Document_And_Entity_Informatio
Document And Entity Information | 12 Months Ended |
Sep. 30, 2013 | |
Document Information [Line Items] | ' |
Document Type | '20-F |
Amendment Flag | 'false |
Document Period End Date | 30-Sep-13 |
Document Fiscal Year Focus | '2013 |
Document Fiscal Period Focus | 'FY |
Trading Symbol | 'KONE |
Entity Common Stock, Shares Outstanding | 1,405,000 |
Entity Registrant Name | 'Kingtone Wirelessinfo Solution Holding Ltd |
Entity Central Index Key | '0001487839 |
Current Fiscal Year End Date | '--09-30 |
Entity Well-known Seasoned Issuer | 'No |
Entity Voluntary Filers | 'No |
Entity Current Reporting Status | 'Yes |
Entity Filer Category | 'Non-accelerated Filer |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | ||
In Thousands, unless otherwise specified | ||||
Current assets | ' | ' | ||
Cash and cash equivalents | $6,132 | [1] | $6,439 | [1] |
Accounts and Notes Receivable, net of allowance | 4,496 | [1] | 3,240 | [1] |
Unbilled revenue | 6,029 | [1] | 580 | [1] |
Due from related companies | 141 | [1] | 123 | [1] |
Inventories, net | 688 | [1] | 628 | [1] |
Other receivables and prepayments | 2,105 | [1] | 1,772 | [1] |
Current portion of long-term receivables | 0 | [1] | 1,393 | [1] |
Current portion of net investment in sales-type leases | 0 | [1] | 1,210 | [1] |
Total Current Assets | 19,591 | 15,385 | ||
Non-current assets | ' | ' | ||
Property and Equipment, net | 13,358 | [1] | 13,541 | [1] |
Intangible assets | 632 | [1] | 633 | [1] |
Net investment in sales-type leases, less current portion | 0 | [1] | 333 | [1] |
Total Assets | 33,581 | 29,892 | ||
Current liabilities | ' | ' | ||
Accounts payable | 1,606 | [1] | 775 | [1] |
Advances from customers | 9,062 | [1] | 1,528 | [1] |
Other payables and accruals | 111 | [1] | 167 | [1] |
Taxes payable | 1,545 | [1] | 1,673 | [1] |
Amounts due to related parties | 2 | [1] | 2 | [1] |
Dividend payable | 842 | [1] | 817 | [1] |
Total Current Liabilities | 13,168 | 4,962 | ||
Stockholders' equity | ' | ' | ||
Ordinary share ($0.01 par value, 100,000,000 shares authorized, 1,405,000 shares issued and outstanding as of September 30, 2013 and 2012, respectively) | 14 | 14 | ||
Additional paid in capital | 22,233 | [1] | 22,233 | [1] |
Appropriated retained earnings | 1,615 | [1] | 1,615 | [1] |
Unappropriated retained earnings | -7,648 | [1] | -2,515 | [1] |
Accumulated other comprehensive income | 4,199 | [1] | 3,583 | [1] |
Total Shareholders' Equity | 20,413 | 24,930 | ||
Total Liabilities and Shareholders' Equity | $33,581 | $29,892 | ||
[1] | *All of the VIE’s assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets (Note 3). |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 |
Ordinary share, par value (in dollars per share) | $0.00 |
Ordinary share, shares authorized | 100,000,000 |
Ordinary share, shares issued | 1,405,000 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Revenues | ' | ' | ' |
Software | $291 | $275 | $2,409 |
Wireless system solution | 11,271 | 1,176 | 3,928 |
- Related party | 192 | 0 | 131 |
-Third Party | 11,079 | 1,176 | 3,797 |
Total revenues | 11,562 | 1,451 | 6,337 |
Cost of sales | ' | ' | ' |
Software | 568 | 640 | 1,205 |
Wireless system solution | 9,976 | 1,049 | 2,203 |
- Related party | 127 | 0 | 0 |
-Third Party | 9,849 | 1,049 | 2,203 |
Total cost of sales | 10,544 | 1,689 | 3,408 |
Gross (loss) profit | 1,018 | -238 | 2,929 |
Operating expenses | ' | ' | ' |
Selling and marketing expenses | 557 | 685 | 629 |
General and administrative expenses | 2,805 | 8,278 | 3,276 |
Research and development expenses | 249 | 201 | 311 |
Total Operating expenses | 3,611 | 9,164 | 4,216 |
Loss from operations | -2,593 | -9,402 | -1,287 |
Other income(expense) | ' | ' | ' |
Subsidy income | 0 | 237 | 0 |
Interest income | 79 | 117 | 162 |
loss of net investment in sales-type leases | -1,443 | 0 | 0 |
Other income (expense), net | -1,176 | 60 | 120 |
- Related party | 44 | 0 | 0 |
-Third Party | -1,220 | 60 | 120 |
Total other income (expense), net | -2,540 | 414 | 282 |
Loss before income tax expenses | -5,133 | -8,988 | -1,005 |
Income tax expenses | 0 | 0 | 32 |
Net loss | -5,133 | -8,988 | -1,037 |
Other comprehensive income | ' | ' | ' |
Foreign currency translation gain | 616 | 1,194 | 676 |
Comprehensive loss | ($4,517) | ($7,794) | ($361) |
Loss per ordinary share: | ' | ' | ' |
Basic and Diluted (in dollars per share) | ($3.65) | ($6.40) | ($0.74) |
Weighted average number of ordinary shares outstanding Basic and Diluted (in shares) | 1,405,000 | 1,405,000 | 1,405,000 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Total | Ordinary Shares [Member] | Paid-In Capital [Member] | Additional Paid-In Capital [Member] | Appropriated Retained Earnings [Member] | Unappropriated Retained Earnings [Member] | Comprehensive Income [Member] |
In Thousands, except Share data | |||||||
Beginning Balance at Sep. 30, 2010 | $32,767 | $14 | $0 | $21,915 | $844 | $8,281 | $1,713 |
Beginning Balance (in shares) at Sep. 30, 2010 | ' | 1,400,000 | ' | ' | ' | ' | ' |
Issuance of ordinary shares in form of American Depositary Shares | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Issuance of ordinary shares in form of American Depositary Shares (in shares) | ' | 5,000 | ' | ' | ' | ' | ' |
Share-based compensation | 316 | 0 | 0 | 316 | 0 | 0 | 0 |
Net loss for the year | -1,037 | 0 | 0 | 0 | 0 | -1,037 | 0 |
Transfer to statutory reserves | 0 | 0 | 0 | 0 | 771 | -771 | 0 |
Foreign currency translation gain | 676 | 0 | 0 | 0 | 0 | 0 | 676 |
Ending Balance at Sep. 30, 2011 | 32,722 | 14 | 0 | 22,231 | 1,615 | 6,473 | 2,389 |
Ending Balance (in shares) at Sep. 30, 2011 | ' | 1,405,000 | ' | ' | ' | ' | ' |
Share-based compensation | 2 | 0 | 0 | 2 | 0 | 0 | 0 |
Net loss for the year | -8,988 | 0 | 0 | 0 | 0 | -8,988 | 0 |
Foreign currency translation gain | 1,194 | 0 | 0 | 0 | 0 | 0 | 1,194 |
Ending Balance at Sep. 30, 2012 | 24,930 | 14 | 0 | 22,233 | 1,615 | -2,515 | 3,583 |
Ending Balance (in shares) at Sep. 30, 2012 | ' | 1,405,000 | ' | ' | ' | ' | ' |
Net loss for the year | -5,133 | 0 | 0 | 0 | 0 | -5,133 | 0 |
Foreign currency translation gain | 616 | 0 | 0 | 0 | 0 | 0 | 616 |
Ending Balance at Sep. 30, 2013 | $20,413 | $14 | $0 | $22,233 | $1,615 | ($7,648) | $4,199 |
Ending Balance (in shares) at Sep. 30, 2013 | ' | 1,405,000 | ' | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | ||
Cash flows from operating activities | ' | ' | ' | ||
Net loss | ($5,133) | ($8,988) | ($1,037) | ||
Depreciation and amortization | 592 | 548 | 530 | ||
Investment loss | 1,443 | 0 | 0 | ||
Bad debt expense | 519 | 4,942 | 402 | ||
Employee compensation | 0 | 873 | 0 | ||
Share-based compensation expense | 0 | 2 | 316 | ||
Changes in operating assets and liabilities | ' | ' | ' | ||
Accounts and notes receivable | -1,662 | 1,576 | -3,004 | ||
Unbilled revenue | -5,351 | -405 | 818 | ||
Other receivables and prepayments | 1,180 | -1,549 | -278 | ||
Inventories | -41 | -390 | 161 | ||
Taxes payable | -176 | 76 | -1,934 | ||
Accounts payable | 796 | -201 | 351 | ||
Advance from customers | 7,378 | 1,146 | -12 | ||
Other payables and accruals | -58 | 8 | -13 | ||
Net investment in sales-type leases | 122 | -71 | -1,407 | ||
Due from related party | -15 | 0 | 0 | ||
Net cash used in operating activities | -406 | -2,433 | -5,104 | ||
Cash flows from investing activities | ' | ' | ' | ||
Payment to purchase property and equipment | -22 | -97 | -75 | ||
Disposal of property and equipment | 29 | 0 | 0 | ||
Net cash (used in) provided by investing activities | 7 | -97 | -75 | ||
Cash flows from financing activities | ' | ' | ' | ||
Receipt in loan from non-related companies | 0 | 9 | 3,000 | ||
Payment in loan to non-related companies | 0 | 0 | -4,208 | ||
Net cash (used in) provided by financing activities | 1 | 9 | -1,190 | ||
Effect of exchange rate changes on cash and cash equivalents | 91 | 211 | 209 | ||
Net decrease in cash and cash equivalents | -307 | -2,310 | -6,160 | ||
Cash and cash equivalents at beginning of year | 6,439 | [1] | 8,749 | 14,909 | |
Cash and cash equivalents at end of year | 6,132 | [1] | 6,439 | [1] | 8,749 |
Supplemental disclosure of cash flow information | ' | ' | ' | ||
Interest paid | 0 | 0 | 0 | ||
Income taxes paid | 0 | 0 | 1,608 | ||
Related-Party Companies [Member] | ' | ' | ' | ||
Cash flows from financing activities | ' | ' | ' | ||
Proceeds from related party Debt | 1 | 0 | 5 | ||
Related Companies [Member] | ' | ' | ' | ||
Cash flows from financing activities | ' | ' | ' | ||
Proceeds from related party Debt | 0 | 0 | 2 | ||
Shareholders [Member] | ' | ' | ' | ||
Cash flows from financing activities | ' | ' | ' | ||
Proceeds from related party Debt | $0 | $0 | $11 | ||
[1] | *All of the VIE’s assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets (Note 3). |
ORGANIZATION_AND_PRINCIPAL_ACT
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | ' |
Nature of Operations [Text Block] | ' |
NOTE 1. ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Kingtone Wirelessinfo Solution Holding Ltd (“Kingtone Wireless”) was incorporated in the British Virgin Islands on October 27, 2009 under the name of Reizii Capital Management Limited. It has wholly-owned subsidiaries and a variable interest entity (“VIE”). Its wholly-owned subsidiaries include: Topsky Info-tech Holdings Pte Ltd. (“Topsky”), which was established in Singapore on November 3, 2009, and Xi’an Softech Co., Ltd. (“Softech”), which was established on November 27, 2009 in Xi’an, Shaanxi Province, China by Topsky. Its VIE is Xi’an Kingtone Information Technology Co., Ltd. (“Kingtone Information”) which was incorporated in Xi’an, Shaanxi province, China on December 28, 2001. Kingtone Wireless and its wholly-owned subsidiaries and VIE together are referred to as the “Company”. | |
On December 17, 2009, Reizii Capital Management Limited changed its name to Kingtone Wirelessinfo Solution Holding Ltd. | |
On March 23, 2010, the board of directors of Kingtone Wireless resolved to change the fiscal year end of Kingtone Wireless and its wholly-owned subsidiaries, Topsky and Softech, from November 30th to September 30th so they have the same fiscal year end as Kingtone Information. | |
On May 14, 2010, the Company completed the initial public offering of its American Depositary Shares (“ADSs”) at a price of $4.00 per ADS and listed its ADS on the NASDAQ Capital Market under the symbol “KONE.” The Company sold an aggregate of 4,000,000 ADSs, representing 4,000,000 ordinary shares and received net proceeds of approximately $14.5 million, net of underwriting discounts and other offering expenses. | |
The Company is principally involved in developing and implementing mobile enterprise solutions for its customers in a broad variety of sectors and industries to improve its operating efficiency by facilitating mission-specific field and long-distance information management in wireless environments through its VIE, Kingtone Information. | |
Effective November 6, 2012, the Company conducted a 1-for-10 Reverse Stock Split of all issued and outstanding shares of its ordinary shares. Upon the effect of the Reverse Stock Split, the Company’s issued and outstanding shares reduced from 14,050,000 to 1,405,000. Except as otherwise specified, all information in these financial statements and notes and all share and per share information has been retroactively adjusted for all periods presented to reflect the reverse stock split, as if the Reverse Stock Split had occurred at the beginning of the earliest period presented. | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Accounting Policies [Abstract] | ' | |||||||||
Basis of Presentation and Significant Accounting Policies [Text Block] | ' | |||||||||
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||
(a) Basis of presentation | ||||||||||
The consolidated financial statements of the Company have been prepared in accordance with the accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements as of September 30, 2013 include the financial statements of Kingtone Wireless, its subsidiaries, and its VIE for which Kingtone Wireless is the primary beneficiary. All inter-company transactions and balances between Kingtone Wireless, its subsidiaries and its’ VIE are eliminated upon consolidation. In the opinion of management, all adjustments considered necessary for a fair presentation have been included, and such adjustments are of a normal recurring nature. | ||||||||||
(b) Foreign currency transaction | ||||||||||
The functional currency of the Company is United States dollars (“US$”), and the functional currency of Topsky is Singapore dollars (“SG$”). The functional currency of the Company’s PRC subsidiaries, Softech and Kingtone Information, is Renminbi (“RMB”), and PRC is the primary economic environment in which the Company operates. | ||||||||||
Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transactions. The resulting exchange differences are included in the determination of net income for the respective periods. | ||||||||||
For financial reporting purposes, the financial statements of the Company’s PRC subsidiaries which are prepared using RMB, are translated into Company’s reporting currency, the United States Dollar (“U.S. dollar”). Assets and liabilities are translated using the exchange rate at each balance sheet date. Revenue and expenses are translated using average rates prevailing during each reporting period, and shareholders’ equity is translated at historical exchange rates. Adjustments resulting from the translation are recorded as a separate component of accumulated other comprehensive income in shareholders’ equity. | ||||||||||
The exchange rates applied are as follows: | ||||||||||
2013 | 2012 | 2011 | ||||||||
RMB exchange rate at balance sheets dates, | 6.1439 | 6.3265 | 6.5574 | |||||||
Average RMB exchange rate for each period | 6.2363 | 6.3299 | 6.6181 | |||||||
No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at the rates used in translation. The source of the exchange rates is generated from OANDA (Forex Trading and Exchange Rates Services). | ||||||||||
(c) Use of estimates | ||||||||||
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Management makes these estimates using the best information available at the time the estimates are made. Significant estimates and judgments made by the management include: (i) estimates of profits and losses on contracts in process; (ii) accrual of estimated liabilities; and (iii) contingencies and litigation. However actual results could differ from those estimates. | ||||||||||
(d) Cash and cash equivalents | ||||||||||
Cash and cash equivalents represent cash on hand and deposits held with banks. The Company considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. | ||||||||||
(e) Accounts and notes receivable | ||||||||||
Accounts and notes receivable are recorded at net realizable value consisting of the carrying amount less an allowance for uncollectible accounts as needed. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company determines the allowance based on aging data, historical collection experience, customer specific facts and economic conditions. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company did not have any off-balance-sheet credit exposure related to its customers. | ||||||||||
(f) Inventories | ||||||||||
Inventories consist of raw materials, finished goods, and project -in-progress, which include the direct labor, direct materials and overhead costs related to projects. Inventories are stated at lower of cost or market value. Cost is determined using first in first out method. | ||||||||||
Where there is evidence that the market value of inventories, in their disposal in the ordinary course of business, will be less than cost, whether due to physical deterioration, obsolescence, changes in price levels, or other causes, the carrying value of inventories will be written down. | ||||||||||
(g) Property and equipment | ||||||||||
The Company states plant and equipment at cost less accumulated depreciation. The Company computes depreciation using the straight-line method over the estimated useful lives of the assets with 5% residual value. | ||||||||||
Estimated useful lives of property and equipment: | ||||||||||
Useful Life | ||||||||||
Property and improvements | 20-35 years | |||||||||
Transportation equipment | 5 years | |||||||||
Office equipment | 5 years | |||||||||
Furniture | 5 years | |||||||||
Electronic equipment | 3-5 years | |||||||||
The Company eliminates the cost and related accumulated depreciation of assets sold or otherwise retired from the accounts and includes any gain or loss in the statement of income. The Company charges maintenance, repairs and minor renewals directly to expenses as incurred, and it capitalizes major additions and betterment to buildings and equipment. | ||||||||||
(h) Impairment of long-lived assets | ||||||||||
The Company applies the Accounting Standards Codification (“ASC”) No. 360-10 “Property, plant and equipment”, ASC NO. 360 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. | ||||||||||
The Company tests long-lived assets, including property and equipment and intangible assets subject to periodic amortization, for recoverability at least annually or more frequently upon the occurrence of an event or when circumstances indicate that the net carrying amount is greater than its fair value. Assets are grouped and evaluated at the lowest level for their identifiable cash flows that are largely independent of the cash flows of other groups of assets. The Company considers historical performance and future estimated results in its evaluation of potential impairment and then compares the carrying amount of the asset to the future estimated cash flows expected to result from the use of the asset. If the carrying amount of the asset exceeds estimated expected undiscounted future cash flows, the Company measures the amount of impairment by comparing the carrying amount of the asset to its fair value. The estimation of fair value is generally measured by discounting expected future cash flows as the rate the Company utilizes to evaluate potential investments. The Company estimates fair value based on the information available in making whatever estimates, judgments and projections are considered necessary. No impairment of long-lived assets was recognized for the years ended September 30, 2013 and 2012, respectively. | ||||||||||
(i) Statutory surplus reserve | ||||||||||
The Company is required to set aside 10% of its income after income taxes prepared in accordance with PRC accounting regulations to the statutory surplus reserve until the balance reaches 50% of the paid-in capital or registered capital, after which further appropriation will be at the directors’ recommendation. | ||||||||||
(j) Revenue recognition | ||||||||||
Revenues consist primarily of sales of wireless system software service solutions and other customized software with support contracts. The Company recognizes revenue when (1) pervasive evidence of an arrangement exists, (2) delivery has occurred and customer acceptance is reasonable assured (3) the fee is fixed or determinable, and (4) collectability is probable. | ||||||||||
The Company generally provides wireless system software service solutions and customized software under short and long-term fixed-price contracts that require significant production and customization. The contract periods generally range from two months to one year in length. The Company recognizes income for these contracts following both the percentage-of-completion method, measured by contract milestones and on the basis of actual costs incurred versus the total estimated contract costs, and on the completed contract method in accordance with the ASC No. 605 -35 “Construction-Type and Production-Type Contracts” and ASC No. 985 - 605 “Software Revenue Recognition”. | ||||||||||
Provided unapproved change orders or claims occur in the future, in accounting for contracts, the Company follows ASC No. 605-35. The Company will recognize as revenues costs associated with unapproved change orders or claims to the extent it is probable that such claims and change orders will result in additional contract revenue, and the amount of such additional revenue can be reliably estimated. Contract losses are provided for in their entirety in the period that they become known, without regard to the percentage-of-completion. However, the Company has not experienced significant unapproved change orders in the past. | ||||||||||
The software contracts generally provide for post-contract customer support (“PCS”) for a period of one year from delivery of the software. The value of PCS revenue is not separately reported and is accounted for as part of the entire fee under the contract accounting methods described above since the PCS meets the criteria specified in ASC No. 985-605-25-71 as follows: | ||||||||||
1 | PCS is included in the total contract price; | |||||||||
2. PCS is for one year or less; | ||||||||||
3 | estimated costs are insignificant; | |||||||||
4. upgrades and enhancements during the PCS term have historically been and are expected to continue to be minimal and infrequent; and | ||||||||||
5 | the contract does not include any service elements that are accounted for separately. | |||||||||
All other services are provided under separate agreements and fee arrangements and the related revenue is recognized over the period the services are provided. | ||||||||||
Unbilled revenue consists of recognized recoverable costs and accrued profits on contracts for which billings had not been presented to clients as of the balance sheet date. | ||||||||||
The Company presents all sales revenue net of a value-added tax (“VAT”). | ||||||||||
The Company recognized the lease financing arrangement as a sales-type lease. The Company recognized revenue when the following conditions are met: a) When the lease contract is signed, b) When the customer has taken possession of the equipment, and c) Only if the collectability of owed amounts are reasonably assured. | ||||||||||
The sales-type lease revenue is recognized since the transaction meets one of the criteria specified in ASC No. 840-10-25-1, the lease term is more than 75 percent of the estimated economic life of the leased property. | ||||||||||
The Company recognizes revenue using the fair value of the wireless system software service solutions and other customized software by reference to the retail market price of the wireless system software service solutions and other customized software. These revenues are recorded as “Software Revenue”. | ||||||||||
(k) Cost of Sales | ||||||||||
When the criteria for revenue recognition have been met, costs incurred are recognized as cost of sales. Cost of sales (exclusive of depreciation and amortization) primarily includes the cost of the hardware purchased from the third parties, the labor costs of those responsible for the software development and project implementation and the applicable share of overhead expense directly related to the execution of services and delivery of projects. | ||||||||||
The Company's PRC subsidiary and VIE are subject to business tax on revenues related to certain types of services at various rates. Business tax on revenues earned from provision of services to customers is recorded as an additional item to cost of sales in the same period in which the related revenue is recognized. | ||||||||||
The Company is responsible for the cost of providing a warranty. In the past warranty costs have been insignificant. | ||||||||||
(l) Research and development costs | ||||||||||
Research and development costs include salaries, consultant fees, supplies and materials, as well as costs related to other overhead expenses such as depreciation, facilities, utilities and other R&D departmental expenses. Research and development costs are expensed as incurred in performing research and development activities in accordance with ASC No. 730-10-5, Accounting for Research and Development Costs . | ||||||||||
(m) Advertising expenses | ||||||||||
Advertising expenses, which generally represent the cost of promotions to create or stimulate a positive image of the Company or a desire to buy the Company’s products and services, are expensed as incurred. The Company incurred no advertising expenses in each of the periods presented. | ||||||||||
(n) Share-based compensation | ||||||||||
Share options granted to employees and independent directors are accounted for under ASC 718, "Share-Based Payment". In accordance with ASC 718, the Company determines whether a share option should be classified and accounted for as a liability award or an equity award. All grants of share options to employees classified as equity awards are recognized in the financial statements based on their grant date fair values. All grants of share options to employees classified as liability awards are re-measured at the end of each reporting period with an adjustment for fair value recorded to the current period expense in order to properly reflect the cumulative expense based on the current fair value of the vested options over the vesting period. The Company has elected to recognize compensation expenses using the Black-Scholes-Merton (BSM) option-pricing model estimated at the grant date based on the award’s fair value and is recognized as expense on a straight-line basis for each separately vesting portion of the award (the graded vesting attribution method). | ||||||||||
Restricted stock units (RSUs) are measured based on the fair market values of the underlying stock on the dates of grant. Shares are issued on the vesting dates net of the statutory withholding requirements to be paid by the Company on behalf of its employees. As a result, the actual number of shares issued will be fewer than the actual number of RSUs outstanding. Also, the Company recognizes stock-based compensation using the graded vesting attribution method. | ||||||||||
The Company records share-based compensation expense for awards granted to non-employees in exchange for services at fair value in accordance with the provisions of ASC 505-50, "Equity based " payment to non-employees. For the awards granted to non-employees, the Company will record compensation expenses equal to the fair value of the share options at the measurement date, which is determined to be the earlier of the performance commitment date or the service completion date. | ||||||||||
(o) Taxation | ||||||||||
a) | Income tax | |||||||||
i). | The Company is incorporated in the BVI. Under the current law of the BVI, the Company is not subject to tax on income or capital gains. Additionally, upon payments of dividends by the Company to its shareholders, no BVI withholding tax will be imposed. | |||||||||
ii). | Topsky was incorporated in Singapore and does not conduct any substantial operations of its own. No provision for Singapore profits tax has been made in the financial statements as Topsky has no assessable profits for the years ended September 30, 2013, 2012 and 2011. Additionally, upon payments of dividends by Topsky to its shareholders, no Singapore withholding tax will be imposed. | |||||||||
iii). | The Company’s PRC subsidiary and VIE, being incorporated in the PRC, are governed by the income tax law of the PRC and is subject to PRC enterprise income tax (“EIT”). Effective from January 1, 2008, the EIT rate of PRC was changed from 33% of to 25%, and applies to both domestic and foreign invested enterprises. | |||||||||
According to a filing document from Xi’an State Tax authorities of the High-technology zone, Kingtone Information was granted a reduced income tax rate of 15% from January 1, 2008 on the basis of being a high-tech company. In October 2011, Kingtone Information is verified as a “high-technology enterprise” until 2014 and therefore it has benefited from the preferential tax rate of 15%. | ||||||||||
For the years ended September 30, | ||||||||||
2013 | 2012 | 2011 | ||||||||
US$(’000) | US$(’000) | US$(’000) | ||||||||
PRC federal statutory tax rate | 25 | % | 25 | % | 25 | % | ||||
Loss before tax | -5,133 | -8,988 | -1,005 | |||||||
Computed expected income tax expense | - | - | - | |||||||
Non-deductible expenses | - | - | 32 | |||||||
Effect of tax holidays | - | - | - | |||||||
Income tax expenses | - | - | 32 | |||||||
The tax authority of the PRC conducts periodic and ad hoc tax filing reviews on business enterprises operating in the PRC after those enterprises had completed their relevant tax filings, hence the Company’s tax filings may not be finalized. It is therefore uncertain as to whether the PRC tax authority may take different views about the Company’s tax filings which may lead to additional tax liabilities. | ||||||||||
b) | Value-added tax and business tax | |||||||||
PRC Value-added Tax | ||||||||||
The Company’s products are only sold in the PRC and therefore are generally subject to a Chinese VAT at a rate of 17%. The VAT may be offset by VAT the Company pays on raw materials and other materials included in the cost of producing its finished product. Accrued VAT payables are subject to a 10%-12% surtax, which includes urban maintenance and construction taxes and additional education fees. | ||||||||||
PRC Business Tax | ||||||||||
Revenues from services provided by Kingtone Information are subject to a PRC business tax of 5% for software solution and 3%-5% for wireless system solution, with a surtax of 10%-12%. Kingtone Information pays business tax on gross revenues. | ||||||||||
c) | Deferred tax | |||||||||
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 and any operating loss and tax credit carry forwards. Deferred tax assets 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. A valuation allowance is provided to reduce the amount of deferred tax asset if it is considered more likely than not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | ||||||||||
d) | Uncertain tax positions | |||||||||
The Company adopted ASC No. 740-10 “Income Taxes”, on January 1, 2007. ASC No. 740-10 prescribes a more likely than not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. This Interpretation also provides guidance on recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. For the years ended September 30, 2013, 2012 and 2011, the Company did not have any interest and penalties associated with tax positions and the Company did not have any significant unrecognized uncertain tax positions. | ||||||||||
(p) Comprehensive income | ||||||||||
Accumulated other comprehensive income, as presented on the accompanying consolidated balance sheets are the cumulative foreign currency translation adjustments. | ||||||||||
(q) Commitments and contingencies | ||||||||||
In the normal course of business, the Company is subject to loss contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters, including, among others, government investigations, product and environmental liability, and tax matters. In accordance with ASC No. 450-10, “ Accounting for Contingencies” , the Company records accruals for such loss contingencies when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. Historically, the Company has not experienced any material service liability claims. | ||||||||||
(r) Fair value measurements | ||||||||||
The carrying amounts of cash and cash equivalents, accounts receivable from third and related parties, amounts due from and due to related parties, accounts payable and other payables approximate their fair values due to their short term nature. | ||||||||||
The Company adopted ASC No. 820 Fair Value Measurements and Disclosures on January 1, 2008 for all financial assets and liabilities and nonfinancial assets and liabilities that are recognized or disclosed at fair value in the combined financial statements on a recurring basis (at least annually). ASC No. 820-10 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The Company has not adopted ASC No. 820-10 for non-financial assets and non-financial liabilities, as these items are not recognized at fair value on a recurring basis. | ||||||||||
ASC No. 820-10 defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. | ||||||||||
ASC No. 820-10 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC No. 820-10 establishes three levels of inputs that may be used to measure fair value: | ||||||||||
Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. | ||||||||||
Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. | ||||||||||
Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. | ||||||||||
(s) Segment reporting | ||||||||||
The Company follows ASC No. 280, " Segment Reporting ". The Company's chief operating decision-maker, who has been identified as the Chief Executive Officer, reviews the consolidated results when making decisions about allocating resources and assessing performance of the Company as a whole and hence, the Company has only one reportable segment. As the Company's long-lived assets are substantially all located in the PRC and substantially all the Company's revenues are derived from within the PRC, no geographical segments are presented. | ||||||||||
(t) Significant risks | ||||||||||
Credit risk | ||||||||||
Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash, cash equivalents, accounts receivable, other receivables and amounts due from related parties. As of September 30, 2013 and September 30, 2012, US$4,011,070 and US$3,729,320, respectively, were deposited with major financial institutions located in the PRC and US$2,117,562 and $2,710,038, respectively, were deposited with major financial institutions located in Singapore. Historically, deposits in Chinese banks are secure due to the state policy on protecting depositors' interests. However, China promulgated a new Enterprise Bankruptcy Law in August 2006 that came into effect on June 1, 2007, which contains a separate article expressly stating that the State Council may promulgate implementation measures for the bankruptcy of Chinese banks based on the Bankruptcy Law. Under the new Enterprise Bankruptcy Law, although the implementation measures have not been promulgated, a Chinese bank may theoretically go into bankruptcy based on the Enterprise Bankruptcy Law. In addition, since China's concession to the World Trade Organization, foreign banks have been gradually permitted to operate in China and have been significant competitors against Chinese banks in many aspects, especially since the opening of the Renminbi business to foreign banks in late 2006. Therefore, the risk of bankruptcy of those Chinese banks in which the Company has deposits has increased. In the event of bankruptcy of one of the banks which holds the Company's deposits, it is unlikely to claim its deposits back in full since it is unlikely to be classified as a secured creditor based on PRC laws. | ||||||||||
The Company conducts credit evaluations of customers and generally does not require collateral or other security from its customers. The Company establishes an allowance for doubtful accounts primarily based upon the aging of the receivables and factors surrounding the credit risk of specific customers. | ||||||||||
Business, political and economic risks | ||||||||||
The Company participates in a relatively young and dynamic industry that is heavily reliant and also susceptible to complementary and/or competitive technological advancements. The Company believes that changes in any of the following areas could have a material adverse effect on the Company's future financial position, result of operations or cash flows: | ||||||||||
(i) | Business Risk. | |||||||||
Third parties may develop technological or business model innovations that address content delivery requirements in a manner that is, or is perceived to be, equivalent or superior to the Company's services. If competitors introduce new products or services that compete with, or surpass the quality, price or performance of the Company's services, the Company may be unable to renew its agreements with existing customers or attract new customers at the prices and levels that allow the Company to generate reasonable rates of return on its investment. | ||||||||||
(ii) | Political, economic and social uncertainties. | |||||||||
The Company's operations could be adversely affected by significant political, economic and social uncertainties in the PRC. Although the PRC government has been pursuing economic reform policies for more than 20 years, no assurance can be given that the PRC government will continue to pursue such policies or that such policies may not be significantly altered, especially in the event of a change in leadership, social or political disruption or unforeseen circumstances affecting the PRC political, economic and social conditions. There is also no guarantee that the PRC government's pursuit of economic reforms will be consistent or effective. | ||||||||||
(iii) | Regulatory restrictions. | |||||||||
The applicable PRC laws, rules and regulations currently prohibit foreign ownership of companies that provide content and application delivery services. Accordingly, the Company's subsidiary, Softech is currently ineligible to apply for the required licenses for providing content and application delivery services in China. As a result, the Company operates its business in the PRC through its VIEs, which holds the licenses and permits that are required to provide content and application delivery services in the PRC. The PRC Government may also choose at any time to block access to the Company's customers' content which could also materially impact the Company's ability to generate revenue. | ||||||||||
Foreign currency risk | ||||||||||
A majority of the Company’s sales and expenses transactions and a significant portion of the Company’s assets and liabilities are denominated in Renminbi (“RMB”). RMB is not freely convertible into foreign currencies. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China (“PBOC). Remittances in currencies other than RMB by the Company in China must be processed through the PBOC or any other China foreign exchange regulatory body which require certain supporting documentation in order to affect the remittance. | ||||||||||
From July 21, 2005, the RMB is permitted to fluctuate within a narrow and managed band against a basket of certain foreign currencies. While the international reaction to the appreciation of the RMB has generally been positive, there remains significant international pressure on the PRC Government to adopt an even more flexible currency policy, which could result in a further and potentially more significant appreciation of the RMB against the US$. | ||||||||||
(u) Earnings per share (“EPS”) | ||||||||||
EPS is calculated in according with ASC No. 260 “Earning per share”. Basic EPS excludes dilution and is computed by dividing net income attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue ordinary shares (convertible preferred stock, forward contract, warrants to purchase ordinary shares, contingently issuable shares, ordinary share options and warrants and their equivalents using the treasury stock method) were exercised or converted into ordinary shares. The Company excludes potential ordinary shares in the diluted EPS computation in periods of losses from continuing operations, as their effect would be anti-dilutive. | ||||||||||
(v) Recently issued accounting standards | ||||||||||
The FASB issued ASU No. 2013-02, which amends the authoritative accounting guidance under ASC Topic 220 “Comprehensive Income.” The amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendments require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under generally accepted accounting principles in the United States of America (“GAAP”) to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under GAAP that provide additional detail about those amounts. The amendments in this update are effective prospectively for reporting periods beginning after December 15, 2013. Early adoption is permitted. Adoption of this update is not expected to have a material effect on the Company’s consolidated results of operations or financial condition. | ||||||||||
The 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). 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. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. 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. The adoption of this standard is not expected to have a material impact on the consolidated financial position and results of operations. | ||||||||||
VARIABLE_INTEREST_ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Variable Interest Entities [Abstract] | ' | ||||||||||
Disclosure Of Variable Interest Entities [Text Block] | ' | ||||||||||
NOTE 3. VARIABLE INTEREST ENTITIES | |||||||||||
Kingtone Wireless’ controlling shareholders since the inception of Kingtone Wireless on October 27, 2009, also owned more than 50% of Kingtone Information since the inception of Kingtone Information on December 28, 2001. Mr. Tao Li, the controlling shareholder of Kingtone Information, obtained beneficial ownership and the right to acquire a majority of the outstanding shares of Kingtone Wireless pursuant to a certain Term Sheet, dated October 27, 2009 between certain shareholders of Kingtone Information (including Mr. Li) and Ms. Sha Li, the sole shareholder of Kingtone Wireless at such time (the “Term Sheet”). Such parties subsequently entered into Call Option Agreements dated December 15, 2009 upon the terms and conditions set forth in the Term Sheet. On December 15, 2009, Kingtone Wireless through one of its subsidiaries, Softech, entered into a series of agreements (the “Restructuring Agreements”) with Kingtone Information for it to qualify as a VIE and to meet foreign ownership limitations established by the People Republic of China (the “Reorganization”). The Restructuring Agreements are as follows: | |||||||||||
Entrusted Management Agreement | |||||||||||
Pursuant to the terms of a certain Entrusted Management Agreement dated December 15, 2009 among Kingtone Information, Softech and the shareholders of Kingtone Information (the “Entrusted Management Agreement”), Kingtone Information and its shareholders agreed to entrust the operations and management of its business to Softech. According to the Entrusted Management Agreement, Softech possesses the full and exclusive right to manage Kingtone Information’s operations, assets and personnel, has the right to control all of Kingtone Information's cash flows through an entrusted bank account, is entitled to Kingtone Information's net profits as a management fee, is obligated to pay all of Kingtone Information’s payables and loan payments, and bears all losses of Kingtone Information. The Entrusted Management Agreement will remain in effect until (i) the parties mutually agree to terminate the agreement; (ii) the dissolution of Kingtone Information or (iii) Softech acquires all of the assets or equity of Kingtone Information (as more fully described below under “Exclusive Option Agreement”). | |||||||||||
Exclusive Technology Service Agreement | |||||||||||
Pursuant to the terms of a certain Exclusive Technology Service Agreement dated December 15, 2009 between Kingtone Information and Softech (“the Exclusive Technology Services Agreement”), Softech is the exclusive technology services provider to Kingtone Information. Kingtone Information agreed to pay Softech all fees payable for technologies services prior to making any payments under the Entrusted Management Agreement. Any payment from Kingtone Information to Softech must comply with applicable Chinese laws. Further, the parties agreed that Softech shall retain sole ownership of all intellectual property developed in connection with providing technology services to Kingtone Information. The Exclusive Technology Services Agreement shall remain in effect until (i) the parties mutually agree to terminate the agreement; (ii) the dissolution of Kingtone Information or (iii) Softech acquires Kingtone Information (as more fully described below under “Exclusive Option Agreement”). | |||||||||||
Shareholders’ Voting Proxy Agreement | |||||||||||
Pursuant to the terms of a certain Shareholders’ Voting Proxy Agreement dated December 15, 2009 among Softech and the shareholders of Kingtone Information (the “Shareholders’ Voting Proxy Agreement”), each of the shareholders of Kingtone Information irrevocably appointed Softech as their proxy to exercise on each of such shareholder’s behalf all of their voting rights as shareholders pursuant to PRC law and the Articles of Association of Kingtone Information, including the appointment and election of directors of Kingtone Information. Softech agreed that it shall maintain a board of directors the composition of which will be the members of the board of directors of Kingtone Wireless, except those directors that are employed solely for the purpose of satisfying listing or financing requirements of Kingtone Wireless. The Shareholders’ Voting Proxy Agreement will remain in effect until Softech acquires all of the assets or equity of Kingtone Information. | |||||||||||
Exclusive Option Agreement | |||||||||||
Pursuant to the terms of a certain Exclusive Option Agreement dated December 15, 2009 among Softech, Kingtone Information and the shareholders of Kingtone Information (the “Exclusive Option Agreement”), the shareholders of Kingtone Information granted Softech an irrevocable and exclusive purchase option (the “Option”) to acquire Kingtone Information’s equity interests and/or remaining assets, but only to the extent that the acquisition does not violate limitations imposed by PRC law on such transactions. As discussed above, current PRC law does not allow foreigners to hold equity interests in a PRC entity that engages in business dealings with classified government information. Accordingly, the Option is exercisable at any time at Softech’s discretion so long as such exercise and subsequent acquisition of Kingtone Information does not violate PRC law. The consideration for the exercise of the Option is to be determined by the parties and memorialized in the future by definitive agreements setting forth the kind and value of such consideration. To the extent Kingtone Information shareholders receive any of such consideration, the Option requires them to transfer (and not retain) the same to Kingtone Information or Softech. The Exclusive Option Agreement may be terminated by mutual agreement or by 30 days written notice by Softech. | |||||||||||
Equity Pledge Agreement | |||||||||||
Pursuant to the terms of a certain Equity Pledge Agreement dated December 15, 2009 among Softech and the shareholders of Kingtone Information (the “Pledge Agreement”), the shareholders of Kingtone Information pledged all of their equity interests in Kingtone Information, including the proceeds thereof, to guarantee all of Softech's rights and benefits under the Entrusted Management Agreement, the Exclusive Technology Service Agreement, the Shareholders’ Voting Proxy Agreement and the Exclusive Option Agreement. Prior to termination of the Pledge Agreement, the pledged equity interests cannot be transferred without Softech's prior written consent. The Pledge Agreement may be terminated only upon the written agreement of the parties. | |||||||||||
As a result of these contractual arrangements, Kingtone Wireless is able to exercise control over Kingtone information and was entitled to substantially all of the economic benefits of Kingtone information through its subsidiary, Softech. Therefore, Kingtone Wireless consolidates Kingtone Information in accordance with ASC 810-10 (“Consolidation of Variable Interest Entities”) since the date of the Reorganization. The controlling shareholder also controlled Kingtone Wireless and Kingtone Information before and after the Reorganization, therefore the Reorganization is accounted for as a transaction between entities under common control in a manner similar to pooling of interests. | |||||||||||
The following financial statement amounts and balances of the VIE were included in the accompanying consolidated financial statements as of and for the years ended September 30: | |||||||||||
As of September 30, | |||||||||||
2013 | 2012 | ||||||||||
US$(’000) | US$(’000) | ||||||||||
ASSETS | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 4,012 | $ | 3,728 | |||||||
Accounts and notes receivable, net of allowance | 4,496 | 3,240 | |||||||||
Unbilled revenue | 6,029 | 580 | |||||||||
Amounts due from related companies | 141 | 123 | |||||||||
Inventories | 688 | 628 | |||||||||
Other receivables and prepayments | 2,106 | 4,781 | |||||||||
Current portion of long-term other receivables | - | 1,393 | |||||||||
Current portion of net investment in sales-type leases | - | 1,210 | |||||||||
Total Current Assets | 17,472 | 15,683 | |||||||||
Non-current assets | |||||||||||
Property and equipment, net | 13,356 | 13,541 | |||||||||
Intangible assets | 632 | 633 | |||||||||
Net investment in sales-type leases, less current portion | - | 333 | |||||||||
Total Assets | $ | 31,460 | $ | 30,190 | |||||||
LIABILITIES | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | 1,606 | $ | 775 | |||||||
Advances from customers | 9,062 | 1,528 | |||||||||
Other payables and accruals | 14,312 | 13,959 | |||||||||
Taxes payable | 1,545 | 1,673 | |||||||||
Amounts due to related party | 2 | 2 | |||||||||
Dividend payable | 842 | 817 | |||||||||
Total Current Liabilities | 27,369 | 18,754 | |||||||||
Total Liabilities | $ | 27,369 | $ | 18,754 | |||||||
For the years ended September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
US$(’000) | US$(’000) | US$(’000) | |||||||||
Revenue | $ | 11,564 | $ | 1,451 | $ | 6,337 | |||||
Net loss | $ | -7,572 | $ | -8,394 | $ | 141 | |||||
ACCOUNTS_AND_NOTES_RECEIVABLE_
ACCOUNTS AND NOTES RECEIVABLE, NET | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | ' | |||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ' | |||||||
NOTE 4. ACCOUNTS AND NOTES RECEIVABLE, NET | ||||||||
Accounts and notes receivable and allowance for doubtful accounts consisted of the following: | ||||||||
As of September 30, 2013 | As of September 30, 2012 | |||||||
US$(’000) | US$(’000) | |||||||
Accounts receivable | $ | 4,795 | $ | 3,240 | ||||
Less: allowance for doubtful accounts | -527 | - | ||||||
Accounts receivable, net | 4,268 | 3,240 | ||||||
Notes receivable | 228 | - | ||||||
Total accounts and notes receivable | $ | 4,496 | $ | 3,240 | ||||
An analysis of allowance for the doubtful accounts is as follows: | ||||||||
As of September 30, 2013 | As of September 30, 2012 | |||||||
US$(’000) | US$(’000) | |||||||
Balance at the beginning of the year | $ | - | $ | -456 | ||||
Bad debt expense | -527 | - | ||||||
Write offs | - | 456 | ||||||
Balance at the end of the year | $ | -527 | $ | - | ||||
For the year ended September 30, 2013, the Company has made US$0.5 million allowance for doubtful accounts and charged to bad debt expenses since these accounts receivable were non-collectible. For the year ended September 30, 2012, the Company has directly written off a balance of US$4,947,954 accounts receivable and charged to bad debt expenses due to that these accounts receivable were non-collectible. | ||||||||
There was $228,000 notes receivable for the year ended September 30, 2013 and no notes receivable for the year ended September 30, 2012. | ||||||||
As of September 30, 2013 and 2012, all accounts and notes receivable were due from third party customers. | ||||||||
Any additions, deductions and amounts recovered of the Company's allowance for doubtful accounts are recorded within general and administration expenses for the respective periods. | ||||||||
UNBILLED_REVENUE
UNBILLED REVENUE | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Disclosure Text Block Supplement [Abstract] | ' | |||||||
Supplemental Balance Sheet Disclosures [Text Block] | ' | |||||||
NOTE 5. UNBILLED REVENUE | ||||||||
Unbilled revenue consisted of the following: | ||||||||
As of September 30, 2013 | As of September 30, 2012 | |||||||
US$(’000) | US$(’000) | |||||||
Unbilled revenue | $ | 6,029 | $ | 580 | ||||
$ | 6,029 | $ | 580 | |||||
The Company records revenue in excess of billings as “unbilled revenue”. The Company expects all billed and unbilled amounts to be collected within one year. The increase of $5,449 or 939% is mainly attributable to revenue of the Jingbian integration project, which is engaged with Hualu Engineering & Technology Co., Ltd. | ||||||||
AMOUNTS_DUE_FROM_RELATED_COMPA
AMOUNTS DUE FROM RELATED COMPANIES | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Related Party Transactions [Abstract] | ' | |||||||
Amounts Due From Related Parties Disclosure [TextBlock] | ' | |||||||
NOTE 6. AMOUNTS DUE FROM RELATED COMPANIES | ||||||||
Amounts due from related companies consisted of the following: | ||||||||
As of September 30, 2013 | As of September 30, 2012 | |||||||
US$(’000) | US$(’000) | |||||||
Xi'an Hu County Yuxing Agriculture Technology Development Co., Ltd | $ | 140 | $ | - | ||||
Shaanxi Tech Team Jinong Humid Acid Product Co., Ltd | 1 | - | ||||||
Jinong High-Tech Agriculture Model Park, Inc. | - | 123 | ||||||
Total | $ | 141 | $ | 123 | ||||
All the entities referred to above are indirectly owned and controlled by Tao Li, Chairman of the Company. The Company provided integration system service to such parties. | ||||||||
INVENTORIES
INVENTORIES | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventory Disclosure [Text Block] | ' | |||||||
NOTE 7. INVENTORIES | ||||||||
Inventories consisted of the following: | ||||||||
As of September 30, 2013 | As of September 30, 2012 | |||||||
US$(’000) | US$(’000) | |||||||
Raw material | $ | 39 | $ | 75 | ||||
Finished goods | 414 | 88 | ||||||
Project-in-progress | 235 | 465 | ||||||
Total | $ | 688 | $ | 628 | ||||
The Company reviews its inventories periodically for possible obsolete or damaged goods and to determine if any allowance is necessary for potential obsolescence. As of September 30, 2013 and 2012, the Company determined that no allowance for obsolescence was necessary. | ||||||||
OTHER_RECEIVABLES_AND_PREPAYME
OTHER RECEIVABLES AND PREPAYMENTS | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Prepaid Expenses and Other Current Assets Disclosure [Abstract] | ' | |||||||
Prepaid Expenses and Other Current Assets Disclosure [Text Block] | ' | |||||||
NOTE 8. OTHER RECEIVABLES AND PREPAYMENTS | ||||||||
Other receivables and prepayments consisted of the following: | ||||||||
As of September 30, 2013 | As of September 30, 2012 | |||||||
US$(’000) | US$(’000) | |||||||
Advances to employees | $ | 205 | $ | 449 | ||||
Deposits on projects | 44 | 560 | ||||||
Prepayment to suppliers | 1,856 | 763 | ||||||
Total | $ | 2,105 | $ | 1,772 | ||||
SALESTYPE_LEASES
SALES-TYPE LEASES | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Leases, Capital [Abstract] | ' | |||||||
Sale Leaseback Transaction Disclosure [Text Block] | ' | |||||||
NOTE 9. SALES-TYPE LEASES | ||||||||
The components of the net investment in sales-type leases are as follows as of September 30, 2013 and 2012. The implicit interest rate is 6.65% per annum. | ||||||||
As of September 30, 2013 | As of September 30, 2012 | |||||||
US$(’000) | US$(’000) | |||||||
Future minimum lease payments receivable | $ | - | $ | 1,502 | ||||
Unguaranteed residual values | - | 91 | ||||||
Unearned income | - | -50 | ||||||
Net investment in sales-type leases | - | 1,543 | ||||||
Less: current portion | - | 1,210 | ||||||
Net investment in sales-type leases, less current portion | $ | - | $ | 333 | ||||
For the year ended September 30, 2013, the Company has written off a balance of US$1,443,466 net investment in sales-type leases and charged to loss of net investment in sales-type leases because net investment in sales-type leases were non-collectable. | ||||||||
There was no loss of net investment in sales-type leases for the years ended September 30, 2012 and 2011, respectively. | ||||||||
PROPERTY_AND_EQUIPMENT_NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | |||||||
NOTE 10. PROPERTY AND EQUIPMENT, NET | ||||||||
Property and equipment consisted of the following: | ||||||||
As of September 30, 2013 | As of September 30, 2012 | |||||||
US$(’000) | US$(’000) | |||||||
Buildings and improvements | $ | 15,420 | $ | 14,975 | ||||
Vehicles | 177 | 172 | ||||||
Other equipment and devices | 396 | 391 | ||||||
Total property and equipment | 15,993 | 15,538 | ||||||
Less: accumulated depreciation | -2,635 | -1,997 | ||||||
Property and equipment, net | $ | 13,358 | $ | 13,541 | ||||
For the years ended September 30, 2013, 2012 and 2011, depreciation expenses were US$572,383, US$806,000 and US$516,000, respectively. | ||||||||
INTANGIBLE_ASSETS_NET
INTANGIBLE ASSETS, NET | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Intangible Assets Disclosure [Text Block] | ' | |||||||
NOTE 11. INTANGIBLE ASSETS, NET | ||||||||
The intangible assets consisted of the following: | ||||||||
As of September 30, 2013 | As of September 30, 2012 | |||||||
US$(’000) | US$(’000) | |||||||
Land-use rights | $ | 690 | $ | 670 | ||||
Less: accumulated amortization | -58 | -37 | ||||||
Intangible assets, net | $ | 632 | $ | 633 | ||||
Amortization expenses for the years ended September 30, 2013, 2012 and 2011 were US $19,703, US $37,000, US$17,000 respectively. Estimated amortization expense relating to the existing intangible assets for the aggregated and each of the next five years and thereafter are as follows: | ||||||||
For the years ended | US$ (‘000) | |||||||
30-Sep-14 | $ | 19 | ||||||
30-Sep-15 | 19 | |||||||
30-Sep-16 | 19 | |||||||
30-Sep-17 | 19 | |||||||
30-Sep-18 | 19 | |||||||
Thereafter | 537 | |||||||
Total | $ | 632 | ||||||
ACCOUNTS_PAYABLE
ACCOUNTS PAYABLE | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Accounts Payable Disclosure [Text Block] | ' | |||||||
NOTE 12. ACCOUNTS PAYABLE | ||||||||
Accounts payable consisted of the following: | ||||||||
As of September 30, 2013 | As of September 30, 2012 | |||||||
US$(’000) | US$(’000) | |||||||
Payable to third-party suppliers | $ | 1,606 | $ | 775 | ||||
$ | 1,606 | $ | 775 | |||||
The increase was mainly due to purchase of more inventory during the year for the purpose of Jingbian integration project which is engaged with Hualu Engineering & Technology Co., Ltd. | ||||||||
ADVANCE_FROM_CUSTOMERS
ADVANCE FROM CUSTOMERS | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Other Liabilities Disclosure [Text Block] | ' | |||||||
NOTE 13. ADVANCE FROM CUSTOMERS | ||||||||
Advance from customers consisted of the following: | ||||||||
As of September 30, 2013 | As of September 30, 2012 | |||||||
US$(’000) | US$(’000) | |||||||
Advance from third-party customers | $ | 9,062 | $ | 1,528 | ||||
$ | 9,062 | $ | 1,528 | |||||
Advance from customers balance increased by $7.5 million, or 493%, compared to the amount of fiscal year 2012, which was primarily due to the Jingbian Project with Hualu Engineering & Technology Co., Ltd. The advance from customers represents the upfront payment of 10-30% of the contract price received from the customers according to payment schedules in the sales contracts. | ||||||||
OTHER_PAYABLES_AND_ACCRUALS
OTHER PAYABLES AND ACCRUALS | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Other Payables And Accruals Disclosure [Text Block] | ' | |||||||
NOTE 14. OTHER PAYABLES AND ACCRUALS | ||||||||
Other payables and accruals consisted of the following: | ||||||||
As of September 30, 2013 | As of September 30, 2012 | |||||||
US$(’000) | US$(’000) | |||||||
Accrued employee benefits | $ | - | $ | 24 | ||||
Deposits from suppliers | - | 33 | ||||||
Other payables | 111 | 110 | ||||||
Total | $ | 111 | $ | 167 | ||||
TAXES_PAYABLE
TAXES PAYABLE | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Tax Disclosure [Abstract] | ' | |||||||
Tax Disclosure [Text Block] | ' | |||||||
NOTE 15. TAXES PAYABLE | ||||||||
Taxes payable consisted of the following: | ||||||||
As of September 30, 2013 | As of September 30, 2012 | |||||||
US$(’000) | US$(’000) | |||||||
Enterprise income tax payable | $ | 494 | $ | 480 | ||||
Individual income tax | 16 | 736 | ||||||
Other taxes payable | 1,035 | 457 | ||||||
Total | $ | 1,545 | $ | 1,673 | ||||
DIVIDEND_PAYABLE
DIVIDEND PAYABLE | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Dividends [Abstract] | ' | |||||||
Dividends [Text Block] | ' | |||||||
NOTE 16. DIVIDEND PAYABLE | ||||||||
As of September 30, 2013 | As of September 30, 2012 | |||||||
US$(’000) | US$(’000) | |||||||
Dividend due to shareholders | $ | 842 | $ | 817 | ||||
$ | 842 | $ | 817 | |||||
In fiscal year 2009 the shareholders made a resolution to appropriate US$4,096,000 to all shareholders in proportion to their shareholding percentage. In fiscal year 2010, two shareholders received their dividend payment. The balance represents outstanding unpaid dividends to the shareholders. | ||||||||
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||
Related Party Sale And Rental Transactions Disclosure [Text Block] | ' | ||||||||||
NOTE 17. RELATED PARTY TRANSACTIONS | |||||||||||
1. Sales to related parties: | |||||||||||
For the years ended September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
US$(’000) | US$(’000) | US$(’000) | |||||||||
Xi’an Hu County Yuxing Agriculture Technology Development Co., Ltd | $ | 191 | $ | - | $ | 131 | |||||
Shaanxi Tech Team Jinong Humic Acid Product Co., Ltd | 1 | - | - | ||||||||
Total | $ | 192 | $ | - | $ | 131 | |||||
In August 2010, Xi’an Hu County Yuxing Agriculture Technology Development Co., Ltd (“Yuxing”), a company under common control of Mr. Tao Li , entered into an agreement with the Company, pursuant to which the Company is responsible for developing certain electronic control systems for Yuxing. The total contracted value of this agreement, including value-added taxes and other taxes, is RMB3,030,000, or approximately US$458,000. For the year ended September 30, 2011, approximately 30% of the contract amount was recognized as revenue, and the payment was received. For year ended September 30, 2012, there was no further revenue recognized with Yuxing since the rest of the contract is pending to be performed. For the year ended September 30, 2013, approximately 44% of the contract amount was recognized as revenue. | |||||||||||
There were no related parties’ transactions for the year ended September 30, 2012. | |||||||||||
2. Office Rental | |||||||||||
For the year ended September 30, 2009, Kingtone Information, the VIE provided its self-owned office space at 3/F, Area A, Block A, No. 18 South Taibai Road, Xi’an 710065, People’s Republic of China to Xi’an Techteam Science and Technology Industry (Group) Co., Ltd. (the “Group Company”), which is controlled by Tao Li, the Company’s Chairman. The Group Company later leased these offices to China Green Agriculture, Inc. (“CGA”) for no consideration for an unspecified term. On September 30, 2010, CGA cancelled the lease agreement with the Group Company without penalty and signed a two year lease starting from July 1, 2010 directly with Kingtone Information. According to the new lease agreement, the monthly rent is approximately US$1,600 (RMB 10,800). On June 29, 2012, Kingtone Information renewed the lease agreement with CGA for the monthly rent of US$3,867(RMB24,480) for a two-year term starting from July 1, 2012. | |||||||||||
For the years ended September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
US$(’000) | US$(’000) | US$(’000) | |||||||||
Total rental income | $ | 44,467 | $ | 26,001 | $ | 19,200 | |||||
The Company’s Beijing office is located in two Suites (2208 and 2209) at Building 16, An Hui Dong Li, Chaoyang District, Beijing. It covers a combined gross floor space of 184.8 square meters. Tao Li owns this space and allows the Company to use it for no consideration for an unspecified term. | |||||||||||
MAJOR_CUSTOMERS_AND_VENDORS
MAJOR CUSTOMERS AND VENDORS | 12 Months Ended |
Sep. 30, 2013 | |
Segment Reporting [Abstract] | ' |
Revenue By Major Customers By Reporting Segments [Text Block] | ' |
NOTE 18. MAJOR CUSTOMERS AND VENDORS | |
One customer accounted for 88.2%, 0.0% and 0.0% of total sales for the years ended September 30, 2013, 2012 and 2011, respectively. The outstanding accounts receivable balance for this customer was 11.9% and 0.0% of the total accounts receivable balance as of September 30, 2013 and 2012, respectively. | |
Two vendors accounted for over 10% of the total purchases for the years ended September 30, 2013, 2012 and 2011, respectively. | |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||
Commitments and Contingencies Disclosure [Text Block] | ' | |||||||||||
NOTE 19. COMMITMENTS AND CONTINGENCIES | ||||||||||||
The Company had one VIE as of September 30, 2013. In the opinion of the management, (i) the ownership structure of the Company and the VIE are in compliance with existing PRC laws and regulations; (ii) the contractual arrangements with the VIE and its shareholder are valid and binding, and will not result in any violation of PRC laws or regulations currently in effect; and (iii) the Company's business operations are in compliance with existing PRC laws and regulations in all material respects. However, there are substantial uncertainties regarding the interpretation and application of current and future PRC laws and regulations. Accordingly, the Company cannot be assured that PRC regulatory authorities will not ultimately take a contrary view to its opinion. If the current ownership structure of the Company and its contractual arrangements with the VIE are found to be in violation of any existing or future PRC laws and regulations, the Company may be required to restructure its ownership structure and operations in the PRC to comply with the changing and new PRC laws and regulations and continue consolidation with its VIE. | ||||||||||||
In 2009, each of our executive offers has entered into a five-year employment agreement with Softech, our wholly-owned PRC subsidiary. Softech may terminate a senior executive officer’s employment for cause, at any time, without prior notice or remuneration, for certain acts of the officer, including, but not limited to, material violation of our regulations, failure to perform agreed duties or embezzlement that caused material damage to us and conviction of a crime. A senior executive officer may terminate his or her employment at any time by a 30-day prior written notice. Each senior executive officer is entitled to certain benefits upon termination, including a severance payment equal to a certain specified number of months of his or her then salary, if he or she resigns for certain good reasons specified by the agreement or the relevant rules or if Softech terminated his or her employment without any of the above causes. The details of the term and annual salary of our executive officers are as below: | ||||||||||||
Name | Title | Annual-base Salary | Term | |||||||||
Peng Zhang | Chief Executive Officer | RMB | 180,000 | $ | 28,863 | Till 2014 | ||||||
Li Wu | Director, Chief Financial Officer | RMB | 132,000 | $ | 21,166 | Till 2014 | ||||||
Wei Zhang | Executive President | RMB | 120,000 | $ | 19,242 | Till 2014 | ||||||
Jiaqing Ren | Vice President | RMB | 120,000 | $ | 19,242 | Till 2014 | ||||||
Xiang Bu | Manager | RMB | 120,000 | $ | 19,242 | Till 2014 | ||||||
Zhenyu Chen | Manager | RMB | 120,000 | $ | 19,242 | Till 2014 | ||||||
Xiaodong Ma | Manager | RMB | 144,000 | $ | 23,091 | Till 2014 | ||||||
SHAREBASED_COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | ' | ||||||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Text Block] | ' | ||||||||||||||
NOTE 20. SHARE-BASED COMPENSATION | |||||||||||||||
In order to attract and retain the best available personnel, provide additional incentives to employees, directors and consultants and promote the success of the Company's business, its board of directors and its shareholders approved and adopted an Omnibus Incentive Plan in April 2010 (the "2010 Plan"). Under the 2010 Plan, the Company may grant options or restricted award to its employees, directors and consultants to purchase an aggregate of no more than 1,500,000 ordinary shares of the Company, subject to different vesting requirements. The 2010 Plan is administered by the Compensation Committee (the "Plan Administrator"). The officers of the Company have been authorized and directed by the Plan Administrator to execute Option Agreements with those persons selected by the Plan Administrator and issue ordinary shares of the Company upon exercise of any options so granted pursuant to the terms of an Option Agreement. | |||||||||||||||
All options granted under the 2010 Plan have a term of ten years from the option grant date and vest according to the terms and conditions set forth in each grant agreement. On May 14, 2010, the Company granted 180,000 options, to a combination of employees and directors of the Company at an exercise price of US$4.00 on a pre-Reverse Split basis. | |||||||||||||||
Restricted stock granted under the 2010 Plan is subject to a different vesting period. On May 14, 2010, the Company granted 100,000 restricted shares to an officer with 50,000 vested on April 23, 2011 and the remaining 50,000 was scheduled to be vested on April 23, 2012. | |||||||||||||||
Since the officer resigned on May 31, 2011, the remaining 50,000 to be vested on April 23, 2012 were forfeited and also such officer’s unvested options were forfeited in accordance with their terms. In addition, since the two independent directors Ms. Shi and Mr. Fong resigned on July 11, 2011 and June 24, 2011 respectively, their unvested options were forfeited in accordance with their terms. The reference of number of restrictive shares is on a pre-Reverse Split basis. | |||||||||||||||
The Company did not grant any equity awards for the year ended September 30, 2013 and 2012. | |||||||||||||||
The Black-Scholes option pricing model was applied in determining the estimated fair value of the options granted to employees and non-employees. The model requires the input of highly subjective assumptions including the estimated expected stock price volatility, the expected price multiple at which employees are likely to exercise share options. For expected volatilities, the Company has made reference to the historical price volatilities of ordinary shares of several comparable companies in the same industry as the Company. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury Bills yield in effect at the time of grant. The Company's management is ultimately responsible for the determination of the estimated fair value of its ordinary shares. The Company calculated the estimated fair value of the options on the grant date (May 14, 2010) with the following assumptions: | |||||||||||||||
14-May-10 | |||||||||||||||
Risk-free interest rates | 1.63 | % | |||||||||||||
Expected term | 2 years | ||||||||||||||
Expected volatility | 90 | % | |||||||||||||
Expected dividend yield | 0 | % | |||||||||||||
Fair value of underlying ordinary share (per share) (*) | US$ 3.94 | ||||||||||||||
(* there was no trading on the grant date, this represented initial public offering close price) | |||||||||||||||
The Company recognized compensation expense for options granted as general and administrative expense on a straight-line basis for each separately vesting portion of the award (the graded vesting attribution method). The fair value of options on the grant date of May 14, 2010 was $1.89 per share. The share-based compensation expenses for options were US$2,000, US$2,000 and US$119,000 for the years ended September 30, 2013, 2012 and 2011, respectively. | |||||||||||||||
The Company records share-based compensation expense for restricted shares granted to non-employees in exchange for services at fair value as of the grant date which was $3.94 based on the graded vesting attribution method. The share-based compensation expenses for restricted shares were US$0, US$0 and US$197,000 for the years ended September 30, 2013, 2012 and 2011, respectively. | |||||||||||||||
The following table summarizes outstanding options as of September 30, 2013, related weighted average fair value and life information, options outstanding for all periods have been retroactively restated to reflect the 1-for-10 reverse stock split effected on November 6, 2012: | |||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||
Exercise Price | Number | Weighted | Weighted | Number | Weighted | ||||||||||
Per Share | outstanding as of | Average | Average | Exercisable as | Average | ||||||||||
September 30, 2013 | Fair Value | Remaining | of September | Exercise | |||||||||||
Life | 30, 2013 | Price | |||||||||||||
(Years) | |||||||||||||||
$ | 40 | 10,000 | $ | 18.9 | 6.62 | 10,000 | $ | 18.9 | |||||||
A summary of option activity under the employee share option plan as of September 30, 2013 and changes during the year then ended is presented as follows: | |||||||||||||||
Options | Number of | Exercise | Remaining | Aggregated | |||||||||||
shares | Price | Life (Years) | Intrinsic Value | ||||||||||||
Outstanding as of October 1, 2012 | 12,334 | $ | 40 | 7.62 | - | ||||||||||
Granted during the year | - | - | - | - | |||||||||||
Forfeited during the year | 2,334 | - | - | - | |||||||||||
Outstanding as of September 30, 2013 | 10,000 | $ | 40 | 6.62 | - | ||||||||||
STATUTORY_RESERVES
STATUTORY RESERVES | 12 Months Ended |
Sep. 30, 2013 | |
Statutory Reserves Disclosure [Abstract] | ' |
Statutory Reserves Disclosure [Text Block] | ' |
NOTE 21. STATUTORY RESERVES | |
Under PRC law, Softech and Kingtone Information are required to provide for certain statutory reserves, namely a general reserve, an enterprise expansion fund and a staff welfare and bonus fund. The entities are required to allocate at least 10% of their after tax profits on individual company basis as determined under PRC GAAP to the general reserve and have the right to discontinue allocations to the general reserve if such reserve has reached 50% of registered capital. Appropriations to the enterprise expansion fund and staff welfare and bonus fund are at the discretion of the Board of Directors of the entity. These reserves can only be used for specific purposes and are not transferable to the Company in the form of loans, advances, or cash dividends. | |
As of September 30, 2013 and 2012, the Company had appropriated nil respectively in its statutory reserves. | |
ORDINARY_SHARES
ORDINARY SHARES | 12 Months Ended |
Sep. 30, 2013 | |
Stockholders' Equity Note [Abstract] | ' |
Stockholder Equity Note Disclosure [Text Block] | ' |
NOTE 22. ORDINARY SHARES | |
The Company’s Memorandum and Articles of Association, as amended, authorized the Company to issue 100,000,000 shares of US$0.001 par value per ordinary share. Each ordinary share is entitled to one vote. The holders of ordinary shares are also entitled to receive dividends whenever funds are legally available and when declared by the Board of Directors. The Company had 10,000,000 ordinary shares issued and outstanding prior to the May 2010 public offering. In May 2010, the Company issued 4,000,000 shares of ADSs, representing 4,000,000 ordinary shares, through its depositary, Bank of New York Mellon on the NASDAQ Capital Market, at a consideration of US$4.00 per share for a gross consideration of US$16,000,000. The total direct cost related to this transaction amounted $1,496,000, including underwriter fee, attorney fee, audit fee etc. In 2011, the Company issued 50,000 shares of ADSs, representing 50,000 ordinary shares, as the restricted shares granted to an employee. As of September 30, 2013, there were 1,405,000 ordinary shares issued and outstanding. | |
Effective November 6, 2012, the Company undertook a combination, or reverse split of the ordinary shares issued by the Company at par value of $0.001 per share such that the Company shall issue one (1) ordinary share (each, "New Share," collectively "New Shares") for every ten (10) ordinary shares held by its members ("Old Shares") (the "Reverse Split"). The par value of each New Share was $0.01, equal to the aggregate of the par value of ten Old Shares combined. The ratio between each American Depositary Share ("ADS") and its underlying ordinary share post-Reverse Split remains the same, namely, one ADR remains to represent one New Share. | |
EARNINGS_PER_ORDINARY_SHARE
EARNINGS PER ORDINARY SHARE | 12 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||
Earnings Per Share [Text Block] | ' | ||||||||||
NOTE 23. EARNINGS PER ORDINARY SHARE | |||||||||||
For the years ended September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Numerator used in basic net income per share: | |||||||||||
Net loss | $ | -5,133,000 | $ | -8,988,000 | $ | -1,037,000 | |||||
Shares | |||||||||||
Weighted average number of ordinary shares outstanding | 1,405,000 | 1,405,000 | 1,405,000 | ||||||||
Weighted average number of ordinary shares outstanding used in computing diluted earnings per ordinary share | 1,405,000 | 1,405,000 | 1,405,000 | ||||||||
Loss per ordinary share- basic and diluted | $ | -3.65 | $ | -6.4 | $ | -0.74 | |||||
As of September 30, 2013, the Company had zero restricted shares and 10,000 outstanding options that could potentially dilute basic income per share in the future, but which were excluded in the computation of diluted income per share in the periods presented, as their effect would have been anti-dilutive since the grant price of these restricted shares and the exercise price of these option were higher than the average market price during period presented. | |||||||||||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
NOTE 24. SUBSEQUENT EVENTS | |
Management has considered all events and transactions that occurred after September 30, 2013 and through the date of the financial statements are issued, and have determined that the Company did not have any material subsequent events that require adjustment to or disclosure in the consolidated financial statements during this period. | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Accounting Policies [Abstract] | ' | |||||||||
Basis of Accounting, Policy [Policy Text Block] | ' | |||||||||
(a) Basis of presentation | ||||||||||
The consolidated financial statements of the Company have been prepared in accordance with the accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements as of September 30, 2013 include the financial statements of Kingtone Wireless, its subsidiaries, and its VIE for which Kingtone Wireless is the primary beneficiary. All inter-company transactions and balances between Kingtone Wireless, its subsidiaries and its’ VIE are eliminated upon consolidation. In the opinion of management, all adjustments considered necessary for a fair presentation have been included, and such adjustments are of a normal recurring nature. | ||||||||||
Foreign Currency Transactions and Translations Policy [Policy Text Block] | ' | |||||||||
(b) Foreign currency transaction | ||||||||||
The functional currency of the Company is United States dollars (“US$”), and the functional currency of Topsky is Singapore dollars (“SG$”). The functional currency of the Company’s PRC subsidiaries, Softech and Kingtone Information, is Renminbi (“RMB”), and PRC is the primary economic environment in which the Company operates. | ||||||||||
Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transactions. The resulting exchange differences are included in the determination of net income for the respective periods. | ||||||||||
For financial reporting purposes, the financial statements of the Company’s PRC subsidiaries which are prepared using RMB, are translated into Company’s reporting currency, the United States Dollar (“U.S. dollar”). Assets and liabilities are translated using the exchange rate at each balance sheet date. Revenue and expenses are translated using average rates prevailing during each reporting period, and shareholders’ equity is translated at historical exchange rates. Adjustments resulting from the translation are recorded as a separate component of accumulated other comprehensive income in shareholders’ equity. | ||||||||||
The exchange rates applied are as follows: | ||||||||||
2013 | 2012 | 2011 | ||||||||
RMB exchange rate at balance sheets dates, | 6.1439 | 6.3265 | 6.5574 | |||||||
Average RMB exchange rate for each period | 6.2363 | 6.3299 | 6.6181 | |||||||
No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at the rates used in translation. The source of the exchange rates is generated from OANDA (Forex Trading and Exchange Rates Services). | ||||||||||
Use of Estimates, Policy [Policy Text Block] | ' | |||||||||
(c) Use of estimates | ||||||||||
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Management makes these estimates using the best information available at the time the estimates are made. Significant estimates and judgments made by the management include: (i) estimates of profits and losses on contracts in process; (ii) accrual of estimated liabilities; and (iii) contingencies and litigation. However actual results could differ from those estimates. | ||||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | ' | |||||||||
(d) Cash and cash equivalents | ||||||||||
Cash and cash equivalents represent cash on hand and deposits held with banks. The Company considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. | ||||||||||
Trade and Other Accounts Receivable, Policy [Policy Text Block] | ' | |||||||||
(e) Accounts and notes receivable | ||||||||||
Accounts and notes receivable are recorded at net realizable value consisting of the carrying amount less an allowance for uncollectible accounts as needed. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company determines the allowance based on aging data, historical collection experience, customer specific facts and economic conditions. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company did not have any off-balance-sheet credit exposure related to its customers. | ||||||||||
Inventory, Policy [Policy Text Block] | ' | |||||||||
(f) Inventories | ||||||||||
Inventories consist of raw materials, finished goods, and project -in-progress, which include the direct labor, direct materials and overhead costs related to projects. Inventories are stated at lower of cost or market value. Cost is determined using first in first out method. | ||||||||||
Where there is evidence that the market value of inventories, in their disposal in the ordinary course of business, will be less than cost, whether due to physical deterioration, obsolescence, changes in price levels, or other causes, the carrying value of inventories will be written down. | ||||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | ' | |||||||||
(g) Property and equipment | ||||||||||
The Company states plant and equipment at cost less accumulated depreciation. The Company computes depreciation using the straight-line method over the estimated useful lives of the assets with 5% residual value. | ||||||||||
Estimated useful lives of property and equipment: | ||||||||||
Useful Life | ||||||||||
Property and improvements | 20-35 years | |||||||||
Transportation equipment | 5 years | |||||||||
Office equipment | 5 years | |||||||||
Furniture | 5 years | |||||||||
Electronic equipment | 3-5 years | |||||||||
The Company eliminates the cost and related accumulated depreciation of assets sold or otherwise retired from the accounts and includes any gain or loss in the statement of income. The Company charges maintenance, repairs and minor renewals directly to expenses as incurred, and it capitalizes major additions and betterment to buildings and equipment. | ||||||||||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | ' | |||||||||
(h) Impairment of long-lived assets | ||||||||||
The Company applies the Accounting Standards Codification (“ASC”) No. 360-10 “Property, plant and equipment”, ASC NO. 360 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. | ||||||||||
The Company tests long-lived assets, including property and equipment and intangible assets subject to periodic amortization, for recoverability at least annually or more frequently upon the occurrence of an event or when circumstances indicate that the net carrying amount is greater than its fair value. Assets are grouped and evaluated at the lowest level for their identifiable cash flows that are largely independent of the cash flows of other groups of assets. The Company considers historical performance and future estimated results in its evaluation of potential impairment and then compares the carrying amount of the asset to the future estimated cash flows expected to result from the use of the asset. If the carrying amount of the asset exceeds estimated expected undiscounted future cash flows, the Company measures the amount of impairment by comparing the carrying amount of the asset to its fair value. The estimation of fair value is generally measured by discounting expected future cash flows as the rate the Company utilizes to evaluate potential investments. The Company estimates fair value based on the information available in making whatever estimates, judgments and projections are considered necessary. No impairment of long-lived assets was recognized for the years ended September 30, 2013 and 2012, respectively. | ||||||||||
Statutory Surplus Reserve [Policy Text Block] | ' | |||||||||
(i) Statutory surplus reserve | ||||||||||
The Company is required to set aside 10% of its income after income taxes prepared in accordance with PRC accounting regulations to the statutory surplus reserve until the balance reaches 50% of the paid-in capital or registered capital, after which further appropriation will be at the directors’ recommendation. | ||||||||||
Revenue Recognition, Policy [Policy Text Block] | ' | |||||||||
(j) Revenue recognition | ||||||||||
Revenues consist primarily of sales of wireless system software service solutions and other customized software with support contracts. The Company recognizes revenue when (1) pervasive evidence of an arrangement exists, (2) delivery has occurred and customer acceptance is reasonable assured (3) the fee is fixed or determinable, and (4) collectability is probable. | ||||||||||
The Company generally provides wireless system software service solutions and customized software under short and long-term fixed-price contracts that require significant production and customization. The contract periods generally range from two months to one year in length. The Company recognizes income for these contracts following both the percentage-of-completion method, measured by contract milestones and on the basis of actual costs incurred versus the total estimated contract costs, and on the completed contract method in accordance with the ASC No. 605 -35 “Construction-Type and Production-Type Contracts” and ASC No. 985 - 605 “Software Revenue Recognition”. | ||||||||||
Provided unapproved change orders or claims occur in the future, in accounting for contracts, the Company follows ASC No. 605-35. The Company will recognize as revenues costs associated with unapproved change orders or claims to the extent it is probable that such claims and change orders will result in additional contract revenue, and the amount of such additional revenue can be reliably estimated. Contract losses are provided for in their entirety in the period that they become known, without regard to the percentage-of-completion. However, the Company has not experienced significant unapproved change orders in the past. | ||||||||||
The software contracts generally provide for post-contract customer support (“PCS”) for a period of one year from delivery of the software. The value of PCS revenue is not separately reported and is accounted for as part of the entire fee under the contract accounting methods described above since the PCS meets the criteria specified in ASC No. 985-605-25-71 as follows: | ||||||||||
1 | PCS is included in the total contract price; | |||||||||
2. PCS is for one year or less; | ||||||||||
3 | estimated costs are insignificant; | |||||||||
4. upgrades and enhancements during the PCS term have historically been and are expected to continue to be minimal and infrequent; and | ||||||||||
5 | the contract does not include any service elements that are accounted for separately. | |||||||||
All other services are provided under separate agreements and fee arrangements and the related revenue is recognized over the period the services are provided. | ||||||||||
Unbilled revenue consists of recognized recoverable costs and accrued profits on contracts for which billings had not been presented to clients as of the balance sheet date. | ||||||||||
The Company presents all sales revenue net of a value-added tax (“VAT”). | ||||||||||
The Company recognized the lease financing arrangement as a sales-type lease. The Company recognized revenue when the following conditions are met: a) When the lease contract is signed, b) When the customer has taken possession of the equipment, and c) Only if the collectability of owed amounts are reasonably assured. | ||||||||||
The sales-type lease revenue is recognized since the transaction meets one of the criteria specified in ASC No. 840-10-25-1, the lease term is more than 75 percent of the estimated economic life of the leased property. | ||||||||||
The Company recognizes revenue using the fair value of the wireless system software service solutions and other customized software by reference to the retail market price of the wireless system software service solutions and other customized software. These revenues are recorded as “Software Revenue”. | ||||||||||
Cost of Sales, Policy [Policy Text Block] | ' | |||||||||
(k) Cost of Sales | ||||||||||
When the criteria for revenue recognition have been met, costs incurred are recognized as cost of sales. Cost of sales (exclusive of depreciation and amortization) primarily includes the cost of the hardware purchased from the third parties, the labor costs of those responsible for the software development and project implementation and the applicable share of overhead expense directly related to the execution of services and delivery of projects. | ||||||||||
The Company's PRC subsidiary and VIE are subject to business tax on revenues related to certain types of services at various rates. Business tax on revenues earned from provision of services to customers is recorded as an additional item to cost of sales in the same period in which the related revenue is recognized. | ||||||||||
The Company is responsible for the cost of providing a warranty. In the past warranty costs have been insignificant. | ||||||||||
Research and Development Expense, Policy [Policy Text Block] | ' | |||||||||
(l) Research and development costs | ||||||||||
Research and development costs include salaries, consultant fees, supplies and materials, as well as costs related to other overhead expenses such as depreciation, facilities, utilities and other R&D departmental expenses. Research and development costs are expensed as incurred in performing research and development activities in accordance with ASC No. 730-10-5, Accounting for Research and Development Costs . | ||||||||||
Advertising Costs, Policy [Policy Text Block] | ' | |||||||||
(m) Advertising expenses | ||||||||||
Advertising expenses, which generally represent the cost of promotions to create or stimulate a positive image of the Company or a desire to buy the Company’s products and services, are expensed as incurred. The Company incurred no advertising expenses in each of the periods presented. | ||||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | |||||||||
(n) Share-based compensation | ||||||||||
Share options granted to employees and independent directors are accounted for under ASC 718, "Share-Based Payment". In accordance with ASC 718, the Company determines whether a share option should be classified and accounted for as a liability award or an equity award. All grants of share options to employees classified as equity awards are recognized in the financial statements based on their grant date fair values. All grants of share options to employees classified as liability awards are re-measured at the end of each reporting period with an adjustment for fair value recorded to the current period expense in order to properly reflect the cumulative expense based on the current fair value of the vested options over the vesting period. The Company has elected to recognize compensation expenses using the Black-Scholes-Merton (BSM) option-pricing model estimated at the grant date based on the award’s fair value and is recognized as expense on a straight-line basis for each separately vesting portion of the award (the graded vesting attribution method). | ||||||||||
Restricted stock units (RSUs) are measured based on the fair market values of the underlying stock on the dates of grant. Shares are issued on the vesting dates net of the statutory withholding requirements to be paid by the Company on behalf of its employees. As a result, the actual number of shares issued will be fewer than the actual number of RSUs outstanding. Also, the Company recognizes stock-based compensation using the graded vesting attribution method. | ||||||||||
The Company records share-based compensation expense for awards granted to non-employees in exchange for services at fair value in accordance with the provisions of ASC 505-50, "Equity based " payment to non-employees. For the awards granted to non-employees, the Company will record compensation expenses equal to the fair value of the share options at the measurement date, which is determined to be the earlier of the performance commitment date or the service completion date. | ||||||||||
Taxation Policy [ Policy Text Block] | ' | |||||||||
(o) Taxation | ||||||||||
a) | Income tax | |||||||||
i). | The Company is incorporated in the BVI. Under the current law of the BVI, the Company is not subject to tax on income or capital gains. Additionally, upon payments of dividends by the Company to its shareholders, no BVI withholding tax will be imposed. | |||||||||
ii). | Topsky was incorporated in Singapore and does not conduct any substantial operations of its own. No provision for Singapore profits tax has been made in the financial statements as Topsky has no assessable profits for the years ended September 30, 2013, 2012 and 2011. Additionally, upon payments of dividends by Topsky to its shareholders, no Singapore withholding tax will be imposed. | |||||||||
iii). | The Company’s PRC subsidiary and VIE, being incorporated in the PRC, are governed by the income tax law of the PRC and is subject to PRC enterprise income tax (“EIT”). Effective from January 1, 2008, the EIT rate of PRC was changed from 33% of to 25%, and applies to both domestic and foreign invested enterprises. | |||||||||
According to a filing document from Xi’an State Tax authorities of the High-technology zone, Kingtone Information was granted a reduced income tax rate of 15% from January 1, 2008 on the basis of being a high-tech company. In October 2011, Kingtone Information is verified as a “high-technology enterprise” until 2014 and therefore it has benefited from the preferential tax rate of 15%. | ||||||||||
For the years ended September 30, | ||||||||||
2013 | 2012 | 2011 | ||||||||
US$(’000) | US$(’000) | US$(’000) | ||||||||
PRC federal statutory tax rate | 25 | % | 25 | % | 25 | % | ||||
Loss before tax | -5,133 | -8,988 | -1,005 | |||||||
Computed expected income tax expense | - | - | - | |||||||
Non-deductible expenses | - | - | 32 | |||||||
Effect of tax holidays | - | - | - | |||||||
Income tax expenses | - | - | 32 | |||||||
The tax authority of the PRC conducts periodic and ad hoc tax filing reviews on business enterprises operating in the PRC after those enterprises had completed their relevant tax filings, hence the Company’s tax filings may not be finalized. It is therefore uncertain as to whether the PRC tax authority may take different views about the Company’s tax filings which may lead to additional tax liabilities. | ||||||||||
b) | Value-added tax and business tax | |||||||||
PRC Value-added Tax | ||||||||||
The Company’s products are only sold in the PRC and therefore are generally subject to a Chinese VAT at a rate of 17%. The VAT may be offset by VAT the Company pays on raw materials and other materials included in the cost of producing its finished product. Accrued VAT payables are subject to a 10%-12% surtax, which includes urban maintenance and construction taxes and additional education fees. | ||||||||||
PRC Business Tax | ||||||||||
Revenues from services provided by Kingtone Information are subject to a PRC business tax of 5% for software solution and 3%-5% for wireless system solution, with a surtax of 10%-12%. Kingtone Information pays business tax on gross revenues. | ||||||||||
c) | Deferred tax | |||||||||
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 and any operating loss and tax credit carry forwards. Deferred tax assets 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. A valuation allowance is provided to reduce the amount of deferred tax asset if it is considered more likely than not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | ||||||||||
d) | Uncertain tax positions | |||||||||
The Company adopted ASC No. 740-10 “Income Taxes”, on January 1, 2007. ASC No. 740-10 prescribes a more likely than not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. This Interpretation also provides guidance on recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. For the years ended September 30, 2013, 2012 and 2011, the Company did not have any interest and penalties associated with tax positions and the Company did not have any significant unrecognized uncertain tax positions. | ||||||||||
Comprehensive Income, Policy [Policy Text Block] | ' | |||||||||
(p) Comprehensive income | ||||||||||
Accumulated other comprehensive income, as presented on the accompanying consolidated balance sheets are the cumulative foreign currency translation adjustments. | ||||||||||
Commitments and Contingencies, Policy [Policy Text Block] | ' | |||||||||
(q) Commitments and contingencies | ||||||||||
In the normal course of business, the Company is subject to loss contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters, including, among others, government investigations, product and environmental liability, and tax matters. In accordance with ASC No. 450-10, “ Accounting for Contingencies” , the Company records accruals for such loss contingencies when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. Historically, the Company has not experienced any material service liability claims. | ||||||||||
Fair Value Measurement, Policy [Policy Text Block] | ' | |||||||||
(r) Fair value measurements | ||||||||||
The carrying amounts of cash and cash equivalents, accounts receivable from third and related parties, amounts due from and due to related parties, accounts payable and other payables approximate their fair values due to their short term nature. | ||||||||||
The Company adopted ASC No. 820 Fair Value Measurements and Disclosures on January 1, 2008 for all financial assets and liabilities and nonfinancial assets and liabilities that are recognized or disclosed at fair value in the combined financial statements on a recurring basis (at least annually). ASC No. 820-10 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The Company has not adopted ASC No. 820-10 for non-financial assets and non-financial liabilities, as these items are not recognized at fair value on a recurring basis. | ||||||||||
ASC No. 820-10 defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. | ||||||||||
ASC No. 820-10 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC No. 820-10 establishes three levels of inputs that may be used to measure fair value: | ||||||||||
Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. | ||||||||||
Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. | ||||||||||
Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. | ||||||||||
Segment Reporting, Policy [Policy Text Block] | ' | |||||||||
(s) Segment reporting | ||||||||||
The Company follows ASC No. 280, " Segment Reporting ". The Company's chief operating decision-maker, who has been identified as the Chief Executive Officer, reviews the consolidated results when making decisions about allocating resources and assessing performance of the Company as a whole and hence, the Company has only one reportable segment. As the Company's long-lived assets are substantially all located in the PRC and substantially all the Company's revenues are derived from within the PRC, no geographical segments are presented. | ||||||||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | ' | |||||||||
(t) Significant risks | ||||||||||
Credit risk | ||||||||||
Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash, cash equivalents, accounts receivable, other receivables and amounts due from related parties. As of September 30, 2013 and September 30, 2012, US$4,011,070 and US$3,729,320, respectively, were deposited with major financial institutions located in the PRC and US$2,117,562 and $2,710,038, respectively, were deposited with major financial institutions located in Singapore. Historically, deposits in Chinese banks are secure due to the state policy on protecting depositors' interests. However, China promulgated a new Enterprise Bankruptcy Law in August 2006 that came into effect on June 1, 2007, which contains a separate article expressly stating that the State Council may promulgate implementation measures for the bankruptcy of Chinese banks based on the Bankruptcy Law. Under the new Enterprise Bankruptcy Law, although the implementation measures have not been promulgated, a Chinese bank may theoretically go into bankruptcy based on the Enterprise Bankruptcy Law. In addition, since China's concession to the World Trade Organization, foreign banks have been gradually permitted to operate in China and have been significant competitors against Chinese banks in many aspects, especially since the opening of the Renminbi business to foreign banks in late 2006. Therefore, the risk of bankruptcy of those Chinese banks in which the Company has deposits has increased. In the event of bankruptcy of one of the banks which holds the Company's deposits, it is unlikely to claim its deposits back in full since it is unlikely to be classified as a secured creditor based on PRC laws. | ||||||||||
The Company conducts credit evaluations of customers and generally does not require collateral or other security from its customers. The Company establishes an allowance for doubtful accounts primarily based upon the aging of the receivables and factors surrounding the credit risk of specific customers. | ||||||||||
Business, political and economic risks | ||||||||||
The Company participates in a relatively young and dynamic industry that is heavily reliant and also susceptible to complementary and/or competitive technological advancements. The Company believes that changes in any of the following areas could have a material adverse effect on the Company's future financial position, result of operations or cash flows: | ||||||||||
(i) | Business Risk. | |||||||||
Third parties may develop technological or business model innovations that address content delivery requirements in a manner that is, or is perceived to be, equivalent or superior to the Company's services. If competitors introduce new products or services that compete with, or surpass the quality, price or performance of the Company's services, the Company may be unable to renew its agreements with existing customers or attract new customers at the prices and levels that allow the Company to generate reasonable rates of return on its investment. | ||||||||||
(ii) | Political, economic and social uncertainties. | |||||||||
The Company's operations could be adversely affected by significant political, economic and social uncertainties in the PRC. Although the PRC government has been pursuing economic reform policies for more than 20 years, no assurance can be given that the PRC government will continue to pursue such policies or that such policies may not be significantly altered, especially in the event of a change in leadership, social or political disruption or unforeseen circumstances affecting the PRC political, economic and social conditions. There is also no guarantee that the PRC government's pursuit of economic reforms will be consistent or effective. | ||||||||||
(iii) | Regulatory restrictions. | |||||||||
The applicable PRC laws, rules and regulations currently prohibit foreign ownership of companies that provide content and application delivery services. Accordingly, the Company's subsidiary, Softech is currently ineligible to apply for the required licenses for providing content and application delivery services in China. As a result, the Company operates its business in the PRC through its VIEs, which holds the licenses and permits that are required to provide content and application delivery services in the PRC. The PRC Government may also choose at any time to block access to the Company's customers' content which could also materially impact the Company's ability to generate revenue. | ||||||||||
Foreign currency risk | ||||||||||
A majority of the Company’s sales and expenses transactions and a significant portion of the Company’s assets and liabilities are denominated in Renminbi (“RMB”). RMB is not freely convertible into foreign currencies. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China (“PBOC). Remittances in currencies other than RMB by the Company in China must be processed through the PBOC or any other China foreign exchange regulatory body which require certain supporting documentation in order to affect the remittance. | ||||||||||
From July 21, 2005, the RMB is permitted to fluctuate within a narrow and managed band against a basket of certain foreign currencies. While the international reaction to the appreciation of the RMB has generally been positive, there remains significant international pressure on the PRC Government to adopt an even more flexible currency policy, which could result in a further and potentially more significant appreciation of the RMB against the US$. | ||||||||||
Earnings Per Share, Policy [Policy Text Block] | ' | |||||||||
(u) Earnings per share (“EPS”) | ||||||||||
EPS is calculated in according with ASC No. 260 “Earning per share”. Basic EPS excludes dilution and is computed by dividing net income attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue ordinary shares (convertible preferred stock, forward contract, warrants to purchase ordinary shares, contingently issuable shares, ordinary share options and warrants and their equivalents using the treasury stock method) were exercised or converted into ordinary shares. The Company excludes potential ordinary shares in the diluted EPS computation in periods of losses from continuing operations, as their effect would be anti-dilutive. | ||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | |||||||||
(v) Recently issued accounting standards | ||||||||||
The FASB issued ASU No. 2013-02, which amends the authoritative accounting guidance under ASC Topic 220 “Comprehensive Income.” The amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendments require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under generally accepted accounting principles in the United States of America (“GAAP”) to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under GAAP that provide additional detail about those amounts. The amendments in this update are effective prospectively for reporting periods beginning after December 15, 2013. Early adoption is permitted. Adoption of this update is not expected to have a material effect on the Company’s consolidated results of operations or financial condition. | ||||||||||
The 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). 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. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. 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. The adoption of this standard is not expected to have a material impact on the consolidated financial position and results of operations. | ||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Accounting Policies [Abstract] | ' | |||||||||
Schedule Of Foreign Currency Exchange Rates Used [Table Text Block] | ' | |||||||||
The exchange rates applied are as follows: | ||||||||||
2013 | 2012 | 2011 | ||||||||
RMB exchange rate at balance sheets dates, | 6.1439 | 6.3265 | 6.5574 | |||||||
Average RMB exchange rate for each period | 6.2363 | 6.3299 | 6.6181 | |||||||
No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at the rates used in translation. The source of the exchange rates is generated from OANDA (Forex Trading and Exchange Rates Services). | ||||||||||
Property Plant and Equipment Estimated Useful Life [Table Text Block] | ' | |||||||||
Estimated useful lives of property and equipment: | ||||||||||
Useful Life | ||||||||||
Property and improvements | 20-35 years | |||||||||
Transportation equipment | 5 years | |||||||||
Office equipment | 5 years | |||||||||
Furniture | 5 years | |||||||||
Electronic equipment | 3-5 years | |||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | |||||||||
In October 2011, Kingtone Information is verified as a “high-technology enterprise” until 2014 and therefore it has benefited from the preferential tax rate of 15%. | ||||||||||
For the years ended September 30, | ||||||||||
2013 | 2012 | 2011 | ||||||||
US$(’000) | US$(’000) | US$(’000) | ||||||||
PRC federal statutory tax rate | 25 | % | 25 | % | 25 | % | ||||
Loss before tax | -5,133 | -8,988 | -1,005 | |||||||
Computed expected income tax expense | - | - | - | |||||||
Non-deductible expenses | - | - | 32 | |||||||
Effect of tax holidays | - | - | - | |||||||
Income tax expenses | - | - | 32 | |||||||
VARIABLE_INTEREST_ENTITIES_Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Variable Interest Entities [Abstract] | ' | ||||||||||
Schedule of Variable Interest Entities [Table Text Block] | ' | ||||||||||
The following financial statement amounts and balances of the VIE were included in the accompanying consolidated financial statements as of and for the years ended September 30: | |||||||||||
As of September 30, | |||||||||||
2013 | 2012 | ||||||||||
US$(’000) | US$(’000) | ||||||||||
ASSETS | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 4,012 | $ | 3,728 | |||||||
Accounts and notes receivable, net of allowance | 4,496 | 3,240 | |||||||||
Unbilled revenue | 6,029 | 580 | |||||||||
Amounts due from related companies | 141 | 123 | |||||||||
Inventories | 688 | 628 | |||||||||
Other receivables and prepayments | 2,106 | 4,781 | |||||||||
Current portion of long-term other receivables | - | 1,393 | |||||||||
Current portion of net investment in sales-type leases | - | 1,210 | |||||||||
Total Current Assets | 17,472 | 15,683 | |||||||||
Non-current assets | |||||||||||
Property and equipment, net | 13,356 | 13,541 | |||||||||
Intangible assets | 632 | 633 | |||||||||
Net investment in sales-type leases, less current portion | - | 333 | |||||||||
Total Assets | $ | 31,460 | $ | 30,190 | |||||||
LIABILITIES | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | 1,606 | $ | 775 | |||||||
Advances from customers | 9,062 | 1,528 | |||||||||
Other payables and accruals | 14,312 | 13,959 | |||||||||
Taxes payable | 1,545 | 1,673 | |||||||||
Amounts due to related party | 2 | 2 | |||||||||
Dividend payable | 842 | 817 | |||||||||
Total Current Liabilities | 27,369 | 18,754 | |||||||||
Total Liabilities | $ | 27,369 | $ | 18,754 | |||||||
For the years ended September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
US$(’000) | US$(’000) | US$(’000) | |||||||||
Revenue | $ | 11,564 | $ | 1,451 | $ | 6,337 | |||||
Net loss | $ | -7,572 | $ | -8,394 | $ | 141 | |||||
ACCOUNTS_AND_NOTES_RECEIVABLE_1
ACCOUNTS AND NOTES RECEIVABLE, NET (Tables) | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | ' | |||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | ' | |||||||
Accounts and notes receivable and allowance for doubtful accounts consisted of the following: | ||||||||
As of September 30, 2013 | As of September 30, 2012 | |||||||
US$(’000) | US$(’000) | |||||||
Accounts receivable | $ | 4,795 | $ | 3,240 | ||||
Less: allowance for doubtful accounts | -527 | - | ||||||
Accounts receivable, net | 4,268 | 3,240 | ||||||
Notes receivable | 228 | - | ||||||
Total accounts and notes receivable | $ | 4,496 | $ | 3,240 | ||||
Schedule Of Allowance For Doubtful Accounts Receivable [Table Text Block] | ' | |||||||
An analysis of allowance for the doubtful accounts is as follows: | ||||||||
As of September 30, 2013 | As of September 30, 2012 | |||||||
US$(’000) | US$(’000) | |||||||
Balance at the beginning of the year | $ | - | $ | -456 | ||||
Bad debt expense | -527 | - | ||||||
Write offs | - | 456 | ||||||
Balance at the end of the year | $ | -527 | $ | - | ||||
UNBILLED_REVENUE_Tables
UNBILLED REVENUE (Tables) | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Disclosure Text Block Supplement [Abstract] | ' | |||||||
Schedule Of Unbilled Revenue [Table Text Block] | ' | |||||||
Unbilled revenue consisted of the following: | ||||||||
As of September 30, 2013 | As of September 30, 2012 | |||||||
US$(’000) | US$(’000) | |||||||
Unbilled revenue | $ | 6,029 | $ | 580 | ||||
$ | 6,029 | $ | 580 | |||||
AMOUNTS_DUE_FROM_RELATED_COMPA1
AMOUNTS DUE FROM RELATED COMPANIES (Tables) | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Related Party Transactions [Abstract] | ' | |||||||
Schedule of Related Party Transactions [Table Text Block] | ' | |||||||
Amounts due from related companies consisted of the following: | ||||||||
As of September 30, 2013 | As of September 30, 2012 | |||||||
US$(’000) | US$(’000) | |||||||
Xi'an Hu County Yuxing Agriculture Technology Development Co., Ltd | $ | 140 | $ | - | ||||
Shaanxi Tech Team Jinong Humid Acid Product Co., Ltd | 1 | - | ||||||
Jinong High-Tech Agriculture Model Park, Inc. | - | 123 | ||||||
Total | $ | 141 | $ | 123 | ||||
INVENTORIES_Tables
INVENTORIES (Tables) | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Schedule of Inventory, Current [Table Text Block] | ' | |||||||
Inventories consisted of the following: | ||||||||
As of September 30, 2013 | As of September 30, 2012 | |||||||
US$(’000) | US$(’000) | |||||||
Raw material | $ | 39 | $ | 75 | ||||
Finished goods | 414 | 88 | ||||||
Project-in-progress | 235 | 465 | ||||||
Total | $ | 688 | $ | 628 | ||||
OTHER_RECEIVABLES_AND_PREPAYME1
OTHER RECEIVABLES AND PREPAYMENTS (Tables) | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Prepaid Expenses and Other Current Assets Disclosure [Abstract] | ' | |||||||
Schedule of Other Current Assets [Table Text Block] | ' | |||||||
Other receivables and prepayments consisted of the following: | ||||||||
As of September 30, 2013 | As of September 30, 2012 | |||||||
US$(’000) | US$(’000) | |||||||
Advances to employees | $ | 205 | $ | 449 | ||||
Deposits on projects | 44 | 560 | ||||||
Prepayment to suppliers | 1,856 | 763 | ||||||
Total | $ | 2,105 | $ | 1,772 | ||||
SALESTYPE_LEASES_Tables
SALES-TYPE LEASES (Tables) | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Leases, Capital [Abstract] | ' | |||||||
Schedule Of Capital Leases Net Investment In Sales Type Leases [Table Text Block] | ' | |||||||
The components of the net investment in sales-type leases are as follows as of September 30, 2013 and 2012. The implicit interest rate is 6.65% per annum. | ||||||||
As of September 30, 2013 | As of September 30, 2012 | |||||||
US$(’000) | US$(’000) | |||||||
Future minimum lease payments receivable | $ | - | $ | 1,502 | ||||
Unguaranteed residual values | - | 91 | ||||||
Unearned income | - | -50 | ||||||
Net investment in sales-type leases | - | 1,543 | ||||||
Less: current portion | - | 1,210 | ||||||
Net investment in sales-type leases, less current portion | $ | - | $ | 333 | ||||
PROPERTY_AND_EQUIPMENT_NET_Tab
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment [Table Text Block] | ' | |||||||
Property and equipment consisted of the following: | ||||||||
As of September 30, 2013 | As of September 30, 2012 | |||||||
US$(’000) | US$(’000) | |||||||
Buildings and improvements | $ | 15,420 | $ | 14,975 | ||||
Vehicles | 177 | 172 | ||||||
Other equipment and devices | 396 | 391 | ||||||
Total property and equipment | 15,993 | 15,538 | ||||||
Less: accumulated depreciation | -2,635 | -1,997 | ||||||
Property and equipment, net | $ | 13,358 | $ | 13,541 | ||||
INTANGIBLE_ASSETS_NET_Tables
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | ' | |||||||
The intangible assets consisted of the following: | ||||||||
As of September 30, 2013 | As of September 30, 2012 | |||||||
US$(’000) | US$(’000) | |||||||
Land-use rights | $ | 690 | $ | 670 | ||||
Less: accumulated amortization | -58 | -37 | ||||||
Intangible assets, net | $ | 632 | $ | 633 | ||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | ' | |||||||
Estimated amortization expense relating to the existing intangible assets for the aggregated and each of the next five years and thereafter are as follows: | ||||||||
For the years ended | US$ (‘000) | |||||||
30-Sep-14 | $ | 19 | ||||||
30-Sep-15 | 19 | |||||||
30-Sep-16 | 19 | |||||||
30-Sep-17 | 19 | |||||||
30-Sep-18 | 19 | |||||||
Thereafter | 537 | |||||||
Total | $ | 632 | ||||||
ACCOUNTS_PAYABLE_Tables
ACCOUNTS PAYABLE (Tables) | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Schedule Of Accounts Payable [Table Text Block] | ' | |||||||
Accounts payable consisted of the following: | ||||||||
As of September 30, 2013 | As of September 30, 2012 | |||||||
US$(’000) | US$(’000) | |||||||
Payable to third-party suppliers | $ | 1,606 | $ | 775 | ||||
$ | 1,606 | $ | 775 | |||||
ADVANCE_FROM_CUSTOMERS_Tables
ADVANCE FROM CUSTOMERS (Tables) | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Other Liabilities Disclosure [Abstract] | ' | |||||||
Schedule Of Advance From Customers [Table Text Block] | ' | |||||||
Advance from customers consisted of the following: | ||||||||
As of September 30, 2013 | As of September 30, 2012 | |||||||
US$(’000) | US$(’000) | |||||||
Advance from third-party customers | $ | 9,062 | $ | 1,528 | ||||
$ | 9,062 | $ | 1,528 | |||||
OTHER_PAYABLES_AND_ACCRUALS_Ta
OTHER PAYABLES AND ACCRUALS (Tables) | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Schedule Of Other Payables and Accruals [Table Text Block] | ' | |||||||
Other payables and accruals consisted of the following: | ||||||||
As of September 30, 2013 | As of September 30, 2012 | |||||||
US$(’000) | US$(’000) | |||||||
Accrued employee benefits | $ | - | $ | 24 | ||||
Deposits from suppliers | - | 33 | ||||||
Other payables | 111 | 110 | ||||||
Total | $ | 111 | $ | 167 | ||||
TAXES_PAYABLE_Tables
TAXES PAYABLE (Tables) | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Tax Disclosure [Abstract] | ' | |||||||
Tabular Disclosure Of Taxes Payable During Period [Table Text Block] | ' | |||||||
Taxes payable consisted of the following: | ||||||||
As of September 30, 2013 | As of September 30, 2012 | |||||||
US$(’000) | US$(’000) | |||||||
Enterprise income tax payable | $ | 494 | $ | 480 | ||||
Individual income tax | 16 | 736 | ||||||
Other taxes payable | 1,035 | 457 | ||||||
Total | $ | 1,545 | $ | 1,673 | ||||
DIVIDEND_PAYABLE_Tables
DIVIDEND PAYABLE (Tables) | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Dividends [Abstract] | ' | |||||||
Schedule of Dividends Payable [Table Text Block] | ' | |||||||
As of September 30, 2013 | As of September 30, 2012 | |||||||
US$(’000) | US$(’000) | |||||||
Dividend due to shareholders | $ | 842 | $ | 817 | ||||
$ | 842 | $ | 817 | |||||
RELATED_PARTY_TRANSACTIONS_Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||
Schedule Of Related Party Transactions Values [Table Text Block] | ' | ||||||||||
1. Sales to related parties: | |||||||||||
For the years ended September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
US$(’000) | US$(’000) | US$(’000) | |||||||||
Xi’an Hu County Yuxing Agriculture Technology Development Co., Ltd | $ | 191 | $ | - | $ | 131 | |||||
Shaanxi Tech Team Jinong Humic Acid Product Co., Ltd | 1 | - | - | ||||||||
Total | $ | 192 | $ | - | $ | 131 | |||||
Schedule Of Related Party Transactions Office Rental Income [Table Text Block] | ' | ||||||||||
2. Office Rental | |||||||||||
For the years ended September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
US$(’000) | US$(’000) | US$(’000) | |||||||||
Total rental income | $ | 44,467 | $ | 26,001 | $ | 19,200 | |||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||
Schedule Of Employee Commitments [Table Text Block] | ' | |||||||||||
The details of the term and annual salary of our executive officers are as below: | ||||||||||||
Name | Title | Annual-base Salary | Term | |||||||||
Peng Zhang | Chief Executive Officer | RMB | 180,000 | $ | 28,863 | Till 2014 | ||||||
Li Wu | Director, Chief Financial Officer | RMB | 132,000 | $ | 21,166 | Till 2014 | ||||||
Wei Zhang | Executive President | RMB | 120,000 | $ | 19,242 | Till 2014 | ||||||
Jiaqing Ren | Vice President | RMB | 120,000 | $ | 19,242 | Till 2014 | ||||||
Xiang Bu | Manager | RMB | 120,000 | $ | 19,242 | Till 2014 | ||||||
Zhenyu Chen | Manager | RMB | 120,000 | $ | 19,242 | Till 2014 | ||||||
Xiaodong Ma | Manager | RMB | 144,000 | $ | 23,091 | Till 2014 | ||||||
SHAREBASED_COMPENSATION_Tables
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | ' | ||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | ||||||||||||||
The Company calculated the estimated fair value of the options on the grant date (May 14, 2010) with the following assumptions: | |||||||||||||||
14-May-10 | |||||||||||||||
Risk-free interest rates | 1.63 | % | |||||||||||||
Expected term | 2 years | ||||||||||||||
Expected volatility | 90 | % | |||||||||||||
Expected dividend yield | 0 | % | |||||||||||||
Fair value of underlying ordinary share (per share) (*) | US$ 3.94 | ||||||||||||||
(* there was no trading on the grant date, this represented initial public offering close price) | |||||||||||||||
Schedule of Share-based Compensation, Activity [Table Text Block] | ' | ||||||||||||||
The following table summarizes outstanding options as of September 30, 2013, related weighted average fair value and life information, options outstanding for all periods have been retroactively restated to reflect the 1-for-10 reverse stock split effected on November 6, 2012: | |||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||
Exercise Price | Number | Weighted | Weighted | Number | Weighted | ||||||||||
Per Share | outstanding as of | Average | Average | Exercisable as | Average | ||||||||||
September 30, 2013 | Fair Value | Remaining | of September | Exercise | |||||||||||
Life | 30, 2013 | Price | |||||||||||||
(Years) | |||||||||||||||
$ | 40 | 10,000 | $ | 18.9 | 6.62 | 10,000 | $ | 18.9 | |||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||||
A summary of option activity under the employee share option plan as of September 30, 2013 and changes during the year then ended is presented as follows: | |||||||||||||||
Options | Number of | Exercise | Remaining | Aggregated | |||||||||||
shares | Price | Life (Years) | Intrinsic Value | ||||||||||||
Outstanding as of October 1, 2012 | 12,334 | $ | 40 | 7.62 | - | ||||||||||
Granted during the year | - | - | - | - | |||||||||||
Forfeited during the year | 2,334 | - | - | - | |||||||||||
Outstanding as of September 30, 2013 | 10,000 | $ | 40 | 6.62 | - | ||||||||||
EARNINGS_PER_ORDINARY_SHARE_Ta
EARNINGS PER ORDINARY SHARE (Tables) | 12 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||||
For the years ended September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Numerator used in basic net income per share: | |||||||||||
Net loss | $ | -5,133,000 | $ | -8,988,000 | $ | -1,037,000 | |||||
Shares | |||||||||||
Weighted average number of ordinary shares outstanding | 1,405,000 | 1,405,000 | 1,405,000 | ||||||||
Weighted average number of ordinary shares outstanding used in computing diluted earnings per ordinary share | 1,405,000 | 1,405,000 | 1,405,000 | ||||||||
Loss per ordinary share- basic and diluted | $ | -3.65 | $ | -6.4 | $ | -0.74 | |||||
ORGANIZATION_AND_PRINCIPAL_ACT1
ORGANIZATION AND PRINCIPAL ACTIVITIES (Details Textual) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | |
Nov. 06, 2012 | Nov. 06, 2012 | 14-May-10 | Sep. 30, 2013 | |
Organization And Principal Activities [Line Items] | ' | ' | ' | ' |
Equity Issuance, Per Share Amount | ' | ' | $4 | ' |
Stock Issued During Period, Shares, Issued for Cash | ' | ' | 4,000,000 | ' |
Stock Issued During Period, Value, Issued for Cash | ' | ' | $14,500,000 | ' |
Entity Incorporation, Date Of Incorporation | ' | ' | ' | 27-Oct-09 |
Entity Incorporation, State Country Name | ' | ' | ' | 'British Virgin Islands |
Stockholders' Equity, Reverse Stock Split | 'The par value of each New Share was $0.01, equal to the aggregate of the par value of ten Old Shares combined | '1-for-10 | ' | ' |
Common Stock, Shares, Issued | ' | ' | ' | 1,405,000 |
Before Reverse Stock Split [Member] | ' | ' | ' | ' |
Organization And Principal Activities [Line Items] | ' | ' | ' | ' |
Common Stock, Shares, Issued | 14,050,000 | 14,050,000 | ' | ' |
Common Stock, Shares, Outstanding | 14,050,000 | 14,050,000 | ' | ' |
After Reverse Stock Split [Member] | ' | ' | ' | ' |
Organization And Principal Activities [Line Items] | ' | ' | ' | ' |
Common Stock, Shares, Issued | 1,405,000 | 1,405,000 | ' | ' |
Common Stock, Shares, Outstanding | 1,405,000 | 1,405,000 | ' | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Balance Sheets Dates [Member] | ' | ' | ' |
Exchange Rates [Line Items] | ' | ' | ' |
Foreign Currency Exchange Rate, Translation | 6.1439 | 6.3265 | 6.5574 |
Average For Period [Member] | ' | ' | ' |
Exchange Rates [Line Items] | ' | ' | ' |
Foreign Currency Exchange Rate, Translation | 6.2363 | 6.3299 | 6.6181 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) | 12 Months Ended |
Sep. 30, 2013 | |
Property and Improvements [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Estimated Useful Lives | '35 |
Property and Improvements [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Estimated Useful Lives | '20 |
Transportation Equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Estimated Useful Lives | '5 years |
Office Equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Estimated Useful Lives | '5 years |
Furniture and Fixtures [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Estimated Useful Lives | '5 years |
Electronic Equipment [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Estimated Useful Lives | '5 |
Electronic Equipment [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment, Estimated Useful Lives | '3 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Income Tax Authority [Line Items] | ' | ' | ' |
PRC federal statutory tax rate | 25.00% | 25.00% | 25.00% |
Loss before tax | ($5,133) | ($8,988) | ($1,005) |
Computed expected income tax expense | 0 | 0 | 0 |
Non-deductible expenses | 0 | 0 | 32 |
Effect of tax holidays | 0 | 0 | 0 |
Income tax expenses | $0 | $0 | $32 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | ||||||||
Jan. 31, 2008 | Sep. 30, 2013 | Dec. 31, 2008 | Dec. 31, 2007 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Maximum [Member] | Minimum [Member] | China [Member] | China [Member] | Singapore [Member] | Singapore [Member] | |||||
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Salvage Value, Percentage | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage Of Profit Allocated To General Reserve | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage Of Discontinue Allocations Of General Reserve On Registered Capital | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Income Tax Rate Reduced | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Value Added Tax Rate | ' | 17.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued Value Added Tax Payable | ' | ' | ' | ' | 12.00% | 10.00% | ' | ' | ' | ' |
Tax Paid In Kind Of Software Solution | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Tax Paid In Kind Of Wireless System Solution | ' | ' | ' | ' | 5.00% | 3.00% | ' | ' | ' | ' |
Tax Paid In Kind Of Surtax | ' | ' | ' | ' | 12.00% | 10.00% | ' | ' | ' | ' |
Foreign Financial Institutions, Actual Deposits | ' | ' | ' | ' | ' | ' | $4,011,070 | $3,729,320 | $2,117,562 | $2,710,038 |
Enterprise Income Tax Rate Percentage | ' | ' | 25.00% | 33.00% | ' | ' | ' | ' | ' | ' |
VARIABLE_INTEREST_ENTITIES_Det
VARIABLE INTEREST ENTITIES (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2010 | ||
Current assets | ' | ' | ' | ' | ||
Cash and cash equivalents | $6,132 | [1] | $6,439 | [1] | $8,749 | $14,909 |
Accounts and Notes Receivable, net of allowance | 4,496 | [1] | 3,240 | [1] | ' | ' |
Unbilled revenue | 6,029 | [1] | 580 | [1] | ' | ' |
Due from related companies | 141 | [1] | 123 | [1] | ' | ' |
Inventories | 688 | [1] | 628 | [1] | ' | ' |
Other receivables and prepayments | 2,105 | [1] | 1,772 | [1] | ' | ' |
Current portion of long-term other receivables | 0 | [1] | 1,393 | [1] | ' | ' |
Current portion of net investment in sales-type leases | 0 | [1] | 1,210 | [1] | ' | ' |
Total Current Assets | 19,591 | 15,385 | ' | ' | ||
Non-current assets | ' | ' | ' | ' | ||
Property and Equipment, net | 13,358 | [1] | 13,541 | [1] | ' | ' |
Intangible assets | 632 | [1] | 633 | [1] | ' | ' |
Net investment in sales-type leases, less current portion | 0 | [1] | 333 | [1] | ' | ' |
Total Assets | 33,581 | 29,892 | ' | ' | ||
Current liabilities | ' | ' | ' | ' | ||
Accounts payable | 1,606 | [1] | 775 | [1] | ' | ' |
Advances from customers | 9,062 | [1] | 1,528 | [1] | ' | ' |
Other payables and accruals | 111 | [1] | 167 | [1] | ' | ' |
Taxes payable | 1,545 | [1] | 1,673 | [1] | ' | ' |
Dividend payable | 842 | [1] | 817 | [1] | ' | ' |
Total Current Liabilities | 13,168 | 4,962 | ' | ' | ||
Revenue | 11,562 | 1,451 | 6,337 | ' | ||
Net loss | -5,133 | -8,988 | -1,037 | ' | ||
Variable Interest Entity, Primary Beneficiary [Member] | ' | ' | ' | ' | ||
Current assets | ' | ' | ' | ' | ||
Cash and cash equivalents | 4,012 | 3,728 | ' | ' | ||
Accounts and Notes Receivable, net of allowance | 4,496 | 3,240 | ' | ' | ||
Unbilled revenue | 6,029 | 580 | ' | ' | ||
Due from related companies | 141 | 123 | ' | ' | ||
Inventories | 688 | 628 | ' | ' | ||
Other receivables and prepayments | 2,106 | 4,781 | ' | ' | ||
Current portion of long-term other receivables | 0 | 1,393 | ' | ' | ||
Current portion of net investment in sales-type leases | 0 | 1,210 | ' | ' | ||
Total Current Assets | 17,472 | 15,683 | ' | ' | ||
Non-current assets | ' | ' | ' | ' | ||
Property and Equipment, net | 13,356 | 13,541 | ' | ' | ||
Intangible assets | 632 | 633 | ' | ' | ||
Net investment in sales-type leases, less current portion | 0 | 333 | ' | ' | ||
Total Assets | 31,460 | 30,190 | ' | ' | ||
Current liabilities | ' | ' | ' | ' | ||
Accounts payable | 1,606 | 775 | ' | ' | ||
Advances from customers | 9,062 | 1,528 | ' | ' | ||
Other payables and accruals | 14,312 | 13,959 | ' | ' | ||
Taxes payable | 1,545 | 1,673 | ' | ' | ||
Amounts due to related party | 2 | 2 | ' | ' | ||
Dividend payable | 842 | 817 | ' | ' | ||
Total Current Liabilities | 27,369 | 18,754 | ' | ' | ||
Total Liabilities | 27,369 | 18,754 | ' | ' | ||
Revenue | 11,564 | 1,451 | 6,337 | ' | ||
Net loss | ($7,572) | ($8,394) | $141 | ' | ||
[1] | *All of the VIE’s assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets (Note 3). |
VARIABLE_INTEREST_ENTITIES_Det1
VARIABLE INTEREST ENTITIES (Details Textual) (Variable Interest Entity, Primary Beneficiary [Member]) | Oct. 27, 2009 |
Variable Interest Entity, Primary Beneficiary [Member] | ' |
Various Interest Entities [Line Items] | ' |
Equity Method Investment, Ownership Percentage | 50.00% |
ACCOUNTS_AND_NOTES_RECEIVABLE_2
ACCOUNTS AND NOTES RECEIVABLE, NET (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | ||
In Thousands, unless otherwise specified | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ||
Accounts receivable | $4,795 | $3,240 | ' | ||
Less: allowance for doubtful accounts | -527 | 0 | -456 | ||
Accounts receivable, net | 4,268 | 3,240 | ' | ||
Notes receivable | 228 | 0 | ' | ||
Total accounts and notes receivable | $4,496 | [1] | $3,240 | [1] | ' |
[1] | *All of the VIE’s assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets (Note 3). |
ACCOUNTS_AND_NOTES_RECEIVABLE_3
ACCOUNTS AND NOTES RECEIVABLE, NET (Details 1) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Balance at the beginning of the year | $0 | ($456) |
Bad debt expense | -527 | 0 |
Write offs | 0 | 456 |
Balance at the end of the year | ($527) | $0 |
ACCOUNTS_AND_NOTES_RECEIVABLE_4
ACCOUNTS AND NOTES RECEIVABLE, NET (Details Textual) (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Allowance for Loan and Lease Loss, Recovery of Bad Debts | $527,000 | $0 |
Notes, Loans and Financing Receivable, Net, Current | 228,000 | 0 |
Accounts receivable written off | ' | $4,947,954 |
UNBILLED_REVENUE_Details
UNBILLED REVENUE (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | ||
In Thousands, unless otherwise specified | ||||
Unbilled Revenue [Line Items] | ' | ' | ||
Unbilled revenue | $6,029 | [1] | $580 | [1] |
Unbilled Revenues [Member] | ' | ' | ||
Unbilled Revenue [Line Items] | ' | ' | ||
Unbilled revenue | $6,029 | $580 | ||
[1] | *All of the VIE’s assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets (Note 3). |
UNBILLED_REVENUE_Details_Textu
UNBILLED REVENUE (Details Textual) (Hualu Engineering Technology Co., Ltd [Member], USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Hualu Engineering Technology Co., Ltd [Member] | ' |
Unbilled Revenue [Line Items] | ' |
Increase (Decrease) in Cost in Excess of Billing on Uncompleted Contract | $5,449 |
Increase in Cost in Excess of Billing on Uncompleted Contract Percentage | 939.00% |
AMOUNTS_DUE_FROM_RELATED_COMPA2
AMOUNTS DUE FROM RELATED COMPANIES (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | ||
In Thousands, unless otherwise specified | ||||
Related Party Transaction [Line Items] | ' | ' | ||
Total | $141 | [1] | $123 | [1] |
Xi'an Hu County Yuxing Agriculture Technology Development Co., Ltd [Member] | ' | ' | ||
Related Party Transaction [Line Items] | ' | ' | ||
Total | 140 | 0 | ||
Shaanxi Tech Team Jinong Humid Acid Product Co., Ltd [Member] | ' | ' | ||
Related Party Transaction [Line Items] | ' | ' | ||
Total | 1 | 0 | ||
Jinong High Tech Agriculture Model Park Inc [Member] | ' | ' | ||
Related Party Transaction [Line Items] | ' | ' | ||
Total | $0 | $123 | ||
[1] | *All of the VIE’s assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets (Note 3). |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | ||
In Thousands, unless otherwise specified | ||||
Inventory [Line Items] | ' | ' | ||
Raw material | $39 | $75 | ||
Finished goods | 414 | 88 | ||
Project-in-progress | 235 | 465 | ||
Total | $688 | [1] | $628 | [1] |
[1] | *All of the VIE’s assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets (Note 3). |
OTHER_RECEIVABLES_AND_PREPAYME2
OTHER RECEIVABLES AND PREPAYMENTS (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | ||
In Thousands, unless otherwise specified | ||||
Other Receivables And Prepayments [Line Items] | ' | ' | ||
Advances to employees | $205 | $449 | ||
Deposits on projects | 44 | 560 | ||
Prepayment to suppliers | 1,856 | 763 | ||
Total | $2,105 | [1] | $1,772 | [1] |
[1] | *All of the VIE’s assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets (Note 3). |
SALESTYPE_LEASES_Details
SALES-TYPE LEASES (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | ||
In Thousands, unless otherwise specified | ||||
Investment In Sales Type Leases [Line Items] | ' | ' | ||
Future minimum lease payments receivable | $0 | $1,502 | ||
Unguaranteed residual values | 0 | 91 | ||
Unearned income | 0 | -50 | ||
Net investment in sales-type leases | 0 | 1,543 | ||
Less: current portion | 0 | [1] | 1,210 | [1] |
Net investment in sales-type leases, less current portion | $0 | [1] | $333 | [1] |
[1] | *All of the VIE’s assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets (Note 3). |
SALESTYPE_LEASES_Details_Textu
SALES-TYPE LEASES (Details Textual) (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Sale Type Leases [Line Items] | ' | ' |
Implicit Interest Rate On Sales Type Lease | 6.65% | ' |
Written Off Net Investment In Sales Type Leases | $1,443,466 | $0 |
PROPERTY_AND_EQUIPMENT_NET_Det
PROPERTY AND EQUIPMENT, NET (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | ||
In Thousands, unless otherwise specified | ||||
Property, Plant and Equipment [Line Items] | ' | ' | ||
Buildings and improvements | $15,420 | $14,975 | ||
Vehicles | 177 | 172 | ||
Other equipment and devices | 396 | 391 | ||
Total property and equipment | 15,993 | 15,538 | ||
Less: accumulated depreciation | -2,635 | -1,997 | ||
Property and equipment, net | $13,358 | [1] | $13,541 | [1] |
[1] | *All of the VIE’s assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets (Note 3). |
PROPERTY_AND_EQUIPMENT_NET_Det1
PROPERTY AND EQUIPMENT, NET (Details Textual) (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Depreciation expenses | $572,383 | $806,000 | $516,000 |
INTANGIBLE_ASSETS_NET_Details
INTANGIBLE ASSETS, NET (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | ||
In Thousands, unless otherwise specified | ||||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ||
Land-use rights | $690 | $670 | ||
Less: accumulated amortization | -58 | -37 | ||
Intangible assets, net | $632 | [1] | $633 | [1] |
[1] | *All of the VIE’s assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets (Note 3). |
INTANGIBLE_ASSETS_NET_Details_
INTANGIBLE ASSETS, NET (Details 1) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Finite-Lived Intangible Assets [Line Items] | ' |
30-Sep-14 | $19 |
30-Sep-15 | 19 |
30-Sep-16 | 19 |
30-Sep-17 | 19 |
30-Sep-18 | 19 |
Thereafter | 537 |
Total | $632 |
INTANGIBLE_ASSETS_NET_Details_1
INTANGIBLE ASSETS, NET (Details Textual) (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Amortization of Intangible Assets | $19,703 | $37,000 | $17,000 |
ACCOUNTS_PAYABLE_Details
ACCOUNTS PAYABLE (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | ||
In Thousands, unless otherwise specified | ||||
Accounts Payable Disclosure [Line Items] | ' | ' | ||
Payable to third-party suppliers | $1,606 | $775 | ||
Accounts payable | $1,606 | [1] | $775 | [1] |
[1] | *All of the VIE’s assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets (Note 3). |
ADVANCE_FROM_CUSTOMERS_Details
ADVANCE FROM CUSTOMERS (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | ||
In Thousands, unless otherwise specified | ||||
Advance From Customers Disclosure [Line Items] | ' | ' | ||
Advance from third-party customers | $9,062 | $1,528 | ||
Advances from customers | $9,062 | [1] | $1,528 | [1] |
[1] | *All of the VIE’s assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets (Note 3). |
ADVANCE_FROM_CUSTOMERS_Details1
ADVANCE FROM CUSTOMERS (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Advance From Customers Disclosure [Line Items] | ' | ' | ' |
Increase (Decrease) In Customer Advances | $7,378 | $1,146 | ($12) |
Hualu Engineering Technology Co., Ltd [Member] | ' | ' | ' |
Advance From Customers Disclosure [Line Items] | ' | ' | ' |
Increase (Decrease) In Customer Advances | $7,500 | ' | ' |
Increase In Customer Advances Percentage | 493.00% | ' | ' |
Maximum [Member] | ' | ' | ' |
Advance From Customers Disclosure [Line Items] | ' | ' | ' |
Percentage Of Contract Price Received From Customers | 30.00% | ' | ' |
Minimum [Member] | ' | ' | ' |
Advance From Customers Disclosure [Line Items] | ' | ' | ' |
Percentage Of Contract Price Received From Customers | 10.00% | ' | ' |
OTHER_PAYABLES_AND_ACCRUALS_De
OTHER PAYABLES AND ACCRUALS (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | ||
In Thousands, unless otherwise specified | ||||
Other Payables And Accruals Disclosure [Line Items] | ' | ' | ||
Accrued employee benefits | $0 | $24 | ||
Deposits from suppliers | 0 | 33 | ||
Other payables | 111 | 110 | ||
Total | $111 | [1] | $167 | [1] |
[1] | *All of the VIE’s assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets (Note 3). |
TAXES_PAYABLE_Details
TAXES PAYABLE (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | ||
In Thousands, unless otherwise specified | ||||
Taxes Payable Disclosure [Line Items] | ' | ' | ||
Total | $1,545 | [1] | $1,673 | [1] |
Enterprise Income Tax [Member] | ' | ' | ||
Taxes Payable Disclosure [Line Items] | ' | ' | ||
Total | 494 | 480 | ||
Individual Income Tax [Member] | ' | ' | ||
Taxes Payable Disclosure [Line Items] | ' | ' | ||
Total | 16 | 736 | ||
Other Tax [Member] | ' | ' | ||
Taxes Payable Disclosure [Line Items] | ' | ' | ||
Total | $1,035 | $457 | ||
[1] | *All of the VIE’s assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets (Note 3). |
DIVIDEND_PAYABLE_Details
DIVIDEND PAYABLE (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | ||
In Thousands, unless otherwise specified | ||||
Dividends Payable [Line Items] | ' | ' | ||
Dividend due to shareholders | $842 | $817 | ||
Dividend payable | $842 | [1] | $817 | [1] |
[1] | *All of the VIE’s assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets (Note 3). |
DIVIDEND_PAYABLE_Details_Textu
DIVIDEND PAYABLE (Details Textual) (USD $) | 12 Months Ended |
Sep. 30, 2009 | |
Dividends Payable [Line Items] | ' |
Dividends, Common Stock, Paid-in-kind | $4,096,000 |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Related Party Transaction [Line Items] | ' | ' | ' |
Total | $192 | $0 | $131 |
Sales [Member] | Xi’an Hu County Yuxing Agriculture Technology Development Co., Ltd [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Total | 191 | 0 | 131 |
Sales [Member] | Shaanxi Tech Team Jinong Humic Acid Product Co., Ltd [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Total | $1 | ' | ' |
RELATED_PARTY_TRANSACTIONS_Det1
RELATED PARTY TRANSACTIONS (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Related Party Transaction [Line Items] | ' | ' | ' |
Total rental income | $44,467 | $26,001 | $19,200 |
RELATED_PARTY_TRANSACTIONS_Det2
RELATED PARTY TRANSACTIONS (Details Textual) | Sep. 30, 2013 | Jun. 29, 2012 | Jun. 29, 2012 | Sep. 30, 2010 | Sep. 30, 2010 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2011 |
sqm | Xi’an Hu County Yuxing Agriculture Technology Development Co., Ltd [Member] | Xi’an Hu County Yuxing Agriculture Technology Development Co., Ltd [Member] | Xi’an Hu County Yuxing Agriculture Technology Development Co., Ltd [Member] | Xi’an Hu County Yuxing Agriculture Technology Development Co., Ltd [Member] | Xi’an Hu County Yuxing Agriculture Technology Development Co., Ltd [Member] | Xi’an Hu County Yuxing Agriculture Technology Development Co., Ltd [Member] | Xi’an Hu County Yuxing Agriculture Technology Development Co., Ltd [Member] | |
USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | |||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Contract Value | ' | ' | ' | ' | ' | $458,000 | 3,030,000 | ' |
Revenue To Contract Value Percentage | ' | ' | ' | ' | ' | 44.00% | 44.00% | 30.00% |
Operating Leases, Rent Expense | ' | $3,867 | 24,480 | $1,600 | 10,800 | ' | ' | ' |
Office Floor Area | 184.8 | ' | ' | ' | ' | ' | ' | ' |
MAJOR_CUSTOMERS_AND_VENDORS_De
MAJOR CUSTOMERS AND VENDORS (Details Textual) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Customer One [Member] | ' | ' | ' |
Major Customers [Line Items] | ' | ' | ' |
Concentration Risk, Percentage | 88.20% | 0.00% | 0.00% |
Entity Wide Accounts Receivables Major Customer Percentage | 11.90% | 0.00% | ' |
Two Vendors [Member] | ' | ' | ' |
Major Customers [Line Items] | ' | ' | ' |
Entity Wide Accounts Payables Major Supplier Percentage | 10.00% | 10.00% | 10.00% |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) | 12 Months Ended | |||||||||||||
Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Chief Executive Officer [Member] | Chief Executive Officer [Member] | Director, Chief Financial Officer [Member] | Director, Chief Financial Officer [Member] | Executive President [Member] | Executive President [Member] | Vice President [Member] | Vice President [Member] | Managers One [Member] | Managers One [Member] | Managers Two [Member] | Managers Two [Member] | Managers Three [Member] | Managers Three [Member] | |
USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | |
Commitments and Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Officers' Compensation | $28,863 | 180,000 | $21,166 | 132,000 | $19,242 | 120,000 | $19,242 | 120,000 | $19,242 | 120,000 | $19,242 | 120,000 | $23,091 | 144,000 |
Employment Term | 'Till 2014 | 'Till 2014 | 'Till 2014 | 'Till 2014 | 'Till 2014 | 'Till 2014 | 'Till 2014 | 'Till 2014 | 'Till 2014 | 'Till 2014 | 'Till 2014 | 'Till 2014 | 'Till 2014 | 'Till 2014 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details Textual) (Senior Executive [Member]) | 12 Months Ended |
Sep. 30, 2009 | |
Senior Executive [Member] | ' |
Commitments and Contingencies [Line Items] | ' |
Employment Term | 'five |
Employment Notice Period | '30 days |
SHAREBASED_COMPENSATION_Detail
SHARE-BASED COMPENSATION (Details) (USD $) | 12 Months Ended | |
14-May-10 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Risk-free interest rates | 1.63% | |
Expected term | '2 years | |
Expected volatility | 90.00% | |
Expected dividend yield | 0.00% | |
Fair value of underlying ordinary share (per share) | $3.94 | [1] |
[1] | there was no trading on the grant date, this represented initial public offering close price |
SHAREBASED_COMPENSATION_Detail1
SHARE-BASED COMPENSATION (Details 1) (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Exercise Price Per Share | $40 | $40 |
Number outstanding as of September 30, 2013 | 10,000 | 12,334 |
Weighted Average Fair Value | $18.90 | ' |
Weighted Average Remaining Life (Years) | '6 years 7 months 13 days | '7 years 7 months 13 days |
Number Exercisable as of September 30, 2013 | 10,000 | ' |
Weighted Average Exercise Price | $18.90 | ' |
SHAREBASED_COMPENSATION_Detail2
SHARE-BASED COMPENSATION (Details 2) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Outstanding as of October 1, 2012 Number Of Shares | 12,334 | ' |
Granted during the year Number Of Shares | 0 | ' |
Forfeited during the year Number Of Shares | 2,334 | ' |
Outstanding as of September 30, 2013 Number Of Shares | 10,000 | 12,334 |
Outstanding as of October 1, 2012 Exercise Price | $40 | ' |
Granted during the year Exercise Price | $0 | ' |
Forfeited during the year Exercise Price | $0 | ' |
Outstanding as of September 30, 2013 Exercise Price | $40 | $40 |
Outstanding Remaining Life (Years) | '6 years 7 months 13 days | '7 years 7 months 13 days |
Granted during the year Remaining Life (Years) | '0 years | ' |
Forfeited during the year Remaining Life(Years) | '0 years | ' |
Outstanding as of October 1, 2012 Aggregated Intrinsic Value | $0 | ' |
Granted during the year Aggregated Intrinsic Value | 0 | ' |
Forfeited during the year Aggregated Intrinsic Value | 0 | ' |
Outstanding as of September 30, 2013 Aggregated Intrinsic Value | $0 | $0 |
SHAREBASED_COMPENSATION_Detail3
SHARE-BASED COMPENSATION (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | ||||
Apr. 23, 2012 | Apr. 23, 2011 | 14-May-10 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Granted during the year Number Of Shares | ' | ' | ' | 0 | ' | ' |
Exercise Price Per Share | ' | ' | ' | $40 | $40 | ' |
Weighted Average Fair Value | ' | ' | ' | $18.90 | ' | ' |
Share based compensation expenses | ' | ' | ' | $0 | $2,000 | $316,000 |
Restricted Stock [Member] | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Granted during the year Number of shares | ' | ' | 100,000 | ' | ' | ' |
Vested during the year Number of shares | 50,000 | 50,000 | ' | ' | ' | ' |
Forfeited during the year Number of shares | 50,000 | ' | ' | ' | ' | ' |
Granted during the year Fair Value | ' | ' | ' | $3.94 | ' | ' |
Restricted Stock or Unit Expense | ' | ' | ' | 0 | 0 | 197,000 |
Stock Option [Member] | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Weighted Average Fair Value | ' | ' | 1.89 | ' | ' | ' |
Share based compensation expenses | ' | ' | ' | $2,000 | $2,000 | $119,000 |
Plan 2010 [Member] | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | ' | ' | ' | 1,500,000 | ' | ' |
Granted during the year Number Of Shares | ' | ' | 180,000 | ' | ' | ' |
Exercise Price Per Share | ' | ' | 4 | ' | ' | ' |
STATUTORY_RESERVES_Details_Tex
STATUTORY RESERVES (Details Textual) | 12 Months Ended |
Sep. 30, 2013 | |
Statutory Reserves [Line Items] | ' |
Percentage Of Profit Allocated To General Reserve | 10.00% |
Percentage Of Discontinue Allocations Of General Reserve On Registered Capital | 50.00% |
ORDINARY_SHARES_Details_Textua
ORDINARY SHARES (Details Textual) (USD $) | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | |||
Nov. 06, 2012 | Nov. 06, 2012 | 31-May-10 | 14-May-10 | Sep. 30, 2013 | Jun. 29, 2012 | 31-May-10 | Sep. 30, 2011 | |
Public Offering [Member] | Public Offering [Member] | Employee Stock [Member] | ||||||
Ordinary Shares [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Ordinary share, shares authorized | ' | ' | ' | ' | 100,000,000 | ' | ' | ' |
Ordinary share, par value | ' | ' | ' | ' | $0.00 | ' | ' | ' |
Ordinary share, shares issued | ' | ' | ' | ' | 1,405,000 | ' | ' | ' |
Ordinary share, shares outstanding | ' | ' | ' | ' | ' | ' | 10,000,000 | ' |
Stock Issued During Period, Shares, Issued for Cash | ' | ' | ' | 4,000,000 | ' | 4,000,000 | ' | ' |
Stock Issued During Period, Value, Issued for Cash | ' | ' | ' | $14,500,000 | ' | ' | $16,000,000 | ' |
Equity Issuance, Per Share Amount | ' | ' | ' | $4 | ' | ' | $4 | ' |
Payments of Stock Issuance Costs | ' | ' | $1,496,000 | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Issued for Noncash Consideration | ' | ' | ' | ' | ' | ' | ' | 50,000 |
Stockholders' Equity, Reverse Stock Split | 'The par value of each New Share was $0.01, equal to the aggregate of the par value of ten Old Shares combined | '1-for-10 | ' | ' | ' | ' | ' | ' |
EARNINGS_PER_ORDINARY_SHARE_De
EARNINGS PER ORDINARY SHARE (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Numerator used in basic net income per share: | ' | ' | ' |
Net loss | ($5,133) | ($8,988) | ($1,037) |
Shares | ' | ' | ' |
Weighted average number of ordinary shares outstanding | 1,405,000 | 1,405,000 | 1,405,000 |
Weighted average number of ordinary shares outstanding Basic and Diluted (in shares) | 1,405,000 | 1,405,000 | 1,405,000 |
Loss per ordinary share- basic and diluted (in dollars per share) | ($3.65) | ($6.40) | ($0.74) |
EARNINGS_PER_ORDINARY_SHARE_De1
EARNINGS PER ORDINARY SHARE (Details Textual) (Employee Stock Option [Member]) | 12 Months Ended |
Sep. 30, 2013 | |
Employee Stock Option [Member] | ' |
Earnings Per Share [Line Items] | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 10,000 |