Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Apr. 15, 2014 | Jun. 30, 2013 | |
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'UMDI | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 39,684,495 | ' |
Entity Registrant Name | 'USmart Mobile Device Inc. | ' | ' |
Entity Central Index Key | '0000934445 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Public Float | ' | ' | $895,349 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Current assets: | ' | ' |
Cash and cash equivalents | $231,119 | $639,462 |
Restricted cash | 0 | 838,413 |
Accounts receivable, net of allowance for doubtful accounts of $555,993 for 2013 and $98,061 for 2012 | 1,358,873 | 1,227,703 |
Inventories, net | 1,081,511 | 4,616,148 |
Other current assets | 91,618 | 776,868 |
Total current assets | 2,763,121 | 8,098,594 |
Long-term assets: | ' | ' |
Property, plant and equipment, net | 8,212,849 | 9,586,055 |
Investments in a jointly-controlled entity | 0 | 2,818,307 |
Goodwill | 0 | 11,341,123 |
Other deposits | 138,234 | 165,325 |
Amounts due from Aristo / Mr. Yang | 931,652 | 3,658,359 |
TOTAL ASSETS | 12,045,856 | 35,667,763 |
Current liabilities: | ' | ' |
Accounts payable | 623,069 | 358,006 |
Amount due to related companies | 0 | 9,209,313 |
Accruals | 554,231 | 375,513 |
Lines of credit and loan facilities | 3,178,580 | 8,319,321 |
Bank loans | 3,222,113 | 6,099,309 |
Current portion of loan from a third party | 641,026 | 0 |
Current portion of capital lease | 75,917 | 96,506 |
Income tax payable | -177,291 | -177,291 |
Due to shareholders for converted pledged collateral | 112,385 | 112,385 |
Other current liabilities | 12,444,000 | 12,386,002 |
Total current liabilities | 20,674,030 | 36,779,064 |
Long-term liabilities: | ' | ' |
Loan from a third party, less current portion | 6,410,256 | 0 |
Capital lease, less current portion | 57,511 | 133,428 |
Deferred tax liabilities | 5,569 | 74,289 |
Total long-term liabilities | 6,473,336 | 207,717 |
TOTAL LIABILITIES | 27,147,366 | 36,986,781 |
NET ASSETS (LIABILITIES) | -15,101,510 | -1,319,018 |
Commitments and contingencies | 0 | 0 |
STOCKHOLDERS’ EQUITY | ' | ' |
Preferred stock, 20,000,000 shares authorized; 0 shares issued and outstanding as of December 31, 2013 and 2012 | 0 | 0 |
Common stock, $0.001 par value; 50,000,000 shares authorized; 39,684,495 and 39,474,495 shares issued and outstanding as of December 31, 2013 and 2012 | 39,685 | 39,475 |
Additional paid in capital | 4,333,723 | 4,321,333 |
Exchange reserve | -1,810 | 2,072 |
Retained earnings (deficits) | -16,879,337 | -3,539,251 |
Stockholders' Equity Attributable to Parent, Total | -12,507,739 | 823,629 |
Non-controlling interest | -2,593,771 | -2,142,647 |
TOTAL STOCKHOLDERS’ EQUITY | ($15,101,510) | ($1,319,018) |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts Receivable,net of allowance for doubtful accounts (in dollars) | $555,993 | $98,061 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 39,684,495 | 39,474,495 |
Common stock, shares outstanding | 39,684,495 | 39,474,495 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Net sales | $72,175,289 | $161,385,167 |
Costs of sales | -71,949,939 | -160,993,711 |
Gross profit (loss) | 225,350 | 391,456 |
Operating expenses | ' | ' |
Sales and marketing expenses | 154,014 | 331,086 |
General and administrative expenses | 4,906,299 | 5,873,667 |
Income (loss) from operations | -4,834,963 | -5,813,297 |
Other expenses (income) | ' | ' |
Rental income | -167,134 | -196,241 |
Interest expenses | 1,041,095 | 1,011,080 |
Management and service income | -331,816 | -144,423 |
Interest income | -2,000 | -2,727 |
Profit on disposals of fixed assets | -1,930,234 | -256 |
Loss on disposals of investments | 68,333 | 0 |
Exchange differences | -28,729 | 8,422 |
Reverse for provision of doubtful account | 0 | -1,662,648 |
Miscellaneous | -173,079 | -175,038 |
Impairment of goodwill | 11,341,123 | 0 |
Share result of a jointly-controlled entity | -883,199 | 181,693 |
Income (loss) before income taxes | -13,769,323 | -4,833,159 |
Income tax (reversal) provision | 21,887 | 32,950 |
Net income (loss) | -13,791,210 | -4,866,109 |
Attributable to : | ' | ' |
Non-controlling interest | -451,124 | -152,371 |
Shareholders of the Company | -13,340,086 | -4,713,738 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest, Total | ($13,791,210) | ($4,866,109) |
Earnings (loss) per share - basic and diluted (in dollars per share) | ($0.34) | ($0.14) |
Weighted average number of shares - basic and diluted (in shares) | 39,562,522 | 32,734,799 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY AND ACCUMULATED OTHER COMPREHENSIVE INCOME (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Reserve [Member] | Retained Earnings [Member] |
Balance at Dec. 31, 2011 | $4,962,902 | $29,026 | $3,753,577 | $0 | $1,180,299 |
Balance (in shares) at Dec. 31, 2011 | ' | 29,025,436 | ' | ' | ' |
Issue of capital | 578,205 | 10,449 | 567,756 | 0 | 0 |
Issue of capital (in shares) | ' | 10,449,059 | ' | ' | ' |
Dividend paid | -5,812 | 0 | 0 | 0 | -5,812 |
Exchange reserve | 2,072 | 0 | 0 | 2,072 | 0 |
Net income (loss) | -4,713,738 | 0 | 0 | 0 | -4,713,738 |
Balance at Dec. 31, 2012 | 823,629 | 39,475 | 4,321,333 | 2,072 | -3,539,251 |
Balance (in shares) at Dec. 31, 2012 | ' | 39,474,495 | ' | ' | ' |
Issue of capital | 12,600 | 210 | 12,390 | 0 | 0 |
Issue of capital (in shares) | ' | 210,000 | ' | ' | ' |
Exchange reserve | -3,882 | 0 | 0 | -3,882 | 0 |
Net income (loss) | -13,340,086 | 0 | 0 | 0 | -13,340,086 |
Balance at Dec. 31, 2013 | ($12,507,739) | $39,685 | $4,333,723 | ($1,810) | ($16,879,337) |
Balance (in shares) at Dec. 31, 2013 | ' | 39,684,495 | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Cash flows provided by (used for) operating activities : | ' | ' |
Shareholders of the Company | ($13,340,086) | ($4,713,738) |
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: | ' | ' |
Reversal of bad debts | 0 | 1,662,648 |
Allowance for doubtful accounts | 457,932 | 0 |
Depreciation and amortization | 756,596 | 564,117 |
Change in inventory reserve | 662,093 | 1,576,923 |
Issuance of common stocks to consultant as professional fee for consultant services | 12,600 | 572,400 |
Gain on disposal of fixed assets | -1,930,234 | -256 |
Loss on disposal of investments | 68,333 | 0 |
Loss (gain) on investment in a jointly-controlled entity | -883,199 | 181,693 |
Loss share by non-controlled party | -451,124 | -152,371 |
Amortization of goodwill reserve | 11,341,123 | 0 |
Dividend paid | 0 | -7 |
Exchange reserve | -3,882 | 2,072 |
(Increase) decrease in assets | ' | ' |
Accounts receivable - other | -589,104 | 11,141,876 |
Inventories | 2,872,546 | -2,444,047 |
Other current assets | 685,251 | -632,226 |
Other assets | 27,091 | -94,604 |
Increase (decrease) in liabilities | ' | ' |
Accounts payable - other | 265,063 | -24,130,109 |
Account payable - related parties | -9,209,313 | 9,209,313 |
Accrued expenses | 178,718 | -167,869 |
Income tax payable | 0 | 24,777 |
Deferred tax | -68,720 | 11,044 |
Other current liabilities | 57,999 | 10,183,714 |
Total adjustments | 4,249,769 | 7,509,088 |
Net cash provided by (used for) operating activities | -9,090,317 | 2,795,350 |
Cash flows used for investing activities: | ' | ' |
Advanced from Aristo / Mr. Yang | 3,961,166 | 5,459,164 |
Advanced to Aristo / Mr. Yang | -1,234,459 | -3,337,123 |
Net cash inflow on acquisition on subsidiaries | 0 | -1,992,741 |
Investment in a jointly-controlled entity | 0 | -3,000,000 |
(Increase) decrease in restricted cash | 838,413 | 1,383,335 |
Cash proceeds from sales of fixed assets | 2,587,949 | 256 |
Cash proceeds from sales of investments | 3,633,173 | 0 |
Purchase of fixed assets | -41,105 | -175 |
Net cash provided by (used for) investing activities | 9,745,137 | -1,487,284 |
Cash flows provided by (used for) financing activities: | ' | ' |
Net borrowings on lines of credit and notes payable | -5,140,742 | -5,323,257 |
Principal payments to bank | -6,018,222 | -1,122,397 |
Borrowings from bank | 3,141,026 | 5,064,103 |
Borrowings from non-controlled party | 7,051,282 | 150,000 |
Principal payments under capital lease obligation | -96,507 | -109,872 |
Net cash provided by (used for) financing activities | -1,063,163 | -1,341,423 |
Net increase (decrease) in cash and cash equivalents | -408,343 | -33,357 |
Cash and cash equivalents - beginning of year | 639,462 | 672,819 |
Cash and cash equivalents - end of year | 231,119 | 639,462 |
Supplementary disclosure of cash flow information: | ' | ' |
Interest paid | 1,041,095 | 1,011,080 |
Income tax paid (reversal) | $0 | ($2,870) |
ORGANIZATION_AND_PRINCIPAL_ACT
ORGANIZATION AND PRINCIPAL ACTIVITY | 12 Months Ended | ||
Dec. 31, 2013 | |||
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | ' | ||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' | ||
NOTE 1. | Organization and principal activitY | ||
Organization and Basis of Presentation | |||
USmart Mobile Device Inc. (“USmart”) and its subsidiaries are referred to herein collectively and on a consolidated basis as the “Company” or “we”, “us” or “our” or similar terminology. | |||
The Company was incorporated under the laws of the State of Delaware on September 17, 2002 and acquired Atlantic Components Limited, a Hong Kong incorporated company (“Atlantic”) through a reverse-acquisition that was effective September 30, 2003. On September 28, 2012, the Company acquired Jussey Investments Limited, a company incorporated in British Virgins Island (“Jussey”) (please refer to Note 17 for more information on the acquisition). | |||
The Company is currently engaged in the production, manufacturing and distribution of smartphones, electronic products and components in Hong Kong and PRC through its operating subsidiaries: | |||
(i) | Atlantic Components Limited, a Hong Kong incorporated company and the Company’s original principle operating subsidiary which is controlled by the Company through its subsidiary, ACL International Holdings Limited (“ACL Holdings”); and | ||
(ii) | Aristo Technologies Limited, a Hong Kong incorporated company (“Aristo”), solely owned by Mr. Chung-Lun Yang, the Company’s Chairman and Chief Executive Officer (“Mr. Yang”); and | ||
(iii) | eVision Telecom Limited (“eVision”), a Hong Kong incorporated company which was acquired through an acquisition of its holding company, Jussey; and | ||
(iv) | USmart Electronic Products Limited (“USmart”), a Hong Kong incorporated company which was acquired through an acquisition of its holding company, Jussey; and | ||
(v) | Dongguan Kezheng Electronics Limited (“Kezheng”), a wholly foreign-owned enterprise (“WFOE”) organized under the laws of the PRC which is acquired through an acquisition of its ultimate holding company, Jussey. | ||
The Company owns 100% equity interest of ACL International Holdings Limited, a Hong Kong incorporated company, which owns: | |||
(i) | 100% equity interest of Atlantic (restructured on December 17, 2010); and | ||
(ii) | 100% equity interest of Jussey Investments Limited, a company incorporated in British Virgin Islands (acquired by ACL Holdings on September 28, 2012) which owns: | ||
a. | 100% equity interest in eVision; and | ||
b. | 80% equity interest in USmart, which owns 100% equity interest in Kezheng. | ||
On March 23, 2010, USmart concluded that Aristo, a related company solely owned by Mr. Yang is a variable interest entity under FASB ASC 810-10-25 and is therefore subject to consolidation with USmart beginning fiscal year 2007 under the guidance applicable to variable interest entities. | |||
Business Activity | |||
USmart Mobile Device Inc. was incorporated under the laws of the State of Delaware on September 17, 2002. The Company has been primarily engaged in the business of distribution of memory products mainly under “Samsung” brand name which principally comprised Dynamic Random Access Memory (“DRAM”), Graphic Random Access Memory (“Graphic RAM”), and Flash for the Hong Kong Special Administrative Region (“Hong Kong”) and People’s Republic of China (the “PRC” or “China”) markets formerly through its indirectly wholly owned subsidiary Atlantic Components Limited (“Atlantic”), a Hong Kong incorporated company, and ATMD (Hong Kong) Limited (“ATMD”) after April 1, 2012. The Company, through its wholly owned subsidiary ACL International Holdings Limited (“ACL Holdings”), owns 30% equity interest in ATMD, the joint venture with Tomen Devices Corporation (“Tomen”). ATMD offers a broad range of industry-leading Samsung semiconductor products, and additional components and SMD (smartphone panels). On September 27, 2013, the Company sold the entire 30% equity interest of ATMD. Through the acquisition of Jussey Investments Limited (“Jussey”) on September 28, 2012, the Company has diversified its product portfolio and customer network, obtained design and manufacturing capabilities, and tapped into the blooming telecommunication industry with access to the 3G baseband licenses. | |||
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Accounting Policies [Abstract] | ' | |||||||||
Significant Accounting Policies [Text Block] | ' | |||||||||
NOTE 2. | Summary of significant accounting policies | |||||||||
(a) | Method of Accounting | |||||||||
The Company maintains its general ledger and journals with the accrual method accounting for financial reporting purposes. The consolidated financial statements and notes are representations of management. Accounting policies adopted by the Company conform to generally accepted accounting principles in the United States of America and have been consistently applied in the presentation of consolidated financial statements. | ||||||||||
(b) | Principles of consolidation | |||||||||
The consolidated financial statements are presented in US Dollars and include the accounts of the Company and its subsidiary. All significant inter-company balances and transactions are eliminated in consolidation. | ||||||||||
The Company owned its subsidiary soon after its inception and continued to own the equity’s interests through December 31, 2013. The following table depicts the identity of the subsidiary: | ||||||||||
Name of Subsidiary | Place of | Attributable Equity | Registered | |||||||
Incorporation | Interest % | Capital | ||||||||
ACL International Holdings Limited | Hong Kong | 100 | $ | 0.13 | ||||||
Alpha Perform Technology Limited | BVI | 100 | $ | 1,000 | ||||||
Atlantic Components Limited (1) | Hong Kong | 100 | $ | 384,615 | ||||||
Aristo Technologies Limited (2) | Hong Kong | 100 | $ | 1,282 | ||||||
Dongguan Kezheng Electronics Limited (3) | PRC | 80 | $ | 680,499 | ||||||
eVision Telecom Limited (4) | Hong Kong | 100 | $ | 25,641 | ||||||
Jussey Investments Limited (1) | BVI | 100 | $ | 1 | ||||||
USmart Electronic Products Limited (4) | Hong Kong | 80 | $ | 1.28 | ||||||
Note: | (1) Wholly owned subsidiary of ACL International Holdings Limited | |||||||||
(2) Deemed variable interest entity | ||||||||||
(3) Wholly owned subsidiary of USmart Electronic Products Limited | ||||||||||
(4) Wholly or partially owned by Jussey Investments Limited | ||||||||||
Variable Interests Entities | ||||||||||
According to ASC 810-10-25 which codified FASB Interpretation No. 46 (Revised December 2003), Consolidation of Variable Interest Entities — an interpretation of ARB No. 51 (FIN 46R), an entity that has one or more of the three characteristics set forth therein is considered a variable interest entity. One of such characteristics is that the equity investment at risk in the relevant entity is not sufficient to permit the entity to finance its activities without additional subordinated financial support provided by any parties, including the equity holders. | ||||||||||
ASC 810-05-08A specifies the two characteristics of a controlling financial interest in a variable interest entity (“VIE”): (1) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance; and (2) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company is the primary beneficiary of Aristo because the Company can direct the activities of Aristo through the common director and major shareholder. Also, the Company extended substantial accounts receivable to Aristo and created an obligation to absorb loss if Aristo failed. Moreover, ASC 810-25-42 & 43 provides guidance on related parties treatment of VIE and specifies the relationship of de-facto agent and principal. This guidance will help to determine whether the Company will consolidate Aristo. | ||||||||||
Owing to the extent of outstanding large amounts of accounts receivable since 2007 together with the nominal amount of paid-up capital contributed by Mr. Yang when Aristo was formed, it has been determined that Aristo cannot finance its operations without subordinated financial support from USmart and accordingly, USmart is considered to be the de facto principal of Aristo, Aristo is considered to be the de facto subsidiary of the Company, and Mr. Yang is considered to be a related party of both the Company and Aristo. | ||||||||||
By virtue of the above analysis, it has been determined that the Company is the primary beneficiary of Aristo. | ||||||||||
Aristo Technologies Limited | ||||||||||
The Company sells Samsung memory chips to Aristo and allows long grace periods for Aristo to repay the open accounts receivable. Being the biggest creditor, the Company does not require Aristo to pledge assets or enter into any agreements to bind Aristo to specific repayment terms. The Company does not experience any bad debt from Aristo. Hence, the Company does not provide any bad debt provision derived from Aristo. Although, the Company is not involved in Aristo’s daily operation, it believes that there will not be significant additional risk derived from the trading relationship and transactions with Aristo. | ||||||||||
Aristo is engaged in the marketing, selling and servicing of computer products and accessories including semiconductors, LCD products, mass storage devices, consumer electronics, computer peripherals and electronic components for different generations of computer related products. Aristo carries various brands of products such as Samsung, Hynix, Micron, Elpida, Qimonda, Lexar, Dane-Elec, Elixir, SanDisk and Winbond. Aristo 2013 and 2012 sales were around 7 million and 2 million; it was only a small distributor that accommodated special requirements for specific customers. | ||||||||||
Aristo supplies different generations of computer related products. Old generation products will move slowly owing to lower market demand. According to the management experience and estimation on the actual market situation, old products carrying on hand for ten years will have no resell value. Therefore, inventories on hand over ten years will be written-off by Aristo immediately. | ||||||||||
The Company sells to Aristo in order to fulfill Aristo’s periodic need for Samsung memory products based on prevailing market prices, which Aristo, in turn, sells to its customers. The sales to Aristo for fiscal year 2013 were $3,337,735 with account receivable of $4,850,769 as of December 31, 2013. For fiscal year 2012 were $106,031 with account receivable of $5,323,933 as of December 31, 2012. For fiscal year 2011 were $7,086,379 with accounts receivable of $16,871,739 as of December 31, 2011. For fiscal year 2010 were $7,123,769 with accounts receivable of $14,073,937 as of December 31, 2010. | ||||||||||
The Company purchases from Aristo, from time to time, LCD panels, Samsung memory chips, DRAM, Flash memory, central processing units, external hard disks, DVD readers and writers that the Company cannot obtain from Samsung directly due to supply limitations. | ||||||||||
Acquisition | ||||||||||
The Company uses the acquisition method of accounting for business combinations which requires that the assets acquired and liabilities assumed be recorded at the date of the acquisition at their respective fair values. Assets acquired and liabilities assumed in a business combination that arise from contingencies are recognized at fair value if fair value can reasonably be estimated. If the fair value of an asset acquired or liability assumed that arises from a contingency cannot be determined at the date of acquisition, the asset or liability is recognized if probable and reasonably estimable; if these criteria are not met, no asset or liability is recognized. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Any excess of the purchase price (consideration transferred) over the estimated fair values of net assets acquired is recorded as goodwill. Transaction costs and costs to restructure the acquired company are expensed as incurred. The operating results of acquired business are reflected in the acquirer’s consolidated financial statements and results of operations after the date of the acquisition. | ||||||||||
(c) | Jointly-controlled entity | |||||||||
A jointly-controlled entity is a corporate joint venture that is subject to joint control, resulting in none of the participating parties having unilateral control over the economic activity of the jointly-controlled entity. | ||||||||||
The Group’s investment in a jointly-controlled entity is stated in equity method for the consolidated statement of financial position the Group’s shares of the equity of a jointly-controlled entity and the consolidated income statement and consolidated reserves, respectively. | ||||||||||
(d) | Use of estimates | |||||||||
The preparation of consolidated financial statements that conform with generally accepted accounting principles in the United States of America 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time, however, actual results could differ materially from those estimates. | ||||||||||
(e) | Economic and political risks | |||||||||
The Company’s operations are conducted in Hong Kong and China. A large number of customers are located in Southern China. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in Hong Kong and China, and by the general state of the economy in Hong Kong and China. | ||||||||||
The Company’s operations and customers in Hong Kong and Southern China 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 environments, and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in Hong Kong and China, 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, among other things. | ||||||||||
(f) | Property, plant and equipment | |||||||||
Plant and equipment are carried at cost less accumulated depreciation. Depreciation is provided over their estimated useful lives, using the straight-line method. | ||||||||||
Estimated useful lives of the plant and equipment are as follows: | ||||||||||
Automobiles | 3 1/3 years | |||||||||
Computers | 5 years | |||||||||
Leasehold improvement | 5 years | |||||||||
Land and buildings | By estimated useful life | |||||||||
Office equipment | 5 years | |||||||||
Machinery | 10 years | |||||||||
The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the statement of income. | ||||||||||
(g) | Account receivable | |||||||||
Accounts receivable is carried at the net invoiced value charged to customer. The Company records an allowance for doubtful accounts to cover estimated credit losses. Management reviews and adjusts this allowance periodically based on historical experience and its evaluation of the collectability of outstanding accounts receivable. The Company evaluates the credit risk of its customers utilizing historical data and estimates of future performance. | ||||||||||
(h) | Accounting for the impairment of long-lived assets | |||||||||
The Company periodically evaluates the carrying value of long-lived assets to be held and used, including intangible assets subject to amortization, when events and circumstances warrant such a review, pursuant to the guidelines established in ASC No. 360 (formerly Statement of Financial Accounting Standards No. 144). The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is separately identifiable and is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair market value of the long-lived asset. Fair market value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets to be disposed of are determined in a similar manner, except that fair market values are reduced for the cost to dispose. | ||||||||||
During the reporting years, there was no impairment loss. | ||||||||||
(i) | Cash and cash equivalents | |||||||||
The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. The Company maintains bank accounts in Hong Kong. The Company does not maintain any bank accounts in the United States of America. | ||||||||||
(j) | Inventories | |||||||||
Inventories are stated at the lower of cost or market and are comprised of purchased computer technology resale products. Cost is determined using the first-in, first-out method. The reserve for obsolescence was decreased by $662,093 from $2,625,375 as of December 31, 2012 to $1,963,282 as of December 31, 2013. Inventory obsolescence reserves totaled $2,625,375 including acquired from subsidiaries $339,078 as of December 31, 2012. | ||||||||||
(k) | Lease assets | |||||||||
Leases that substantially transfer all the benefits and risks of ownership of assets to the company are accounted for as capital leases. At the inception of a capital lease, the asset is recorded together with its long term obligation (excluding interest element) to reflect the purchase and the financing. | ||||||||||
Leases which do not transfer substantially all the risks and rewards of ownership to the company are classified as operating leases. Payments made under operating leases are charged to income statement in equal installments over the accounting periods covered by the lease term. Lease incentives received are recognized in income statement as an integral part of the aggregate net lease payments made. Contingent rentals are charged to income statement in the accounting period which they are incurred. | ||||||||||
(l) | Income taxes | |||||||||
We are governed by the Internal Revenue Code of the United States, the Hong Kong Inland Revenue Department and the PRC’s Income Tax Laws. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets, including tax loss and credit carry forwards, and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income of the period that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. The components of the deferred tax assets and liabilities are individually classified as current and non-current based on their characteristics. Realization of the deferred tax asset is dependent on generating sufficient taxable income in future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. | ||||||||||
The Company did not have any interest or penalty recognized in the income statements for the period ended December 31, 2013 and December 31, 2012 or the balance sheet, as of December 31, 2013 and December 31, 2012. The Company did not have uncertainty tax positions or events leading to uncertainty tax position within the next 12 months. The Company’s 2011, 2012 and 2013 U.S. federal income tax returns are subject to U.S. Internal Revenue Service examination and the Company’s 2007/8, 2008/9, 2009/2010, 2010/11, 2011/12, 2012/13, 2013/14 Hong Kong Company Income Tax filing are subject to Hong Kong Inland Revenue Department examination. The Company’s 2009, 2010, 2011, 2012 and 2013 PRC income tax returns are subject to PRC State Administration of Taxation examination. | ||||||||||
(m) | Foreign currency translation | |||||||||
The accompanying consolidated financial statements are presented in United States dollars (USD). The functional currencies of the Company’s operating business based in Hong Kong and PRC are the Hong Kong Dollar (HKD) and Renminbi (RMB) respectively. The consolidated financial statements are translated into United States dollars from HKD with a ratio of USD1.00=D7.80, a fixed exchange rate maintained between Hong Kong and United States derived from the Hong Kong Monetary Authority pegging HKD and USD monetary policy. For our subsidiaries whose functional currency are the RMB, statement of income, balance sheets and cash flows are translated with a ratio of RMB1.00=D1.26 an average exchange rate during the period. | ||||||||||
Exchange gains or losses arising from foreign currency transactions are included in the determination of net income for the respective periods. All of our revenue transactions are transacted in the functional currencies. We have not entered into any material transactions that are either originated, or to be settled, in currencies other than the HKD, RMB and USD. Accordingly, transaction gains or losses have not had, and are not expected to have a material effect on our results of operations. | ||||||||||
The RMB is not freely convertible into any other currencies. In addition, all foreign exchange transactions in the PRC must be conducted through authorized institutions. Accordingly, management cannot provide any assurance that the RMB underlying the consolidated financial statement amounts could have been, or could be, converted into HKD or USD at the exchange rates used to translate the functional currency into the reporting currency. | ||||||||||
(n) | Revenue recognition | |||||||||
The Company derives revenues from resale of computer memory products, providing both ODM (Original Design Manufacturing) and OEM (Original Equipment Manufacturing) services for various electronic products, such as computer and peripherals, flash storage devices and home electronic products. The Company recognizes revenue in accordance with the ASC 605 “Revenue Recognition”. Under ASC 605, revenue is recognized when there is persuasive evidence of an arrangement, delivery has occurred or services are rendered, the sales price is determinable, and collectability is reasonably assured. Revenue typically is recognized at time of shipment. Sales are recorded net of discounts, rebates, and returns, which historically were not material. | ||||||||||
(o) | Advertising | |||||||||
The Group expensed all advertising costs as incurred. Advertising expenses included in general and administrative expenses were $1,121 and $1,250 for the years ended December 31, 2013 and 2012, respectively. | ||||||||||
(p) | Segment reporting | |||||||||
The Company’s sales are generated from Hong Kong and the rest of China and substantially all of its assets are located in Hong Kong. | ||||||||||
(q) | Fair value of financial instruments | |||||||||
The carrying amount of the Company’s cash and cash equivalents, accounts receivable, lines of credit, convertible debt, accounts payable, accrued expenses, and long-term debt approximates their estimated fair values due to the short-term maturities of those financial instruments. | ||||||||||
(r) | Comprehensive income | |||||||||
Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income are required to be reported in a financial statement that is presented with the same prominence as other consolidated financial statements. The Company has no items that represent other comprehensive income and, therefore, has not included a schedule of comprehensive income in the consolidated financial statements. | ||||||||||
(s) | Basic and diluted earnings (loss) per share | |||||||||
In accordance with ASC No. 260 (formerly SFAS No. 128), “Earnings Per Share,” the basic earnings (loss) per common share is computed by dividing net earnings (loss) available to common stockholders by the weighted average number of common shares outstanding. Diluted earnings (loss) per common share is computed similarly to basic earnings (loss) per common share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. | ||||||||||
(t) | Reclassification | |||||||||
Certain amounts in the prior period have been reclassified to conform to the current consolidated financial statement presentation. | ||||||||||
(u) | Recently issued Accounting Guidance | |||||||||
In January 2013, FASB has issued Accounting Standards Update (ASU) No. 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. This ASU clarifies that ordinary trade receivables and receivables are not in the scope of ASU No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities. Specifically, ASU 2011-11 applies only to derivatives, repurchase agreements and reverse purchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with specific criteria contained in the FASB Accounting Standards Codification™ (Codification) or subject to a master netting arrangement or similar agreement.The FASB undertook this clarification project in response to concerns expressed by U.S. stakeholders about the standard’s broad definition of financial instruments. After the standard was finalized, companies realized that many contracts have standard commercial provisions that would equate to a master netting arrangement, significantly increasing the cost of compliance at minimal value to financial statement users.An entity is required to apply the amendments in ASU 2013-01 for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the required disclosures retrospectively for all comparative periods presented. The effective date is the same as the effective date of ASU 2011-11. | ||||||||||
In February 2013, FASB has issued Accounting Standards Update (ASU) No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This ASU improves the transparency of reporting these reclassifications. Other comprehensive income includes gains and losses that are initially excluded from net income for an accounting period. Those gains and losses are later reclassified out of accumulated other comprehensive income into net income. The amendments in this ASU do not change the current requirements for reporting net income or other comprehensive income in financial statements. All of the information that this ASU requires already is required to be disclosed elsewhere in the financial statements under U.S. GAAP. | ||||||||||
The new amendments will require an organization to: | ||||||||||
l | Present (either on the face of the statement where net income is presented or in the notes) the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income - but only if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. | |||||||||
l | Cross-reference to other disclosures currently required under U.S. GAAP for other reclassification items (that are not required under U.S. GAAP) to be reclassified directly to net income in their entirety in the same reporting period. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is initially transferred to a balance sheet account (e.g., inventory for pension-related amounts) instead of directly to income or expense. | |||||||||
The amendments apply to all public and private companies that report items of other comprehensive income. Public companies are required to comply with these amendments for all reporting periods (interim and annual). A private company is required to meet the reporting requirements of the amended paragraphs about the roll forward of accumulated other comprehensive income for both interim and annual reporting periods. However, private companies are only required to provide the information about the effect of reclassifications on line items of net income for annual reporting periods, not for interim reporting periods.The amendments are effective for reporting periods beginning after December 15, 2012, for public companies and are effective for reporting periods beginning after December 15, 2013, for private companies. Early adoption is permitted. | ||||||||||
In February 2013, FASB issued Accounting Standards Update (ASU) No. 2013-03, Financial Instruments (Topic 825). This ASU clarifies the scope and applicability of a disclosure exemption that resulted from the issuance of Accounting Standards Update No. 2011-04,Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The amendment clarifies that the requirement to disclose" the level of the fair value hierarchy within which the fair value measurements are categorized in their entirety (Level 1, 2, or 3)" does not apply to nonpublic entities for items that are not measured at fair value in the statement of financial position, but for which fair value is disclosed. This ASU is the final version of Proposed Accounting Standards Update 2013-200—Financial Instruments (Topic 825) which has been deleted. The amendments are effective upon issuance. | ||||||||||
In February 2013, FASB has issued Accounting Standards Update (ASU) No. 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date. This ASU provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this ASU is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. GAAP. The guidance requires an entity to measure those obligations as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. The guidance in this ASU also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. For nonpublic entities, the amendments are effective for fiscal years ending after December 15, 2014, and interim periods and annual periods thereafter. The amendments in this ASU should be applied retrospectively to all prior periods presented for those obligations resulting from joint and several liability arrangements within the ASU’s scope that exist at the beginning of an entity’s fiscal year of adoption. An entity may elect to use hindsight for the comparative periods (if it changed its accounting as a result of adopting the amendments in this ASU) and should disclose that fact. Early adoption is permitted. | ||||||||||
In March 2013, FASB has issued Accounting Standards Update (ASU) No. 2013-05, Foreign Currency Matters (Topic 830). This ASU resolve the diversity in practice about whether Subtopic 810-10, Consolidation—Overall, or Subtopic 830-30, Foreign Currency Matters—Translation of Financial Statements, applies to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity. In addition, the amendments in this Update resolve the diversity in practice for the treatment of business combinations achieved in stages (sometimes also referred to as step acquisitions) involving a foreign entity. This ASU is the final version of Proposed Accounting Standards Update EITF11Ar—Foreign Currency Matters (Topic 830), which has been deleted. The amendments in this Update are effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. For nonpublic entities the amendments in this Update are effective prospectively for the first annual period beginning after December 15, 2014, and interim and annual periods thereafter. The amendments should be applied prospectively to derecognition events occurring after the effective date. Prior periods should not be adjusted. Early adoption is permitted. If an entity elects to early adopt the amendments, it should apply them as of the beginning of the entity’s fiscal year of adoption. | ||||||||||
In April 2013, FASB Accounting Standards Update 2013-07,Presentation of Financial Statements (Topic 205): Liquidation Basis of Accounting. This ASU clarifies when an entity should apply the liquidation basis of accounting. In addition, the guidance provides principles for the recognition and measurement of assets and liabilities and requirements for financial statements prepared using the liquidation basis of accounting. Liquidation is the process by which a company converts its assets to cash or other assets and settles its obligations with creditors in anticipation of ceasing all of its activities. An organization in liquidation must prepare its financial statements using a basis of accounting that communicates information to users of those financial statements to enable those users to develop expectations about how much the organization will have available for distribution to investors after disposing of its assets and settling its obligations. The ASU requires organization to prepare its financial statements using the liquidation basis of accounting when liquidation is “imminent.” Liquidation is considered imminent when the likelihood is remote that the organization will return from liquidation and either: (a) a plan for liquidation is approved by the person or persons with the authority to make such a plan effective and the likelihood is remote that the execution of the plan will be blocked by other parties; or (b) a plan for liquidation is being imposed by other forces (e.g., involuntary bankruptcy). In cases where a plan for liquidation was specified in the organization’s governing documents at inception (e.g., limited-life entities), the organization should apply the liquidation basis of accounting only if the approved plan for liquidation differs from the plan for liquidation that was specified in the organization’s governing documents. The ASU requires financial statements prepared using the liquidation basis to present relevant information about a company’s resources and obligations in liquidation, including the following: | ||||||||||
l | The organization’s assets measured at the amount of the expected cash proceeds from liquidation, including any items it had not previously recognized under U.S. GAAP that it expects to either sell in liquidation or use in settling liabilities (e.g., trademarks). | |||||||||
l | The organization’s liabilities as recognized and measured in accordance with existing guidance that applies to those liabilities. | |||||||||
l | Accrual of the costs it expects to incur and the income it expects to earn during liquidation, including any anticipated disposal costs. | |||||||||
This ASU is effective for interim and annual reporting periods beginning after December 15, 2013, with early adoption permitted. | ||||||||||
In July 2013, FASB has published Accounting Standards Update 2013-09, Fair Value Measurement (Topic 820): Deferral of the Effective Date of Certain Disclosures for Nonpublic Employee Benefit Plans in Update No. 2011-04. This ASU defers indefinitely certain disclosures about investments held by nonpublic employee benefit plans in their plan sponsors’ own nonpublic equity securities. The ASU was approved by the FASB on June 12, 2013. ASU No. 2013-09, Fair Value Measurement (Topic 820): Deferral of the Effective Date of Certain Disclosures for Nonpublic Employee Benefit Plans in Update No. 2011-04, applies to disclosures of certain quantitative information about the significant unobservable inputs used in Level 3 fair value measurement for investments held by certain employee benefit plans. | ||||||||||
In July 2013, FASB has issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force).U.S. GAAP does not include explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The amendments in this ASU state that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented 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, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. This ASU applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. For nonpublic entities, the amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Early adoption is permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. | ||||||||||
INVENTORIES
INVENTORIES | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventory Disclosure [Text Block] | ' | |||||||
NOTE 3. | INVENTORIES | |||||||
Inventories consisted of the following: | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
Finished goods | $ | 3,044,793 | $ | 7,241,523 | ||||
Less allowance for excess and obsolete inventory | -1,963,282 | -2,625,375 | ||||||
Inventory, net | $ | 1,081,511 | $ | 4,616,148 | ||||
The following is a summary of the change in the Company's inventory valuation allowance: | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
Inventory valuation allowance, beginning of the year | $ | 2,625,375 | $ | 709,374 | ||||
Obsolete inventory sold | -662,093 | - | ||||||
Additional inventory provision | - | 1,916,001 | ||||||
Inventory valuation allowance, end of year | $ | 1,963,282 | $ | 2,625,375 | ||||
PROPERTY_PLANT_AND_EQUIPMENT_N
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | |||||||
NOTE 4. | PROPERTY, PLANT AND EQUIPMENT, NET | |||||||
Property, plant and equipment, net comprise the following: | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
At cost | ||||||||
Land and buildings | $ | 8,574,682 | $ | 9,375,558 | ||||
Automobiles | 642,241 | 658,772 | ||||||
Office equipment | 268,863 | 268,863 | ||||||
Leasehold improvements | 543,550 | 543,550 | ||||||
Furniture and fixtures | 57,302 | 57,302 | ||||||
Machinery | 668,185 | 668,185 | ||||||
$ | 10,754,823 | $ | 11,572,230 | |||||
Less: accumulated depreciation | -2,541,974 | -1,986,175 | ||||||
$ | 8,212,849 | $ | 9,586,055 | |||||
Depreciation and amortization expense included in the general and administrative expenses for the years ended December 31, 2013 and 2012 were $756,596 and $564,117 respectively. | ||||||||
Automobiles include the following amounts under capital leases: | ||||||||
December 31, 2013 | December 31, 202 | |||||||
Cost | $ | 399,473 | $ | 469,754 | ||||
Less accumulated depreciation | -341,876 | -302,106 | ||||||
Total | $ | 57,597 | $ | 167,648 | ||||
CAPITAL_LEASE_OBLIGATIONS
CAPITAL LEASE OBLIGATIONS | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Capital Lease Obligations [Abstract] | ' | |||||||
Leases of Lessor Disclosure [Text Block] | ' | |||||||
NOTE 5. | CAPITAL LEASE OBLIGATIONS | |||||||
The Company leases automobiles under three capital leases that will expire between April 2014 and December 2015. Aggregate future obligations under the capital leases in effect as of December 31, 2013 and 2012 are as follows: | ||||||||
The Company has several non-cancellable capital leases relating to automobiles: | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
Current portion | $ | 75,917 | $ | 96,506 | ||||
Non-current portion | 57,511 | 133,428 | ||||||
$ | 133,428 | $ | 229,934 | |||||
At December 31, 2013 and 2012, the value of automobiles under capital leases as follows: | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
Cost | $ | 399,473 | $ | 469,754 | ||||
Less: accumulated depreciation | -341,876 | -302,106 | ||||||
$ | 57,597 | $ | 167,648 | |||||
At December 31, 2013 and 2012, the Company had obligations under capital leases repayable as follows: | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
Total minimum lease payments | ||||||||
-Within one year | $ | 81,906 | $ | 103,890 | ||||
- After one year but within 5 years | 60,351 | 143,430 | ||||||
$ | 142,257 | $ | 247,320 | |||||
Interest expenses relating to future periods | -8,829 | -17,386 | ||||||
Present value of the minimum lease payments | $ | 133,428 | $ | 229,934 | ||||
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended | ||
Dec. 31, 2013 | |||
Related Party Transactions [Abstract] | ' | ||
Related Party Transactions Disclosure [Text Block] | ' | ||
NOTE 6. | RELATED PARTY TRANSACTIONS | ||
Related party receivables are payable on demand upon the same terms as receivables from unrelated parties. | |||
Transactions with Aristo Technologies Limited / Mr. Yang | |||
This represented Aristo transactions with various related parties of Mr. Yang. | |||
As of December 31, 2013 and 2012, we had an outstanding receivable from Aristo / Mr. Yang, the President and Chairman of our Board of Directors, totaling $931,652 and $3,658,359, respectively. These advances bear no interest and are payable on demand. The receivable due from Aristo / Mr. Yang to the Company is derived from the consolidation of the financial statements of Aristo, a variable interest entity, with the Company. A repayment plan has been entered with Mr. Yang. | |||
Transactions with Solution Semiconductor (China) Limited | |||
Mr. Yang is a director and the sole beneficial owner of the equity interests of Solution Semiconductor (China) Ltd. (“Solution”). | |||
During the years ended December 31, 2013 and 2012, we received service charges of $15,384 and $5,769 respectively from Solution. The service fee was charged for back office support for Solution. | |||
During the years ended December 31, 2013 and 2012, we sold products for $3,530,784 and $1,000 respectively, to Solution. As of December 31, 2013 and 2012, there were no outstanding accounts receivables from Solution | |||
Two facilities located in Hong Kong owned by Solution were used by the Company as collateral for loans from DBS Bank (Hong Kong) Limited (“DBS Bank”) and The Bank of East Asia, Limited (“BEA Bank”) respectively. | |||
Transactions with Systematic Information Limited | |||
Mr. Yang, the Company’s Chief Executive Officer, majority shareholder and a director, is a director and shareholder of Systematic Information Ltd. (“Systematic Information”) with a total of 100% interest. | |||
During the years ended December 31, 2013 and 2012, we received service charges of $3,077 and $7,769 respectively from Systematic Information. The service fee was charged for back office support for Systematic Information. | |||
During the years ended December 31, 2013 and 2012, we sold products for $2,000,782and $17,457 respectively, to Systematic Information. As of December 31, 2013 and 2012, there were no outstanding accounts receivables from Systematic Information. | |||
A workshop located in Hong Kong owned by Systematic Information was used by the Company as collateral for loans from BEA Bank. | |||
Transactions with Global Mega Development Limited | |||
Mr. Yang is the sole beneficial owner of the equity interests of Global Mega Development Ltd. (“Global”). | |||
During the years ended December 31, 2013 and 2012, we received service charges of $1,026 and $0 respectively from Global. The service fee was charged for back office support for Global. | |||
During the years ended December 31, 2013 and 2012, we sold products for $1,564,213 and $0 respectively, to Global. As of December 31, 2013 and 2012, there were no outstanding accounts receivables from Global. | |||
Transactions with Atlantic Storage Devices Limited | |||
Mr. Yang is a director and 40% shareholder of Atlantic Storage Devices Ltd. (“Atlantic Storage”). The remaining 60% of Atlantic Storage is owned by a non-related party. During the years ended December 31, 2013 and 2012, we sold products for $25,536 and $21,784 respectively, to Atlantic Storage. As of December 31, 2013 and 2012, there were no outstanding accounts receivables from Atlantic Storage. | |||
Transactions with City Royal Limited | |||
Mr. Yang, the Company’s Chief Executive Officer, majority shareholder and a director, is a 50% shareholder of City Royal Limited (“City”). The remaining 50% of City is owned by the wife of Mr. Yang. A residential property located in Hong Kong owned by City was used by the Company as collateral for loans from DBS Bank. | |||
Transactions with Aristo Components Limited | |||
Mr. Ben Wong appointed as new Chief Executive Officer on February 1, 2013. He is a 90% shareholder of Aristo Components Ltd. (“Aristo Comp”). The remaining 10% of Aristo Comp is owned by a non-related party. During the years ended December 31, 2013 and 2012, we received a management fee of $12,308 and $12,308 respectively from Aristo Comp. The management fee was charged for back office support for Aristo Comp. | |||
Transactions with Atlantic Ocean (HK) Limited | |||
Mr. Yang is a director and 60% shareholder of Atlantic Ocean (HK) Limited (“Ocean”). During the years ended December 31, 2013 and 2012, we received a service fee of $ 0 and $9,615 respectively from Ocean. The service fee was charged for back office support for Ocean. | |||
During the years ended December 31, 2013 and 2012, we sold products for $13,924 and $0 respectively, to Ocean. As of December 31, 2013 and 2012, there were no outstanding accounts receivables from Ocean. | |||
Debt Assignment | |||
On December 27, 2012, Aristo entered into an assignment agreement (the “Assignment Agreement”) with Atlantic and USmart. | |||
Pursuant to the Assignment Agreement, Aristo agreed to assign to Atlantic, for no consideration, all of its rights and interests in certain debts (collectively, the “Debt”) in an amount of US$11,794,871.79 owed to Aristo by USmart (the “Assignment”). | |||
The Company acquired 80% of USmart’s equity interest (the “Interest”) on September 28, 2012. The Debt owed by USmart to Aristo was taken into consideration by the parities in determining the purchase price for the Interest and was expected to be eliminated subsequent to the closing of the Acquisition. | |||
REVOLVING_LINES_OF_CREDIT_AND_
REVOLVING LINES OF CREDIT AND LOAN FACILITIES | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Line Of Credit Facility [Abstract] | ' | |||||||||||
Revolving Lines Of Credit and Loan Facilities [Text Block] | ' | |||||||||||
NOTE 7. | REVOLVING LINES OF CREDIT AND LOAN FACILITIES | |||||||||||
The Company has available to it a $897,436 revolving line of credit with The Bank of East Asia, Limited (“BEA”) with an outstanding balance of $897,290 at December 31, 2013 and $897,000 at December 31, 2012. The line of credit bears interest at the higher of Hong Kong prime rate or HIBOR plus 2% for HKD facilities and LIBOR plus 1.75% for other currency facilities as of December 31, 2013. The weighted average interest rate approximated 5.25% for 2013 and 2012. | ||||||||||||
The Company has available to it a $769,231 revolving line of credit with The Bank of East Asia, Limited (“BEA”) with an outstanding balance of $761,089 at December 31, 2013 and $764,761 at December 31, 2012. The line of credit bears interest at the higher of Hong Kong prime rate plus 0.25% or HIBOR plus 2% for HKD facilities and LIBOR plus 2% for other currency facilities as of December 31, 2013. The weighted average interest rate approximated 5.5% for 2013 and 2012. | ||||||||||||
The Company has available to it a $2,435,897 revolving line of credit with The Fubon Bank (Hong Kong) Limited (Fubon”) with an outstanding balance of 1,520,201 at December 31, 2013 and $0 at December 31, 2012. The line of credit bears interest at the higher of HIBOR plus 3.5% for HKD facilities and LIBOR plus 3.5% for other currency facilities as of December 31, 2013. The weighted average interest rate approximated 6.5% for 2013. | ||||||||||||
The summary of banking facilities at December 31, 2013 is as follows: | ||||||||||||
Granted facilities | Utilized facilities | Not Utilized | ||||||||||
Facilities | ||||||||||||
Lines of credit and loan facilities | ||||||||||||
Import/Export Loan | 4,102,564 | 3,178,580 | 923,984 | |||||||||
$ | $ | $ | ||||||||||
Bank Loans | 3,222,113 | (a) | 3,222,113 | - | ||||||||
Revolving Short Term Loan | 1,538,462 | (a) | 1,538,168 | 294 | ||||||||
Overdraft | 64,103 | (b) | 61,758 | 2,345 | ||||||||
$ | 8,927,242 | $ | 8,000,619 | $ | 926,623 | |||||||
(a) The bank loans are combined from the summary of Note (8), total bank loans amount to USD7,630,946 with a revolving short term loan of USD1,538,168. The revolving short term loan is placed under Other Current Liabilities on the balance sheet. It has a facility limit of USD1,538,462, bearing an interest rate of 0.5% below Hong Kong prime rate per annum. | ||||||||||||
(b) Including in cash and cash equivalents | ||||||||||||
BANK_LOANS
BANK LOANS | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Bank Loans [Abstract] | ' | |||||||
Bank Loan Disclosure [Text Block] | ' | |||||||
NOTE 8. | BANK LOANS | |||||||
Bank loans were comprised of the following as of December 31, 2013 and 2012 | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
Installment loan provided by BEA Bank having a maturity date in July 28, 2014 and carrying an interest rate of Hong Kong dollar Prime Rate at 5.25% as of December 31, 2013 and 2012 +0.25%, payable in monthly installments of $13,291 including interest through December 2013 without any balloon payment requirements | $ | 89,744 | $ | 243,590 | ||||
Installment loan provided by BEA Bank having a maturity date in April 18, 2015 and carrying an interest rate of Hong Kong dollar Prime Rate at 5.25% as of December 31, 2013 and 2012 +0.25%, payable in monthly installments of $46,065 including interest through December 2013 without any balloon payment requirements | 683,761 | 1,196,581 | ||||||
Installment loan provided by DBS Bank having a maturity date in April 25, 2015 and carrying an interest rate of Hong Kong Prime dollar Rate at 5.25% as of December 31, 2013 and 2012 +0.5%, payable in monthly installments of $55,939 including interest through December 2013 without any balloon payment requirements | 859,612 | 1,574,812 | ||||||
Installment loan provided by DBS Bank having a maturity date in June 2, 2023 and carrying an interest rate of one month HIBOR at 0.28% as of December 31+2%, it was fully repaid on 23 September, 2013 | - | 456,123 | ||||||
Installment loan provided by DBS Bank having a maturity date in September 15, 2023 and carrying an interest rate of Hong Kong dollar Prime Rate at December 31, 2012 -2.5%, it was fully repaid on 23 September, 2013 | - | 584,573 | ||||||
Installment loan provided by DBS Bank having a maturity date in June 2, 2026 and carrying an interest rate of one month HIBOR at December 31, 2012 +2%, it was fully repaid on 23 September, 2013 | - | 703,598 | ||||||
Installment loan provided by DBS Bank having a maturity date in July 21, 2026 and carrying an interest rate of Hong Kong dollar Prime Rate at 5.25% as of December 31, 2012 -2.4%, it was fully repaid on 23 September, 2013 | - | 1,340,032 | ||||||
Installment loan having a maturity date in 23 September, 2028 and carrying an interest rate of 2% per annum over one month HIBOR (0.2143% at December 31, 2013) from Fubon Bank payable in monthly installments of $6,283 including interest through December 2013 without any balloon payment requirements | 947,971 | - | ||||||
Term loan having a maturity due in 23 January, 2014 and carrying an interest rate of 3.88429 per annum from Fubon Bank without any balloon payment requirements | 641,025 | - | ||||||
$ | 3,222,113 | $ | 6,099,309 | |||||
An analysis on the repayment of bank loan as of December 31, 2013 and December 31, 2012 are as follow: | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
Carrying amount that are repayable on demand or within twelve months from | ||||||||
December 31, 2013 containing a repayable on demand clause: | ||||||||
Within twelve months | $ | 1,937,063 | $ | 1,529,282 | ||||
Carrying amount that are not repayable within twelve months from September 30, 2013 containing a repayable on demand clause but shown in current liabilities: | ||||||||
After 1 year, but within 2 years | $ | 505,656 | $ | 2,142,751 | ||||
After 2 years, but within 5 years | 118,775 | 467,232 | ||||||
After 5 years | 660,619 | 1,960,044 | ||||||
$ | 1,285,050 | $ | 4,570,027 | |||||
$ | 3,222,113 | $ | 6,099,309 | |||||
With respect to all of the debt and credit arrangements referred to in this Note 8 and Note 9, the Company pledged its assets to a bank group in Hong Kong comprised of DBS Bank, BEA Bank and Fubon Bank, as collateral for all current and future borrowings from the bank group by the Company. In addition to the above pledged collateral, the debt is also secured by: | ||||||||
1 | Collateral for loans from DBS Bank: | |||||||
(a) | a security interest on a residential property located in Hong Kong owned by City, a related party; | |||||||
(b) | a workshop located in Hong Kong owned by Solution, a related party; and | |||||||
(c) | an unlimited personal guarantee by Mr. Yang | |||||||
2 | Collateral for loans from BEA Bank: | |||||||
(a) | a workshop located in Hong Kong owned by Systematic Information, a related party; | |||||||
(b) | a workshop located in Hong Kong owned by Solution, a related party; and | |||||||
(c) | an unlimited personal guarantee by Mr. Yang | |||||||
3 | Collateral for loans from Fubon Bank | |||||||
(a) | a security interest on two residential properties located in Hong Kong owned by Aristo, a company wholly owned by Mr. Yang; and | |||||||
(b) | an unlimited personal guarantee by Mr. Yang | |||||||
OTHER_CURRENT_LIABILITIES
OTHER CURRENT LIABILITIES | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Other Current Liabilities [Abstract] | ' | |||||||
Other Liabilities Disclosure [Text Block] | ' | |||||||
NOTE 9. | other current liabilities | |||||||
The other current liabilities consisted the following as of December 31, 2013 and December 31, 2012: | ||||||||
31-Dec-13 | December 31, 2012 | |||||||
Revolving short term loan | $ | 1,538,168 | $ | 1,531,637 | ||||
Trade deposit from customers | 7,725,475 | 9,896,635 | ||||||
Temporary receipts | 2,242,999 | - | ||||||
Others | 937,358 | 957,730 | ||||||
$ | 12,444,000 | $ | 12,386,002 | |||||
The trade deposit from customers consists of letter of credits received from our customers which were financed by the bank. | ||||||||
LOAN_FROM_A_THIRTY_PARTY
LOAN FROM A THIRTY PARTY | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Loan From a Third Party [Abstract] | ' | ||||
Loan From Third Party Disclosure [Text Block] | ' | ||||
NOTE 10. | LOAN FROM A THIRD PARTY | ||||
On September 26, 2013, Atlantic Components Limited entered into a Loan Agreement with Excel Precise International Limited, an unrelated third party, for a loan facility to the aggregate extent of HKD55 Million (USD7,051,282). The amount HKD55 Million has been drawn down on September 27, 2013. The rate of interest is 1.1% per month and payable on the 26th day of each calendar month. | |||||
The Loan is collateral with mortgage over two Properties owned by Atlantic Components Limited and Personal Guaranteed by Wong, Fung Ming and Yang, Chung Lun. | |||||
The repayment time schedule contained in the Loan Agreement is as follows: | |||||
Date of Repayment | Amount | ||||
The Last date of the 12-month period from September 27, 2013 | 641,026 | ||||
The Last date of the 24-month period from September 27, 2013 | 1,282,051 | ||||
The Last date of the 36-month period from September 27, 2013 | 5,128,205 | ||||
7,051,282 | |||||
Current portion | 641,026 | ||||
Non-current portion | 6,410,256 | ||||
7,051,282 | |||||
The Loan facility is to provide purpose temporary relief for the Company’s liquidity during the negotiation with new banker for a better term on a new banking facility. | |||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Income Tax Disclosure [Text Block] | ' | |||||||
NOTE 11. | Income taxes | |||||||
Income tax (reversal) expense amounted to $21,887 for 2013 and $32,950 for 2012 (an effective rate of -0.16% for 2013 and -0.02% for 2012). A reconciliation of the provision for income taxes with amounts determined by applying the statutory federal income tax rate of 34% to income before income taxes is as follows: | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
Computed tax at federal statutory rate | $ | - | $ | - | ||||
Tax rate differential on foreign earnings of Atlantic and Aristo, | ||||||||
Hong Kong based companies | -83,680 | -353,440 | ||||||
Federal tax penalty provision | 80,000 | - | ||||||
Tax (over) under provision for Atlantic | -68,720 | 32,950 | ||||||
Tax paid by Kezheng | 10,607 | - | ||||||
Net operating loss carry forward | 83,680 | 353,440 | ||||||
$ | 21,887 | $ | 32,950 | |||||
The income tax provision consists of the following components: | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
Federal | $ | 80,000 | $ | - | ||||
Foreign | -58,113 | 32,950 | ||||||
$ | 21,887 | $ | 32,950 | |||||
The Components of the deferred tax assets and liabilities are as follows: | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
Net operating losses | $ | 4,681,570 | $ | 1,837,120 | ||||
Total deferred tax assets | $ | 4,687,570 | $ | 1,837,120 | ||||
Less: valuation allowance | -4,687,570 | -1,837,120 | ||||||
$ | - | $ | - | |||||
The Company did not have any interest and penalty not to recognize- in the income statements for the year ended December 31, 2013 and 2012 or balance sheet as of December 31, 2013 and 2012. The Company did not have uncertainty tax positions or events leading to uncertainty tax position within the next 12 months. The Company’s 2011, 2012, and 2013 U.S. Corporation Income Tax Return are subject to U.S. Internal Revenue Service examination and the Company’s 2007/8, 2008/9, 2009/2010, 2010/11, 2011/12 2012/13, and 2013/14 Hong Kong Corporations Profits Tax Return filing are subject to Hong Kong Inland Revenue Department examination. The Company’s 2009, 2010, 2011, 2012 and 2013 PRC income tax returns are subject to PRC State Administration of Taxation examination. | ||||||||
CASH_FLOW_INFORMATION
CASH FLOW INFORMATION | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Supplemental Cash Flow Elements [Abstract] | ' | |||||||
Cash Flow, Supplemental Disclosures [Text Block] | ' | |||||||
NOTE 12. | CASH FLOW INFORMATION | |||||||
(a) | Cash paid during the years ended December 31, 2013 and 2012 is as follows: | |||||||
December 31, 2013 | December 31, 2012 | |||||||
Interest paid | $ | 1,041,095 | $ | 1,011,080 | ||||
Income taxes (reversal) paid | $ | - | $ | -2,870 | ||||
(b) | Net cash inflow on acquisition of subsidiaries as of December 31, 2013 and December 31, 2012 are as follow: | |||||||
December 31, 2013 | December 31, 2012 | |||||||
Cash consideration paid up to December 31, 2013 and 2012 | $ | - | $ | 2,150,000 | ||||
Cash and cash equivalents acquired | - | -157,259 | ||||||
Net cash inflow in respect of acquisition of subsidiaries | $ | - | $ | 1,992,741 | ||||
WEIGHTED_AVERAGE_NUMBER_OF_SHA
WEIGHTED AVERAGE NUMBER OF SHARES | 12 Months Ended | ||
Dec. 31, 2013 | |||
Weighted Average Number Of Shares Outstanding, Basic [Abstract] | ' | ||
Weighted Average Number Of Shares Disclosure [Text Block] | ' | ||
NOTE 13. | WEIGHTED AVERAGE NUMBER OF SHARES | ||
The Company has a 2006 Incentive Equity Stock Plan, under which the Company may grant options to its employees for up to 5 million shares of common stock. There was no dilutive effect to the weighted average number of shares for the years ended December 31, 2013 and 2012 since there were no outstanding options at December 31, 2013 and 2012. | |||
CONCENTRATIONS_OF_CREDIT_RISK_
CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS | 12 Months Ended | ||
Dec. 31, 2013 | |||
Fair Value, Concentration of Risk, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ||
Concentration Risk Disclosure [Text Block] | ' | ||
NOTE 14. | CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS | ||
The Company had a non-exclusive Distributorship Agreement with Samsung Electronics Hong Kong Co., Ltd. (“Samsung”), which was initially entered into in May 1993 and has been renewed annually. The Company’s Samsung business was formerly handle through its indirect wholly owned subsidiary, Atlantic. After April 1, 2012, Atlantic integrates its business relating to purchasing semiconductors and electronic parts from Samsung to the new joint venture, ATMD. ATMD has signed a new non-exclusive Distributorship Agreement with Samsung. The non-exclusive Distributorship Agreement between Atlantic and Samsung was expired in June 30, 2012. On September 27, 2013, the Company sold the entire 30% equity interest of ATMD. | |||
In addition, the Company’s operations and business viability are to a large extent dependent on the provision of management services and financial support by Mr. Yang. See Note 8 of the Notes to Consolidated Financial Statements for Mr. Yang’s support on the Company’s banking facilities. | |||
RETIREMENT_PLAN
RETIREMENT PLAN | 12 Months Ended | ||
Dec. 31, 2013 | |||
Asset Retirement Obligation [Abstract] | ' | ||
Pension and Other Postretirement Benefits Disclosure [Text Block] | ' | ||
NOTE 15. | RETIREMENT PLAN | ||
Under the Mandatory Provident Fund (“MPF”) Scheme Ordinance in Hong Kong, the Company is required to set up or participate in an MPF scheme to which both the Company and employees must make continuous contributions throughout their employment based on 5% of the employees’ earnings, subject to maximum and minimum level of income. For those earning less than the minimum level of income, they are not required to contribute but may elect to do so. However, regardless of the employees’ election, their employers must contribute 5% of the employees’ income. Contributions in excess of the maximum level of income are voluntary. All contributions to the MPF scheme are fully and immediately vested with the employees’ accounts. The contributions must be invested and accumulated until the employees’ retirement. The Company contributed and expensed $32,872 for 2013 and $29,552 for 2012. | |||
COMMITMENTS
COMMITMENTS | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||
Commitments Disclosure [Text Block] | ' | ||||||||||
NOTE 16. | COMMITMENTS | ||||||||||
The Company leases its facilities. The following is a schedule by years of future minimum rental payments required under operating leases that have non-cancellable lease terms in excess of one year as of December 31, 2013: | |||||||||||
Related parties | Others | Total | |||||||||
Year ending December 31, | |||||||||||
2014 | $ | - | $ | 376,760 | $ | 376,760 | |||||
2015 | - | 177,033 | 177,033 | ||||||||
Thereafter | - | 525,100 | 525,100 | ||||||||
Total | $ | - | $ | 1,078,893 | $ | 1,078,893 | |||||
See Note 6 of the Notes to Consolidated Financial Statements for related party leases. All leases expire prior to December 31, 2018. Real estate taxes, insurance, and maintenance expenses are obligations of the Company. It is expected that in the normal course of business, leases that expire will be renewed or replaced by leases on other properties; thus, it is anticipated that future minimum lease commitments will likely be more than the amounts shown for 2013. Rent expense for the years ended December 31, 2013 and 2012 totaled $475,571 and $241,699, respectively. | |||||||||||
STOCK_DIVIDEND
STOCK DIVIDEND | 12 Months Ended | ||
Dec. 31, 2013 | |||
Stock Dividend [Abstract] | ' | ||
Stock Dividend [Text Block] | ' | ||
NOTE 17. | STOCK DIVIDEND | ||
On May 28, 2012, the Company paid a special dividend of the common stock to its shareholders. 5,805,059 shares of common stock were issued and an additional $7.47 was paid to shareholders for fractional shares. There are no dividends being paid for the year 2013. | |||
INVESTMENTS_IN_A_JOINTLYCONTRO
INVESTMENTS IN A JOINTLY-CONTROLLED ENTITY | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | |||||||||||
Investments In Jointly Entity [Text Block] | ' | |||||||||||
NOTE 18. | INVESTMENTS IN A JOINTLY-CONTROLLED ENTITY | |||||||||||
In March 2012, the Company and Tomen Devices Corporation established ATMD (Hong Kong) Limited, a joint venture operating in Hong Kong. Under the terms of the agreement, USmart’s contribution comprised cash of $3 million. | ||||||||||||
Particulars of the jointly-controlled entity are as follows: | ||||||||||||
Percentage of | ||||||||||||
Name | Place of registration | Ownership interest | Voting power | Profit sharing | Principal activity | |||||||
ATMD (Hong Kong) Limited | Hong Kong | 30 | 30 | 30 | Trading | |||||||
All shareholding in the above entity are in ordinary shares or the equivalent and are stated to the nearest percentage point. | ||||||||||||
The following table illustrates the summarized financial information of the Company’s jointly-controlled entity: | ||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||
Share of jointly-controlled entity's assets and liabilities: | ||||||||||||
Current assets | $ | - | $ | 23,490,550 | ||||||||
Non-current assets | - | 69,921 | ||||||||||
Current liabilities | - | -20,742,164 | ||||||||||
$ | - | $ | 2,818,307 | |||||||||
Share of jointly-controlled entity's results: | ||||||||||||
Net sales | $ | - | $ | 48,674,460 | ||||||||
Gross profit | - | 698,848 | ||||||||||
Net loss | - | -181,693 | ||||||||||
On September 27, 2013 the Company sold the entire 30% equity interest of ATMD. | ||||||||||||
ACQUISITION
ACQUISITION | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Business Combinations [Abstract] | ' | ||||
Business Combination Disclosure [Text Block] | ' | ||||
NOTE 19. | ACQUISITION | ||||
On September 28, 2012, the Company completed its acquisition of 100% equity interest of Jussey Investments Limited (“Jussey”), a company incorporated in British Virgin Islands, for aggregate purchase consideration of approximately US$2,150,000, payable by way of cash or equivalent in favor to the seller within 5 business days after the completion of the acquisition. Jussey owns 100% equity interest in eVision Telecom Limited (“eVision”), a Hong Kong incorporated company, and 80% equity interest in USmart Electronic Products Limited (“UEP”), a Hong Kong incorporated company. Jussey indirectly owns 80% of Dongguan Kezheng Electronics Limited (“Kezheng”), a wholly foreign-owned enterprise (“WFOE”) organized under the laws of the PRC by UEP. | |||||
Through the acquisition, the Company has diversified its product portfolio, enhanced its distributor role to a Research and Develop (“R&D”) manufacturer with its own products and brands, entered the telecommunication industry, gained access to the 3G baseband licenses, and design and manufacturing matrix and facility. | |||||
The Company accounted for this acquisition of Jussey and its subsidiaries by acquisition method of accounting. The balance sheet items were stated at fair value. The fair value was accounted upon the issuance of fair value report from an independent valuator engaged for this acquisition. | |||||
The purchase price was allocated as follows: | |||||
Purchase Consideration: | |||||
Acquisition obligation payable to sellers | $ | 2,150,000 | |||
Direct costs relating to acquiree | 20,000 | ||||
Less: cash acquired | -157,259 | ||||
Net purchase consideration | $ | 2,012,741 | |||
Assets Acquired | |||||
Net tangible assets acquired: | |||||
Fixed assets | $ | 355,481 | |||
Inventories | 654,757 | ||||
Trade receivables, deposits, prepayment and other receivables | 717,369 | ||||
Restricted cash | 132,706 | ||||
Trade payables, other creditors and accruals | -13,328,971 | ||||
Non-controlled interest | 2,140,276 | ||||
Net tangible assets acquired | $ | -9,328,382 | |||
Purchase consideration in excess of net tangible assets | $ | 11,341,123 | |||
Allocated to: | |||||
Trademark | $ | 53,955 | |||
License contracts | 11,287,168 | ||||
$ | 11,341,123 | ||||
The purchase price allocation was computed based on fair value report from the independent valuator. | |||||
Jussey’s results of operations are consolidated with the Company effective October 1, 2012. | |||||
The intangible assets were fully amortized as of December 31, 2013, see Note 20 for details. | |||||
INTANGIBLE_ASSETS
INTANGIBLE ASSETS | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||
Intangible Assets Disclosure [Text Block] | ' | |||||||||
NOTE 20. | INTANGIBLE ASSETS | |||||||||
The Company uses the acquisition method of accounting for business combinations which requires that the assets acquired and liabilities assumed be recorded at the date of the acquisition at their respective fair values. Assets acquired and liabilities assumed in a business combination that arise from contingencies are recognized at fair value if fair value can reasonably be estimated. If the fair value of an asset acquired or liability assumed that arises from a contingency cannot be determined at the date of acquisition, the asset or liability is recognized if probable and reasonably estimable; if these criteria are not met, no asset or liability is recognized. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Any excess of the purchase price (consideration transferred) over the estimated fair values of net assets acquired is recorded as goodwill. Transaction costs and costs to restructure the acquired company are expensed as incurred. The operating results of acquired business are reflected in the acquirer’s consolidated financial statements and results of operations after the date of the acquisition. | ||||||||||
The intangible assets are summarized in the following table which provides the gross carrying value and accumulated amortization for each major class of intangible assets other than goodwill: | ||||||||||
Remaining useful life | December 31, 2013 | December 31, 2012 | ||||||||
Gross carrying amount: | ||||||||||
Trademark | 12 months | $ | 53,955 | $ | 53,955 | |||||
License contracts | 12 months | 11,287,168 | 11,287,168 | |||||||
11,341,123 | 11,341,123 | |||||||||
Less : Accumulated amortization | ||||||||||
Trademark | $ | 53,955 | $ | - | ||||||
License contracts | 11,287,168 | - | ||||||||
11,341,123 | - | |||||||||
Intangible assets, net | $ | - | $ | 11,341,123 | ||||||
The aggregate amortization expense for those intangible assets that continue to be amortized is reflected in amortization of intangible assets in the Condensed Consolidated Statements of Income (Unaudited) and was $11,341,123 and $0 for the year ended December 31, 2013 and 2012 respectively. | ||||||||||
The written down of the carrying amount of the intangible assets are based on evaluation of the future revenue generated from the concerned intangible assets. Due to the slowing down of the projected order and the narrowing down of gross margin of the projects, the Company decided to fully write down $11,341,123 of the entire carrying value of the intangible assets. | ||||||||||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended | ||
Dec. 31, 2013 | |||
Subsequent Events [Abstract] | ' | ||
Subsequent Events [Text Block] | ' | ||
NOTE 21. | SUBSEQUENT EVENTS | ||
In preparing these financial statements, the Company evaluated the events and transactions that occurred from January 1, 2014 through April 15, 2014, the date these financial statements are issued. The Company has determined that there were no material subsequent events. | |||
UNCERTAINTY_OF_ABILITY_TO_CONT
UNCERTAINTY OF ABILITY TO CONTINUE AS A GOING CONCERN | 12 Months Ended | ||
Dec. 31, 2013 | |||
Going Concern [Abstract] | ' | ||
Going Concern [Text Block] | ' | ||
NOTE 22. | UNCERTAINTY OF ABILITY TO CONTINUE AS A GOING CONCERN | ||
The Company's financial statements are prepared using the generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The continuation of the Company as a going concern is dependent upon the ability of the Company to obtain necessary equity financing to continue operations and the attainment of profitable operations. The management will seek to raise funds from shareholders. | |||
For the year ended December 31, 2013, the Company has generated revenue of $72,175,289 and has incurred an accumulated deficit $16,879,337. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. These factors noted above raise substantial doubts regarding the Company's ability to continue as a going concern. | |||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Accounting Policies [Abstract] | ' | |||||||||
Basis of Accounting, Policy [Policy Text Block] | ' | |||||||||
(a) | Method of Accounting | |||||||||
The Company maintains its general ledger and journals with the accrual method accounting for financial reporting purposes. The consolidated financial statements and notes are representations of management. Accounting policies adopted by the Company conform to generally accepted accounting principles in the United States of America and have been consistently applied in the presentation of consolidated financial statements. | ||||||||||
Consolidation, Policy [Policy Text Block] | ' | |||||||||
(b) | Principles of consolidation | |||||||||
The consolidated financial statements are presented in US Dollars and include the accounts of the Company and its subsidiary. All significant inter-company balances and transactions are eliminated in consolidation. | ||||||||||
The Company owned its subsidiary soon after its inception and continued to own the equity’s interests through December 31, 2013. The following table depicts the identity of the subsidiary: | ||||||||||
Name of Subsidiary | Place of | Attributable Equity | Registered | |||||||
Incorporation | Interest % | Capital | ||||||||
ACL International Holdings Limited | Hong Kong | 100 | $ | 0.13 | ||||||
Alpha Perform Technology Limited | BVI | 100 | $ | 1,000 | ||||||
Atlantic Components Limited (1) | Hong Kong | 100 | $ | 384,615 | ||||||
Aristo Technologies Limited (2) | Hong Kong | 100 | $ | 1,282 | ||||||
Dongguan Kezheng Electronics Limited (3) | PRC | 80 | $ | 680,499 | ||||||
eVision Telecom Limited (4) | Hong Kong | 100 | $ | 25,641 | ||||||
Jussey Investments Limited (1) | BVI | 100 | $ | 1 | ||||||
USmart Electronic Products Limited (4) | Hong Kong | 80 | $ | 1.28 | ||||||
Note: | (1) Wholly owned subsidiary of ACL International Holdings Limited | |||||||||
(2) Deemed variable interest entity | ||||||||||
(3) Wholly owned subsidiary of USmart Electronic Products Limited | ||||||||||
(4) Wholly or partially owned by Jussey Investments Limited | ||||||||||
Variable Interests Entities | ||||||||||
According to ASC 810-10-25 which codified FASB Interpretation No. 46 (Revised December 2003), Consolidation of Variable Interest Entities — an interpretation of ARB No. 51 (FIN 46R), an entity that has one or more of the three characteristics set forth therein is considered a variable interest entity. One of such characteristics is that the equity investment at risk in the relevant entity is not sufficient to permit the entity to finance its activities without additional subordinated financial support provided by any parties, including the equity holders. | ||||||||||
ASC 810-05-08A specifies the two characteristics of a controlling financial interest in a variable interest entity (“VIE”): (1) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance; and (2) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company is the primary beneficiary of Aristo because the Company can direct the activities of Aristo through the common director and major shareholder. Also, the Company extended substantial accounts receivable to Aristo and created an obligation to absorb loss if Aristo failed. Moreover, ASC 810-25-42 & 43 provides guidance on related parties treatment of VIE and specifies the relationship of de-facto agent and principal. This guidance will help to determine whether the Company will consolidate Aristo. | ||||||||||
Owing to the extent of outstanding large amounts of accounts receivable since 2007 together with the nominal amount of paid-up capital contributed by Mr. Yang when Aristo was formed, it has been determined that Aristo cannot finance its operations without subordinated financial support from USmart and accordingly, USmart is considered to be the de facto principal of Aristo, Aristo is considered to be the de facto subsidiary of the Company, and Mr. Yang is considered to be a related party of both the Company and Aristo. | ||||||||||
By virtue of the above analysis, it has been determined that the Company is the primary beneficiary of Aristo. | ||||||||||
Aristo Technologies Limited | ||||||||||
The Company sells Samsung memory chips to Aristo and allows long grace periods for Aristo to repay the open accounts receivable. Being the biggest creditor, the Company does not require Aristo to pledge assets or enter into any agreements to bind Aristo to specific repayment terms. The Company does not experience any bad debt from Aristo. Hence, the Company does not provide any bad debt provision derived from Aristo. Although, the Company is not involved in Aristo’s daily operation, it believes that there will not be significant additional risk derived from the trading relationship and transactions with Aristo. | ||||||||||
Aristo is engaged in the marketing, selling and servicing of computer products and accessories including semiconductors, LCD products, mass storage devices, consumer electronics, computer peripherals and electronic components for different generations of computer related products. Aristo carries various brands of products such as Samsung, Hynix, Micron, Elpida, Qimonda, Lexar, Dane-Elec, Elixir, SanDisk and Winbond. Aristo 2013 and 2012 sales were around 7 million and 2 million; it was only a small distributor that accommodated special requirements for specific customers. | ||||||||||
Aristo supplies different generations of computer related products. Old generation products will move slowly owing to lower market demand. According to the management experience and estimation on the actual market situation, old products carrying on hand for ten years will have no resell value. Therefore, inventories on hand over ten years will be written-off by Aristo immediately. | ||||||||||
The Company sells to Aristo in order to fulfill Aristo’s periodic need for Samsung memory products based on prevailing market prices, which Aristo, in turn, sells to its customers. The sales to Aristo for fiscal year 2013 were $3,337,735 with account receivable of $4,850,769 as of December 31, 2013. For fiscal year 2012 were $106,031 with account receivable of $5,323,933 as of December 31, 2012. For fiscal year 2011 were $7,086,379 with accounts receivable of $16,871,739 as of December 31, 2011. For fiscal year 2010 were $7,123,769 with accounts receivable of $14,073,937 as of December 31, 2010. | ||||||||||
The Company purchases from Aristo, from time to time, LCD panels, Samsung memory chips, DRAM, Flash memory, central processing units, external hard disks, DVD readers and writers that the Company cannot obtain from Samsung directly due to supply limitations. | ||||||||||
Acquisition | ||||||||||
The Company uses the acquisition method of accounting for business combinations which requires that the assets acquired and liabilities assumed be recorded at the date of the acquisition at their respective fair values. Assets acquired and liabilities assumed in a business combination that arise from contingencies are recognized at fair value if fair value can reasonably be estimated. If the fair value of an asset acquired or liability assumed that arises from a contingency cannot be determined at the date of acquisition, the asset or liability is recognized if probable and reasonably estimable; if these criteria are not met, no asset or liability is recognized. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Any excess of the purchase price (consideration transferred) over the estimated fair values of net assets acquired is recorded as goodwill. Transaction costs and costs to restructure the acquired company are expensed as incurred. The operating results of acquired business are reflected in the acquirer’s consolidated financial statements and results of operations after the date of the acquisition. | ||||||||||
Interest in Unincorporated Joint Ventures or Partnerships, Policy [Policy Text Block] | ' | |||||||||
(c) | Jointly-controlled entity | |||||||||
A jointly-controlled entity is a corporate joint venture that is subject to joint control, resulting in none of the participating parties having unilateral control over the economic activity of the jointly-controlled entity. | ||||||||||
The Group’s investment in a jointly-controlled entity is stated in equity method for the consolidated statement of financial position the Group’s shares of the equity of a jointly-controlled entity and the consolidated income statement and consolidated reserves, respectively. | ||||||||||
Use of Estimates, Policy [Policy Text Block] | ' | |||||||||
(d) | Use of estimates | |||||||||
The preparation of consolidated financial statements that conform with generally accepted accounting principles in the United States of America 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time, however, actual results could differ materially from those estimates. | ||||||||||
Economic and Political Risks [Policy Text Block] | ' | |||||||||
(e) | Economic and political risks | |||||||||
The Company’s operations are conducted in Hong Kong and China. A large number of customers are located in Southern China. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in Hong Kong and China, and by the general state of the economy in Hong Kong and China. | ||||||||||
The Company’s operations and customers in Hong Kong and Southern China 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 environments, and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in Hong Kong and China, 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, among other things. | ||||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | ' | |||||||||
(f) | Property, plant and equipment | |||||||||
Plant and equipment are carried at cost less accumulated depreciation. Depreciation is provided over their estimated useful lives, using the straight-line method. | ||||||||||
Estimated useful lives of the plant and equipment are as follows: | ||||||||||
Automobiles | 3 1/3 years | |||||||||
Computers | 5 years | |||||||||
Leasehold improvement | 5 years | |||||||||
Land and buildings | By estimated useful life | |||||||||
Office equipment | 5 years | |||||||||
Machinery | 10 years | |||||||||
The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the statement of income. | ||||||||||
Trade and Other Accounts Receivable, Policy [Policy Text Block] | ' | |||||||||
(g) | Account receivable | |||||||||
Accounts receivable is carried at the net invoiced value charged to customer. The Company records an allowance for doubtful accounts to cover estimated credit losses. Management reviews and adjusts this allowance periodically based on historical experience and its evaluation of the collectability of outstanding accounts receivable. The Company evaluates the credit risk of its customers utilizing historical data and estimates of future performance. | ||||||||||
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block] | ' | |||||||||
(h) | Accounting for the impairment of long-lived assets | |||||||||
The Company periodically evaluates the carrying value of long-lived assets to be held and used, including intangible assets subject to amortization, when events and circumstances warrant such a review, pursuant to the guidelines established in ASC No. 360 (formerly Statement of Financial Accounting Standards No. 144). The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is separately identifiable and is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair market value of the long-lived asset. Fair market value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets to be disposed of are determined in a similar manner, except that fair market values are reduced for the cost to dispose. | ||||||||||
During the reporting years, there was no impairment loss. | ||||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | ' | |||||||||
(i) | Cash and cash equivalents | |||||||||
The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. The Company maintains bank accounts in Hong Kong. The Company does not maintain any bank accounts in the United States of America. | ||||||||||
Inventory, Policy [Policy Text Block] | ' | |||||||||
(j) | Inventories | |||||||||
Inventories are stated at the lower of cost or market and are comprised of purchased computer technology resale products. Cost is determined using the first-in, first-out method. The reserve for obsolescence was decreased by $662,093 from $2,625,375 as of December 31, 2012 to $1,963,282 as of December 31, 2013. Inventory obsolescence reserves totaled $2,625,375 including acquired from subsidiaries $339,078 as of December 31, 2012. | ||||||||||
Lease, Policy [Policy Text Block] | ' | |||||||||
(k) | Lease assets | |||||||||
Leases that substantially transfer all the benefits and risks of ownership of assets to the company are accounted for as capital leases. At the inception of a capital lease, the asset is recorded together with its long term obligation (excluding interest element) to reflect the purchase and the financing. | ||||||||||
Leases which do not transfer substantially all the risks and rewards of ownership to the company are classified as operating leases. Payments made under operating leases are charged to income statement in equal installments over the accounting periods covered by the lease term. Lease incentives received are recognized in income statement as an integral part of the aggregate net lease payments made. Contingent rentals are charged to income statement in the accounting period which they are incurred. | ||||||||||
Income Tax, Policy [Policy Text Block] | ' | |||||||||
(l) | Income taxes | |||||||||
We are governed by the Internal Revenue Code of the United States, the Hong Kong Inland Revenue Department and the PRC’s Income Tax Laws. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets, including tax loss and credit carry forwards, and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income of the period that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. The components of the deferred tax assets and liabilities are individually classified as current and non-current based on their characteristics. Realization of the deferred tax asset is dependent on generating sufficient taxable income in future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. | ||||||||||
The Company did not have any interest or penalty recognized in the income statements for the period ended December 31, 2013 and December 31, 2012 or the balance sheet, as of December 31, 2013 and December 31, 2012. The Company did not have uncertainty tax positions or events leading to uncertainty tax position within the next 12 months. The Company’s 2011, 2012 and 2013 U.S. federal income tax returns are subject to U.S. Internal Revenue Service examination and the Company’s 2007/8, 2008/9, 2009/2010, 2010/11, 2011/12, 2012/13, 2013/14 Hong Kong Company Income Tax filing are subject to Hong Kong Inland Revenue Department examination. The Company’s 2009, 2010, 2011, 2012 and 2013 PRC income tax returns are subject to PRC State Administration of Taxation examination. | ||||||||||
Foreign Currency Transactions and Translations Policy [Policy Text Block] | ' | |||||||||
(m) | Foreign currency translation | |||||||||
The accompanying consolidated financial statements are presented in United States dollars (USD). The functional currencies of the Company’s operating business based in Hong Kong and PRC are the Hong Kong Dollar (HKD) and Renminbi (RMB) respectively. The consolidated financial statements are translated into United States dollars from HKD with a ratio of USD1.00=D7.80, a fixed exchange rate maintained between Hong Kong and United States derived from the Hong Kong Monetary Authority pegging HKD and USD monetary policy. For our subsidiaries whose functional currency are the RMB, statement of income, balance sheets and cash flows are translated with a ratio of RMB1.00=D1.26 an average exchange rate during the period. | ||||||||||
Exchange gains or losses arising from foreign currency transactions are included in the determination of net income for the respective periods. All of our revenue transactions are transacted in the functional currencies. We have not entered into any material transactions that are either originated, or to be settled, in currencies other than the HKD, RMB and USD. Accordingly, transaction gains or losses have not had, and are not expected to have a material effect on our results of operations. | ||||||||||
The RMB is not freely convertible into any other currencies. In addition, all foreign exchange transactions in the PRC must be conducted through authorized institutions. Accordingly, management cannot provide any assurance that the RMB underlying the consolidated financial statement amounts could have been, or could be, converted into HKD or USD at the exchange rates used to translate the functional currency into the reporting currency. | ||||||||||
Revenue Recognition Accounting Policy, Gross and Net Revenue Disclosure [Policy Text Block] | ' | |||||||||
(n) | Revenue recognition | |||||||||
The Company derives revenues from resale of computer memory products, providing both ODM (Original Design Manufacturing) and OEM (Original Equipment Manufacturing) services for various electronic products, such as computer and peripherals, flash storage devices and home electronic products. The Company recognizes revenue in accordance with the ASC 605 “Revenue Recognition”. Under ASC 605, revenue is recognized when there is persuasive evidence of an arrangement, delivery has occurred or services are rendered, the sales price is determinable, and collectability is reasonably assured. Revenue typically is recognized at time of shipment. Sales are recorded net of discounts, rebates, and returns, which historically were not material. | ||||||||||
Advertising Costs, Policy [Policy Text Block] | ' | |||||||||
(o) | Advertising | |||||||||
The Group expensed all advertising costs as incurred. Advertising expenses included in general and administrative expenses were $1,121 and $1,250 for the years ended December 31, 2013 and 2012, respectively. | ||||||||||
Segment Reporting, Policy [Policy Text Block] | ' | |||||||||
(p) | Segment reporting | |||||||||
The Company’s sales are generated from Hong Kong and the rest of China and substantially all of its assets are located in Hong Kong. | ||||||||||
Fair Value of Financial Instruments, Policy [Policy Text Block] | ' | |||||||||
(q) | Fair value of financial instruments | |||||||||
The carrying amount of the Company’s cash and cash equivalents, accounts receivable, lines of credit, convertible debt, accounts payable, accrued expenses, and long-term debt approximates their estimated fair values due to the short-term maturities of those financial instruments. | ||||||||||
Comprehensive Income, Policy [Policy Text Block] | ' | |||||||||
(r) | Comprehensive income | |||||||||
Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income are required to be reported in a financial statement that is presented with the same prominence as other consolidated financial statements. The Company has no items that represent other comprehensive income and, therefore, has not included a schedule of comprehensive income in the consolidated financial statements. | ||||||||||
Earnings Per Share, Policy [Policy Text Block] | ' | |||||||||
(s) | Basic and diluted earnings (loss) per share | |||||||||
In accordance with ASC No. 260 (formerly SFAS No. 128), “Earnings Per Share,” the basic earnings (loss) per common share is computed by dividing net earnings (loss) available to common stockholders by the weighted average number of common shares outstanding. Diluted earnings (loss) per common share is computed similarly to basic earnings (loss) per common share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. | ||||||||||
Reclassification, Policy [Policy Text Block] | ' | |||||||||
(t) | Reclassification | |||||||||
Certain amounts in the prior period have been reclassified to conform to the current consolidated financial statement presentation. | ||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | |||||||||
(u) | Recently issued Accounting Guidance | |||||||||
In January 2013, FASB has issued Accounting Standards Update (ASU) No. 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. This ASU clarifies that ordinary trade receivables and receivables are not in the scope of ASU No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities. Specifically, ASU 2011-11 applies only to derivatives, repurchase agreements and reverse purchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with specific criteria contained in the FASB Accounting Standards Codification™ (Codification) or subject to a master netting arrangement or similar agreement.The FASB undertook this clarification project in response to concerns expressed by U.S. stakeholders about the standard’s broad definition of financial instruments. After the standard was finalized, companies realized that many contracts have standard commercial provisions that would equate to a master netting arrangement, significantly increasing the cost of compliance at minimal value to financial statement users.An entity is required to apply the amendments in ASU 2013-01 for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the required disclosures retrospectively for all comparative periods presented. The effective date is the same as the effective date of ASU 2011-11. | ||||||||||
In February 2013, FASB has issued Accounting Standards Update (ASU) No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This ASU improves the transparency of reporting these reclassifications. Other comprehensive income includes gains and losses that are initially excluded from net income for an accounting period. Those gains and losses are later reclassified out of accumulated other comprehensive income into net income. The amendments in this ASU do not change the current requirements for reporting net income or other comprehensive income in financial statements. All of the information that this ASU requires already is required to be disclosed elsewhere in the financial statements under U.S. GAAP. | ||||||||||
The new amendments will require an organization to: | ||||||||||
l | Present (either on the face of the statement where net income is presented or in the notes) the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income - but only if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. | |||||||||
l | Cross-reference to other disclosures currently required under U.S. GAAP for other reclassification items (that are not required under U.S. GAAP) to be reclassified directly to net income in their entirety in the same reporting period. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is initially transferred to a balance sheet account (e.g., inventory for pension-related amounts) instead of directly to income or expense. | |||||||||
The amendments apply to all public and private companies that report items of other comprehensive income. Public companies are required to comply with these amendments for all reporting periods (interim and annual). A private company is required to meet the reporting requirements of the amended paragraphs about the roll forward of accumulated other comprehensive income for both interim and annual reporting periods. However, private companies are only required to provide the information about the effect of reclassifications on line items of net income for annual reporting periods, not for interim reporting periods.The amendments are effective for reporting periods beginning after December 15, 2012, for public companies and are effective for reporting periods beginning after December 15, 2013, for private companies. Early adoption is permitted. | ||||||||||
In February 2013, FASB issued Accounting Standards Update (ASU) No. 2013-03, Financial Instruments (Topic 825). This ASU clarifies the scope and applicability of a disclosure exemption that resulted from the issuance of Accounting Standards Update No. 2011-04,Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The amendment clarifies that the requirement to disclose" the level of the fair value hierarchy within which the fair value measurements are categorized in their entirety (Level 1, 2, or 3)" does not apply to nonpublic entities for items that are not measured at fair value in the statement of financial position, but for which fair value is disclosed. This ASU is the final version of Proposed Accounting Standards Update 2013-200—Financial Instruments (Topic 825) which has been deleted. The amendments are effective upon issuance. | ||||||||||
In February 2013, FASB has issued Accounting Standards Update (ASU) No. 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date. This ASU provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this ASU is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. GAAP. The guidance requires an entity to measure those obligations as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. The guidance in this ASU also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. For nonpublic entities, the amendments are effective for fiscal years ending after December 15, 2014, and interim periods and annual periods thereafter. The amendments in this ASU should be applied retrospectively to all prior periods presented for those obligations resulting from joint and several liability arrangements within the ASU’s scope that exist at the beginning of an entity’s fiscal year of adoption. An entity may elect to use hindsight for the comparative periods (if it changed its accounting as a result of adopting the amendments in this ASU) and should disclose that fact. Early adoption is permitted. | ||||||||||
In March 2013, FASB has issued Accounting Standards Update (ASU) No. 2013-05, Foreign Currency Matters (Topic 830). This ASU resolve the diversity in practice about whether Subtopic 810-10, Consolidation—Overall, or Subtopic 830-30, Foreign Currency Matters—Translation of Financial Statements, applies to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity. In addition, the amendments in this Update resolve the diversity in practice for the treatment of business combinations achieved in stages (sometimes also referred to as step acquisitions) involving a foreign entity. This ASU is the final version of Proposed Accounting Standards Update EITF11Ar—Foreign Currency Matters (Topic 830), which has been deleted. The amendments in this Update are effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. For nonpublic entities the amendments in this Update are effective prospectively for the first annual period beginning after December 15, 2014, and interim and annual periods thereafter. The amendments should be applied prospectively to derecognition events occurring after the effective date. Prior periods should not be adjusted. Early adoption is permitted. If an entity elects to early adopt the amendments, it should apply them as of the beginning of the entity’s fiscal year of adoption. | ||||||||||
In April 2013, FASB Accounting Standards Update 2013-07,Presentation of Financial Statements (Topic 205): Liquidation Basis of Accounting. This ASU clarifies when an entity should apply the liquidation basis of accounting. In addition, the guidance provides principles for the recognition and measurement of assets and liabilities and requirements for financial statements prepared using the liquidation basis of accounting. Liquidation is the process by which a company converts its assets to cash or other assets and settles its obligations with creditors in anticipation of ceasing all of its activities. An organization in liquidation must prepare its financial statements using a basis of accounting that communicates information to users of those financial statements to enable those users to develop expectations about how much the organization will have available for distribution to investors after disposing of its assets and settling its obligations. The ASU requires organization to prepare its financial statements using the liquidation basis of accounting when liquidation is “imminent.” Liquidation is considered imminent when the likelihood is remote that the organization will return from liquidation and either: (a) a plan for liquidation is approved by the person or persons with the authority to make such a plan effective and the likelihood is remote that the execution of the plan will be blocked by other parties; or (b) a plan for liquidation is being imposed by other forces (e.g., involuntary bankruptcy). In cases where a plan for liquidation was specified in the organization’s governing documents at inception (e.g., limited-life entities), the organization should apply the liquidation basis of accounting only if the approved plan for liquidation differs from the plan for liquidation that was specified in the organization’s governing documents. The ASU requires financial statements prepared using the liquidation basis to present relevant information about a company’s resources and obligations in liquidation, including the following: | ||||||||||
l | The organization’s assets measured at the amount of the expected cash proceeds from liquidation, including any items it had not previously recognized under U.S. GAAP that it expects to either sell in liquidation or use in settling liabilities (e.g., trademarks). | |||||||||
l | The organization’s liabilities as recognized and measured in accordance with existing guidance that applies to those liabilities. | |||||||||
l | Accrual of the costs it expects to incur and the income it expects to earn during liquidation, including any anticipated disposal costs. | |||||||||
This ASU is effective for interim and annual reporting periods beginning after December 15, 2013, with early adoption permitted. | ||||||||||
In July 2013, FASB has published Accounting Standards Update 2013-09, Fair Value Measurement (Topic 820): Deferral of the Effective Date of Certain Disclosures for Nonpublic Employee Benefit Plans in Update No. 2011-04. This ASU defers indefinitely certain disclosures about investments held by nonpublic employee benefit plans in their plan sponsors’ own nonpublic equity securities. The ASU was approved by the FASB on June 12, 2013. ASU No. 2013-09, Fair Value Measurement (Topic 820): Deferral of the Effective Date of Certain Disclosures for Nonpublic Employee Benefit Plans in Update No. 2011-04, applies to disclosures of certain quantitative information about the significant unobservable inputs used in Level 3 fair value measurement for investments held by certain employee benefit plans. | ||||||||||
In July 2013, FASB has issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force).U.S. GAAP does not include explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The amendments in this ASU state that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented 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, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. This ASU applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. For nonpublic entities, the amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Early adoption is permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. | ||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Accounting Policies [Abstract] | ' | |||||||||
Investment Holdings, Schedule of Investments [Table Text Block] | ' | |||||||||
The Company owned its subsidiary soon after its inception and continued to own the equity’s interests through December 31, 2013. The following table depicts the identity of the subsidiary: | ||||||||||
Name of Subsidiary | Place of | Attributable Equity | Registered | |||||||
Incorporation | Interest % | Capital | ||||||||
ACL International Holdings Limited | Hong Kong | 100 | $ | 0.13 | ||||||
Alpha Perform Technology Limited | BVI | 100 | $ | 1,000 | ||||||
Atlantic Components Limited (1) | Hong Kong | 100 | $ | 384,615 | ||||||
Aristo Technologies Limited (2) | Hong Kong | 100 | $ | 1,282 | ||||||
Dongguan Kezheng Electronics Limited (3) | PRC | 80 | $ | 680,499 | ||||||
eVision Telecom Limited (4) | Hong Kong | 100 | $ | 25,641 | ||||||
Jussey Investments Limited (1) | BVI | 100 | $ | 1 | ||||||
USmart Electronic Products Limited (4) | Hong Kong | 80 | $ | 1.28 | ||||||
Note: (1) Wholly owned subsidiary of ACL International Holdings Limited | ||||||||||
(2) Deemed variable interest entity | ||||||||||
(3) Wholly owned subsidiary of USmart Electronic Products Limited | ||||||||||
(4) Wholly or partially owned by Jussey Investments Limited | ||||||||||
Schedule Of Estimated Useful Lives For Significant Property and Equipment [Table Text Block] | ' | |||||||||
Estimated useful lives of the plant and equipment are as follows: | ||||||||||
Automobiles | 3 1/3 years | |||||||||
Computers | 5 years | |||||||||
Leasehold improvement | 5 years | |||||||||
Land and buildings | By estimated useful life | |||||||||
Office equipment | 5 years | |||||||||
Machinery | 10 years | |||||||||
INVENTORIES_Tables
INVENTORIES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Schedule of Inventory, Current [Table Text Block] | ' | |||||||
Inventories consisted of the following: | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
Finished goods | $ | 3,044,793 | $ | 7,241,523 | ||||
Less allowance for excess and obsolete inventory | -1,963,282 | -2,625,375 | ||||||
Inventory, net | $ | 1,081,511 | $ | 4,616,148 | ||||
Schedule Of Inventory Valuation Allowance [Table Text Block] | ' | |||||||
The following is a summary of the change in the Company's inventory valuation allowance: | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
Inventory valuation allowance, beginning of the year | $ | 2,625,375 | $ | 709,374 | ||||
Obsolete inventory sold | -662,093 | - | ||||||
Additional inventory provision | - | 1,916,001 | ||||||
Inventory valuation allowance, end of year | $ | 1,963,282 | $ | 2,625,375 | ||||
PROPERTY_PLANT_AND_EQUIPMENT_N1
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment, Net [Abstract] | ' | |||||||
Property, Plant and Equipment [Table Text Block] | ' | |||||||
Property, plant and equipment, net comprise the following: | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
At cost | ||||||||
Land and buildings | $ | 8,574,682 | $ | 9,375,558 | ||||
Automobiles | 642,241 | 658,772 | ||||||
Office equipment | 268,863 | 268,863 | ||||||
Leasehold improvements | 543,550 | 543,550 | ||||||
Furniture and fixtures | 57,302 | 57,302 | ||||||
Machinery | 668,185 | 668,185 | ||||||
$ | 10,754,823 | $ | 11,572,230 | |||||
Less: accumulated depreciation | -2,541,974 | -1,986,175 | ||||||
$ | 8,212,849 | $ | 9,586,055 | |||||
Schedule Of Capital Lease Obligation On Assets [Table Text Block] | ' | |||||||
Automobiles include the following amounts under capital leases: | ||||||||
December 31, 2013 | December 31, 202 | |||||||
Cost | $ | 399,473 | $ | 469,754 | ||||
Less accumulated depreciation | -341,876 | -302,106 | ||||||
Total | $ | 57,597 | $ | 167,648 | ||||
CAPITAL_LEASE_OBLIGATIONS_Tabl
CAPITAL LEASE OBLIGATIONS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Capital Lease Obligations [Abstract] | ' | |||||||
Schedule Of Non Cancellable Capital Lease Obligations On Assets [Table Text Block] | ' | |||||||
The Company has several non-cancellable capital leases relating to automobiles: | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
Current portion | $ | 75,917 | $ | 96,506 | ||||
Non-current portion | 57,511 | 133,428 | ||||||
$ | 133,428 | $ | 229,934 | |||||
Schedule of Capital Leased Assets [Table Text Block] | ' | |||||||
At December 31, 2013 and 2012, the value of automobiles under capital leases as follows: | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
Cost | $ | 399,473 | $ | 469,754 | ||||
Less: accumulated depreciation | -341,876 | -302,106 | ||||||
$ | 57,597 | $ | 167,648 | |||||
Schedule Of Capital Leases Obligations Repayable [Table Text Block] | ' | |||||||
At December 31, 2013 and 2012, the Company had obligations under capital leases repayable as follows: | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
Total minimum lease payments | ||||||||
-Within one year | $ | 81,906 | $ | 103,890 | ||||
- After one year but within 5 years | 60,351 | 143,430 | ||||||
$ | 142,257 | $ | 247,320 | |||||
Interest expenses relating to future periods | -8,829 | -17,386 | ||||||
Present value of the minimum lease payments | $ | 133,428 | $ | 229,934 | ||||
REVOLVING_LINES_OF_CREDIT_AND_1
REVOLVING LINES OF CREDIT AND LOAN FACILITIES (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Line Of Credit Facility [Abstract] | ' | |||||||||||
Schedule of Line of Credit Facilities [Table Text Block] | ' | |||||||||||
The summary of banking facilities at December 31, 2013 is as follows: | ||||||||||||
Granted facilities | Utilized facilities | Not Utilized | ||||||||||
Facilities | ||||||||||||
Lines of credit and loan facilities | ||||||||||||
Import/Export Loan | 4,102,564 | 3,178,580 | 923,984 | |||||||||
$ | $ | $ | ||||||||||
Bank Loans | 3,222,113 | (a) | 3,222,113 | - | ||||||||
Revolving Short Term Loan | 1,538,462 | (a) | 1,538,168 | 294 | ||||||||
Overdraft | 64,103 | (b) | 61,758 | 2,345 | ||||||||
$ | 8,927,242 | $ | 8,000,619 | $ | 926,623 | |||||||
(a) The bank loans are combined from the summary of Note (8), total bank loans amount to USD7,630,946 with a revolving short term loan of USD1,538,168. The revolving short term loan is placed under Other Current Liabilities on the balance sheet. It has a facility limit of USD1,538,462, bearing an interest rate of 0.5% below Hong Kong prime rate per annum. | ||||||||||||
(b) Including in cash and cash equivalents | ||||||||||||
BANK_LOANS_Tables
BANK LOANS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Bank Loans [Abstract] | ' | |||||||
Schedule of Maturities of Long-term Debt [Table Text Block] | ' | |||||||
Bank loans were comprised of the following as of December 31, 2013 and 2012 | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
Installment loan provided by BEA Bank having a maturity date in July 28, 2014 and carrying an interest rate of Hong Kong dollar Prime Rate at 5.25% as of December 31, 2013 and 2012 +0.25%, payable in monthly installments of $13,291 including interest through December 2013 without any balloon payment requirements | $ | 89,744 | $ | 243,590 | ||||
Installment loan provided by BEA Bank having a maturity date in April 18, 2015 and carrying an interest rate of Hong Kong dollar Prime Rate at 5.25% as of December 31, 2013 and 2012 +0.25%, payable in monthly installments of $46,065 including interest through December 2013 without any balloon payment requirements | 683,761 | 1,196,581 | ||||||
Installment loan provided by DBS Bank having a maturity date in April 25, 2015 and carrying an interest rate of Hong Kong Prime dollar Rate at 5.25% as of December 31, 2013 and 2012 +0.5%, payable in monthly installments of $55,939 including interest through December 2013 without any balloon payment requirements | 859,612 | 1,574,812 | ||||||
Installment loan provided by DBS Bank having a maturity date in June 2, 2023 and carrying an interest rate of one month HIBOR at 0.28% as of December 31+2%, it was fully repaid on 23 September, 2013 | - | 456,123 | ||||||
Installment loan provided by DBS Bank having a maturity date in September 15, 2023 and carrying an interest rate of Hong Kong dollar Prime Rate at December 31, 2012 -2.5%, it was fully repaid on 23 September, 2013 | - | 584,573 | ||||||
Installment loan provided by DBS Bank having a maturity date in June 2, 2026 and carrying an interest rate of one month HIBOR at December 31, 2012 +2%, it was fully repaid on 23 September, 2013 | - | 703,598 | ||||||
Installment loan provided by DBS Bank having a maturity date in July 21, 2026 and carrying an interest rate of Hong Kong dollar Prime Rate at 5.25% as of December 31, 2012 -2.4%, it was fully repaid on 23 September, 2013 | - | 1,340,032 | ||||||
Installment loan having a maturity date in 23 September, 2028 and carrying an interest rate of 2% per annum over one month HIBOR (0.2143% at December 31, 2013) from Fubon Bank payable in monthly installments of $6,283 including interest through December 2013 without any balloon payment requirements | 947,971 | - | ||||||
Term loan having a maturity due in 23 January, 2014 and carrying an interest rate of 3.88429 per annum from Fubon Bank without any balloon payment requirements | 641,025 | - | ||||||
$ | 3,222,113 | $ | 6,099,309 | |||||
Schedule of Long-term Debt Instruments [Table Text Block] | ' | |||||||
An analysis on the repayment of bank loan as of December 31, 2013 and December 31, 2012 are as follow: | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
Carrying amount that are repayable on demand or within twelve months from | ||||||||
December 31, 2013 containing a repayable on demand clause: | ||||||||
Within twelve months | $ | 1,937,063 | $ | 1,529,282 | ||||
Carrying amount that are not repayable within twelve months from September 30, 2013 containing a repayable on demand clause but shown in current liabilities: | ||||||||
After 1 year, but within 2 years | $ | 505,656 | $ | 2,142,751 | ||||
After 2 years, but within 5 years | 118,775 | 467,232 | ||||||
After 5 years | 660,619 | 1,960,044 | ||||||
$ | 1,285,050 | $ | 4,570,027 | |||||
$ | 3,222,113 | $ | 6,099,309 | |||||
OTHER_CURRENT_LIABILITIES_Tabl
OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Other Current Liabilities [Abstract] | ' | |||||||
Schedule Of Other Current Liabilities [Table Text Block] | ' | |||||||
The other current liabilities consisted the following as of December 31, 2013 and December 31, 2012: | ||||||||
31-Dec-13 | December 31, 2012 | |||||||
Revolving short term loan | $ | 1,538,168 | $ | 1,531,637 | ||||
Trade deposit from customers | 7,725,475 | 9,896,635 | ||||||
Temporary receipts | 2,242,999 | - | ||||||
Others | 937,358 | 957,730 | ||||||
$ | 12,444,000 | $ | 12,386,002 | |||||
LOAN_FROM_A_THIRTY_PARTY_Table
LOAN FROM A THIRTY PARTY (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Loan From a Third Party [Abstract] | ' | ||||
Schedule Of Loan From Third party [Table Text Block] | ' | ||||
The repayment time schedule contained in the Loan Agreement is as follows: | |||||
Date of Repayment | Amount | ||||
The Last date of the 12-month period from September 27, 2013 | 641,026 | ||||
The Last date of the 24-month period from September 27, 2013 | 1,282,051 | ||||
The Last date of the 36-month period from September 27, 2013 | 5,128,205 | ||||
7,051,282 | |||||
Current portion | 641,026 | ||||
Non-current portion | 6,410,256 | ||||
7,051,282 | |||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | |||||||
A reconciliation of the provision for income taxes with amounts determined by applying the statutory federal income tax rate of 34% to income before income taxes is as follows: | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
Computed tax at federal statutory rate | $ | - | $ | - | ||||
Tax rate differential on foreign earnings of Atlantic and Aristo, | ||||||||
Hong Kong based companies | -83,680 | -353,440 | ||||||
Federal tax penalty provision | 80,000 | - | ||||||
Tax (over) under provision for Atlantic | -68,720 | 32,950 | ||||||
Tax paid by Kezheng | 10,607 | - | ||||||
Net operating loss carry forward | 83,680 | 353,440 | ||||||
$ | 21,887 | $ | 32,950 | |||||
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | ' | |||||||
The income tax provision consists of the following components: | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
Federal | $ | 80,000 | $ | - | ||||
Foreign | -58,113 | 32,950 | ||||||
$ | 21,887 | $ | 32,950 | |||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | |||||||
The Components of the deferred tax assets and liabilities are as follows: | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
Net operating losses | $ | 4,681,570 | $ | 1,837,120 | ||||
Total deferred tax assets | $ | 4,687,570 | $ | 1,837,120 | ||||
Less: valuation allowance | -4,687,570 | -1,837,120 | ||||||
$ | - | $ | - | |||||
CASH_FLOW_INFORMATION_Tables
CASH FLOW INFORMATION (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Supplemental Cash Flow Elements [Abstract] | ' | |||||||
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | ' | |||||||
Cash paid during the years ended December 31, 2013 and 2012 is as follows: | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
Interest paid | $ | 1,041,095 | $ | 1,011,080 | ||||
Income taxes (reversal) paid | $ | - | $ | -2,870 | ||||
Schedule Of Business Acquisition [Table Text Block] | ' | |||||||
Net cash inflow on acquisition of subsidiaries as of December 31, 2013 and December 31, 2012 are as follow: | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
Cash consideration paid up to December 31, 2013 and 2012 | $ | - | $ | 2,150,000 | ||||
Cash and cash equivalents acquired | - | -157,259 | ||||||
Net cash inflow in respect of acquisition of subsidiaries | $ | - | $ | 1,992,741 | ||||
COMMITMENTS_Tables
COMMITMENTS (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||
Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block] | ' | ||||||||||
The Company leases its facilities. The following is a schedule by years of future minimum rental payments required under operating leases that have non-cancellable lease terms in excess of one year as of December 31, 2013: | |||||||||||
Related parties | Others | Total | |||||||||
Year ending December 31, | |||||||||||
2014 | $ | - | $ | 376,760 | $ | 376,760 | |||||
2015 | - | 177,033 | 177,033 | ||||||||
Thereafter | - | 525,100 | 525,100 | ||||||||
Total | $ | - | $ | 1,078,893 | $ | 1,078,893 | |||||
INVESTMENTS_IN_A_JOINTLYCONTRO1
INVESTMENTS IN A JOINTLY-CONTROLLED ENTITY (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | |||||||||||
Schedule Of Interest In Joint Ventures Or Partnerships [Table Text Block] | ' | |||||||||||
Particulars of the jointly-controlled entity are as follows: | ||||||||||||
Percentage of | ||||||||||||
Name | Place of registration | Ownership interest | Voting power | Profit sharing | Principal activity | |||||||
ATMD (Hong Kong) Limited | Hong Kong | 30 | 30 | 30 | Trading | |||||||
Schedule Of Financial Information Of Joint Venture Entity [Table Text Block] | ' | |||||||||||
The following table illustrates the summarized financial information of the Company’s jointly-controlled entity: | ||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||
Share of jointly-controlled entity's assets and liabilities: | ||||||||||||
Current assets | $ | - | $ | 23,490,550 | ||||||||
Non-current assets | - | 69,921 | ||||||||||
Current liabilities | - | -20,742,164 | ||||||||||
$ | - | $ | 2,818,307 | |||||||||
Share of jointly-controlled entity's results: | ||||||||||||
Net sales | $ | - | $ | 48,674,460 | ||||||||
Gross profit | - | 698,848 | ||||||||||
Net loss | - | -181,693 | ||||||||||
ACQUISITION_Tables
ACQUISITION (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Business Combinations [Abstract] | ' | ||||
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | ' | ||||
The purchase price was allocated as follows: | |||||
Purchase Consideration: | |||||
Acquisition obligation payable to sellers | $ | 2,150,000 | |||
Direct costs relating to acquiree | 20,000 | ||||
Less: cash acquired | -157,259 | ||||
Net purchase consideration | $ | 2,012,741 | |||
Assets Acquired | |||||
Net tangible assets acquired: | |||||
Fixed assets | $ | 355,481 | |||
Inventories | 654,757 | ||||
Trade receivables, deposits, prepayment and other receivables | 717,369 | ||||
Restricted cash | 132,706 | ||||
Trade payables, other creditors and accruals | -13,328,971 | ||||
Non-controlled interest | 2,140,276 | ||||
Net tangible assets acquired | $ | -9,328,382 | |||
Purchase consideration in excess of net tangible assets | $ | 11,341,123 | |||
Allocated to: | |||||
Trademark | $ | 53,955 | |||
License contracts | 11,287,168 | ||||
$ | 11,341,123 | ||||
INTANGIBLE_ASSETS_Tables
INTANGIBLE ASSETS (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | ' | |||||||||
The intangible assets are summarized in the following table which provides the gross carrying value and accumulated amortization for each major class of intangible assets other than goodwill: | ||||||||||
Remaining useful life | December 31, 2013 | December 31, 2012 | ||||||||
Gross carrying amount: | ||||||||||
Trademark | 12 months | $ | 53,955 | $ | 53,955 | |||||
License contracts | 12 months | 11,287,168 | 11,287,168 | |||||||
11,341,123 | 11,341,123 | |||||||||
Less : Accumulated amortization | ||||||||||
Trademark | $ | 53,955 | $ | - | ||||||
License contracts | 11,287,168 | - | ||||||||
11,341,123 | - | |||||||||
Intangible assets, net | $ | - | $ | 11,341,123 | ||||||
ORGANIZATION_AND_PRINCIPAL_ACT1
ORGANIZATION AND PRINCIPAL ACTIVITY (Details Textual) | 12 Months Ended | |
Dec. 31, 2013 | Sep. 28, 2012 | |
ACL International Holdings Limited [Member] | ' | ' |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ' | ' |
Entity Incorporation, State Country Name | 'Hong Kong | ' |
Ownership interest | 100.00% | ' |
ATMD (Hong Kong) Limited [Member] | ' | ' |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ' | ' |
Entity Incorporation, State Country Name | 'Hong Kong | ' |
Business Acquisition, Effective Date of Acquisition | 1-Apr-12 | ' |
Ownership interest | 30.00% | ' |
Atlantic Components Limited [Member] | ' | ' |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ' | ' |
Entity Incorporation, State Country Name | 'Hong Kong | ' |
Business Acquisition, Effective Date of Acquisition | 30-Sep-03 | ' |
Ownership interest | 100.00% | ' |
Jussey Investments Limited [Member] | ' | ' |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ' | ' |
Entity Incorporation, State Country Name | 'British Virgin Islands | ' |
Business Acquisition, Effective Date of Acquisition | 28-Sep-12 | ' |
Ownership interest | 100.00% | ' |
eVision Telecom Limited [Member] | ' | ' |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ' | ' |
Entity Incorporation, State Country Name | 'Hong Kong | ' |
Business Acquisition, Effective Date of Acquisition | 28-Sep-12 | ' |
Ownership interest | 100.00% | 100.00% |
USmart Electronic Products Limited [Member] | ' | ' |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ' | ' |
Entity Incorporation, State Country Name | 'Hong Kong | ' |
Business Acquisition, Effective Date of Acquisition | 28-Sep-12 | ' |
Ownership interest | 80.00% | 80.00% |
Dongguan Kezheng Electronics Limited [Member] | ' | ' |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ' | ' |
Entity Incorporation, State Country Name | 'PRC | ' |
Business Acquisition, Effective Date of Acquisition | 28-Sep-12 | ' |
Ownership interest | 80.00% | ' |
USmart Mobile Device Inc [Member] | ' | ' |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ' | ' |
Entity Incorporation, State Country Name | 'Delaware | ' |
Business Acquisition, Effective Date of Acquisition | 17-Sep-02 | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | ||
Acl International Holdings Ltd [Member] | ' | |
Schedule of Investments [Line Items] | ' | |
Place of Incorporation | 'Hong Kong | |
Attributable Equity Interest % | 100.00% | |
Registered Capital | $0.13 | |
Alpha Perform Technology Ltd [Member] | ' | |
Schedule of Investments [Line Items] | ' | |
Place of Incorporation | 'BVI | |
Attributable Equity Interest % | 100.00% | |
Registered Capital | 1,000 | |
Atlantic Components Limited [Member] | ' | |
Schedule of Investments [Line Items] | ' | |
Place of Incorporation | 'Hong Kong | [1] |
Attributable Equity Interest % | 100.00% | [1] |
Registered Capital | 384,615 | [1] |
Aristo Technologies Limited [Member] | ' | |
Schedule of Investments [Line Items] | ' | |
Place of Incorporation | 'Hong Kong | [2] |
Attributable Equity Interest % | 100.00% | [2] |
Registered Capital | 1,282 | [2] |
Dongguan Kezheng Electronics Limited [Member] | ' | |
Schedule of Investments [Line Items] | ' | |
Place of Incorporation | 'PRC | [3] |
Attributable Equity Interest % | 80.00% | [3] |
Registered Capital | 680,499 | [3] |
eVision Telecom Limited [Member] | ' | |
Schedule of Investments [Line Items] | ' | |
Place of Incorporation | 'Hong Kong | [4] |
Attributable Equity Interest % | 100.00% | [4] |
Registered Capital | 25,641 | [4] |
Jussey Investments Limited [Member] | ' | |
Schedule of Investments [Line Items] | ' | |
Place of Incorporation | 'BVI | [1] |
Attributable Equity Interest % | 100.00% | [1] |
Registered Capital | 1 | [1] |
USmart Electronic Products Limited [Member] | ' | |
Schedule of Investments [Line Items] | ' | |
Place of Incorporation | 'Hong Kong | [4] |
Attributable Equity Interest % | 80.00% | [4] |
Registered Capital | $1.28 | [4] |
[1] | Wholly owned subsidiary of ACL International Holdings Limited | |
[2] | Deemed variable interest entity | |
[3] | Wholly owned subsidiary of USmart Electronic Products Limited | |
[4] | Wholly or partially owned by Jussey Investments Limited |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) | 12 Months Ended |
Dec. 31, 2013 | |
Automobiles [Member] | ' |
Estimated Useful Life For Significant Property and Equipment [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '3 years 3 months 29 days |
Computer [Member] | ' |
Estimated Useful Life For Significant Property and Equipment [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '5 years |
Leasehold Improvements [Member] | ' |
Estimated Useful Life For Significant Property and Equipment [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '5 years |
Land and Buildings [Member] | ' |
Estimated Useful Life For Significant Property and Equipment [Line Items] | ' |
Property, Plant and Equipment, Estimated Useful Lives | 'By estimated useful life |
Office Equipment [Member] | ' |
Estimated Useful Life For Significant Property and Equipment [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '5 years |
Machinery [Member] | ' |
Estimated Useful Life For Significant Property and Equipment [Line Items] | ' |
Property, Plant and Equipment, Useful Life | '10 years |
SUMMARY_OF_SIGNIFICANT_ACCOUNT5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Increase (Decrease) Reserve For Obsolescence Of Inventory | ' | $662,093 | ' | ' |
Inventory Valuation Reserves | 1,963,282 | 2,625,375 | 709,374 | ' |
Advertising Expense | 1,121 | 1,250 | ' | ' |
Foreign Currency Transactions, Description | 'USD1.00=D7.80 | ' | ' | ' |
Foreign Currency Transactions At Average Exchange Rate Description | 'RMB1.00=D1.26 | ' | ' | ' |
Inventory Obsolescence Reserves Acquired From Subsidiaries | ' | 339,078 | ' | ' |
Aristo Components Limited [Member] | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Variable Interest Entity Total Revenue | 7,000,000 | 2,000,000 | ' | ' |
Aristo Components Limited [Member] | Samsung Memory Products [Member] | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Variable Interest Entity Measure Of Activity Sales from Reporting Entity to VIE | 3,337,735 | 106,031 | 7,086,379 | 7,123,769 |
Variable Interest Entity Activity Between Vie And Entity Accounts Receivable | $4,850,769 | $5,323,933 | $16,871,739 | $14,073,937 |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Inventory [Line Items] | ' | ' | ' |
Finished goods | $3,044,793 | $7,241,523 | ' |
Less allowance for excess and obsolete inventory | -1,963,282 | -2,625,375 | -709,374 |
Inventory, net | $1,081,511 | $4,616,148 | ' |
INVENTORIES_Details_1
INVENTORIES (Details 1) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Inventory [Line Items] | ' | ' |
Inventory valuation allowance, beginning of the year | $2,625,375 | $709,374 |
Obsolete inventory sold | -662,093 | 0 |
Additional inventory provision | 0 | 1,916,001 |
Inventory valuation allowance, end of year | $1,963,282 | $2,625,375 |
PROPERTY_PLANT_AND_EQUIPMENT_N2
PROPERTY, PLANT AND EQUIPMENT, NET (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | $10,754,823 | $11,572,230 |
Less: accumulated depreciation | -2,541,974 | -1,986,175 |
Property, plant and equipment, net | 8,212,849 | 9,586,055 |
Land and Buildings [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 8,574,682 | 9,375,558 |
Automobiles [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 642,241 | 658,772 |
Office Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 268,863 | 268,863 |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 543,550 | 543,550 |
Furniture and Fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 57,302 | 57,302 |
Machinery [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | $668,185 | $668,185 |
PROPERTY_PLANT_AND_EQUIPMENT_N3
PROPERTY, PLANT AND EQUIPMENT, NET (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | ' | ' |
Cost | $399,473 | $469,754 |
Less accumulated depreciation | -341,876 | -302,106 |
Total | $57,597 | $167,648 |
PROPERTY_PLANT_AND_EQUIPMENT_N4
PROPERTY, PLANT AND EQUIPMENT, NET (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Line Items] | ' | ' |
Depreciation and amortization | $756,596 | $564,117 |
CAPITAL_LEASE_OBLIGATIONS_Deta
CAPITAL LEASE OBLIGATIONS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Non Cancellable Capital Lease Obligations On Assets [Line Items] | ' | ' |
Current portion | $75,917 | $96,506 |
Non-current portion | 57,511 | 133,428 |
Capital Lease Obligations | $133,428 | $229,934 |
CAPITAL_LEASE_OBLIGATIONS_Deta1
CAPITAL LEASE OBLIGATIONS (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Capital Leased Assets [Line Items] | ' | ' |
Cost | $399,473 | $469,754 |
Less: accumulated depreciation | -341,876 | -302,106 |
Total | $57,597 | $167,648 |
CAPITAL_LEASE_OBLIGATIONS_Deta2
CAPITAL LEASE OBLIGATIONS (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Total minimum lease payments | ' | ' |
- Within one year | $81,906 | $103,890 |
- After one year but within 5 years | 60,351 | 143,430 |
Capital Leases, Future Minimum Payments Receivable | 142,257 | 247,320 |
Interest expenses relating to future periods | -8,829 | -17,386 |
Present value of the minimum lease payments | $133,428 | $229,934 |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details Textual) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 27, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 28, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Aristo Technologies Limited (2) [Member] | Aristo Technologies Limited (2) [Member] | Aristo Technologies Limited (2) [Member] | Global Mega Development Limited [Member] | Global Mega Development Limited [Member] | Aristo Componenents Ltd [Member] | Aristo Componenents Ltd [Member] | City Royal Limited [Member] | Solution Semiconductor (China) Limited [Member] | Solution Semiconductor (China) Limited [Member] | Systematic Information Limited [Member] | Systematic Information Limited [Member] | Atlantic Storage Devices Limited [Member] | Atlantic Storage Devices Limited [Member] | USmart Electronic Products Limited [Member] | Atlantic Ocean (HK) Limited [Member] | Atlantic Ocean (HK) Limited [Member] | |||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Due From Related Parties, Noncurrent | $931,652 | $3,658,359 | $931,652 | $3,658,359 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage Of Share Holding Related Party | ' | ' | ' | ' | ' | 100.00% | ' | 90.00% | ' | 50.00% | 100.00% | ' | 100.00% | ' | 40.00% | ' | ' | ' | ' |
Service Fee For Back Office Support | ' | ' | ' | ' | ' | 1,026 | 0 | 12,308 | 12,308 | ' | 15,384 | 5,769 | 3,077 | 7,769 | ' | ' | ' | 0 | 9,615 |
Percentage Of Share Holding Nonrelated Party | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | 50.00% | ' | ' | ' | ' | 60.00% | ' | ' | ' | ' |
Equity Method Investment, Ownership Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80.00% | 60.00% | ' |
Related Party Transaction, Sold to Related Party | ' | ' | ' | ' | ' | 1,564,213 | 0 | ' | ' | ' | 3,530,784 | 1,000 | 2,000,782 | 17,457 | 25,536 | 21,784 | ' | 13,924 | 0 |
Debt Instrument, Face Amount | ' | ' | ' | ' | $11,794,871.79 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
REVOLVING_LINES_OF_CREDIT_AND_2
REVOLVING LINES OF CREDIT AND LOAN FACILITIES (Details) (USD $) | Dec. 31, 2013 | |
Line of Credit Facility [Line Items] | ' | |
Grantedfacilities | $8,927,242 | |
Utilized facilities | 8,000,619 | |
Not Utilized Facilities | 926,623 | |
Loans Payable [Member] | ' | |
Line of Credit Facility [Line Items] | ' | |
Grantedfacilities | 3,222,113 | [1] |
Utilized facilities | 3,222,113 | |
Not Utilized Facilities | 0 | |
Import/Export Line Of Credit [Member] | Line of Credit [Member] | ' | |
Line of Credit Facility [Line Items] | ' | |
Grantedfacilities | 4,102,564 | |
Utilized facilities | 3,178,580 | |
Not Utilized Facilities | 923,984 | |
Bank Overdrafts [Member] | ' | |
Line of Credit Facility [Line Items] | ' | |
Grantedfacilities | 64,103 | [2] |
Utilized facilities | 61,758 | |
Not Utilized Facilities | 2,345 | |
Revolving Short Term Loan [Member] | ' | |
Line of Credit Facility [Line Items] | ' | |
Grantedfacilities | 1,538,462 | [1] |
Utilized facilities | 1,538,168 | |
Not Utilized Facilities | $294 | |
[1] | The bank loans are combined from the summary of Note (8), total bank loans amount to USD7,630,946 with a revolving short term loan of USD1,538,168. The revolving short term loan is placed under Other Current Liabilities on the balance sheet. It has a facility limit of USD1,538,462, bearing an interest rate of 0.5% below Hong Kong prime rate per annum. | |
[2] | Including in cash and cash equivalents |
REVOLVING_LINES_OF_CREDIT_AND_3
REVOLVING LINES OF CREDIT AND LOAN FACILITIES (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | ||
Line of Credit Facility [Line Items] | ' | ' | |
Line of Credit Facility, Interest Rate Description | 'bearing an interest rate of 0.5% below Hong Kong prime rate per annum. | ' | |
Line Of Credit Facility, Current Borrowing Capacity | $8,927,242 | ' | |
Line Of Credit Facility, Amount Outstanding | 8,000,619 | ' | |
Loans Payable to Bank | 7,630,946 | ' | |
Revolving Short Term Loan [Member] | ' | ' | |
Line of Credit Facility [Line Items] | ' | ' | |
Line Of Credit Facility, Current Borrowing Capacity | 1,538,462 | [1] | ' |
Line Of Credit Facility, Amount Outstanding | 1,538,168 | ' | |
Revolving Short Term Loan [Member] | Long-term Debt [Member] | ' | ' | |
Line of Credit Facility [Line Items] | ' | ' | |
Line Of Credit Facility, Current Borrowing Capacity | 1,538,462 | ' | |
Line Of Credit Facility, Amount Outstanding | 1,538,168 | ' | |
Bank Of East Asia Limited Two [Member] | ' | ' | |
Line of Credit Facility [Line Items] | ' | ' | |
Line Of Credit Facility, Current Borrowing Capacity | 769,231 | ' | |
Line Of Credit Facility, Amount Outstanding | 761,089 | 764,761 | |
Line of Credit Facility, Interest Rate During Period | 5.50% | 5.50% | |
Bank Of East Asia Limited Two [Member] | Hkd Facilities [Member] | ' | ' | |
Line of Credit Facility [Line Items] | ' | ' | |
Line of Credit Facility, Interest Rate Description | 'higher of Hong Kong prime rate plus 0.25% or HIBOR plus 2% for HKD facilities | ' | |
Bank Of East Asia Limited Two [Member] | Other Facilites [Member] | ' | ' | |
Line of Credit Facility [Line Items] | ' | ' | |
Line of Credit Facility, Interest Rate Description | 'LIBOR plus 2% for other currency facilities | ' | |
Bank Of East Asia Limited One [Member] | ' | ' | |
Line of Credit Facility [Line Items] | ' | ' | |
Line Of Credit Facility, Current Borrowing Capacity | 897,436 | ' | |
Line Of Credit Facility, Amount Outstanding | 897,290 | 897,000 | |
Line of Credit Facility, Interest Rate During Period | 5.25% | 5.25% | |
Bank Of East Asia Limited One [Member] | Hkd Facilities [Member] | ' | ' | |
Line of Credit Facility [Line Items] | ' | ' | |
Line of Credit Facility, Interest Rate Description | 'higher of Hong Kong prime rate or HIBOR plus 2% for HKD facilities | ' | |
Bank Of East Asia Limited One [Member] | Other Facilites [Member] | ' | ' | |
Line of Credit Facility [Line Items] | ' | ' | |
Line of Credit Facility, Interest Rate Description | 'LIBOR plus 1.75% for other currency facilities | ' | |
Fubon Bank [Member] | ' | ' | |
Line of Credit Facility [Line Items] | ' | ' | |
Line Of Credit Facility, Current Borrowing Capacity | 2,435,897 | ' | |
Line Of Credit Facility, Amount Outstanding | $1,520,201 | $0 | |
Line of Credit Facility, Interest Rate During Period | 6.50% | ' | |
Fubon Bank [Member] | Hkd Facilities [Member] | ' | ' | |
Line of Credit Facility [Line Items] | ' | ' | |
Line of Credit Facility, Interest Rate Description | 'higher of HIBOR plus 3.5% for HKD facilities | ' | |
Fubon Bank [Member] | Other Facilites [Member] | ' | ' | |
Line of Credit Facility [Line Items] | ' | ' | |
Line of Credit Facility, Interest Rate Description | 'LIBOR plus 3.5% for other currency facilities | ' | |
[1] | The bank loans are combined from the summary of Note (8), total bank loans amount to USD7,630,946 with a revolving short term loan of USD1,538,168. The revolving short term loan is placed under Other Current Liabilities on the balance sheet. It has a facility limit of USD1,538,462, bearing an interest rate of 0.5% below Hong Kong prime rate per annum. |
BANK_LOANS_Details
BANK LOANS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Maturities of Long-term Debt [Line Items] | ' | ' |
Long-term Debt | $3,222,113 | $6,099,309 |
Installment Loan Having A Maturity Date In July 28, 2014 [Member] | ' | ' |
Maturities of Long-term Debt [Line Items] | ' | ' |
Long-term Debt | 89,744 | 243,590 |
Installment Loan Having A Maturity Date In April 18, 2015 [Member] | ' | ' |
Maturities of Long-term Debt [Line Items] | ' | ' |
Long-term Debt | 683,761 | 1,196,581 |
Installment Loan Having A Maturity Date In April 25, 2015 [Member] | ' | ' |
Maturities of Long-term Debt [Line Items] | ' | ' |
Long-term Debt | 859,612 | 1,574,812 |
Installment Loan Having A Maturity Date In June 2, 2023 [Member] | ' | ' |
Maturities of Long-term Debt [Line Items] | ' | ' |
Long-term Debt | 0 | 456,123 |
Installment Loan Having A Maturity Date In September 15, 2023 [Member] | ' | ' |
Maturities of Long-term Debt [Line Items] | ' | ' |
Long-term Debt | 0 | 584,573 |
Installment Loan Having A Maturity Date In June 2, 2026 [Member] | ' | ' |
Maturities of Long-term Debt [Line Items] | ' | ' |
Long-term Debt | 0 | 703,598 |
Installment Loan Having A Maturity Date In July 21, 2026 [Member] | ' | ' |
Maturities of Long-term Debt [Line Items] | ' | ' |
Long-term Debt | 0 | 1,340,032 |
Installment Loan Having A Maturity Date In September 23, 2028 [Member] | ' | ' |
Maturities of Long-term Debt [Line Items] | ' | ' |
Long-term Debt | 947,971 | 0 |
Term Loan Having A Maturity Date In January 23, 2014 [Member] | ' | ' |
Maturities of Long-term Debt [Line Items] | ' | ' |
Long-term Debt | $641,025 | $0 |
BANK_LOANS_Details_1
BANK LOANS (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Carrying amount that are repayable on demand or within twelve months from September 30, 2013 containing a repayable on demand clause: | ' | ' |
Within twelve months | $1,937,063 | $1,529,282 |
Carrying amount that are not repayable within twelve months from September 30, 2013 containing a repayable on demand clause but shown in current liabilities: | ' | ' |
After 1 year, but within 2 years | 505,656 | 2,142,751 |
After 2 years, but within 5 years | 118,775 | 467,232 |
After 5 years | 660,619 | 1,960,044 |
Long-term Debt, Excluding Current Maturities | 1,285,050 | 4,570,027 |
Long-term Debt | $3,222,113 | $6,099,309 |
BANK_LOANS_Details_Textual
BANK LOANS (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Installment Loan Having Maturity Date In July 28 2014 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Maturity Date | 28-Jul-14 | ' |
Debt Instrument, Basis Spread on Variable Rate | 0.25% | ' |
Debt Instrument, Interest Rate at Period End | 5.25% | 5.25% |
Debt Instrument, Periodic Payment | $13,291 | ' |
Installment Loan Having Maturity Date In April 18 2015 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Maturity Date | 18-Apr-15 | ' |
Debt Instrument, Basis Spread on Variable Rate | 0.25% | ' |
Debt Instrument, Interest Rate at Period End | 5.25% | 5.25% |
Debt Instrument, Periodic Payment | 46,065 | ' |
Installment Loan Having Maturity Date In April 25 2015 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Maturity Date | 25-Apr-15 | ' |
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ' |
Debt Instrument, Interest Rate at Period End | 5.25% | 5.25% |
Debt Instrument, Periodic Payment | 55,939 | ' |
Installment Loan Having Maturity Date In June 2 2023 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Maturity Date | 2-Jun-23 | ' |
Debt Instrument, Basis Spread on Variable Rate | 2.00% | ' |
Debt Instrument, Interest Rate at Period End | 0.28% | ' |
Installment Loan Having Maturity Date In September 15 2023 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Maturity Date | 15-Sep-23 | ' |
Debt Instrument, Basis Spread on Variable Rate | -2.50% | ' |
Installment Loan Having Maturity Date In June 2 2026 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Maturity Date | 2-Jun-26 | ' |
Debt Instrument, Basis Spread on Variable Rate | 2.00% | ' |
Installment Loan Having Maturity Date In July 21 2026 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Maturity Date | 21-Jul-26 | ' |
Debt Instrument, Basis Spread on Variable Rate | -2.40% | ' |
Debt Instrument, Interest Rate at Period End | ' | 5.25% |
Installment Loan Having Maturity Date In September 23, 2028 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Maturity Date | 23-Sep-28 | ' |
Debt Instrument, Basis Spread on Variable Rate | 2.00% | ' |
Debt Instrument, Interest Rate at Period End | 0.21% | ' |
Debt Instrument, Periodic Payment | $6,283 | ' |
Term Loan Having Maturity Date In January 23, 2014 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, Maturity Date | 23-Jan-14 | ' |
Debt Instrument, Interest Rate at Period End | 3.88% | ' |
OTHER_CURRENT_LIABILITIES_Deta
OTHER CURRENT LIABILITIES (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Other Current Liabilities [Line Items] | ' | ' |
Revolving short term loan | $1,538,168 | $1,531,637 |
Trade deposit from customers | 7,725,475 | 9,896,635 |
Temporary receipts | 2,242,999 | 0 |
Others | 937,358 | 957,730 |
Other Liabilities, Current | $12,444,000 | $12,386,002 |
LOAN_FROM_A_THIRTY_PARTY_Detai
LOAN FROM A THIRTY PARTY (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Loan From Third Party [Line Items] | ' | ' |
Repayments of Short-term Debt, Total | $7,051,282 | ' |
Current portion | 641,026 | 0 |
Non-current portion | 6,410,256 | 0 |
The Last date of the 12-month period from September 27, 2013 | ' | ' |
Loan From Third Party [Line Items] | ' | ' |
Repayments of Short-term Debt, Total | 641,026 | ' |
The Last date of the 24-month period from September 27, 2013 | ' | ' |
Loan From Third Party [Line Items] | ' | ' |
Repayments of Short-term Debt, Total | 1,282,051 | ' |
The Last date of the 36-month period from September 27, 2013 | ' | ' |
Loan From Third Party [Line Items] | ' | ' |
Repayments of Short-term Debt, Total | $5,128,205 | ' |
LOAN_FROM_A_THIRTY_PARTY_Detai1
LOAN FROM A THIRTY PARTY (Details Textual) | Sep. 26, 2013 | Sep. 26, 2013 | Sep. 26, 2013 |
Excel Precise International Limited [Member] | Excel Precise International Limited [Member] | ||
USD ($) | HKD | ||
Loan From Third Party [Line Items] | ' | ' | ' |
Loan From Third Party | ' | $7,051,282 | 55,000,000 |
Loans Receivables With Fixed Rate Of Interest | 1.10% | ' | ' |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Line Items] | ' | ' |
Computed tax at federal statutory rate | $0 | $0 |
Tax rate differential on foreign earnings of Atlantic and Aristo, Hong Kong based companies | -83,680 | -353,440 |
Federal tax penalty provision | 80,000 | 0 |
Tax (over) under provision for Atlantic | -68,720 | 32,950 |
Tax paid by Kezheng | 10,607 | 0 |
Net operating loss carry forward | 83,680 | 353,440 |
Foreign Income Tax Expense (Benefit), Continuing Operations, Total | $21,887 | $32,950 |
INCOME_TAXES_Details_1
INCOME TAXES (Details 1) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Line Items] | ' | ' |
Federal | $80,000 | $0 |
Foreign | -58,113 | 32,950 |
Current Income Tax Expense (Benefit), Total | $21,887 | $32,950 |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Line Items] | ' | ' |
Net operating losses | $4,681,570 | $1,837,120 |
Total deferred tax assets | 4,687,570 | 1,837,120 |
Less: valuation allowance | -4,687,570 | -1,837,120 |
Deferred Tax Assets, Net of Valuation Allowance, Total | $0 | $0 |
INCOME_TAXES_Details_Textual
INCOME TAXES (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Line Items] | ' | ' |
Effective Income Tax Rate Reconciliation, Percent, Total | 0.16% | 0.02% |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | ' |
Income Tax Provision | $21,887 | $32,950 |
CASH_FLOW_INFORMATION_Details
CASH FLOW INFORMATION (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Cash Flow Supplemental Disclosures [Line Items] | ' | ' |
Interest paid | $1,041,095 | $1,011,080 |
Income taxes (reversal) paid | $0 | ($2,870) |
CASH_FLOW_INFORMATION_Details_
CASH FLOW INFORMATION (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Cash Flow Supplemental Disclosures [Line Items] | ' | ' |
Cash consideration paid up to December 31, 2013 and 2012 | $0 | $2,150,000 |
Cash and cash equivalents acquired | 0 | -157,259 |
Net cash inflow in respect of acquisition of subsidiaries | $0 | $1,992,741 |
WEIGHTED_AVERAGE_NUMBER_OF_SHA1
WEIGHTED AVERAGE NUMBER OF SHARES (Details Textual) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Weighted Average Number of Shares Outstanding Basic [Line Items] | ' |
Stock Issued During Period, Shares, Employee Stock Ownership Plan | 5 |
CONCENTRATIONS_OF_CREDIT_RISK_1
CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS (Details Textual) | 1 Months Ended |
Sep. 27, 2013 | |
Concentration Risk [Line Items] | ' |
Sale of Stock, Description of Transaction | 'On September 27, 2013 the Company sold the entire 30% equity interest of ATMD. |
RETIREMENT_PLAN_Details_Textua
RETIREMENT PLAN (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Contribution Plan, Cost Recognized | $32,872 | $29,552 |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 5.00% | ' |
COMMITMENTS_Details
COMMITMENTS (Details) (USD $) | Dec. 31, 2013 |
Year Ending December 31 [Abstract] | ' |
2014 | $376,760 |
2015 | 177,033 |
Thereafter | 525,100 |
Total | 1,078,893 |
Related Parties [Member] | ' |
Year Ending December 31 [Abstract] | ' |
2014 | 0 |
2015 | 0 |
Thereafter | 0 |
Total | 0 |
Other Than Related Parties [Member] | ' |
Year Ending December 31 [Abstract] | ' |
2014 | 376,760 |
2015 | 177,033 |
Thereafter | 525,100 |
Total | $1,078,893 |
COMMITMENTS_Details_Textual
COMMITMENTS (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Other Commitments [Line Items] | ' | ' |
Operating Leases, Rent Expense | $475,571 | $241,699 |
STOCK_DIVIDEND_Details_Textual
STOCK DIVIDEND (Details Textual) (USD $) | 1 Months Ended |
28-May-12 | |
Stock Dividend [Line Items] | ' |
Common Stock Dividends, Shares | 5,805,059 |
Payments Of Dividends Fractional Common Stock | $7.47 |
Dividends Payable, Nature | 'special dividend |
INVESTMENTS_IN_A_JOINTLYCONTRO2
INVESTMENTS IN A JOINTLY-CONTROLLED ENTITY (Details) (ATMD (Hong Kong) Limited [Member]) | 12 Months Ended |
Dec. 31, 2013 | |
ATMD (Hong Kong) Limited [Member] | ' |
Interest in Joint Ventures or Partnerships [Line Items] | ' |
Place of registration | 'Hong Kong |
Ownership interest | 30.00% |
Percentage of Voting power | 30.00% |
Profit sharing | 30.00% |
Principal activity | 'Trading |
INVESTMENTS_IN_A_JOINTLYCONTRO3
INVESTMENTS IN A JOINTLY-CONTROLLED ENTITY (Details 1) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Share of jointly-controlled entity's assets and liabilities: | ' | ' |
Current assets | $2,763,121 | $8,098,594 |
Current liabilities | -20,674,030 | -36,779,064 |
NET ASSETS (LIABILITIES) | -15,101,510 | -1,319,018 |
Share of jointly-controlled entity's results: | ' | ' |
Net sales | 72,175,289 | 161,385,167 |
Gross profit | 225,350 | 391,456 |
Net profit (loss) | -13,791,210 | -4,866,109 |
ATMD (Hong Kong) Limited [Member] | ' | ' |
Share of jointly-controlled entity's assets and liabilities: | ' | ' |
Current assets | 0 | 23,490,550 |
Non-current assets | 0 | 69,921 |
Current liabilities | 0 | -20,742,164 |
NET ASSETS (LIABILITIES) | 0 | 2,818,307 |
Share of jointly-controlled entity's results: | ' | ' |
Net sales | 0 | 48,674,460 |
Gross profit | 0 | 698,848 |
Net profit (loss) | $0 | ($181,693) |
INVESTMENTS_IN_A_JOINTLYCONTRO4
INVESTMENTS IN A JOINTLY-CONTROLLED ENTITY (Details Textual) (USD $) | 1 Months Ended | |
In Millions, unless otherwise specified | Sep. 27, 2013 | Mar. 31, 2012 |
Interest in Joint Ventures or Partnerships [Line Items] | ' | ' |
Payments to Acquire Interest in Joint Venture | ' | $3 |
Sale of Stock, Description of Transaction | 'On September 27, 2013 the Company sold the entire 30% equity interest of ATMD. | ' |
ACQUISITION_Details
ACQUISITION (Details) (USD $) | Sep. 28, 2012 |
Purchase Consideration: | ' |
Acquisition obligation payable to sellers | $2,150,000 |
Direct costs relating to acquire | 20,000 |
Less: cash acquired | -157,259 |
Net purchase consideration | 2,012,741 |
Net tangible assets acquired: | ' |
Fixed assets | 355,481 |
Inventories | 654,757 |
Trade receivables, deposits, prepayment and other receivables | 717,369 |
Restricted cash | 132,706 |
Trade payables, other creditors and accruals | -13,328,971 |
Non-controlled interest | 2,140,276 |
Net tangible assets acquired | -9,328,382 |
Purchase consideration in excess of net tangible assets | 11,341,123 |
Allocated to: | ' |
Trademark | 53,955 |
License contracts | 11,287,168 |
Purchase consideration in excess of net tangible assets | $11,341,123 |
ACQUISITION_Details_Textual
ACQUISITION (Details Textual) (USD $) | Dec. 31, 2013 | Sep. 28, 2012 |
Business Acquisition [Line Items] | ' | ' |
Business Acquisition Purchase Consideration | ' | 2,150,000 |
eVision Telecom Limited [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Ownership interest | 100.00% | 100.00% |
USmart Electronic Products Limited [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Ownership interest | 80.00% | 80.00% |
Jussey [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Ownership interest | ' | 100.00% |
Business Acquisition, Percentage of Voting Interests Acquired | ' | 80.00% |
Business Acquisition Purchase Consideration | ' | 2,150,000 |
INTANGIBLE_ASSETS_Details
INTANGIBLE ASSETS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 |
License Contracts [Member] | Trademarks [Member] | |||
Gross carrying amount: | ' | ' | ' | ' |
Trademark | $53,955 | $53,955 | ' | ' |
License contracts | 11,287,168 | 11,287,168 | ' | ' |
Intangible Assets, Gross | 11,341,123 | 11,341,123 | ' | ' |
Less : Accumulated amortization | ' | ' | ' | ' |
Trademark | 53,955 | 0 | ' | ' |
License contracts | 11,287,168 | 0 | ' | ' |
Intangible assets gross | 11,341,123 | 0 | ' | ' |
Intangible assets, net | $0 | $11,341,123 | ' | ' |
Finite-Lived Intangible Asset, Useful Life | ' | ' | '12 months | '12 months |
INTANGIBLE_ASSETS_Details_Text
INTANGIBLE ASSETS (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Amortization of Intangible Assets | $11,341,123 | $0 |
UNCERTAINTY_OF_ABILITY_TO_CONT1
UNCERTAINTY OF ABILITY TO CONTINUE AS A GOING CONCERN (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Going Concern [Line Items] | ' | ' |
Sales Revenue, Goods, Net | $72,175,289 | $161,385,167 |
Accumulated Deficit | $16,879,337 | $3,539,251 |