013, 2012 and 2011, the rent expense was approximately $352,000, $415,000 and $468,000 respectively. Future minimum lease payments under these lease agreements are as follows: | ||||
2014 | $ | 306,578 | ||
2015 | 259,752 | |||
Total | $ | 566,330 | ||
On July 9, 2010, the Company entered into an agreement with the municipal government of Dongguan City, to purchase a land use right for a land of 101,764 square meters at a consideration of approximately $25.15 million (RMB153.6 million) to be paid in cash in installments. As of December 31, 2013, the Company has paid deposits of approximately $18.23 million (RMB111.37 million). |
CONCENTRATIONS
CONCENTRATIONS | 12 Months Ended |
Dec. 31, 2013 | |
CONCENTRATIONS [Text Block] | ' |
19. CONCENTRATIONS | |
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of trade accounts receivable. The Company extends credit to its customers in the normal course of business and generally does not require collateral. As a result, management performs ongoing credit evaluations, and the Company maintains an allowance for potential credit losses based upon its loss history and its aging analysis. As of December 31, 2013 and 2012, the allowance of doubtful accounts were approximately $60,699,000 and $29,518,000, respectively, which is the Company’s best estimate of the amount of probable credit losses in existing accounts receivable. | |
Management reviews the allowance for doubtful accounts each reporting period based on a detailed analysis of accounts receivable. In the analysis, management primarily considers the age of the customer’s receivable and also considers the creditworthiness of the customer, the economic conditions of the customer’s industry, and general economic conditions and trends, among other factors. If any of these factors change, the Company may also change its original estimates, which could impact the level of the Company’s future allowance for doubtful accounts. If judgments regarding the collectability of accounts receivables were incorrect, adjustments to the allowance may be required, which would reduce profitability. | |
For the years ended December 31, 2013, 2012 and 2011, no customer accounted for greater than 10% revenue. | |
At December 31, 2013, accounts receivables were due from 325 customers. Of these, no customer accounted for over 10% of the total accounts receivable. At December 31, 2012, accounts receivable were due from 346 customers and no customer accounted for over 10% of the total accounts receivable. |
Recovered_Sheet1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Basis of Consolidation [Policy Text Block] | ' | ||||||
(a) Basis of Consolidation | |||||||
The consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles. The consolidated financial statements include the accounts of the Company, its subsidiaries and its VIE for which the Company is the primary beneficiary. All significant intercompany accounts and transactions have been eliminated in consolidation. | |||||||
Use of Estimates [Policy Text Block] | ' | ||||||
(b) Use of Estimates | |||||||
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Management makes these estimates using the best information available at the time the estimates are made; however actual results could differ from those estimates. | |||||||
Economic and Political Risks [Policy Text Block] | ' | ||||||
(c) Economic and Political Risks | |||||||
The majority of the Company’s operations are conducted in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC economy. The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation. | |||||||
Cash and Cash Equivalents [Policy Text Block] | ' | ||||||
(d) Cash and Cash Equivalents | |||||||
The Company considers all highly liquid investments purchased and cash deposits with financial institutions with original maturities of three months or less to be cash equivalents (Level 1). | |||||||
The Company maintains its cash accounts at credit worthy financial institutions and closely monitors the movements of its cash positions. At December 31, 2013 and 2012, approximately $11.08 million and $10.75 million, respectively was held in bank accounts in the PRC. | |||||||
Restricted Cash [Policy Text Block] | ' | ||||||
(e) Restricted Cash | |||||||
Restricted cash as of December 31, 2013 and 2012 consists of security deposits in bank accounts in the PRC that serve as collateral for the Company’s revolving working capital facility, which are included in short-term loans, bills payable, as well as letter of credit facilities. | |||||||
Accounts Receivable, Bills Receivable and Concentration of Risk [Policy Text Block] | ' | ||||||
(f) Accounts Receivable, Bills Receivable and Concentration of Risk | |||||||
The Company evaluates the creditworthiness of each customer before accepting them and continuously monitors their recoverability. If there are any indicators that the customer may not make payment, then we may consider making provision for non-collectability for that particular customer. At the same time, we may cease further sales or services to such customer. The following are some of the factors that we consider in determining whether to discontinue sales or record an allowance: | |||||||
the customer fails to comply with its payment schedule; | |||||||
the customer is in serious financial difficulty; | |||||||
a significant dispute with the customer has occurred regarding job progress or other matters; | |||||||
the customer breaches any of the contractual obligations; | |||||||
the customer appears to be financially distressed due to economic or legal factors; | |||||||
the business between the customer and the Company is not active; and | |||||||
other objective evidence which indicates non-collectability of the accounts receivable. | |||||||
We consider the following factors when determining whether to permit a longer payment period or provide other concessions to customers: | |||||||
the customer’s past payment history; | |||||||
the customer’s general risk profile, including factors such as the customer’s size, age, and public or private status; | |||||||
macroeconomic conditions that may affect a customer’s ability to pay; and | |||||||
the relative importance of the customer relationship to our business. | |||||||
Bills receivable represent bank undertakings that essentially guarantee payment of amounts thereunder. The undertakings are provided by banks upon receipt of collateral deposits from the Company’s customers or debtors. Bills receivable can be sold at a discount before maturity, which is typically within three months. | |||||||
The Company’s top five customers accounted for 14% of accounts receivable as of December 31, 2013, of which no single customer accounted for greater than 10% or more of accounts receivable. The Company’s top five customers accounted for 22% of accounts receivable as of December 31, 2012, of which no single customer accounted for greater than 10% or more of accounts receivable. | |||||||
For the years ended December 31, 2013, 2012 and 2011, the Company’s top five customers accounted for 16%,17% and 17% of revenue respectively, and no single customer accounted for 10% or more of total revenue. The allowance for doubtful accounts at December 31, 2013 and 2012, totaled $60.70 million and $29.52 million respectively, representing management’s best estimate. The increase in the allowance for doubtful accounts was due primarily to the continued sluggishness in the Company’s government client sector relating to its digital public security business. | |||||||
Accounts receivable as at December 31, 2013 and 2012 are as follows: | |||||||
December 31, | December 31, | ||||||
2013 | 2012 | ||||||
Accounts Receivable | $ | 83,414,977 | $ | 115,476,500 | |||
Bad Debt Provision | (60,698,679 | ) | (29,517,614 | ) | |||
Accounts Receivable – Net | $ | 22,716,298 | $ | 85,958,886 | |||
The following table describes the movements in the allowance for doubtful accounts during the years ended December 31, 2013 and 2012: | |||||||
Balance at January 1, 2012 | $ | 9,373,327 | |||||
Increase in allowance for doubtful accounts | 24,708,326 | ||||||
Amounts written off as uncollectible | (4,598,552 | ) | |||||
Amounts recovered during the year | (55,548 | ) | |||||
Foreign exchange difference | 90,061 | ||||||
Balance at December 31, 2012 | $ | 29,517,614 | |||||
Increase in allowance for doubtful accounts | 65,499,431 | ||||||
Amounts written off as uncollectible | (35,234,491 | ) | |||||
Amounts recovered during the year | (399,309 | ) | |||||
Foreign exchange difference | 1,315,434 | ||||||
Balance at December 31, 2013 | $ | 60,698,679 | |||||
Advances to Suppliers [Policy Text Block] | ' | ||||||
(g) Advances to Suppliers | |||||||
Advances to suppliers represent cash deposits for the purchase of inventory items from suppliers. | |||||||
Advances from Customers [Policy Text Block] | ' | ||||||
(h) Advances from Customers | |||||||
Advances from customers represent cash received from customers as advance payments for the purchase of the Company’s products. (i) Fair Value of Financial Instruments and Fair Value Measurement Fair Value of Financial Instruments | |||||||
Management has estimated that the carrying amounts of non-related party financial instruments approximate fair values for all periods presented due to their short-term maturities. The carrying amount of long-term debt approximates fair value because of its variable interest rate. The fair value of the amounts due from (to) related parties is not practicable to estimate due to the related party nature of the underlying transactions. | |||||||
Fair Value of Financial Instruments and Fair Value Measurement [Policy Text Block] | ' | ||||||
(i) Fair Value Accounting | |||||||
Financial Accounting Standards Board (FASB) Accounting Standards Codifications (ASC) 820-10 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). As required by FASB ASC 820-10, assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The three levels of the fair value hierarchy under FASB ASC 820-10 are described below: | |||||||
Level 1 | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; | ||||||
Level 2 | Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and | ||||||
Level 3 | Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). | ||||||
As of December 31, 2013 and 2012, goodwill, property, plant and equipment, and purchased software were measured at fair value on a non-recurring basis using level 3 inputs, which resulted in impairment on certain assets. Refer to Notes 5 and Note 9 for impairment detail. | |||||||
Inventories [Policy Text Block] | ' | ||||||
(j) Inventories | |||||||
Inventories are valued at the lower of cost or market. Market is the estimated selling price in the ordinary course of business less the estimated cost of completion and the estimated costs necessary to make the sale. | |||||||
The Company performs an analysis of slow-moving or obsolete inventory periodically and any necessary valuation reserves, which could potentially be significant, are included in the period in which the evaluations are completed. As of December 31, 2013 and 2012, the inventory impairment was mainly from raw materials, and results in a new cost basis for accounting purposes. | |||||||
For the years ended December 31, 2013 and 2012, approximately 26% and 36%, respectively of total inventory purchases were from five unrelated suppliers and no supplier account for greater than 10% of total inventory purchase in 2013. Two suppliers accounted for 22.8% of total inventory purchases in 2012 and no other suppliers accounted for greater than 10% of total inventory purchases. | |||||||
Long-term Investments [Policy Text Block] | ' | ||||||
(k) Long-term Investments | |||||||
Long-term investments (level 3) are carried at cost. If a decline in the fair value of a cost method investment is determined to be other than temporary, an impairment charge is recorded and the fair value becomes the new cost basis of the investment. Management evaluates all cost method investments for impairment; however, the fair value of the cost method investments is not required to be determined unless impairment indicators are present. When impairment indicators exist, discounted cash flow analyses are generally used to estimate the fair value. | |||||||
Property, plant and equipment [Policy Text Block] | ' | ||||||
(l) Property, plant and equipment | |||||||
Property, plant and equipment are stated at cost less accumulated amortization and depreciation. Amortization and depreciation is provided over the assets’ estimated useful lives, using the straight-line method. Estimated useful lives of property, plant and equipment are as follows: | |||||||
Office buildings | 20 - 50 years | ||||||
Plant and machinery | 3 - 20 years | ||||||
Electronics equipment, furniture and fixtures | 3 - 5 years | ||||||
Motor vehicles | 5 years | ||||||
Purchased software | 3 - 10 years | ||||||
Maintenance and repairs costs are expensed as incurred, whereas significant renewals and betterments are capitalized. | |||||||
Land use rights [Policy Text Block] | ' | ||||||
(m) Land use rights | |||||||
All land in the PRC is owned by the PRC government. The government in the PRC, according to the PRC law, may sell the right to use the land for a specified period of time. Thus, all of the Company’s land purchases in the PRC are considered to be leasehold land under operating lease arrangements and are stated at cost less accumulated amortization and any recognized impairment loss. The cost of the land use right is amortized on a straight-line basis over the beneficial period of 46 years. | |||||||
Intangible assets [Policy Text Block] | ' | ||||||
(n) Intangible assets | |||||||
Intangible assets represent technology and customer base intangible assets acquired in connection with business acquisitions, and software development costs capitalized by the Company’s subsidiaries. | |||||||
Intangible assets are amortized using the straight-line method over the following estimated useful lives: | |||||||
Software development costs | 2 - 5 years | ||||||
Technology | 10 - 20 years | ||||||
Trademarks | 20 years | ||||||
Customer base | 2 years | ||||||
Goodwill [Policy Text Block] | ' | ||||||
(o) Goodwill | |||||||
ASC 350-30-50, “Goodwill and Other Intangible Assets”, requires the testing of goodwill and indefinite-lived intangible assets for impairment at least annually. The Company tests goodwill for impairment in the fourth quarter each year or earlier if an indicator of impairment exists. | |||||||
Under applicable accounting guidance, the goodwill impairment analysis is a two-step test. The first step of the goodwill impairment test involves comparing the fair value of each reporting unit with its carrying amount including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired; however, if the carrying amount of the reporting unit exceeds its fair value, the second step must be performed to measure potential impairment. | |||||||
The second step involves calculating an implied fair value of goodwill for each reporting unit for which the first step indicated possible impairment. If the implied fair value of goodwill exceeds the goodwill assigned to the reporting unit, there is no impairment. If the goodwill assigned to a reporting unit exceeds the implied fair value of goodwill, an impairment charge is recorded for the excess. | |||||||
Long-Lived Assets [Policy Text Block] | ' | ||||||
(p) Long-Lived Assets | |||||||
Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of assets may not be recoverable. It is reasonably possible that these assets could become impaired as a result of technology or other industry changes. Determination of recoverability of assets to be held and used is determined by comparing the carrying amount of an asset to future net undiscounted cash flows to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets held for disposal, if any, are reported at the lower of the carrying amount or fair value less costs to sell. | |||||||
Revenue Recognition [Policy Text Block] | ' | ||||||
(q) Revenue Recognition | |||||||
The Company generates its revenues primarily from three sources, (1) hardware sales, (2) software sales, and (3) system integration services. The Company’s revenue recognition policies are in accordance with SEC Staff Accounting Bulletin No. 104, "Revenue Recognition", FASB ASC No. 605-35 "Construction-Type and Production-Type Contracts" ("FASB ASC 605-35"), and FASB ASC No. 605-25 “Multiple-Element Arrangements” (“FASB ASC 605-25”). | |||||||
Hardware revenues are generated primarily from the sale of display technology products and are recognized only when persuasive evidence of an arrangement exists, delivery has occurred and upon receipt of customers’ acceptance, the price to the customer is fixed or determinable in accordance with the contract, and collectability is reasonably assured. Hardware sales do not include software or system integration, and are classified on the “Revenue-Products” line on the Company’s consolidated statement of (loss) income. | |||||||
Software revenues are generated from fixed-price contracts which include the designing, building and development of software products, and services to customize such software to meet customers’ needs. Software development projects usually include developing software, integrating various isolated software systems into one, and testing the system. The design and build services, together with the integration of the various elements, are generally determined to be essential to the functionality of the delivered software, and accordingly revenue is recognized using the percentage of completion method of accounting in accordance with FASB ASC 605-35. The percentage of completion for each contract is estimated based on the ratio of direct labor hours incurred to total estimated direct labor hours. Software sales do not include either hardware or system integration, and are classified on the “Revenue-Software” line on the Company’s consolidated statement of (loss) income. | |||||||
System integration revenues are generated from fixed-price contracts which combines both of the foregoing elements (customized software development and integration, and non-customized hardware). System integration projects usually include the purchase of hardware, developing software, and integrating various systems into one, and testing the system. Accordingly, system integration revenues contain multiple deliverables consisting of two separate units of account (1) software development and integration, and (2) hardware, both of which are clearly outlined in contracts executed with customers. Revenue from the software element is recognized using the percentage of completion method of accounting outlined above under software revenues. Revenue from the hardware element is recognized when all four revenue recognition criteria are met, as outlined above under hardware revenues, which generally occurs upon customer acceptance. The hardware component of system integration projects consists of standard products and requires only minor modification and an insignificant amount of labor to meet customers’ needs. Collectively, revenues from system integration projects are recognized using percentage of completion based on the ratio of costs incurred to total estimated costs, and are classified on the “Revenue-System integration” line on the Company’s consolidated statement of (loss) income. | |||||||
The Company accounts for system integration projects in accordance with FASB ASC 605-25. To determine the selling price of each unit of account included within the system integration contracts, the Company uses vendor-specific objective evidence (VSOE) for the software component, and third-party evidence for the hardware component. | |||||||
In addition, the Company provides post contract support (PCS), which includes telephone technical support that is not essential to the functionality of the software or hardware elements. Although VSOE does not exist for PCS, because (1) the PCS fees are included in the total contract amount, (2) the PCS service period is for less than one year, (3) the estimated cost of providing PCS is not significant, and (4) unspecified upgrades enhancements offered are minimal and infrequent; the Company recognizes PCS revenue after delivery and customer acceptance. | |||||||
Contract periods are usually less than six months, and typical contract periods for PCS are 12 months. | |||||||
Customers are billed in accordance with contract terms, which typically require partial payment at the signing of the contract, partial payment at delivery and customer acceptance dates, with the remainder due within a stated period of time not exceeding 12 months. Occasionally, the Company enters into contracts which allow a percentage of the total contract price to be paid one to three years after completion of a system integration project. Revenues on these extended payments are recognized upon completion of the terms specified in the contract and when collectability is reasonably assured. | |||||||
No rights of return are allowed except for non-conforming products, which have been insignificant based on historical experiences. If nonconforming products are returned due to software issues, the Company will provide upgrades or additional customization to suit customers’ needs. In cases where nonconformity is a result of integrated hardware, the Company returns the hardware to the original vendor for replacement. | |||||||
Unbilled accounts receivable consist of estimated future billings for work performed but not yet invoiced to the customer. Unbilled accounts receivable are generally invoiced within one year of completion of the work performed. Changes in estimates for revenues, costs and profits are recognized in the period in which they are determinable. When the Company’s estimates indicate that the entire contract will be performed at a loss, a provision for the entire loss is recorded in the current accounting period. | |||||||
Treasury Stock [Policy Text Block] | ' | ||||||
(r) Treasury Stock | |||||||
The Company repurchases its common stock from time to time in the open market and holds such shares as treasury stock. The Company applies the “cost method” and presents the cost to repurchase such shares as a reduction in shareholders’ equity. During the years ended December 31, 2013, 2012 and 2011, the Company repurchased total of 641,080, 223,604 and 357,627 shares of common stock, respectively. | |||||||
Stock-based compensation [Policy Text Block] | ' | ||||||
(s) Stock-based compensation | |||||||
The Company applies ASC No. 718, “Compensation — Stock Compensation”, which requires that share-based payment transactions with employees, such as share options, be measured based on the grant-date fair value of the equity instrument issued and recognized as compensation expense over the requisite service period, with a corresponding addition to equity. Under this method, compensation cost related to employee share options or similar equity instruments is measured at the grant date based on the fair value of the award and is recognized over the period during which an employee is required to provide service in exchange for the award, which generally is the vesting period. | |||||||
During the years ended December 31, 2013, 2012 and 2011, the Company recognized $6.9 million, $0 million and $0 million, respectively of compensation expense. | |||||||
Foreign Currency Translation [Policy Text Block] | ' | ||||||
(t) Foreign Currency Translation | |||||||
The functional currency of the US and BVI companies is the United States dollar. The functional currency of the Company’s Hong Kong subsidiaries is the Hong Kong dollar. | |||||||
The functional currency of the Company’s wholly-owned PRC subsidiaries and its VIE is the Chinese Renminbi Yuan, (“RMB”). RMB is not freely convertible into foreign currencies. The Company’s PRC subsidiaries’ and their VIE’s financial statements are maintained in the functional currency. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at rates of exchange prevailing at the balance sheet date. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transactions. Exchange gains or losses arising from foreign currency transactions are included in the determination of net income for the respective periods. | |||||||
For financial reporting purposes, the financial statements of the Company have been translated into United States dollars. Assets and liabilities are translated at exchange rates at the balance sheet dates, revenue and expenses are translated at average exchange rates, and equity is translated at historical exchange rates. Any resulting translation adjustments are not included in determining net income but are included in other comprehensive income, a component of equity. | |||||||
The exchange rates adopted are as follows: | |||||||
December 31, | December 31, | ||||||
2013 | 2012 | ||||||
Year end exchange rate | 6.1087 | 6.3012 | |||||
Average yearly exchange rate | 6.1881 | 6.3052 | |||||
The average yearly exchange rate adopted for the year ended December 31, 2011 was 6.4533. | |||||||
No representation is made that the RMB amounts could have been, or could be, converted into United States dollars at the rates used in translation. | |||||||
Subsidy Income [Policy Text Block] | ' | ||||||
(u) Subsidy Income | |||||||
Subsidy income mainly represents income received from the local governmental agency in China for development and designated activities. We have no continuing obligation under the subsidy provision. | |||||||
Income Taxes [Policy Text Block] | ' | ||||||
(v) Income Taxes | |||||||
Income taxes are provided on an asset and liability approach for financial accounting and reporting of income taxes. Deferred income taxes are recognized for all significant temporary differences at enacted rates and classified as current or non-current based upon the classification of the related asset or liability in the financial statements. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion, or all of, the deferred tax asset will not be realized. The Company classifies interest and/or penalties related to unrecognized tax benefits, if any, as a component of income tax expense. | |||||||
The Company applies the provisions of ASC No. 740 “Income Taxes” (“ASC 740”), which clarifies the accounting for uncertainty in income taxes recognized by prescribing a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides accounting guidance on de-recognition, classification, interest and penalties, and disclosure. | |||||||
Segment reporting [Policy Text Block] | ' | ||||||
(w) Segment reporting | |||||||
Segment information is consistent with how management reviews the businesses, makes investing and resource allocation decisions and assesses operating performance. Transfers and sales between reportable segments, if any, are recorded at cost. | |||||||
In connection with the changes in the Company’s business portfolio and realignment of management, management conducted a review of its operating business segments during the first quarter of 2011. The review resulted in changing the segment reporting from four to two new segments, Information Technology (“IT”), and Display Technology (“DT”). | |||||||
The Company’s change in segment reporting, which has been used for all periods presented, follows the organizational structure as reflected in its internal management reporting systems, which are the basis for assessing the financial performance of the business segments and for allocating resources to the business segments. | |||||||
The Company reports financial and operating information in the following two segments: | |||||||
(a) | IT includes revenues from products and services surrounding the Company’s variety of software core competencies currently primarily in Geographic Information Systems, Digital Public Security Technologies and Hospital Information Systems. IT segment revenues are generated from the sales of software and system integration services, as well as hardware other than display products. | ||||||
(b) | DT includes revenues from products and services surrounding the Company’s display technology core competencies currently primarily in Geographic Information Systems, Digital Public Security Technologies, Education and Media Solutions and consumer products. DT segment revenues are generated from sales of hardware and total solutions of hardware integrated with proprietary software and content, as well as services. | ||||||
Sales, use and other value added tax [Policy Text Block] | ' | ||||||
(x) Sales, use and other value added tax | |||||||
Revenue is recorded net of applicable sales, use and value added tax. | |||||||
Recent Accounting Pronouncements [Policy Text Block] | ' | ||||||
(y) Recent Accounting Pronouncements | |||||||
In July 2013, the FASB, issued Accounting Standards Update (ASU) No. 2013-11 “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” Under ASU 2013 - 11, an entity is required to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. If a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. ASU 2013 - 11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this guidance affects presentation only and, therefore, it is not expected to have a material impact on the Company's financial condition, results of operations or cash flows. | |||||||
Reclassifications [Policy Text Block] | ' | ||||||
(z) Reclassifications | |||||||
Certain amounts in the 2012 consolidated financial statements have been reclassified to conform to the current year presentation. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Schedule of Accounts Receivable [Table Text Block] | ' | ||||||
December 31, | December 31, | ||||||
2013 | 2012 | ||||||
Accounts Receivable | $ | 83,414,977 | $ | 115,476,500 | |||
Bad Debt Provision | (60,698,679 | ) | (29,517,614 | ) | |||
Accounts Receivable – Net | $ | 22,716,298 | $ | 85,958,886 | |||
Schedule of Allowance for Doubtful Accounts [Table Text Block] | ' | ||||||
Balance at January 1, 2012 | $ | 9,373,327 | |||||
Increase in allowance for doubtful accounts | 24,708,326 | ||||||
Amounts written off as uncollectible | (4,598,552 | ) | |||||
Amounts recovered during the year | (55,548 | ) | |||||
Foreign exchange difference | 90,061 | ||||||
Balance at December 31, 2012 | $ | 29,517,614 | |||||
Increase in allowance for doubtful accounts | 65,499,431 | ||||||
Amounts written off as uncollectible | (35,234,491 | ) | |||||
Amounts recovered during the year | (399,309 | ) | |||||
Foreign exchange difference | 1,315,434 | ||||||
Balance at December 31, 2013 | $ | 60,698,679 | |||||
Schedule of Estimated Useful Lives Property, Plant and Equipment [Table Text Block] | ' | ||||||
Office buildings | 20 - 50 years | ||||||
Plant and machinery | 3 - 20 years | ||||||
Electronics equipment, furniture and fixtures | 3 - 5 years | ||||||
Motor vehicles | 5 years | ||||||
Purchased software | 3 - 10 years | ||||||
Schedule of Intangible Assets Estimated Useful Lives [Table Text Block] | ' | ||||||
Software development costs | 2 - 5 years | ||||||
Technology | 10 - 20 years | ||||||
Trademarks | 20 years | ||||||
Customer base | 2 years | ||||||
Schedule of Exchange Rates [Table Text Block] | ' | ||||||
December 31, | December 31, | ||||||
2013 | 2012 | ||||||
Year end exchange rate | 6.1087 | 6.3012 | |||||
Average yearly exchange rate | 6.1881 | 6.3052 |
VARIABLE_INTEREST_ENTITY_Table
VARIABLE INTEREST ENTITY (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Schedule of VIE's Assets and Liabilities [Table Text Block] | ' | ||||||
December 31, | December 31, | ||||||
2013 | 2012 | ||||||
Total current assets | $ | 50,909,402 | $ | 81,536,006 | |||
Property, plant and equipment | 4,189,867 | 19,550,872 | |||||
Intangible assets | 15,172,049 | 11,950,110 | |||||
Total assets | 74,333,391 | 117,886,782 | |||||
Intercompany payable to the WFOE | 8,957,179 | 14,594,613 | |||||
Total current liabilities | 54,130,721 | 51,023,219 | |||||
Total liabilities | 54,130,721 | 51,152,086 | |||||
Total equity | 20,655,676 | 21,329,717 |
EARNINGS_LOSS_PER_SHARE_Tables
EARNINGS (LOSS) PER SHARE (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | |||||||||
2013 | 2012 | 2011 | ||||||||
Net (loss) income attributable to the Company | $ | (119,236,823 | ) | $ | (89,630,508 | ) | $ | 7,909,398 | ||
Weighted average outstanding shares of common stock | 27,356,504 | 27,017,780 | 26,737,638 | |||||||
Effect of dilutive securities | ||||||||||
Warrants | - | - | - | |||||||
Contingently issuable shares | - | - | 227,368 | |||||||
Earnings per share: | ||||||||||
Basic | $ | (4.36 | ) | $ | (3.32 | ) | $ | 0.3 | ||
Diluted | $ | (4.36 | ) | $ | (3.32 | ) | $ | 0.29 |
GOODWILL_Tables
GOODWILL (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Schedule of Goodwill [Table Text Block] | ' | |||||||||
Exchange | ||||||||||
December 31, | rate | December 31, | ||||||||
2012 | adjustment | 2013 | ||||||||
IT | $ | 24,459,797 | $ | 86,193 | $ | 24,545,990 | ||||
DT | 3,162,693 | 11,186 | 3,173,879 | |||||||
Total | $ | 27,622,490 | $ | 97,379 | $ | 27,719,869 |
RELATED_PARTY_BALANCES_AND_TRA1
RELATED PARTY BALANCES AND TRANSACTIONS (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Schedule of Related Party Transactions [Table Text Block] | ' | |||||||||
December 31, | December 31, | |||||||||
2013 | 2012 | |||||||||
Due from related companies | ||||||||||
- Xiamen Yili Geo Information Technology Co., Ltd. | $ | 115,248 | $ | 810,982 | ||||||
- Wuhan Geo Navigation and Communication Technology Co., Ltd. | 393,107 | 401,244 | ||||||||
$ | 508,355 | $ | 1,212,226 | |||||||
Due to related party | ||||||||||
- Shareholder | $ | 913,479 | $ | 12,728 | ||||||
Schedule of Revenue Related Party [Table Text Block] | ' | |||||||||
2013 | 2012 | 2011 | ||||||||
Revenue | $ | 539,130 | $ | 860,156 | $ | 14,334 | ||||
Cost of sales | (550,945 | ) | (299,295 | ) | - | |||||
Gross (loss) profit | $ | (11,815 | ) | $ | 560,861 | $ | 14,334 |
INVENTORIES_Tables
INVENTORIES (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Schedule of Inventories [Table Text Block] | ' | ||||||
December 31, | December 31, | ||||||
2013 | 2012 | ||||||
Raw materials | $ | 2,973,152 | $ | 3,584,355 | |||
Work in Process | 390,128 | 240,693 | |||||
Finished goods | 4,514,190 | 4,292,975 | |||||
Installations in process | 7,778,253 | 8,679,650 | |||||
$ | 15,655,723 | $ | 16,797,673 |
LONGTERM_INVESTMENTS_Tables
LONG-TERM INVESTMENTS (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Schedule of Long-Term Investments [Table Text Block] | ' | ||||||
December 31, | December 31, | ||||||
2013 | 2012 | ||||||
Tianhe Navigation and Communication Technology Co., Ltd. (" Tianhe ") | $ | 1,106,235 | $ | 1,072,446 | |||
Tianditu Co., Ltd.( "Tianditu") | 1,309,600 | 1,269,600 | |||||
Xiamen Yili Geo Information Technology Co., Ltd. (" Yili ") | 81,850 | 79,350 | |||||
Hubei Information Science and Technology Co., Ltd.( " HIST") | 163,700 | 158,700 | |||||
$ | 2,661,385 | $ | 2,580,096 |
PROPERTY_PLANT_AND_EQUIPMENT_T
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Schedule of Property, Plant and Equipment [Table Text Block] | ' | ||||||
December 31, | 31-Dec | ||||||
2013 | 2012 | ||||||
Office buildings | $ | 8,926,101 | $ | 8,514,301 | |||
Plant and machinery | 26,757,195 | 26,149,466 | |||||
Electronic equipment, furniture and fixtures | 11,145,045 | 10,799,484 | |||||
Motor vehicles | 1,347,842 | 1,020,480 | |||||
Purchased software | 13,071,230 | 55,331,553 | |||||
61,247,413 | 101,815,284 | ||||||
Less: accumulated depreciation | (29,716,386 | ) | (35,545,964 | ) | |||
$ | 31,531,027 | $ | 66,269,320 |
LAND_USE_RIGHTS_AND_INTANGIBLE1
LAND USE RIGHTS AND INTANGIBLE ASSETS (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Schedule of Land Use Rights [Table Text Block] | ' | ||||||
December 31, | 31-Dec | ||||||
2013 | 2012 | ||||||
Land use rights | $ | 13,760,722 | $ | 13,340,419 | |||
Less: accumulated amortization | (538,280 | ) | (218,056 | ) | |||
Land use rights, net | $ | 13,222,442 | $ | 13,122,363 | |||
Schedule of Land Use Rights, Future Amortization Expense [Table Text Block] | ' | ||||||
Estimated amortization for the next five years and thereafter is as follows: | |||||||
2013 | $ | 313,356 | |||||
2014 | 313,356 | ||||||
2015 | 313,356 | ||||||
2016 | 313,356 | ||||||
2017 | 313,356 | ||||||
Thereafter | 11,655,662 | ||||||
Total | $ | 13,222,442 | |||||
Schedule of Intangible Assets [Table Text Block] | ' | ||||||
December 31, | 31-Dec | ||||||
2013 | 2012 | ||||||
Software development costs | $ | 15,607,305 | $ | 11,611,432 | |||
Technology | 2,717,420 | 7,779,315 | |||||
Trademarks | 4,677,891 | 4,489,623 | |||||
Customer base | 329,037 | 318,988 | |||||
Sub-Total | 23,331,653 | 24,199,358 | |||||
Less: accumulated amortization | (9,023,714 | ) | (9,782,382 | ) | |||
Intangible assets, net | $ | 14,307,939 | $ | 14,416,976 | |||
Schedule of Intangible Assets, Future Amortization Expense [Table Text Block] | ' | ||||||
2013 | $ | 2,079,532 | |||||
2014 | 1,993,265 | ||||||
2015 | 1,655,626 | ||||||
2016 | 1,643,301 | ||||||
2017 | 1,353,382 | ||||||
Thereafter | 5,582,833 | ||||||
Total | $ | 14,307,939 |
BANK_LOANS_Tables
BANK LOANS (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Schedule of Short-term Bank Debt [Table Text Block] | ' | ||||||
December 31, | December 31, | ||||||
2013 | 2012 | ||||||
Secured short-term loans (1) | $ | 51,160,152 | $ | 48,714,342 | |||
Unsecured short-term loans (2) | 7,693,901 | 2,063,100 | |||||
Add: amounts due within one year under long-term loan contracts | 94,279 | 35,604 | |||||
Total short-term bank loans | $ | 58,948,332 | $ | 50,813,046 | |||
Schedule of Detailed Short-term Bank Debt [Table Text Block] | ' | ||||||
December 31, | December 31, | ||||||
2013 | 2012 | ||||||
Secured by IST, Zhongtian, iASPEC, Mr. Lin and guaranteed by plants | $ | 32,740,000 | $ | 17,456,207 | |||
Collateralized by land and office buildings | 3,274,000 | 3,332,700 | |||||
Secured by Huipu’s trade receivables and guaranteed by IST | 2,716,126 | 4,730,963 | |||||
Guaranteed by Huipu | 2,455,500 | 2,380,500 | |||||
Collateralized by office buildings and guaranteed by iASPEC and Mr.Lin. | 2,455,500 | - | |||||
Collateralized by land and office buildings and guaranteed by iASPEC and Huipu. | 2,455,500 | - | |||||
Guaranteed by iASPEC and IST | 1,735,220 | - | |||||
Secured by Zhongtian’s trade receivables | 1,003,953 | 365,010 | |||||
Secured by Huipu’s trade receivables and guaranteed by the Company and Huipu | 940,667 | 2,642,114 | |||||
Secured by Zhongtian’s intangible assets | 523,840 | - | |||||
Secured by Bocom’s trade receivables and guaranteed by the Company | 478,540 | 581,568 | |||||
Guaranteed by Mr. Lin | 381,306 | - | |||||
Guaranteed by iASPEC | - | 6,348,000 | |||||
Secured by iASPEC’s trade receivables | - | 5,014,920 | |||||
Guaranteed by IST | - | 4,126,200 | |||||
Guaranteed by the Company, CITH and Bocom | - | 942,660 | |||||
Secured by Geo's trade receivables and bank deposits | - | 793,500 | |||||
Total | $ | 51,160,152 | $ | 48,714,342 | |||
Schedule of Long-term Bank Debt [Table Text Block] | ' | ||||||
December 31, | December 31, | ||||||
2013 | 2012 | ||||||
Secured long-term loans | $ | 406,826 | $ | 109,779 | |||
Less: amounts due within one year under long-term loan contracts | (94,279 | ) | (35,604 | ) | |||
Total long-term bank loans | $ | 312,547 | $ | 74,175 |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | ' | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
PRC | $ | (112,653,429 | ) | $ | (88,771,964 | ) | $ | 8,250,896 | |||||
Others | (7,656,053 | ) | (1,038,340 | ) | 1,123,432 | ||||||||
Total income before income taxes | $ | (120,309,482 | ) | $ | (89,810,304 | ) | $ | 9,374,328 | |||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current taxes | $ | 394,900 | $ | 503,416 | $ | 2,498,523 | |||||||
Deferred taxes | 1,501,645 | 308,838 | (1,694,374 | ) | |||||||||
Provision for income taxes | $ | 1,896,545 | $ | 812,254 | $ | 804,149 | |||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
PRC statutory tax rate | 25% | 25% | 25% | ||||||||||
Computed expected income tax (benefit) expense | $ | (30,077,370 | ) | $ | (22,452,576 | ) | $ | 2,343,582 | |||||
Tax rate differential benefit from tax holiday | 11,593,511 | 5,224,798 | (1,544,604 | ) | |||||||||
Permanent differences | 6,624,016 | 6,538,685 | (172,271 | ) | |||||||||
Increase in valuation allowance | 12,024,326 | 11,271,912 | 197,672 | ||||||||||
Non-deductible tax loss | 1,914,013 | 259,585 | 158,541 | ||||||||||
Other differences | (181,951 | ) | (30,150 | ) | (178,771 | ) | |||||||
Income tax expense | $ | 1,896,545 | $ | 812,254 | $ | 804,149 | |||||||
Schedule of Deferred Tax Assets and Liabilities, Detailed [Table Text Block] | ' | ||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||
Deferred | Deferred | Deferred | Deferred | ||||||||||
Tax | Tax | Tax | Tax | ||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||
Allowance for doubtful accounts | $ | 10,388,922 | $ | - | $ | 6,100,285 | $ | - | |||||
Loss carry-forwards | 8,937,288 | - | 5,047,767 | - | |||||||||
Long-term investments impairment | 347,264 | - | 343,496 | - | |||||||||
Fixed assets | 203,092 | (202,865 | ) | 3,469,686 | (196,669 | ) | |||||||
Inventory valuation | 148,860 | - | 768,535 | - | |||||||||
Subsidy income | 112,616 | - | - | (93,245 | ) | ||||||||
Salary payable | 28,085 | - | 11,934 | - | |||||||||
Intangible assets | - | (539,831 | ) | - | (973,509 | ) | |||||||
Gross deferred tax assets and liabilities | 20,166,127 | (742,696 | ) | 15,741,703 | (1,263,423 | ) | |||||||
Valuation allowance | (19,320,404 | ) | - | (12,903,702 | ) | - | |||||||
Total deferred tax assets and liabilities | $ | 845,723 | $ | (742,696 | ) | $ | 2,838,001 | $ | (1,263,423 | ) | |||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | ||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Current deferred tax assets | $ | 498,459 | $ | 2,297,617 | |||||||||
Long-term deferred tax assets | 347,264 | 540,384 | |||||||||||
Long-term deferred tax liabilities | (742,696 | ) | (1,263,423 | ) | |||||||||
Total net deferred tax assets | $ | 103,027 | $ | 1,574,578 |
OTHER_CURRENT_ASSETS_Tables
OTHER CURRENT ASSETS (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Schedule of Other Current Assets [Table Text Block] | ' | ||||||
December 31, | 31-Dec | ||||||
2013 | 2012 | ||||||
Advances to unrelated third-parties | $ | 6,753,665 | $ | 5,623,896 | |||
Advances to employees | 2,466,155 | 1,726,326 | |||||
Installation contract deposits | 1,256,474 | 997,447 | |||||
Other current assets | 499,041 | 454,316 | |||||
$ | 10,975,335 | $ | 8,801,985 |
CONSOLIDATED_SEGMENT_DATA_Tabl
CONSOLIDATED SEGMENT DATA (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Schedule of Total Revenues from Segments [Table Text Block] | ' | |||||||||
2013 | 2012 | 2011 | ||||||||
Revenues (1) | ||||||||||
IT Segment | $ | 28, 424,862 | $ | 39,869,397 | $ | 68,281,729 | ||||
DT Segment | 47,720,522 | 46,508,058 | 46,253,824 | |||||||
$ | 76,145,384 | $ | 86,377,455 | $ | 114,535,553 | |||||
Schedule of Segment Reporting Information, Revenues by Segment [Table Text Block] | ' | |||||||||
2013 | 2012 | 2011 | ||||||||
(Loss)Income from operations: | ||||||||||
IT Segment | $ | (73,626,439 | ) | $ | (25,274,513 | ) | $ | 13,528,609 | ||
DT Segment | (45,416,,339 | ) | (59,348,773 | ) | (3,294,203 | ) | ||||
Corporate and others (2) | (333,801 | ) | (1,056,627 | ) | (707,273 | ) | ||||
(Loss) income from operations | (119,376,579 | ) | (85,679,913 | ) | 9,527,133 | |||||
Corporate other (expenses) income, net | 4,160,238 | 173,138 | 2,478,411 | |||||||
Corporate interest income | 460,381 | 343,289 | 317,190 | |||||||
Corporate interest expense | (5,553,522 | ) | (4,646,818 | ) | (2,948,406 | ) | ||||
(Loss) Income from operations before income taxes | (120,309,482 | ) | (89,810,304 | ) | 9,374,328 | |||||
Income tax expense | (1,896,545 | ) | (812,254 | ) | (804,149 | ) | ||||
Net (loss) income | (122,206,027 | ) | (90,622,558 | ) | 8,570,179 | |||||
Net lo ss ( income) attributable to the non-controlling interest | 2,969,204 | 992,050 | (660,781 | ) | ||||||
Net (loss) income attributable to the Company | $ | (119,236,823 | ) | $ | (89,630,508 | ) | $ | 7,909,398 | ||
Schedule of Non-Cash Employee Compensation [Table Text Block] | ' | |||||||||
2013 | 2012 | 2011 | ||||||||
Non-cash employee compensation: | ||||||||||
IT Segment | $ | 575,000 | $ | - | $ | - | ||||
DT Segment | 6,325,000 | - | - | |||||||
$ | 6,900,000 | $ | - | $ | - | |||||
Schedule of Segment Reporting Information, (Loss) Income From Operations by Segment [Table Text Block] | ' | |||||||||
2013 | 2012 | 2011 | ||||||||
Depreciation and amortization: | ||||||||||
IT Segment | $ | 5,026,735 | $ | 8,726,746 | $ | 7,967,090 | ||||
DT Segment | 5,470,520 | 5,055,823 | 4,605,605 | |||||||
Corporate and others | 104,165 | 42,584 | 38,944 | |||||||
$ | 10,601,420 | $ | 13,825,153 | $ | 12,611,639 | |||||
2013 | 2012 | 2011 | ||||||||
Provisions for losses on accounts receivable: | ||||||||||
IT Segment | $ | 37,557,081 | $ | 11,378,371 | $ | 3,876,572 | ||||
DT Segment | 30,655,158 | 16,503,749 | 195,834 | |||||||
$ | 68,212,239 | $ | 27,882,120 | $ | 4,072,406 | |||||
2013 | 2012 | 2011 | ||||||||
Inventory (recovery) provision: | ||||||||||
IT Segment | $ | (45,900 | ) | $ | 33,833 | $ | 647,073 | |||
DT Segment | 933,425 | 2,201,741 | 3,980,525 | |||||||
$ | 887,525 | $ | 2,235,574 | $ | 4,627,598 | |||||
2013 | 2012 | 2011 | ||||||||
Long-term investment impairment: | ||||||||||
IT Segment | $ | - | $ | - | $ | 1,002,755 | ||||
DT Segment | - | - | - | |||||||
$ | - | $ | - | $ | 1,002,755 | |||||
2013 | 2012 | 2011 | ||||||||
Investment in long-lived assets | ||||||||||
IT Segment | $ | 2,714,684 | $ | 2,426,602 | $ | 14,902,240 | ||||
DT Segment | 1,204,281 | 3,073,164 | 3,722,136 | |||||||
Corporate and others | 594,929 | - | 2,314 | |||||||
$ | 4,513,894 | $ | 5,499,766 | $ | 18,626,690 | |||||
Schedule of Segment Reporting Information, Total Assets by Segment [Table Text Block] | ' | |||||||||
2013 | 2012 | |||||||||
Total assets | ||||||||||
IT Segment | $ | 88,072,260 | $ | 156,538,182 | ||||||
DT Segment | 99,721,203 | 130,706,354 | ||||||||
Corporate and others | 1,445,527 | 177,353 | ||||||||
$ | 189,238,990 | $ | 287,421,889 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ' | |||
2014 | $ | 306,578 | ||
2015 | 259,752 | |||
Total | $ | 566,330 |
ORGANIZATION_AND_PRINCIPAL_ACT1
ORGANIZATION AND PRINCIPAL ACTIVITIES (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2013 | |
USD ($) | CNY | |
Y | ||
D | ||
Organization And Principal Activities 1 | $1,800,000 | ' |
Organization And Principal Activities 2 | 30 | 30 |
Organization And Principal Activities 3 | 24.00% | 24.00% |
Organization And Principal Activities 4 | ' | 60,000,000 |
Organization And Principal Activities 5 | 8,720,000 | ' |
Organization And Principal Activities 6 | 95.00% | 95.00% |
Organization And Principal Activities 7 | 30 | 30 |
Organization And Principal Activities 8 | 30 | 30 |
Organization And Principal Activities 9 | 90 | 90 |
Organization And Principal Activities 10 | 1,800,000 | ' |
Organization And Principal Activities 11 | 100.00% | 100.00% |
Organization And Principal Activities 12 | ' | 20,200,000 |
Organization And Principal Activities 13 | 3,100,000 | ' |
Organization And Principal Activities 14 | ' | 33,200,000 |
Organization And Principal Activities 15 | 5,200,000 | ' |
Organization And Principal Activities 16 | ' | 40,700,000 |
Organization And Principal Activities 17 | 6,400,000 | ' |
Organization And Principal Activities 18 | ' | 7,500,000 |
Organization And Principal Activities 19 | 1,200,000 | ' |
Organization And Principal Activities 20 | 100.00% | 100.00% |
Organization And Principal Activities 21 | 81.65% | 81.65% |
Organization And Principal Activities 22 | 1,000,000 | ' |
Organization And Principal Activities 23 | ' | 40,700,000 |
Organization And Principal Activities 24 | 6,200,000 | ' |
Organization And Principal Activities 25 | ' | 42,500,000 |
Organization And Principal Activities 26 | 6,500,000 | ' |
Organization And Principal Activities 27 | ' | 1,790,000 |
Organization And Principal Activities 28 | 280,000 | ' |
Organization And Principal Activities 29 | 81.65% | 81.65% |
Organization And Principal Activities 30 | 78.21% | 78.21% |
Organization And Principal Activities 31 | 120,000 | ' |
Organization And Principal Activities 32 | 100.00% | 100.00% |
Organization And Principal Activities 33 | ' | 53,980,000 |
Organization And Principal Activities 34 | 8,570,000 | ' |
Organization And Principal Activities 35 | ' | 2,340,000 |
Organization And Principal Activities 36 | 380,000 | ' |
Organization And Principal Activities 37 | 78.21% | 78.21% |
Organization And Principal Activities 38 | 83.72% | 83.72% |
Organization And Principal Activities 39 | 210,000 | ' |
Organization And Principal Activities 40 | ' | 7,000,000 |
Organization And Principal Activities 41 | 1,130,000 | ' |
Organization And Principal Activities 42 | ' | 21,500,000 |
Organization And Principal Activities 43 | 3,530,000 | ' |
Organization And Principal Activities 44 | ' | 2,000,000 |
Organization And Principal Activities 45 | 320,000 | ' |
Organization And Principal Activities 46 | 47.46% | 47.46% |
Organization And Principal Activities 47 | 49.63% | 49.63% |
Organization And Principal Activities 48 | 52.54% | 52.54% |
Organization And Principal Activities 49 | 50.37% | 50.37% |
Organization And Principal Activities 50 | 200,000 | ' |
Organization And Principal Activities 51 | 100.00% | 100.00% |
Organization And Principal Activities 52 | ' | 53,980,000 |
Organization And Principal Activities 53 | 8,840,000 | ' |
Organization And Principal Activities 54 | 100.00% | 100.00% |
Organization And Principal Activities 55 | ' | 50,000,000 |
Organization And Principal Activities 54 | 11,380,000 | ' |
Organization And Principal Activities 55 | 9,270,000 | ' |
Organization And Principal Activities 56 | 46,780,000 | ' |
Organization And Principal Activities 57 | 65,500,000 | ' |
Organization And Principal Activities 58 | 17,800,000 | ' |
Organization And Principal Activities 59 | ' | 351,300,000 |
Organization And Principal Activities 60 | 57,500,000 | ' |
Organization And Principal Activities 61 | $33,900,000 | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) (USD $) | 12 Months Ended |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 |
Y | |
Summary Of Significant Accounting Policies 1 | $11 |
Summary Of Significant Accounting Policies 2 | 11 |
Summary Of Significant Accounting Policies 3 | 14.00% |
Summary Of Significant Accounting Policies 4 | 10.00% |
Summary Of Significant Accounting Policies 5 | 22.00% |
Summary Of Significant Accounting Policies 6 | 10.00% |
Summary Of Significant Accounting Policies 7 | 16.00% |
Summary Of Significant Accounting Policies 8 | 17.00% |
Summary Of Significant Accounting Policies 9 | 10.00% |
Summary Of Significant Accounting Policies 10 | 61 |
Summary Of Significant Accounting Policies 11 | 30 |
Summary Of Significant Accounting Policies 12 | 26.00% |
Summary Of Significant Accounting Policies 13 | 36.00% |
Summary Of Significant Accounting Policies 14 | 10.00% |
Summary Of Significant Accounting Policies 15 | 22.80% |
Summary Of Significant Accounting Policies 16 | 10.00% |
Summary Of Significant Accounting Policies 17 | 46 |
Summary Of Significant Accounting Policies 18 | 641,080 |
Summary Of Significant Accounting Policies 19 | 223,604 |
Summary Of Significant Accounting Policies 20 | 357,627 |
Summary Of Significant Accounting Policies 21 | 7 |
Summary Of Significant Accounting Policies 22 | 0 |
Summary Of Significant Accounting Policies 23 | $0 |
Summary Of Significant Accounting Policies 24 | 6.4533 |
Summary Of Significant Accounting Policies 25 | 2,013 |
Summary Of Significant Accounting Policies 26 | 11 |
Summary Of Significant Accounting Policies 27 | 2,013 |
Summary Of Significant Accounting Policies 28 | 11 |
VARIABLE_INTEREST_ENTITY_Narra
VARIABLE INTEREST ENTITY (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2013 | |
USD ($) | CNY | |
Variable Interest Entity 1 | ' | 38,000,000 |
Variable Interest Entity 2 | 5,400,000 | ' |
Variable Interest Entity 3 | 2,969,204 | ' |
Variable Interest Entity 4 | 3,188,700 | ' |
Variable Interest Entity 5 | 448,279 | ' |
Variable Interest Entity 6 | 228,783 | ' |
Variable Interest Entity 7 | 992,050 | ' |
Variable Interest Entity 8 | 1,038,176 | ' |
Variable Interest Entity 9 | 164,920 | ' |
Variable Interest Entity 10 | 118,794 | ' |
Variable Interest Entity 11 | 660,781 | ' |
Variable Interest Entity 12 | 385,099 | ' |
Variable Interest Entity 13 | 275,682 | ' |
Variable Interest Entity 14 | 45,000,000 | ' |
Variable Interest Entity 15 | 97,170,000 | ' |
Variable Interest Entity 16 | 45,100,000 | ' |
Variable Interest Entity 17 | 35,620,000 | ' |
Variable Interest Entity 18 | 20,660,000 | ' |
Variable Interest Entity 19 | 21,330,000 | ' |
Variable Interest Entity 20 | 60,600,000 | ' |
Variable Interest Entity 21 | 14,220,000 | ' |
Variable Interest Entity 22 | $7,320,000 | ' |
EARNINGS_LOSS_PER_SHARE_Narrat
EARNINGS (LOSS) PER SHARE (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Earnings (loss) Per Share 1 | 200,000 |
GOODWILL_Narrative_Details
GOODWILL (Narrative) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Goodwill 1 | $27 |
RELATED_PARTY_BALANCES_AND_TRA2
RELATED PARTY BALANCES AND TRANSACTIONS (Narrative) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Balances And Transactions 1 | 8.00% |
Related Party Balances And Transactions 2 | 9.00% |
Related Party Balances And Transactions 3 | 6.00% |
Related Party Balances And Transactions 4 | $166,638 |
Related Party Balances And Transactions 5 | 250,661 |
Related Party Balances And Transactions 6 | $248,653 |
LONGTERM_INVESTMENTS_Narrative
LONG-TERM INVESTMENTS (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Long-term Investments 1 | 20.00% |
Long-term Investments 2 | 20.00% |
Long-term Investments 3 | 8.00% |
Long-term Investments 4 | 8.00% |
Long-term Investments 5 | 10.00% |
PROPERTY_PLANT_AND_EQUIPMENT_N
PROPERTY, PLANT AND EQUIPMENT (Narrative) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Property, Plant And Equipment 1 | $8,110,000 |
Property, Plant And Equipment 2 | 11,530,000 |
Property, Plant And Equipment 3 | 10,850,000 |
Property, Plant And Equipment 4 | 29,980,000 |
Property, Plant And Equipment 5 | $11,810,000 |
LAND_USE_RIGHTS_AND_INTANGIBLE2
LAND USE RIGHTS AND INTANGIBLE ASSETS (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2013 | |
USD ($) | CNY | |
Land Use Rights And Intangible Assets 1 | $18,240,000 | ' |
Land Use Rights And Intangible Assets 2 | ' | 111,370,000 |
Land Use Rights And Intangible Assets 3 | 19,090,000 | ' |
Land Use Rights And Intangible Assets 4 | ' | 120,260,000 |
Land Use Rights And Intangible Assets 5 | 309,000 | ' |
Land Use Rights And Intangible Assets 6 | 120,000 | ' |
Land Use Rights And Intangible Assets 7 | 44,000 | ' |
Land Use Rights And Intangible Assets 8 | 1,090,000 | ' |
Land Use Rights And Intangible Assets 9 | 2,170,000 | ' |
Land Use Rights And Intangible Assets 10 | 1,710,000 | ' |
Land Use Rights And Intangible Assets 11 | $2,010,000 | ' |
BANK_LOANS_Narrative_Details
BANK LOANS (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Bank Loans 1 | 6.44% |
Bank Loans 2 | 6.90% |
Bank Loans 3 | 1.65% |
Bank Loans 4 | 7.91% |
Bank Loans 5 | 7.00% |
Bank Loans 6 | 7.01% |
Bank Loans 7 | 7.37% |
BILLS_PAYABLE_Narrative_Detail
BILLS PAYABLE (Narrative) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Y | |
Bills Payable 1 | $33,160,000 |
Bills Payable 2 | 38,610,000 |
Bills Payable 3 | 6,610,000 |
Bills Payable 4 | $4,910,000 |
Bills Payable 5 | 1 |
Bills Payable 6 | 1 |
INCOME_TAXES_Narrative_Details
INCOME TAXES (Narrative) (Details) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 |
USD ($) | CNY | |
M | ||
Y | ||
Income Taxes 1 | 7,874 | 7,874 |
Income Taxes 2 | 1,986 | 1,986 |
Income Taxes 3 | 16.50% | 16.50% |
Income Taxes 4 | ' | 95 |
Income Taxes 5 | $16 | ' |
Income Taxes 6 | 15.00% | 15.00% |
Income Taxes 7 | 10.00% | 10.00% |
Income Taxes 8 | 12.50% | 12.50% |
Income Taxes 9 | 50.00% | 50.00% |
Income Taxes 10 | 12.00% | 12.00% |
Income Taxes 11 | 10 | 10 |
Income Taxes 12 | 25.00% | 25.00% |
Income Taxes 13 | 12 | 12 |
OTHER_CURRENT_ASSETS_Narrative
OTHER CURRENT ASSETS (Narrative) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Other Current Assets 1 | $2 |
RESERVE_AND_DISTRIBUTION_OF_PR1
RESERVE AND DISTRIBUTION OF PROFIT (Narrative) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Reserve And Distribution Of Profit 1 | 10.00% |
Reserve And Distribution Of Profit 2 | 50.00% |
Reserve And Distribution Of Profit 3 | $15 |
EQUITY_Narrative_Details
EQUITY (Narrative) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Equity 1 | 125,000 |
Equity 2 | 165,289 |
Equity 3 | $1,700,000 |
Equity 4 | 925,926 |
Equity 5 | $5.40 |
Equity 6 | 5,000,000 |
Equity 7 | 344,353 |
Equity 8 | 964,000 |
Equity 9 | 5,000,000 |
Equity 10 | 10 |
Equity 11 | 18 |
Equity 12 | 1,934 |
Equity 13 | 2,000,000 |
Equity 14 | 1,084,895 |
Equity 15 | 1.2 |
Equity 16 | 223,604 |
Equity 17 | 357,627 |
Equity 18 | 315,577 |
Equity 19 | 684,046 |
Equity 20 | 9,000,000 |
Equity 21 | 10 |
Equity 22 | 18 |
Equity 23 | 1,934 |
Equity 24 | 641,080 |
Equity 25 | 3,800,000 |
Equity 26 | 3,000,000 |
Equity 27 | 800,000 |
Equity 28 | 125,000 |
Equity 29 | 1,130,000 |
Equity 30 | 125,000 |
Equity 31 | 1,100,000 |
Equity 32 | 3,000,000 |
Equity 33 | 3,000,000 |
Equity 34 | 15,900,000 |
Equity 35 | 9,000,000 |
Equity 36 | 6,900,000 |
Equity 37 | 3,000,000 |
Equity 38 | 725,000 |
Equity 39 | $2,175,000 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2013 | |
USD ($) | CNY | |
Commitments And Contingencies 1 | $352,000 | ' |
Commitments And Contingencies 2 | 415,000 | ' |
Commitments And Contingencies 3 | 468,000 | ' |
Commitments And Contingencies 4 | 101,764 | 101,764 |
Commitments And Contingencies 5 | 25,150,000 | ' |
Commitments And Contingencies 6 | ' | 153,600,000 |
Commitments And Contingencies 7 | 18,230,000 | ' |
Commitments And Contingencies 8 | ' | 111,370,000 |
CONCENTRATIONS_Narrative_Detai
CONCENTRATIONS (Narrative) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Concentrations 1 | $60,699,000 |
Concentrations 2 | $29,518,000 |
Concentrations 3 | 10.00% |
Concentrations 4 | 325 |
Concentrations 5 | 10.00% |
Concentrations 6 | 346 |
Concentrations 7 | 10.00% |
Schedule_of_Accounts_Receivabl
Schedule of Accounts Receivable (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Summary Of Significant Accounting Policies Schedule Of Accounts Receivable 1 | $83,414,977 |
Summary Of Significant Accounting Policies Schedule Of Accounts Receivable 2 | 115,476,500 |
Summary Of Significant Accounting Policies Schedule Of Accounts Receivable 3 | -60,698,679 |
Summary Of Significant Accounting Policies Schedule Of Accounts Receivable 4 | -29,517,614 |
Summary Of Significant Accounting Policies Schedule Of Accounts Receivable 5 | 22,716,298 |
Summary Of Significant Accounting Policies Schedule Of Accounts Receivable 6 | $85,958,886 |
Schedule_of_Allowance_for_Doub
Schedule of Allowance for Doubtful Accounts (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Summary Of Significant Accounting Policies Schedule Of Allowance For Doubtful Accounts 1 | $9,373,327 |
Summary Of Significant Accounting Policies Schedule Of Allowance For Doubtful Accounts 2 | 24,708,326 |
Summary Of Significant Accounting Policies Schedule Of Allowance For Doubtful Accounts 3 | -4,598,552 |
Summary Of Significant Accounting Policies Schedule Of Allowance For Doubtful Accounts 4 | -55,548 |
Summary Of Significant Accounting Policies Schedule Of Allowance For Doubtful Accounts 5 | 90,061 |
Summary Of Significant Accounting Policies Schedule Of Allowance For Doubtful Accounts 6 | 29,517,614 |
Summary Of Significant Accounting Policies Schedule Of Allowance For Doubtful Accounts 7 | 65,499,431 |
Summary Of Significant Accounting Policies Schedule Of Allowance For Doubtful Accounts 8 | -35,234,491 |
Summary Of Significant Accounting Policies Schedule Of Allowance For Doubtful Accounts 9 | -399,309 |
Summary Of Significant Accounting Policies Schedule Of Allowance For Doubtful Accounts 10 | 1,315,434 |
Summary Of Significant Accounting Policies Schedule Of Allowance For Doubtful Accounts 11 | $60,698,679 |
Schedule_of_Estimated_Useful_L
Schedule of Estimated Useful Lives Property, Plant and Equipment (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Y | |
Summary Of Significant Accounting Policies Schedule Of Estimated Useful Lives Property, Plant And Equipment 1 | $20 |
Summary Of Significant Accounting Policies Schedule Of Estimated Useful Lives Property, Plant And Equipment 2 | 50 |
Summary Of Significant Accounting Policies Schedule Of Estimated Useful Lives Property, Plant And Equipment 3 | 3 |
Summary Of Significant Accounting Policies Schedule Of Estimated Useful Lives Property, Plant And Equipment 4 | 20 |
Summary Of Significant Accounting Policies Schedule Of Estimated Useful Lives Property, Plant And Equipment 5 | 3 |
Summary Of Significant Accounting Policies Schedule Of Estimated Useful Lives Property, Plant And Equipment 6 | 5 |
Summary Of Significant Accounting Policies Schedule Of Estimated Useful Lives Property, Plant And Equipment 7 | 5 |
Summary Of Significant Accounting Policies Schedule Of Estimated Useful Lives Property, Plant And Equipment 8 | $3 |
Summary Of Significant Accounting Policies Schedule Of Estimated Useful Lives Property, Plant And Equipment 9 | 10 |
Schedule_of_Intangible_Assets_
Schedule of Intangible Assets Estimated Useful Lives (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Y | |
Summary Of Significant Accounting Policies Schedule Of Intangible Assets Estimated Useful Lives 1 | $2 |
Summary Of Significant Accounting Policies Schedule Of Intangible Assets Estimated Useful Lives 2 | 5 |
Summary Of Significant Accounting Policies Schedule Of Intangible Assets Estimated Useful Lives 3 | $10 |
Summary Of Significant Accounting Policies Schedule Of Intangible Assets Estimated Useful Lives 4 | 20 |
Summary Of Significant Accounting Policies Schedule Of Intangible Assets Estimated Useful Lives 5 | 20 |
Summary Of Significant Accounting Policies Schedule Of Intangible Assets Estimated Useful Lives 6 | 2 |
Schedule_of_Exchange_Rates_Det
Schedule of Exchange Rates (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Summary Of Significant Accounting Policies Schedule Of Exchange Rates 1 | 6.1087 |
Summary Of Significant Accounting Policies Schedule Of Exchange Rates 2 | 6.3012 |
Summary Of Significant Accounting Policies Schedule Of Exchange Rates 3 | 6.1881 |
Summary Of Significant Accounting Policies Schedule Of Exchange Rates 4 | 6.3052 |
Schedule_of_VIEs_Assets_and_Li
Schedule of VIE's Assets and Liabilities (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Variable Interest Entity Schedule Of Vie's Assets And Liabilities 1 | $50,909,402 |
Variable Interest Entity Schedule Of Vie's Assets And Liabilities 2 | 81,536,006 |
Variable Interest Entity Schedule Of Vie's Assets And Liabilities 3 | 4,189,867 |
Variable Interest Entity Schedule Of Vie's Assets And Liabilities 4 | 19,550,872 |
Variable Interest Entity Schedule Of Vie's Assets And Liabilities 5 | 15,172,049 |
Variable Interest Entity Schedule Of Vie's Assets And Liabilities 6 | 11,950,110 |
Variable Interest Entity Schedule Of Vie's Assets And Liabilities 7 | 74,333,391 |
Variable Interest Entity Schedule Of Vie's Assets And Liabilities 8 | 117,886,782 |
Variable Interest Entity Schedule Of Vie's Assets And Liabilities 9 | 8,957,179 |
Variable Interest Entity Schedule Of Vie's Assets And Liabilities 10 | 14,594,613 |
Variable Interest Entity Schedule Of Vie's Assets And Liabilities 11 | 54,130,721 |
Variable Interest Entity Schedule Of Vie's Assets And Liabilities 12 | 51,023,219 |
Variable Interest Entity Schedule Of Vie's Assets And Liabilities 13 | 54,130,721 |
Variable Interest Entity Schedule Of Vie's Assets And Liabilities 14 | 51,152,086 |
Variable Interest Entity Schedule Of Vie's Assets And Liabilities 15 | 20,655,676 |
Variable Interest Entity Schedule Of Vie's Assets And Liabilities 16 | $21,329,717 |
Schedule_of_Earnings_Per_Share
Schedule of Earnings Per Share, Basic and Diluted (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Earnings (loss) Per Share Schedule Of Earnings Per Share, Basic And Diluted 1 | ($119,236,823) |
Earnings (loss) Per Share Schedule Of Earnings Per Share, Basic And Diluted 2 | -89,630,508 |
Earnings (loss) Per Share Schedule Of Earnings Per Share, Basic And Diluted 3 | 7,909,398 |
Earnings (loss) Per Share Schedule Of Earnings Per Share, Basic And Diluted 4 | 27,356,504 |
Earnings (loss) Per Share Schedule Of Earnings Per Share, Basic And Diluted 5 | 27,017,780 |
Earnings (loss) Per Share Schedule Of Earnings Per Share, Basic And Diluted 6 | 26,737,638 |
Earnings (loss) Per Share Schedule Of Earnings Per Share, Basic And Diluted 7 | 0 |
Earnings (loss) Per Share Schedule Of Earnings Per Share, Basic And Diluted 8 | 0 |
Earnings (loss) Per Share Schedule Of Earnings Per Share, Basic And Diluted 9 | 0 |
Earnings (loss) Per Share Schedule Of Earnings Per Share, Basic And Diluted 10 | 0 |
Earnings (loss) Per Share Schedule Of Earnings Per Share, Basic And Diluted 11 | 0 |
Earnings (loss) Per Share Schedule Of Earnings Per Share, Basic And Diluted 12 | $227,368 |
Earnings (loss) Per Share Schedule Of Earnings Per Share, Basic And Diluted 13 | -4.36 |
Earnings (loss) Per Share Schedule Of Earnings Per Share, Basic And Diluted 14 | -3.32 |
Earnings (loss) Per Share Schedule Of Earnings Per Share, Basic And Diluted 15 | 0.3 |
Earnings (loss) Per Share Schedule Of Earnings Per Share, Basic And Diluted 16 | -4.36 |
Earnings (loss) Per Share Schedule Of Earnings Per Share, Basic And Diluted 17 | -3.32 |
Earnings (loss) Per Share Schedule Of Earnings Per Share, Basic And Diluted 18 | 0.29 |
Schedule_of_Goodwill_Details
Schedule of Goodwill (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Goodwill Schedule Of Goodwill 1 | $24,459,797 |
Goodwill Schedule Of Goodwill 2 | 86,193 |
Goodwill Schedule Of Goodwill 3 | 24,545,990 |
Goodwill Schedule Of Goodwill 4 | 3,162,693 |
Goodwill Schedule Of Goodwill 5 | 11,186 |
Goodwill Schedule Of Goodwill 6 | 3,173,879 |
Goodwill Schedule Of Goodwill 7 | 27,622,490 |
Goodwill Schedule Of Goodwill 8 | 97,379 |
Goodwill Schedule Of Goodwill 9 | $27,719,869 |
Schedule_of_Related_Party_Tran
Schedule of Related Party Transactions (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Balances And Transactions Schedule Of Related Party Transactions 1 | $115,248 |
Related Party Balances And Transactions Schedule Of Related Party Transactions 2 | 810,982 |
Related Party Balances And Transactions Schedule Of Related Party Transactions 3 | 393,107 |
Related Party Balances And Transactions Schedule Of Related Party Transactions 4 | 401,244 |
Related Party Balances And Transactions Schedule Of Related Party Transactions 5 | 508,355 |
Related Party Balances And Transactions Schedule Of Related Party Transactions 6 | 1,212,226 |
Related Party Balances And Transactions Schedule Of Related Party Transactions 7 | 913,479 |
Related Party Balances And Transactions Schedule Of Related Party Transactions 8 | $12,728 |
Schedule_of_Revenue_Related_Pa
Schedule of Revenue Related Party (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Balances And Transactions Schedule Of Revenue Related Party 1 | $539,130 |
Related Party Balances And Transactions Schedule Of Revenue Related Party 2 | 860,156 |
Related Party Balances And Transactions Schedule Of Revenue Related Party 3 | 14,334 |
Related Party Balances And Transactions Schedule Of Revenue Related Party 4 | -550,945 |
Related Party Balances And Transactions Schedule Of Revenue Related Party 5 | -299,295 |
Related Party Balances And Transactions Schedule Of Revenue Related Party 6 | 0 |
Related Party Balances And Transactions Schedule Of Revenue Related Party 7 | -11,815 |
Related Party Balances And Transactions Schedule Of Revenue Related Party 8 | 560,861 |
Related Party Balances And Transactions Schedule Of Revenue Related Party 9 | $14,334 |
Schedule_of_Inventories_Detail
Schedule of Inventories (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Inventories Schedule Of Inventories 1 | $2,973,152 |
Inventories Schedule Of Inventories 2 | 3,584,355 |
Inventories Schedule Of Inventories 3 | 390,128 |
Inventories Schedule Of Inventories 4 | 240,693 |
Inventories Schedule Of Inventories 5 | 4,514,190 |
Inventories Schedule Of Inventories 6 | 4,292,975 |
Inventories Schedule Of Inventories 7 | 7,778,253 |
Inventories Schedule Of Inventories 8 | 8,679,650 |
Inventories Schedule Of Inventories 9 | 15,655,723 |
Inventories Schedule Of Inventories 10 | $16,797,673 |
Schedule_of_LongTerm_Investmen
Schedule of Long-Term Investments (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Long-term Investments Schedule Of Long-term Investments 1 | $1,106,235 |
Long-term Investments Schedule Of Long-term Investments 2 | 1,072,446 |
Long-term Investments Schedule Of Long-term Investments 3 | 1,309,600 |
Long-term Investments Schedule Of Long-term Investments 4 | 1,269,600 |
Long-term Investments Schedule Of Long-term Investments 5 | 81,850 |
Long-term Investments Schedule Of Long-term Investments 6 | 79,350 |
Long-term Investments Schedule Of Long-term Investments 7 | 163,700 |
Long-term Investments Schedule Of Long-term Investments 8 | 158,700 |
Long-term Investments Schedule Of Long-term Investments 9 | 2,661,385 |
Long-term Investments Schedule Of Long-term Investments 10 | $2,580,096 |
Schedule_of_Property_Plant_and
Schedule of Property, Plant and Equipment (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 1 | $8,926,101 |
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 2 | 8,514,301 |
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 3 | 26,757,195 |
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 4 | 26,149,466 |
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 5 | 11,145,045 |
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 6 | 10,799,484 |
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 7 | 1,347,842 |
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 8 | 1,020,480 |
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 9 | 13,071,230 |
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 10 | 55,331,553 |
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 11 | 61,247,413 |
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 12 | 101,815,284 |
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 13 | -29,716,386 |
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 14 | -35,545,964 |
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 15 | 31,531,027 |
Property, Plant And Equipment Schedule Of Property, Plant And Equipment 16 | $66,269,320 |
Schedule_of_Land_Use_Rights_De
Schedule of Land Use Rights (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Land Use Rights And Intangible Assets Schedule Of Land Use Rights 1 | $13,760,722 |
Land Use Rights And Intangible Assets Schedule Of Land Use Rights 2 | 13,340,419 |
Land Use Rights And Intangible Assets Schedule Of Land Use Rights 3 | -538,280 |
Land Use Rights And Intangible Assets Schedule Of Land Use Rights 4 | -218,056 |
Land Use Rights And Intangible Assets Schedule Of Land Use Rights 5 | 13,222,442 |
Land Use Rights And Intangible Assets Schedule Of Land Use Rights 6 | $13,122,363 |
Schedule_of_Land_Use_Rights_Fu
Schedule of Land Use Rights, Future Amortization Expense (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Land Use Rights And Intangible Assets Schedule Of Land Use Rights, Future Amortization Expense 1 | $313,356 |
Land Use Rights And Intangible Assets Schedule Of Land Use Rights, Future Amortization Expense 2 | 313,356 |
Land Use Rights And Intangible Assets Schedule Of Land Use Rights, Future Amortization Expense 3 | 313,356 |
Land Use Rights And Intangible Assets Schedule Of Land Use Rights, Future Amortization Expense 4 | 313,356 |
Land Use Rights And Intangible Assets Schedule Of Land Use Rights, Future Amortization Expense 5 | 313,356 |
Land Use Rights And Intangible Assets Schedule Of Land Use Rights, Future Amortization Expense 6 | 11,655,662 |
Land Use Rights And Intangible Assets Schedule Of Land Use Rights, Future Amortization Expense 7 | $13,222,442 |
Schedule_of_Intangible_Assets_1
Schedule of Intangible Assets (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Land Use Rights And Intangible Assets Schedule Of Intangible Assets 1 | $15,607,305 |
Land Use Rights And Intangible Assets Schedule Of Intangible Assets 2 | 11,611,432 |
Land Use Rights And Intangible Assets Schedule Of Intangible Assets 3 | 2,717,420 |
Land Use Rights And Intangible Assets Schedule Of Intangible Assets 4 | 7,779,315 |
Land Use Rights And Intangible Assets Schedule Of Intangible Assets 5 | 4,677,891 |
Land Use Rights And Intangible Assets Schedule Of Intangible Assets 6 | 4,489,623 |
Land Use Rights And Intangible Assets Schedule Of Intangible Assets 7 | 329,037 |
Land Use Rights And Intangible Assets Schedule Of Intangible Assets 8 | 318,988 |
Land Use Rights And Intangible Assets Schedule Of Intangible Assets 9 | 23,331,653 |
Land Use Rights And Intangible Assets Schedule Of Intangible Assets 10 | 24,199,358 |
Land Use Rights And Intangible Assets Schedule Of Intangible Assets 11 | -9,023,714 |
Land Use Rights And Intangible Assets Schedule Of Intangible Assets 12 | -9,782,382 |
Land Use Rights And Intangible Assets Schedule Of Intangible Assets 13 | 14,307,939 |
Land Use Rights And Intangible Assets Schedule Of Intangible Assets 14 | $14,416,976 |
Schedule_of_Intangible_Assets_2
Schedule of Intangible Assets, Future Amortization Expense (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Land Use Rights And Intangible Assets Schedule Of Intangible Assets, Future Amortization Expense 1 | $2,079,532 |
Land Use Rights And Intangible Assets Schedule Of Intangible Assets, Future Amortization Expense 2 | 1,993,265 |
Land Use Rights And Intangible Assets Schedule Of Intangible Assets, Future Amortization Expense 3 | 1,655,626 |
Land Use Rights And Intangible Assets Schedule Of Intangible Assets, Future Amortization Expense 4 | 1,643,301 |
Land Use Rights And Intangible Assets Schedule Of Intangible Assets, Future Amortization Expense 5 | 1,353,382 |
Land Use Rights And Intangible Assets Schedule Of Intangible Assets, Future Amortization Expense 6 | 5,582,833 |
Land Use Rights And Intangible Assets Schedule Of Intangible Assets, Future Amortization Expense 7 | $14,307,939 |
Schedule_of_Shortterm_Bank_Deb
Schedule of Short-term Bank Debt (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Bank Loans Schedule Of Short-term Bank Debt 1 | $51,160,152 |
Bank Loans Schedule Of Short-term Bank Debt 2 | 48,714,342 |
Bank Loans Schedule Of Short-term Bank Debt 3 | 7,693,901 |
Bank Loans Schedule Of Short-term Bank Debt 4 | 2,063,100 |
Bank Loans Schedule Of Short-term Bank Debt 5 | 94,279 |
Bank Loans Schedule Of Short-term Bank Debt 6 | 35,604 |
Bank Loans Schedule Of Short-term Bank Debt 7 | 58,948,332 |
Bank Loans Schedule Of Short-term Bank Debt 8 | $50,813,046 |
Schedule_of_Detailed_Shortterm
Schedule of Detailed Short-term Bank Debt (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Bank Loans Schedule Of Detailed Short-term Bank Debt 1 | $32,740,000 |
Bank Loans Schedule Of Detailed Short-term Bank Debt 2 | 17,456,207 |
Bank Loans Schedule Of Detailed Short-term Bank Debt 3 | 3,274,000 |
Bank Loans Schedule Of Detailed Short-term Bank Debt 4 | 3,332,700 |
Bank Loans Schedule Of Detailed Short-term Bank Debt 5 | 2,716,126 |
Bank Loans Schedule Of Detailed Short-term Bank Debt 6 | 4,730,963 |
Bank Loans Schedule Of Detailed Short-term Bank Debt 7 | 2,455,500 |
Bank Loans Schedule Of Detailed Short-term Bank Debt 8 | 2,380,500 |
Bank Loans Schedule Of Detailed Short-term Bank Debt 9 | 2,455,500 |
Bank Loans Schedule Of Detailed Short-term Bank Debt 10 | 0 |
Bank Loans Schedule Of Detailed Short-term Bank Debt 11 | 2,455,500 |
Bank Loans Schedule Of Detailed Short-term Bank Debt 12 | 0 |
Bank Loans Schedule Of Detailed Short-term Bank Debt 13 | 1,735,220 |
Bank Loans Schedule Of Detailed Short-term Bank Debt 14 | 0 |
Bank Loans Schedule Of Detailed Short-term Bank Debt 15 | 1,003,953 |
Bank Loans Schedule Of Detailed Short-term Bank Debt 16 | 365,010 |
Bank Loans Schedule Of Detailed Short-term Bank Debt 17 | 940,667 |
Bank Loans Schedule Of Detailed Short-term Bank Debt 18 | 2,642,114 |
Bank Loans Schedule Of Detailed Short-term Bank Debt 19 | 523,840 |
Bank Loans Schedule Of Detailed Short-term Bank Debt 20 | 0 |
Bank Loans Schedule Of Detailed Short-term Bank Debt 21 | 478,540 |
Bank Loans Schedule Of Detailed Short-term Bank Debt 22 | 581,568 |
Bank Loans Schedule Of Detailed Short-term Bank Debt 23 | 381,306 |
Bank Loans Schedule Of Detailed Short-term Bank Debt 24 | 0 |
Bank Loans Schedule Of Detailed Short-term Bank Debt 25 | 0 |
Bank Loans Schedule Of Detailed Short-term Bank Debt 26 | 6,348,000 |
Bank Loans Schedule Of Detailed Short-term Bank Debt 27 | 0 |
Bank Loans Schedule Of Detailed Short-term Bank Debt 28 | 5,014,920 |
Bank Loans Schedule Of Detailed Short-term Bank Debt 29 | 0 |
Bank Loans Schedule Of Detailed Short-term Bank Debt 30 | 4,126,200 |
Bank Loans Schedule Of Detailed Short-term Bank Debt 31 | 0 |
Bank Loans Schedule Of Detailed Short-term Bank Debt 32 | 942,660 |
Bank Loans Schedule Of Detailed Short-term Bank Debt 33 | 0 |
Bank Loans Schedule Of Detailed Short-term Bank Debt 34 | 793,500 |
Bank Loans Schedule Of Detailed Short-term Bank Debt 35 | 51,160,152 |
Bank Loans Schedule Of Detailed Short-term Bank Debt 36 | $48,714,342 |
Schedule_of_Longterm_Bank_Debt
Schedule of Long-term Bank Debt (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Bank Loans Schedule Of Long-term Bank Debt 1 | $406,826 |
Bank Loans Schedule Of Long-term Bank Debt 2 | 109,779 |
Bank Loans Schedule Of Long-term Bank Debt 3 | -94,279 |
Bank Loans Schedule Of Long-term Bank Debt 4 | -35,604 |
Bank Loans Schedule Of Long-term Bank Debt 5 | 312,547 |
Bank Loans Schedule Of Long-term Bank Debt 6 | $74,175 |
Schedule_of_Income_before_Inco
Schedule of Income before Income Tax, Domestic and Foreign (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Income Taxes Schedule Of Income Before Income Tax, Domestic And Foreign 1 | ($112,653,429) |
Income Taxes Schedule Of Income Before Income Tax, Domestic And Foreign 2 | -88,771,964 |
Income Taxes Schedule Of Income Before Income Tax, Domestic And Foreign 3 | 8,250,896 |
Income Taxes Schedule Of Income Before Income Tax, Domestic And Foreign 4 | -7,656,053 |
Income Taxes Schedule Of Income Before Income Tax, Domestic And Foreign 5 | -1,038,340 |
Income Taxes Schedule Of Income Before Income Tax, Domestic And Foreign 6 | 1,123,432 |
Income Taxes Schedule Of Income Before Income Tax, Domestic And Foreign 7 | -120,309,482 |
Income Taxes Schedule Of Income Before Income Tax, Domestic And Foreign 8 | -89,810,304 |
Income Taxes Schedule Of Income Before Income Tax, Domestic And Foreign 9 | $9,374,328 |
Schedule_of_Components_of_Inco
Schedule of Components of Income Tax Expense (Benefit) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Income Taxes Schedule Of Components Of Income Tax Expense (benefit) 1 | $394,900 |
Income Taxes Schedule Of Components Of Income Tax Expense (benefit) 2 | 503,416 |
Income Taxes Schedule Of Components Of Income Tax Expense (benefit) 3 | 2,498,523 |
Income Taxes Schedule Of Components Of Income Tax Expense (benefit) 4 | 1,501,645 |
Income Taxes Schedule Of Components Of Income Tax Expense (benefit) 5 | 308,838 |
Income Taxes Schedule Of Components Of Income Tax Expense (benefit) 6 | -1,694,374 |
Income Taxes Schedule Of Components Of Income Tax Expense (benefit) 7 | 1,896,545 |
Income Taxes Schedule Of Components Of Income Tax Expense (benefit) 8 | 812,254 |
Income Taxes Schedule Of Components Of Income Tax Expense (benefit) 9 | $804,149 |
Schedule_of_Effective_Income_T
Schedule of Effective Income Tax Rate Reconciliation (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Income Taxes Schedule Of Effective Income Tax Rate Reconciliation 1 | 25.00% |
Income Taxes Schedule Of Effective Income Tax Rate Reconciliation 2 | 25.00% |
Income Taxes Schedule Of Effective Income Tax Rate Reconciliation 3 | 25.00% |
Income Taxes Schedule Of Effective Income Tax Rate Reconciliation 4 | ($30,077,370) |
Income Taxes Schedule Of Effective Income Tax Rate Reconciliation 5 | -22,452,576 |
Income Taxes Schedule Of Effective Income Tax Rate Reconciliation 6 | 2,343,582 |
Income Taxes Schedule Of Effective Income Tax Rate Reconciliation 7 | 11,593,511 |
Income Taxes Schedule Of Effective Income Tax Rate Reconciliation 8 | 5,224,798 |
Income Taxes Schedule Of Effective Income Tax Rate Reconciliation 9 | -1,544,604 |
Income Taxes Schedule Of Effective Income Tax Rate Reconciliation 10 | 6,624,016 |
Income Taxes Schedule Of Effective Income Tax Rate Reconciliation 11 | 6,538,685 |
Income Taxes Schedule Of Effective Income Tax Rate Reconciliation 12 | -172,271 |
Income Taxes Schedule Of Effective Income Tax Rate Reconciliation 13 | 12,024,326 |
Income Taxes Schedule Of Effective Income Tax Rate Reconciliation 14 | 11,271,912 |
Income Taxes Schedule Of Effective Income Tax Rate Reconciliation 15 | 197,672 |
Income Taxes Schedule Of Effective Income Tax Rate Reconciliation 16 | 1,914,013 |
Income Taxes Schedule Of Effective Income Tax Rate Reconciliation 17 | 259,585 |
Income Taxes Schedule Of Effective Income Tax Rate Reconciliation 18 | 158,541 |
Income Taxes Schedule Of Effective Income Tax Rate Reconciliation 19 | -181,951 |
Income Taxes Schedule Of Effective Income Tax Rate Reconciliation 20 | -30,150 |
Income Taxes Schedule Of Effective Income Tax Rate Reconciliation 21 | -178,771 |
Income Taxes Schedule Of Effective Income Tax Rate Reconciliation 22 | 1,896,545 |
Income Taxes Schedule Of Effective Income Tax Rate Reconciliation 23 | 812,254 |
Income Taxes Schedule Of Effective Income Tax Rate Reconciliation 24 | $804,149 |
Schedule_of_Deferred_Tax_Asset
Schedule of Deferred Tax Assets and Liabilities, Detailed (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 1 | $10,388,922 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 2 | 0 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 3 | 6,100,285 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 4 | 0 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 5 | 8,937,288 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 6 | 0 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 7 | 5,047,767 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 8 | 0 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 9 | 347,264 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 10 | 0 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 11 | 343,496 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 12 | 0 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 13 | 203,092 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 14 | -202,865 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 15 | 3,469,686 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 16 | -196,669 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 17 | 148,860 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 18 | 0 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 19 | 768,535 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 20 | 0 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 21 | 112,616 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 22 | 0 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 23 | 0 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 24 | -93,245 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 25 | 28,085 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 26 | 0 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 27 | 11,934 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 28 | 0 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 29 | 0 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 30 | -539,831 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 31 | 0 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 32 | -973,509 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 33 | 20,166,127 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 34 | -742,696 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 35 | 15,741,703 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 36 | -1,263,423 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 37 | -19,320,404 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 38 | 0 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 39 | -12,903,702 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 40 | 0 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 41 | 845,723 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 42 | -742,696 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 43 | 2,838,001 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities, Detailed 44 | ($1,263,423) |
Schedule_of_Deferred_Tax_Asset1
Schedule of Deferred Tax Assets and Liabilities (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 1 | $498,459 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 2 | 2,297,617 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 3 | 347,264 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 4 | 540,384 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 5 | -742,696 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 6 | -1,263,423 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 7 | 103,027 |
Income Taxes Schedule Of Deferred Tax Assets And Liabilities 8 | $1,574,578 |
Schedule_of_Other_Current_Asse
Schedule of Other Current Assets (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Other Current Assets Schedule Of Other Current Assets 1 | $6,753,665 |
Other Current Assets Schedule Of Other Current Assets 2 | 5,623,896 |
Other Current Assets Schedule Of Other Current Assets 3 | 2,466,155 |
Other Current Assets Schedule Of Other Current Assets 4 | 1,726,326 |
Other Current Assets Schedule Of Other Current Assets 5 | 1,256,474 |
Other Current Assets Schedule Of Other Current Assets 6 | 997,447 |
Other Current Assets Schedule Of Other Current Assets 7 | 499,041 |
Other Current Assets Schedule Of Other Current Assets 8 | 454,316 |
Other Current Assets Schedule Of Other Current Assets 9 | 10,975,335 |
Other Current Assets Schedule Of Other Current Assets 10 | $8,801,985 |
Schedule_of_Total_Revenues_fro
Schedule of Total Revenues from Segments (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 1 | $28 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 2 | 424,862 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 3 | 39,869,397 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 4 | 68,281,729 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 5 | 47,720,522 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 6 | 46,508,058 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 7 | 46,253,824 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 8 | 76,145,384 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 9 | 86,377,455 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 10 | $114,535,553 |
Schedule_of_Segment_Reporting_
Schedule of Segment Reporting Information, Revenues by Segment (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 1 | ($73,626,439) |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 2 | -25,274,513 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 3 | 13,528,609 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 4 | -45,416,339 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 5 | -59,348,773 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 6 | -3,294,203 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 7 | -333,801 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 8 | -1,056,627 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 9 | -707,273 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 10 | -119,376,579 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 11 | -85,679,913 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 12 | 9,527,133 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 13 | 4,160,238 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 14 | 173,138 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 15 | 2,478,411 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 16 | 460,381 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 17 | 343,289 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 18 | 317,190 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 19 | -5,553,522 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 20 | -4,646,818 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 21 | -2,948,406 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 22 | -120,309,482 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 23 | -89,810,304 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 24 | 9,374,328 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 25 | -1,896,545 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 26 | -812,254 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 27 | -804,149 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 28 | -122,206,027 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 29 | -90,622,558 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 30 | 8,570,179 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 31 | 2,969,204 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 32 | 992,050 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 33 | -660,781 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 34 | -119,236,823 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 35 | -89,630,508 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Revenues By Segment 36 | $7,909,398 |
Schedule_of_NonCash_Employee_C
Schedule of Non-Cash Employee Compensation (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Consolidated Segment Data Schedule Of Non-cash Employee Compensation 1 | $575,000 |
Consolidated Segment Data Schedule Of Non-cash Employee Compensation 2 | 0 |
Consolidated Segment Data Schedule Of Non-cash Employee Compensation 3 | 0 |
Consolidated Segment Data Schedule Of Non-cash Employee Compensation 4 | 6,325,000 |
Consolidated Segment Data Schedule Of Non-cash Employee Compensation 5 | 0 |
Consolidated Segment Data Schedule Of Non-cash Employee Compensation 6 | 0 |
Consolidated Segment Data Schedule Of Non-cash Employee Compensation 7 | 6,900,000 |
Consolidated Segment Data Schedule Of Non-cash Employee Compensation 8 | 0 |
Consolidated Segment Data Schedule Of Non-cash Employee Compensation 9 | $0 |
Schedule_of_Segment_Reporting_1
Schedule of Segment Reporting Information, (Loss) Income From Operations by Segment (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 1 | $5,026,735 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 2 | 8,726,746 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 3 | 7,967,090 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 4 | 5,470,520 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 5 | 5,055,823 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 6 | 4,605,605 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 7 | 104,165 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 8 | 42,584 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 9 | 38,944 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 10 | 10,601,420 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 11 | 13,825,153 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 12 | 12,611,639 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 13 | 37,557,081 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 14 | 11,378,371 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 15 | 3,876,572 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 16 | 30,655,158 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 17 | 16,503,749 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 18 | 195,834 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 19 | 68,212,239 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 20 | 27,882,120 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 21 | 4,072,406 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 22 | -45,900 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 23 | 33,833 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 24 | 647,073 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 25 | 933,425 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 26 | 2,201,741 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 27 | 3,980,525 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 28 | 887,525 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 29 | 2,235,574 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 30 | 4,627,598 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 31 | 0 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 32 | 0 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 33 | 1,002,755 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 34 | 0 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 35 | 0 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 36 | 0 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 37 | 0 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 38 | 0 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 39 | 1,002,755 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 40 | 2,714,684 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 41 | 2,426,602 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 42 | 14,902,240 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 43 | 1,204,281 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 44 | 3,073,164 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 45 | 3,722,136 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 46 | 594,929 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 47 | 0 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 48 | 2,314 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 49 | 4,513,894 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 50 | 5,499,766 |
Consolidated Segment Data Schedule Of Segment Reporting Information, (loss) Income From Operations By Segment 51 | $18,626,690 |
Schedule_of_Segment_Reporting_2
Schedule of Segment Reporting Information, Total Assets by Segment (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Consolidated Segment Data Schedule Of Segment Reporting Information, Total Assets By Segment 1 | $88,072,260 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Total Assets By Segment 2 | 156,538,182 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Total Assets By Segment 3 | 99,721,203 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Total Assets By Segment 4 | 130,706,354 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Total Assets By Segment 5 | 1,445,527 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Total Assets By Segment 6 | 177,353 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Total Assets By Segment 7 | 189,238,990 |
Consolidated Segment Data Schedule Of Segment Reporting Information, Total Assets By Segment 8 | $287,421,889 |
Schedule_of_Future_Minimum_Ren
Schedule of Future Minimum Rental Payments for Operating Leases (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Commitments And Contingencies Schedule Of Future Minimum Rental Payments For Operating Leases 1 | $306,578 |
Commitments And Contingencies Schedule Of Future Minimum Rental Payments For Operating Leases 2 | 259,752 |
Commitments And Contingencies Schedule Of Future Minimum Rental Payments For Operating Leases 3 | $566,330 |