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STOCK OPTIONS - Note 11

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

STOCK OPTIONS - Note 11

NOTE 11 - STOCK OPTIONS

The 2009 Equity Incentive Compensation Plan

On October 11, 2011, the Company's BOD approved of the granting of 150,000 options to employees and executives of Portables Unlimited LLC, the Company's newly acquired subsidiary, with the exercise prices of $18.30 and $37.50 per share, with 25% of the options vesting immediately and the balance equally per quarter over three years. These options expire in four years.

On October 8, 2012, the Company's BOD approved of the re-pricing of 120,000 out of the above-mentioned 150,000 options from the exercise price of $37.50 to $18.30 per share.

On October 26, 2011, the Company's BOD approved of the granting of 1,000 options to its new independent director, with the exercise price of $20.40 per share, vesting over one year and expiring in two years.

On November 29, 2011, the Company's BOD approved of the granting of 30,000 options to a consultant, with the exercise price of $10.00 per share, with 1/3 vesting immediately and the balance equally over two quarters. These options expire in two years.

On May 22, 2012, the Company issued 30,280 shares of its common stock to its employees, and directors in replacement for cancelling 133,900 outstanding options that were held by the same recipients. The shares have the same vesting schedule as the options and were valued at $11.20 per share, the closing price on the date of Board Approval, which is considered the market price at that time. Based on the difference between the market value of the shares and the Black-Scholes value of the cancelled options as of May 22, 2012, there was no extra non-cash compensation expense for the three months ended September 30, 2013.

The following summary represents options activity during the nine months ended September 30, 2013 under the New Plan.

			Weighted-
	Under		Average		Aggregate
	New		Exercise		Intrinsic
	Plan		Price		Value
Balance, December 31, 2012	181,000	$	16.90	$	-
Granted	10,000		6.50
Lapsed	-		-
Exercised	-		-
Cancelled	-		-
Balance, September 30, 2013	191,000	$	16.40	$	-

The following represents options summary as of September 30, 2013 under the New Plan.

	Options Outstanding				Options Exercisable
		Weighted-		Weighted-			Weighted-
		Average		Average			Average
	Number	Remaining		Exercise	Number		Exercise
	Outstanding	Contractual Life		Price	Exercisable		Price
Options	191,000	1.80 years	$	16.40	107,944	$	15.90

For the re-pricing of the 120,000 options on October 8, 2012, from the exercise price of $37.50 to $18.30 per share, the Company determined the incremental fair value of $0.58 per share which was calculated by taking the difference between the Black Scholes values of the new exercise price and that of the old exercise price. Other data used in the calculations include: the stock market price of $9.00, expected life of 3 years, volatility of 39.22% and discount rate of 0.35%.

On November 29, 2011, the Company's BOD approved of the granting of 30,000 options to a consultant, with the exercise price of $10.00 per share, with 1/3 vesting immediately and the balance equally over two quarters. These options expire in two years.

On February 14, 2013, the Company's BOD approved of the granting of 10,000 options to an employee with an exercise price of $6.50, with monthly vesting beginning in February 2013. The options expire four years from the date of grant. The Company determined the grant date fair value of 10,000 options of $1.70 per share which was calculated using the Black Scholes Options Pricing Model as follows: Stock price of $6.50 per share, exercise price of $6.50 per share, expected life of 4.00 years, volatility of 32.48% and discount rate of 0.64%.

The Company recorded $3,817 of non-cash compensation expense related to stock options for the three months ended September 30, 2013. As of September 30, 2013, there was $35,296 of non-cash compensation to be recorded up to 2014 based on options valued at grant date.

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Stock Options Outstanding and Exercisable (Details) (USD $)	9 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Stock Options Outstanding And Exercisable Details
Options Outstanding, Number of Shares	191,000	181,000
Options Outstanding, Weighted-Average Remaining Contractual Term (in years)	1 year 292 days
Options Outstanding, Weighted-Average Exercise Price Per Share	$ 16.40	$ 16.90
Options Exercisable, Number of Shares	107,944
Options Exercisable, Weighted-Average Exercise Price Per Share	$ 15.90

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CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Income Statement [Abstract]
Net revenues	$ 0	$ 0	$ 0	$ 0
Cost of sales	0	0	0	0
Gross profit	0	0	0	0
Operating expenses:
Selling, general, and administrative expenses	110,308	135,646	885,947	869,938
Non-cash equity-based compensation	132,259	758,592	777,924	2,030,151
Total operating expenses	242,567	894,238	1,663,871	2,900,089
Loss from operations	(242,567)	(894,238)	(1,663,871)	(2,900,089)
Other income (expenses)
Interest income	314	1	314	12
Interest expense	(8,006)	(901)	(153,199)	(27,151)
Change in fair value of warrants	4	523,078	7,340	523,078
Investment gain (loss)	174,895	(423,630)	(158,746)	(423,630)
Other income (expense), net	(309,838)	1,105	778	(293)
Other income (expense), net	(142,631)	99,653	(303,513)	72,016
Loss before income taxes and noncontrolling interest	(385,198)	(794,585)	(1,967,384)	(2,828,073)
Income taxes for continuing operations	0	11,289	109,517	11,289
Loss attributable to Zoom Technologies, Inc. from continuing operations	(385,198)	(805,874)	(2,076,901)	(2,839,362)
Discontinued Operations:
(Loss) income from discontinued operations, net of tax	(3,680,361)	1,748,821	(4,226,587)	5,064,578
less: (Loss) income attributable to non-controlling interest from discontinued operations	(616,946)	190,633	(729,690)	177,708
(Loss) income attributable to Zoom Technologies, Inc. from discontinued operations	(3,063,415)	1,558,188	(3,496,897)	4,886,870
Loss on disposal, net of tax	(10,642,204)	0	(12,708,828)	0
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent	(13,705,619)	1,558,188	(16,205,725)	4,886,870
Net (loss) income attributable to Zoom Technologies Inc.	$ (14,090,817)	$ 752,314	$ (18,282,626)	$ 2,047,508
Basic and diluted loss per common share from continuing operations:
Basic	$ (0.13)	$ (0.28)	$ (0.69)	$ (1.07)
Diluted	$ (0.13)	$ (0.28)	$ (0.69)	$ (1.07)
Basic and diluted income (loss) per common share from discontinued operations:
Basic	$ (4.57)	$ 0.54	$ (5.42)	$ 1.85
Diluted	$ (4.57)	$ 0.54	$ (5.42)	$ 1.85
Basic and diluted income per common share:
Basic	$ (4.70)	$ 0.26	$ (6.11)	$ 0.77
Diluted	$ (4.70)	$ 0.26	$ (6.11)	$ 0.77
Weighted average common shares outstanding:
Basic	2,999,387	2,911,470	2,990,836	2,643,145
Diluted	2,999,387	2,911,470	2,990,836	2,646,830

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RESTRICTED CASH - Note 4

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

RESTRICTED CASH - Note 4

NOTE 4 - RESTRICTED CASH

Restricted cash was part of the funds deposited with the Company for sale to Beijing Zhumu Culture Communication Company, Ltd. of Profit Harvest, CDE, Ever Elite, Nollec Wireless, and TCB Digital. The funds become unrestricted upon closing of the disposition transaction. The funds are in held in account dually controlled by the Company and Beijing Zhumu Culture Communication Company, Ltd.

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CORRECTION OF ERROR FOR ACCOUNTING OF WARRANTS AS DERIVATIVE SECURITIES - Note 18

9 Months Ended

Sep. 30, 2013

Correction Of Error For Accounting Of Warrants As Derivative Securities - Note 18

CORRECTION OF ERROR FOR ACCOUNTING OF WARRANTS AS DERIVATIVE SECURITIES - Note 18

NOTE 18 - CORRECTION OF ERROR FOR ACCOUNTING OF WARRANTS AS DERIVATIVE SECURITIES

Zoom management discovered during the quarter ended September 30, 2012 that in accordance with ASC 815 (formerly EITF 07-5) the Company had incorrectly accounted for warrants issued in the years 2009 and 2010 as equity.  Series A, C, F, and related placement agent warrants contained anti-dilution provision that according to the above guidance required that these derivative securities be accounted for as liabilities and marked to market at each reporting period.  The Series G, and related placement agent warrants contained change of control provisions that required that the warrants be accounted for as liabilities because the securities were no longer indexed to the Company's stock; rather there were characteristics that required them to be accounted for as standalone securities that are considered liabilities to the Company. As a result the results of operations for the three and nine months ended September 30, 2012 have been restated as follows:

		Three Months Ended September 30, 2012
		As Previously				As Currently
		Reported		Adjustment		Reported
Other income (expenses)
Change in fair value of warrants	$	-	$	350,323	$	350,323
Net income attributable to Zoom Technologies, Inc.	$	419,939	$	350,323	$	770,262
Basic and diluted income per common share:
Basic	$	0.02	$	0.01	$	0.03
Diluted	$	0.02	$	0.01	$	0.03

		Nine Months Ended September 30, 2012
		As Previously				As Currently
		Reported		Adjustment		Reported
Other income (expenses)
Change in fair value of warrants	$	-	$	233,370	$	233,370
Net income attributable to Zoom Technologies, Inc.	$	1,061,824	$	233,370	$	1,295,194
Basic and diluted income per common share:
Basic	$	0.04	$	0.01	$	0.05
Diluted	$	0.04	$	0.01	$	0.05

The Company assessed the value of these warrants by using the binomial lattice model. When the Company valued the warrants it used the following assumptions as part of inputs into the valuation model: US treasury rate of 0.34% as a measure of the risk free rate of return. The Company also used the mean of the annualized standard deviation of the log normal returns of comparable companies in the same line of business as measure of volatility which was 44.42% at June 30, 2012. The Company controls whether dilution may occur, so it did not add additional assumptions regarding dilutive events into the future discrete outcomes found in the model. The warrants values were adjusted for the dilutive effect as ratio of the outstanding common stock at the time of measurement. In determining the probabilities of an up movement or down movement in the discrete outcomes, as well as the related magnitude of such up or down movements, the Company used a Cox-Ross-Rubenstein approach in applying the binomial lattice model.

These corrections will be made to applicable prior period financial information in future filings with the SEC including this filing.

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Income Tax (Schedule of Tax Effects of Temporary Differences in Deferred Tax Assets and Liabilities) (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Income Tax Schedule Of Tax Effects Of Temporary Differences In Deferred Tax Assets And Liabilities Details
Net operating loss	$ 466,275	$ 511,035
Less: Valuation allowance	(466,275)	(511,035)
Total deferred tax assets	0	0
Deferred tax liabilities:	0	0
Deferred tax assets, net	$ 0	$ 0

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INCOME TAX - Note 12

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

INCOME TAX - Note 12

NOTE 12 - INCOME TAX

The Company is subject to income taxes by entity on income arising in or derived from the tax jurisdiction in which each entity is domiciled.

Zoom Technologies Inc., the parent company was incorporated in the U.S. and has net operating losses ("NOL") for income tax purposes, which can be carried forward for up to 20 years from the year the loss is incurred. Zoom has NOL carry forwards for income taxes of approximately $1.97 million and $1.38 million at September 30, 2013 and December 31, 2012, which may be available to reduce future years' taxable income. Management believes the realization of benefits from these losses remains uncertain due to Zoom's limited operating history and continuing losses. Accordingly, a 100% deferred tax asset valuation allowance has been provided.

The discontinued operations of TCB Digital and Nollec Wireless, and the continuing operation of Jiangsu Leimone are governed by the Income Tax Law of the PRC concerning the private-run enterprises, which are generally subject to tax at a statutory rate of 25% on income reported in the statutory financial statements after appropriate tax adjustments.

Jiangsu Leimone is exempt from income tax in PRC for two years starting from the first profitable year or the year 2008, whichever is earlier, and is subject to a 50% exemption on normal income tax rate for the following three years.  2012, is the last year that Jiangsu Leimone will afforded the 50% exemption from PRC incomes taxes.

SpreadZoom in subject to the Income Tax Law of the PRC concerning the private-run enterprises, which are generally subject to tax at a statutory rate of 25% on profit that is reported in the statutory financial statements after appropriate tax adjustments.

Nollec Wireless is exempt from income tax in PRC for two years starting from 2008, and is subject to a 50% exemption on normal income tax rate for three years starting from 2010 and is subject to normal income tax rate from 2013.

Nollec had pre-tax loss for the nine months ended September 30, 2013. The Company's net income and earnings per share had no effect due to its income tax exemption.

The discontinued and disposed operations Profit Harvest and CDE are governed by the Income Tax Law of Hong Kong, which is generally subject to tax at a statutory rate of 16.5% on income reported in the statutory financial statements after appropriate tax adjustments.

Portables is governed by the Income Tax Law of United States; however, because Portables is a pass through entity for tax purposes, tax liabilities are the responsibility of its members. Therefore, Zoom Sub, which is responsible to report and make payments on its portion of income generated by Portables is subject to a graduated statutory tax rate of 34%.

U.S. NOL carryforwards are only those arising after September 22, 2009, which was the date when a more-than-50% ownership change occurred.

The following table summarizes the temporary differences which result in deferred tax assets and liabilities as at September 30, 2013 and December 31, 2012:

		September 30,		December 31,
		2013		2012
Deferred tax assets:		(Unaudited)
Net operating loss	$	466,275	$	511,035
less: Valuation allowance		(466,275)		(511,035)
Total deferred tax assets		-		-
Deferred tax liabilities:		-		-
Deferred tax assets, net	$	-	$	-

The following table reconciles the U.S. statutory rates to the Company's effective tax rates for the three and nine months ended September 30, 2013 and 2012:

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2013	2012	2013	2012
US statutory rates	34.00%	34.00%	34.00%	34.00%
Tax rate difference	3.24%	-5.51%	-1.20%	-2.05%
Valuation allowance	-37.24%	-28.49%	-32.80%	-31.95%
State taxes	0.00%	-1.42%	-5.57%	-0.40%
Tax per financial statements	0.00%	-1.42%	-5.57%	-0.40%

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Warrants (Narrative) (Details)

9 Months Ended

Sep. 30, 2013

Series A

Exercise price, in dollars

60.00

Warrant exercise term

5 years

Description of warrants

The Company granted Series A, B, C, D and E warrants to the accredited investors as part of its private placement offering on October 16, 2009 and November 18, 2009.

Series A Warrants: The Series A warrants have an exercise price of $60.00 and a term of 5 years from the issue date subject to the Exchange Cap (as defined in the agreement).

Anti-dilution Adjustments for Certain Warrants: Since the private placement in November 2010 involved sales of the Company's stock at a price that activated anti-dilution provisions in the Series A, C, F and certain placement agent warrants, the exercise price of these warrants is adjusted to $3.74 per share and the number of warrants eligible is multiplied by a factor of 6 / 3.74 or 1.60 with fractional shares rounding up.

Series B

Exercise price, in dollars

0.10

Warrant exercise term

3 months

Description of warrants

The Company granted Series A, B, C, D and E warrants to the accredited investors as part of its private placement offering on October 16, 2009 and November 18, 2009.

Series B Warrants: The Series B warrants have an exercise price of $0.10 and a term of three (3) months from the issue date provided, however, that such date shall be extended indefinitely if the warrant cannot be exercised due to the Beneficial Ownership Limitation (as defined in the agreement) or the Exchange Cap Limitation (as defined in the agreement) until the warrant can be exercised in full by the holder thereof without breaching the Beneficial Ownership Limitation (as defined in the agreement) or the Exchange Cap Limitation (as defined in the agreement). All B Warrants were exercised in December 2009.

Series C

Exercise price, in dollars

60.00

Warrant exercise term

5 years

Description of warrants

The Company granted Series A, B, C, D and E warrants to the accredited investors as part of its private placement offering on October 16, 2009 and November 18, 2009.

The Company granted Series A, B, C, D and E warrants to the accredited investors as part of its private placement offering on October 16, 2009 and November 18, 2009.

Series C Warrants: The Series C warrants shall be exercisable only upon the exercise of the Series B warrants. The Series C warrants shall have an exercise price of $60.00 and a term of 5 years from the issue date.

Anti-dilution Adjustments for Certain Warrants: Since the private placement in November 2010 involved sales of the Company's stock at a price that activated anti-dilution provisions in the Series A, C, F and certain placement agent warrants, the exercise price of these warrants is adjusted to $37.40 per share and the number of warrants eligible is multiplied by a factor of 60 / 37.40 or 1.60 with fractional shares rounding up.

Series D

Exercise price, in dollars

0.10

Warrant exercise term

3 months

Description of warrants

The Company granted Series A, B, C, D and E warrants to the accredited investors as part of its private placement offering on October 16, 2009 and November 18, 2009.

Series D Warrants: The Series D warrants shall be exercisable if the Company fails to meet certain performance criteria for the year 2009. The Series D warrant shall have an exercise price of $0.10 and a term of exercise equal to three (3) months from the date the Maximum Eligibility Date (as defined in the agreement); provided, however, that such date shall be extended indefinitely if the warrant cannot be exercised due to the Beneficial Ownership Limitation (as defined in the agreement) or the Exchange Cap (as defined in the agreement) until the warrant can be exercised in full by the holder without breaching the Beneficial Ownership Limitation (as defined in the agreement) or the Exchange Cap Limitation (as defined in the agreement). Due to the Net Income of Zoom as reported in the Company's annual report for the year 2009 exceeding the eligibility threshold pursuant to the agreement, the Series D Warrants became ineligible for exercise.

Series E

Exercise price, in dollars

0.10

Warrant exercise term

3 months

Description of warrants

The Company granted Series A, B, C, D and E warrants to the accredited investors as part of its private placement offering on October 16, 2009 and November 18, 2009.

Series E Warrants: The Series E warrants shall be exercisable if the Company fails to meet certain performance criteria for the year 2010. The Series E warrants shall have an exercise price of $0.01 and a term of three (3) months from the date the Maximum Eligibility Date (as defined in the agreement); provided, however, that such date shall be extended indefinitely if the warrant cannot be exercised due to the Beneficial Ownership Limitation (as defined in the agreement) until the Warrant can be exercised in full by the holder thereof without breaching the Beneficial Ownership Limitation (as defined in the agreement). Due to the Net Income of Zoom as reported in the Company's annual report for the year 2010 exceeding the eligibility threshold pursuant to the agreement, the Series E Warrants became ineligible for exercise.

Series F

Exercise price, in dollars

60.00

Warrant exercise term

5 years

Description of warrants

The Company granted on May 6, 2010, Series F warrants to the above investors for their temporary forfeiture of their right to participate in the Company's future financings.

Series F Warrants: The Series F warrants have an exercise price of $60.00 and a term of 5 years from the issue date. The Company issued 37,500 Series F warrants to investors who participated in private placement transaction pursuant to the Securities Purchase Agreement dated October 15, 2009, to temporarily waive their right for a period of eight months to participate in a future offering of the Company. The investors originally have a period of twenty-four months ("Rights Period") in which they have the right to participate, and for providing a temporary waiver, an eight-month duration is added to the original expiration of the Rights Period.

Anti-dilution Adjustments for Certain Warrants: Since the private placement in November 2010 involved sales of the Company's stock at a price that activated anti-dilution provisions in the Series A, C, F and certain placement agent warrants, the exercise price of these warrants is adjusted to $37.40 per share and the number of warrants eligible is multiplied by a factor of 60 / 37.40 or 1.60 with fractional shares rounding up.

Series G

Exercise price, in dollars

47.10

Warrant exercise term

5 years

Description of warrants

The Company granted Series G warrants to the accredited investors as part of its private place offering on November 15, 2010.

Series G Warrants: The Series G warrants shall have an exercise price of $47.10 and a term of 5 years from the issue date.

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Income Tax (Schedule of Effective Income Tax Rate Reconciliation) (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Income Tax Schedule Of Effective Income Tax Rate Reconciliation Details
US statutory rates	34.00%	34.00%	34.00%	34.00%
Tax rate difference	3.24%	(5.51%)	(1.20%)	(2.05%)
Valuation allowance	(37.24%)	(28.49%)	(32.80%)	(31.95%)
State taxes	0.00%	(1.42%)	(5.57%)	(0.40%)
Tax per financial statements	0.00%	(1.42%)	(5.57%)	(0.40%)

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Accounting Policies (Impairment of Long-Lived Assets) (Narrative) (Details) (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013
Accounting Policies Impairment Of Long-Lived Assets Narrative Details
Impairment of Long-lived Assets	$ 0	$ 0

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Merger and Acquisitions (Tables)

9 Months Ended

Sep. 30, 2013

Property, Plant and Equipment [Abstract]

Schedule of goodwill

The following table summarizes goodwill as of September 30, 2013 and December 31, 2012 resulting from the acquisitions of Jiangsu Leimone, Silver Tech, and CDE:

		September 30,		December 31,
		2013		2012
		(Unaudited)
Jiangsu Leimone	$	103,057	$	103,057
Silver Tech		8,395,840		8,395,840
CDE		1,861,409		1,861,409
Portables		27,031,492		27,031,492
Total		37,391,798		37,391,798
Less: Impairment		(37,391,798)		(37,391,798)
Total goodwill	$	-	$	-

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Accounting Policies (Fair Value of Financial Instruments) (Tables)

9 Months Ended

Sep. 30, 2013

Accounting Policies Fair Value Of Financial Instruments Tables

Fair Value Measurement (Tables)

The assets measured at fair value on a recurring basis subject to the disclosure requirements of ASC 820 as of September 30, 2013 and December 31, 2012 are as follows:

						Significant
				Active Markets		Other		Significant
		Carrying		for Identical		Observable		Unobservable
		Value		Assets		Inputs		Inputs
		2013		(Level 1)		(Level 2)		(Level 3)
Cash and cash equivalents	$	1,818,816	$	1,818,816	$	-	$	-
Restricted cash	$	19,555,440	$	19,555,440	$	-	$	-
Warrants	$	-	$	-	$	-	$	-
						Significant
				Active Markets		Other		Significant
		Carrying		for Identical		Observable		Unobservable
		Value		Assets		Inputs		Inputs
		2012		(Level 1)		(Level 2)		(Level 3)
Cash and cash equivalents	$	8,351	$	8,351	$	-	$	-
Restricted cash	$	19,044,294	$	19,044,294	$	-	$	-
Warrants	$	7,340	$	-	$	7,340	$	-

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Related Party Transactions (Details) (USD $)

9 Months Ended

Sep. 30, 2013

Dec. 31, 2012

Due from related parties

$ 13,619,198

$ 20,528,155

Due to related parties

2,966,000

5,362,597

BeijingLeimone Shengtong Wireless

Due from related parties

35,852

91,571

Related Party Transaction, Description of Transaction

Beijing Leimone Shengtong Wireless Technology Co., Ltd. ("Beijing Leimone") was founded by Gu, the largest shareholder of the Company. Beijing Leimone borrows money from the Company. The borrowings bore no interest and had a maturity of 12 months. The balances are neither collateralized nor personally guaranteed by Gu. The balance is expected to be repaid in full by December 31, 2013.

Related Party Transaction, Rate

0.00%

Leimone (Tianjin) Industrial

Due from related parties

4,212,356

11,034,982

Related Party Transaction, Description of Transaction

Leimone (Tianjin) Industrial Co., Ltd. ("Tianjin Leimone") was controlled by Gu, the largest shareholder of the Company. Tianjin Leimone sells raw materials to the Company. As of September 30, 2013 and December 31, 2012, the amounts due from Tianjin Leimone of $4,212,356 and $11,034,982 represented advances for purchases arising in the normal course of business for transactions prior to December 31, 2012. The difference in balances between September 30, 2013 and December 31, 2012, represents the repayment of related party advances. The outstanding balance is expected to begin to reduce materially when the Company has completed its sale of TCB Digital.

Shenzhen Leimone

Due from related parties

324,950

355,564

Related Party Transaction, Description of Transaction

Shenzhen Leimone Company, Ltd., formed by individuals including our Chairman, Mr. Gu, is set up with the intention of providing manufacturing services to our Company particularly for exports. $324,950 and $355,564 as of September 30, 2013 and December 31, 2012 was a loan to Shenzhen Leimone for setup costs. The balance is expected to be repaid in full by December 31, 2013.

Spreadzoom

Due from related parties

9,046,040

9,046,038

Related Party Transaction, Description of Transaction

The balance due from SpreadZoom represents an advance to SpreadZoom for it to purchase components to manufacture handsets in the normal course of business. The advance bears no interest, and is uncollateralized. The difference in balances between September 30, 2013 and December 31, 2012, represents the fluctuation of exchange rates between the functional and reporting currency. Such advances occurred during the early stages of the business. The SpreadZoom has not yet been fully capitalized. Upon completion of the sale of TCB Digital, the Company expects to be repaid these advances.

Gu

Due to related parties

2,863,500

2,901,283

Related Party Transaction, Description of Transaction

Mr. Gu provides funds to the Company with no interest and are due on demand. As of September 30, 2013 and December 31, 2012, the balances of funds provided by Gu was $2,863,500 and $2,901,283 respectively.

Anthony Chan

Due to related parties

475,603

358,814

Related Party Transaction, Description of Transaction

At December 31, 2012, the Company owed to Mr. Anthony Chan certain accrued compensation for services rendered in the amount of $358,814. As of September 30, 2013, the balance owed to Mr. Chan has been fully settled.

Beijing Leimone Shengtong Cultural

Due to related parties

102,500

102,500

Portables Unlimited

Due to related parties

$ 0

$ 2,000,000

Related Party Transaction, Description of Transaction

At December 31, 2012, the Company owed to Portables Unlimited, Inc. a promissory note for $2,000,000. As of July 15, 2013, the Company was in default of this note. Refer to "Note 1 - Organization and Nature of Business Operations" for further details.

Related Party Transaction, Rate

12.00%

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Investment in SpreadZoom (Tables)

9 Months Ended

Sep. 30, 2013

Investment In Spreadzoom Tables

Summary Investment Holdings

		September 30,
		2013
Financial Position of SpreadZoom		(Unaudited)
Current assets	$	26,542,710
Non-current assets		3,669,499
Total assets		30,212,209
Current liabilities		13,394,293
Non-current liabilities		-
Total liabilities		13,394,293
Net ssset value	$	16,817,916
		Three Months		Nine Months
Results of Operations of SpreadZoom		Ended September 30,		Ended September 30,
		2013		2013
		(Unaudited)		(Unaudited)
Net revenues	$	15,466,008	$	51,989,850
Cost of goods sold		14,602,540		50,749,207
Gross profit		863,468		1,240,643
Operating expenses		468,792		1,551,314
Operating income (loss)		394,676		(310,671)
Other income (expenses), net		(25,464)		(24,447)
Income (loss) before taxes		369,212		(335,118)
less: Provision for income taxes		-		-
Net income (loss)	$	369,212	$	(335,118)
Investment loss attributable to Zoom Technologies, Inc.	$	174,895	$	(158,746)

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Merger and Acquisitions (Narrative) (Details) (USD $)

9 Months Ended

9 Months Ended

Sep. 30, 2013

Silver Tech

Sep. 30, 2013

CDE

Jan. 04, 2011

CDE

Sep. 30, 2013

Portables

Oct. 11, 2011

Portables

Business Acquisition, Effective Date of Acquisition

Jan. 04, 2011

Jan. 04, 2011

Oct. 11, 2011

Business Acquisition, Name of Acquired Entity

Silver Tech Enterprises Ltd

Celestial Digital Entertainment, Ltd., ("CDE")

Portables Unlimited LLC

Business Acquisition, Description of Acquired Entity

On June 1, 2010, Zoom pursuant to a share exchange agreement dated April 29, 2010, acquired 100% of the shares of Silver Tech Enterprises Ltd, incorporated in the BVI and its wholly owned subsidiaries Ever Elite Corporation Limited, incorporated in Hong Kong, and Nollec Wireless Company Ltd., ("Nollec Wireless"), incorporated in the PRC. Nollec Wireless is engaged in mobile phone and wireless communication device design.

On June 1, 2010, Zoom pursuant to a share exchange agreement dated April 29, 2010, acquired 100% of the shares of Silver Tech Enterprises Ltd, incorporated in the BVI and its wholly owned subsidiaries Ever Elite Corporation Limited, incorporated in Hong Kong, and Nollec Wireless Company Ltd., ("Nollec Wireless"), incorporated in the PRC. Nollec Wireless is engaged in mobile phone and wireless communication device design.

The Company acquired 55% ownership of Portables on October 11, 2011. As of October 11, 2011, Portables' liabilities exceeded its assets by $9,290,241. The purchase consideration was $9,851,486 which resulted in goodwill of $27,005,953. The Company acquired Portables for two reasons; (a) to diversify its revenue sources, and (b) to gain access to the most mature mobile handset market in the world. The Company's ownership in Portables has been reduced to 50.1% as of December 31, 2012. The Company is currently in default of a loan with Portables Unlimited, Inc. and its ownership of Portables could be transferred to Portables Unlimited, Inc. if the default is not cured.

Business Combination, Reason for Business Combination

As of December 31, 2012, as part of the Company's disposal of Profit Harvest the Company has indirectly disposed of CDE, accordingly, all of the goodwill related to CDE has been written off.

The Company acquired Portables for two reasons; (a) to diversify its revenue sources, and (b) to gain access to the most mature mobile handset market in the world.

Business Acquisition, Cost of Acquired Entity

$ 1,818,000

$ 9,851,486

Business Acquisition, Percentage of Voting Interests Acquired

100.00%

50.10%

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Warrants Activity (Details) (USD $)	9 Months Ended
	Sep. 30, 2013
Warrants Activity Details
Balance, December 31, 2012	863,860
Granted	0
Lapsed	0
Exercised	0
Cancelled	0
Balance, September 30, 2013	863,860
Weighted-average exercise price, beginning balance	$ 23.00
Weighted-average exercise price, granted	$ 0
Weighted-average exercise price, lapsed	$ 0
Weighted-average exercise price, exercised	$ 0
Weighted-average exercise price, cancelled	$ 0
Weighted-average exercise price, ending balance	$ 23.00
Aggregate intrinsic value, beginnig balance	$ 0
Aggregate intrinsic value, ending balance	$ 0

XML

Stockholder's Equity - Warrants (Tables)

9 Months Ended

Sep. 30, 2013

Stockholders Equity - Warrants Tables

Warrant activity and summary

The following summary represents warrants activity during the three months ended September 30, 2013:

			Weighted-
			Average		Aggregate
	Number of		Exercise		Intrinsic
	Warrants		Price		Value
Balance, December 31, 2012	863,860	$	23.00	$	-
Granted	-		-
Lapsed	-		-
Exercised	-		-
Cancelled	-		-
Balance, September 30, 2013	863,860	$	23.00	$	-

The following presents warrants summary as of September 30, 2013:

	Warrants Outstanding				Warrants Exercisable
		Weighted-		Weighted-			Weighted-
		Average		Average			Average
	Number	Remaining		Exercise	Number		Exercise
	Outstanding	Contractual Life		Price	Exercisable		Price
Warrants	863,860	1.35 years	$	23.00	863,860	$	23.00

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Correction of Error for Accounting of Warrants as Derivative Securities (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Other income (expenses)
Change in fair value of warrants	$ 4	$ 523,078	$ 7,340	$ 523,078
Net income attributable to Zoom Technologies Inc.	(14,090,817)	752,314	(18,282,626)	2,047,508
Basic and diluted income per common share:
Basic	$ (4.70)	$ 0.26	$ (6.11)	$ 0.77
Diluted	$ (4.70)	$ 0.26	$ (6.11)	$ 0.77
Previouly Reported
Other income (expenses)
Change in fair value of warrants		0		0
Net income attributable to Zoom Technologies Inc.		419,939		1,061,824
Basic and diluted income per common share:
Basic		$ 0.02		$ 0.04
Diluted		$ 0.02		$ 0.04
Adjustment
Other income (expenses)
Change in fair value of warrants		350,323		233,370
Net income attributable to Zoom Technologies Inc.		350,323		233,370
Basic and diluted income per common share:
Basic		$ 0.01		$ 0.01
Diluted		$ 0.01		$ 0.01
As Currently Reported
Other income (expenses)
Change in fair value of warrants		350,323		233,370
Net income attributable to Zoom Technologies Inc.		$ 770,262		$ 1,295,194
Basic and diluted income per common share:
Basic		$ 0.03		$ 0.05
Diluted		$ 0.03		$ 0.05

XML

DEFAULT OF NOTE OWED TO PORTABLES UNLIMITED, INC. (Narrative) (Details)

9 Months Ended

Sep. 30, 2013

Default Of Note Owed To Portables Unlimited Inc. Narrative Details

Default of note payable

As of July 15, 2013, the Company was in default of the promissory note for $2,000,000 owed to Portables Unlimited, Inc. The Company has not been provided financial information for the quarter ended September 30, 2013. The Company has determined that it will not able to recover its investment in Portables; accordingly, the Company has written off its investment in full.

XML

Intangible Assets (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Intangible assets, gross	$ 349,600	$ 349,600
Less: Accumulated amortization	0	0
Intangible assets, net	349,600	349,600
Domain name, logo and trade mark
Intangible assets, gross	349,600	349,600
Less: Accumulated amortization	0	0
Intangible assets, net	$ 349,600	$ 349,600

XML

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

Principles of Consolidation

Principles of Consolidation

The Company's accompanying condensed consolidated balance sheet at September 30, 2012, include the accounts of Gold Lion Holding Ltd and its wholly owned subsidiary Jiangsu Leimone, its 100%-owned subsidiary Silver Tech, and its specifically formed, wholly owned subsidiary, Zoom Sub. The Company's condensed consolidated balance sheet also included the accounts of TCB Digital for which the Company owns 80% indirectly held through Jiangsu Leimone which has been classified as discontinued operations held for sale. Accounts related to Portables have not been included in the September 30, 2013 condensed consolidated balance sheet.

The Company's accompanying condensed consolidated balance sheet at December 31, 2012, include the accounts of Gold Lion Holding Ltd and its wholly owned subsidiary Jiangsu Leimone, its 100%-owned subsidiary Silver Tech, and its specifically formed, wholly owned subsidiary, Zoom Sub. The Company's condensed consolidated balance sheet also included the accounts of TCB Digital for which the Company owns 80% indirectly held through Jiangsu Leimone, 100% of Ever Elite which wholly owns Nollec Wireless, indirectly held through Silver Tech, all of which have been classified as discontinued operations held for sale. The accounts of Portables have been reclassified to discontinued operations.

The Company's condensed consolidated results of operations for the three and nine months ended September 30, 2013 from continuing operations included the results of Gold Lion, Silver Tech, Jiangsu Leimone, Zoom Sub; results of operations from Ever Elite and Nollec Wireless, up to the date of their disposition, and TCB Digital have been presented as discontinued operations; the results of operations of Portables, up to June 30, 2013, which was the last date when financial information was available, has been presented as discontinued operations. The Company's condensed consolidated results of operations for the three and nine months ended September 30, 2012 from continuing operations included the results of Gold Lion, Silver Tech, Jiangsu Leimone, Zoom Sub; results of operations from Profit Harvest, CDE, Ever Elite, Nollec Wireless, TCB Digital, and Portables have been presented as discontinued operations.

Exclusion of Related Party Lessor from Consolidation

Portables commencing in January 2009, subleased its principal facility from one of its noncontrolling member. The member began leasing the facility in December 2005 from a related party, AUM Realty, LLC ("AUM"). The Company's management has assessed whether AUM should be consolidated pursuant to FASB ASC 810 Consolidations. ASC 810 is not a "rules based" standard and thereby includes limited circumstances under which it can be conclusively determined whether an entity should be consolidated. Management believes that AUM is not a variable interest entity ("VIE") as defined in ASC 810 because AUM was adequately capitalized. Equity contributions from AUM's owners exceeded 20% of the acquisition costs of the property. Management believes that this is, according to ASC 810 criteria, "sufficient to permit the entity to finance its activities without additional subordinated financial support." Management believed that the same was true up to the July 15, 2013, when Portables ceased being consolidated in the Company's books.

Based on this assessment, management believes that AUM is not a VIE because the Company does not make decisions that have significant impact on the performance of AUM; therefore, it is not consolidated as a component of these consolidated financial statements. If the matter were to be assessed differently, these consolidated financial statements would have included AUM's assets (principally land and building), liabilities (principally loan payable) and expenses, with the excess of AUM's assets over liabilities shown as a "non-controlling interest". AUM guarantees $1.7 million of the $3 million line of credit with M&T Bank for Portables Unlimited, LLC.

As result of the write off of the Company's investment in Portables, the Company will not perform analysis on a go forward basis, regarding the exclusion of AUM as VIE for consolidation purposes.

Equity Method Accounting

Equity Method Accounting

In May 2012, the Company invested $12.3 million to establish a joint venture named SpreadZoom Technologies Co. Ltd., ("SpreadZoom"). The Company owns 47.4% of SpreadZoom and accounted for this investment under the equity method of accounting (ASC 323-30). Refer to "Note 15 - Equity Method Investee: SpreadZoom" for details.

Basis of Presentation

Basis of Presentation

The condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("US GAAP"). The functional currency of the Company's continuing operation Jiangsu Leimone and its equity investment SpreadZoom is the Chinese Renminbi ("RMB"). The functional currency of the Company's discontinued operations Portables and Zoom Sub is United States Dollars ("USD" or "$"). The functional currency of the Company's discontinued operations, TCB Digital and Nollec Wireless is the RMB. The functional currency of the Company's discontinued operations Ever Elite and CDE is Hong Kong Dollars ("HKD"). The accompanying consolidated financial statements are translated and presented in the reporting currency of USD.

The interim condensed consolidated financial information as of September 30, 2013 and for the three and nine months ended September 30, 2013 and 2012 have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). Certain information and footnote disclosures, which are normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP, have been omitted pursuant to those rules and regulations. The interim consolidated financial information should be read in conjunction with the financial statements and the notes thereto, included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2012, previously filed with the SEC.

In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the Company's consolidated financial position as of September 30, 2013, its consolidated results of operations for the three and nine months ended September 30, 2013 and 2012, and its consolidated cash flows for the nine months ended September 30, 2013 and 2012, as applicable, have been made. The interim results of operations are not necessarily indicative of the operating results for the full fiscal year or any future periods.

Use of Estimates

Use of Estimates

The preparation of condensed consolidated 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 dates of the consolidated financial statements and the amount of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. However, actual results could differ materially from those results.

Risks and Uncertainties

Risks and Uncertainties

The Company is subject to substantial risks from, among other things, intense competition associated with the industry in general, other risks associated with financing, liquidity requirements, rapidly changing customer requirements, limited operating history, foreign currency exchange rates and the volatility of public markets.

Comprehensive Income

Comprehensive Income

The Company follows the provisions of ASC 220 "Reporting Comprehensive Income", establishes standards for the reporting and display of comprehensive income, its components and accumulated balances in a full set of general purpose financial statements.

ASC 220 defines comprehensive income is comprised of net income and all changes to the statements of stockholders' equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders, including adjustments to minimum pension liabilities, accumulated foreign currency translation, and unrealized gains or losses on marketable securities.

Foreign Currency Transactions

Foreign Currency Transactions

The accounts of the Company's Chinese subsidiaries are maintained in the RMB and the accounts of the U.S. parent company are maintained in the USD. The accounts of the Chinese subsidiaries were translated into USD in accordance with Financial Accounting Standards ("FASB") Accounting Standards Codification ("ASC") Topic 810 with the RMB as the functional currency for the Chinese subsidiaries. According to ASC 810, all assets and liabilities were translated at the exchange rate at the date of the balance sheet; stockholders' equity is translated at historical rates; the line items on the statement of operations are translated at the weighted average exchange rate for the period. The resulting translation adjustments are reported under other comprehensive income in accordance with FASB ASC Topic 220. Gains and losses resulting from the translations of foreign currency transactions and balances are reflected in the income statement.

Cash and Equivalents

Cash and Equivalents

For Statement of Cash Flows purposes, the Company considers all cash on hand and in banks, including accounts in book overdraft positions, certificates of deposit and other highly-liquid investments with maturities of three months or less, when purchased, to be cash and cash equivalents. The Company maintains cash with various banks and trust companies located in China, Hong Kong and the United States. Cash accounts in China and Hong Kong are not insured or otherwise protected. Should any bank or trust company holding cash deposits become insolvent, or if the Company is otherwise unable to withdraw funds, the Company would lose the cash on deposit with that particular bank or trust company.

Accounts Receivable

Accounts Receivable

The Company maintains reserves for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. Accounts are written off against the allowance when it becomes evident collection will not occur. For the contracted manufacturing activities, our standard terms for accounts receivable from our customers are between 60 to 75 days from close of the billing cycle; and for sales of own brand phones our terms include prepaid arrangements and extending receivable to customers up to 60 days. We also offer credit terms of up to 150 days in our trading activities to a certain customers. As of September 30, 2013, management concluded that the allowance for doubtful accounts, as disclosed in "Note 5 - Accounts Receivable" was adequate to cover any potential unrecoverable balances as a result of delinquency.

Inventories

Inventories

Inventories are stated at the lower of cost or market. Cost is determined on a weighted average basis and includes all expenditures incurred in bringing the goods to the point of sale and putting them in a saleable condition. In assessing the ultimate realization of inventories, the management makes judgments as to future demand requirements compared to current or committed inventory levels. Our reserve requirements generally increase as our projected demand requires; or decrease due to market conditions and product life cycle changes. The Company estimates the demand requirements based on market conditions, forecasts prepared by its customers, sales contracts and orders in hand.

In addition, the Company estimates net realizable value based on intended use, current market value and inventory ageing analyses. The Company writes down inventories for estimated obsolescence or unmarketable inventory equal to the difference between the cost of inventories and their estimated market value based upon assumptions about future demand and market conditions.

Property, Plant and Equipment

Property, Plant and Equipment

Property, plant and equipment are recorded at cost. Gains or losses on disposals are reflected as gain or loss in the year of disposal. All ordinary repair and maintenance costs are expensed as incurred. Expenditures for maintenance and repairs are expensed as incurred. Major renewals and betterments are charged to the property accounts while replacements, maintenance and repairs, which do not improve or extend the lives of the respective assets, are expensed in the current period. 

Depreciation for financial reporting purposes is provided using the straight-line method over the estimated useful lives of assets.

Capitalized Interest

Capitalized Interest

Interest associated with major development and construction projects is capitalized and included in the cost of the project. When no debt is incurred specifically for a project, interest is capitalized on amounts expended on the project using weighted-average cost of the Company's outstanding borrowings. Capitalization of interest ceases when the project is substantially complete or development activity is suspended for more than a brief period. There have not been material amounts of capitalized interest for the three and nine months ended September 30, 2013.

Impairment of Long-lived Assets

Impairment of Long-lived Assets

In accordance with ASC 360, "Property, Plant and Equipment", the Company reviews the carrying values of long-lived assets, including property, plant and equipment and other intangible assets, whenever facts and circumstances indicate that the assets may be impaired. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net undiscounted cash flows expected to be generated by the asset. If an asset is considered impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value. Assets to be disposed of are reported at the lower of the carrying amount or fair value, less costs of disposal. The Company last performed annual reviews of its long-lived assets at December 31, 2012 and 2011. In 2012, the Company determined that certain fixed assets and goodwill were impaired based on the disposal of certain operations. The Company has determined there have been triggering events during the nine months ended September 30, 2013 that would require he Company to perform review for impairment of its long lived assets, such as the default of the promissory note to Portables Unlimited, Inc.; accordingly, the Company has written off its investment in Portables. Except for the assets and investments that have already been written down, the Company believes it remaining long lived assets for continuing operations is fairly stated.

Goodwill

Goodwill

The Company recognizes goodwill for the excess of the purchase price over the fair value of the identifiable net assets of the business acquired. ASC 350 "Intangible Assets - Goodwill and Other", an impairment test for goodwill is undertaken by the Company at the reporting unit level annually, or more frequently if events or changes in circumstances indicate that goodwill might be impaired. The Company recorded impairment of goodwill related to the following subsidiaries: Jiangsu Leimone, CDE, Silver Tech, and Portables. See "Note 3 - Merger and Acquisitions" for details.

Revenue Recognition

Revenue Recognition

The Company recognizes sales in accordance with FASB ASC Topic 605, "Revenue Recognition."

The Company recognizes revenue when the following criteria are met:

(i) persuasive evidence of an arrangement exists;

(ii) delivery has occurred or services were rendered;

(iii) the price to the customer is fixed or determinable and,

(iv) collection of the resulting receivable is reasonably assured. Revenue is not recognized until title and risk of loss is transferred to the customer, which occurs upon delivery of goods, and objective evidence exists that customer acceptance provisions were met.

The Company bases its estimates on historical experience taking into consideration the type of products sold, the type of customer, and the type of specific transaction in each arrangement. Revenues represent the invoiced value of goods, net of value added tax ("VAT").

The Company does not offer promotional payments, customer coupons, rebates or other cash redemption offers to its customers. Deposits or advance payments from customers prior to delivery of goods and passage of title of goods are recorded as advanced from customers.

The Company's discontinued operation, Nollec Wireless is in the mobile phone design, software integration and mobile solution R&D business, Nollec Wireless, recognizes revenue under the percentage of completion method ASC Topic 605- 35-25 (Construction - Type and Production - Type Contracts) when reasonably dependable estimates can be made and all the following conditions exist:

1. Contracts executed by the parties normally include provisions that clearly specify the enforceable rights regarding goods or services to be provided and received by the parties, the consideration to be exchanged, and the manner and terms of settlement.
2. The buyer can be expected to satisfy all obligations under the contract.
3. The contractor can be expected to perform all contractual obligations.

Estimates of cost to complete is reviewed periodically and revised as appropriate to reflect new information. When the current estimates of total contract revenue and contract cost indicate a loss, a provision for the entire loss on the contract is made.

Income is recognized as the percentage of estimated total income, and is determined by dividing incurred costs to date by estimated total costs after giving effect to adjustments, if any, in estimates of costs to completion based upon the most recent information. Percentage of completion is based on labor hours incurred to date divided by total estimated labor hours for the contract.

Royalty income on sales of licensed products by its customers is recorded when the customers report sales to the Company. Royalty income is reported monthly and recorded in the period in which the product is sold. The Company has the right to audit the books of the licensees.

The Company's discontinued operation CDE is in the business of video games and applications for mobile phones and mobile platforms development. Revenue is recognized in accordance with ASC 985-605-55-125. Cost of Software Development Revenue is accounted for under ASC 985-20 to be sold, leased or otherwise marketed.

CDE capitalizes cost of development of software for hosting purpose in accordance with ASC subtopic 350-40 ("ASC 350-40"), Intangibles-Goodwill and Other: Internal-Use. As such, CDE expenses all costs that are incurred in connection with the planning and implementation phases of development and costs that are associated with repair or maintenance. Costs incurred in the development phase are capitalized and amortized over the estimated product life. Since the inception of CDE, the amount of costs qualifying for capitalization has been insignificant and as a result all internally used software development costs have been expensed as incurred.

The Company's subsidiary, Portables is in the business of distribution of mobile phone and provision of wireless service. Revenue from the sale of equipment is recognized upon shipment or when purchased at Portables retail locations. Commission income is recognized upon activation of wireless communication services with T-Mobile.

Income Taxes

Income Taxes

The Company accounts for income taxes in accordance with ASC 740 "Income Taxes", previously SFAS No. 109. Under this method, deferred income taxes are recognized for the estimated tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts and each year-end based on enacted tax laws and statutory rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established to reduce deferred tax assets to the amount expected to be realized when, in management's opinion; it is more likely than not that some portion of the deferred tax assets will not be realized. The provision for income taxes represents current taxes payable net of the change during the period in deferred tax assets and liabilities.

Uncertain Tax Positions

Uncertain Tax Positions

The Company accounts for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. The Company classifies the liability for unrecognized tax benefits as current to the extent that the Company anticipates payment (or receipt) of cash within one year. Interest and penalties related to uncertain tax positions are recognized and recorded as necessary in the provision for income taxes. There were no uncertain tax positions in 2012 and 2011. The Company's evaluation of uncertain tax positions was performed for the tax years ended December 31, 2009 and forward, the tax years which remain subject to examination as of September 30, 2013.

Operating Leases

Operating Leases

Leases where substantially all the rewards and risks of ownership of assets remain with the leasing company that do not meet the capitalization criteria of ASC 840 "Leases", are accounted for as operating leases. Rental payables under operating leases are expensed on the straight-line basis over the lease term.

Research and Development Costs

Research and Development Costs

Research and development costs are related primarily to the development of cell phone technology, video games and applications for mobile phones and mobile platforms development. Research and development costs are expensed as incurred.

Earnings (Loss) Per Share

Earnings (Loss) Per Share

The Company reports earnings (loss) per share in accordance with the provisions of ASC 260 "Earnings Per Share". ASC 260 requires presentation of basic and diluted earnings per share in conjunction with the disclosure of the methodology used in computing such earnings per share. Basic earnings per share excludes dilution and is computed by dividing income available to common stockholders by the weighted average common shares outstanding during the period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock using the treasury method.

Common stock equivalents represent the dilutive effect of the assumed exercise of the outstanding stock options and warrants, using the treasury stock method, at either the beginning of the respective period presented or the date of issuance, whichever is later, and only if the common stock equivalents are considered dilutive based upon the Company's net income (loss) position at the calculation dates. When the Company's results from operations are a net loss, dilutive securities are not included in diluted loss per share because they would be considered anti-dilutive.

Fair Values of Financial Instruments

Fair Values of Financial Instruments

ASC 820 "Fair Value Measurements and Disclosures", defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The carrying amounts reported in the balance sheets for current receivables and payables qualify as financial instruments. Management concluded the carrying values are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and if applicable, their stated interest rate approximates current rates available. The three levels are defined as follows:

• Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

• Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.

• Level 3 inputs to the valuation methodology are unobservable and significant to the fair value.

The assets measured at fair value on a recurring basis subject to the disclosure requirements of ASC 820 as of September 30, 2013 and December 31, 2012 are as follows:

						Significant
				Active Markets		Other		Significant
		Carrying		for Identical		Observable		Unobservable
		Value		Assets		Inputs		Inputs
		2013		(Level 1)		(Level 2)		(Level 3)
Cash and cash equivalents	$	1,818,816	$	1,818,816	$	-	$	-
Restricted cash	$	19,555,440	$	19,555,440	$	-	$	-
Warrants	$	-	$	-	$	-	$	-
						Significant
				Active Markets		Other		Significant
		Carrying		for Identical		Observable		Unobservable
		Value		Assets		Inputs		Inputs
		2012		(Level 1)		(Level 2)		(Level 3)
Cash and cash equivalents	$	8,351	$	8,351	$	-	$	-
Restricted cash	$	19,044,294	$	19,044,294	$	-	$	-
Warrants	$	7,340	$	-	$	7,340	$	-

The Company's financial instruments include cash and equivalents, restricted cash, accounts receivable, notes receivables, other receivables, accounts payable, notes payable, and warrants. Cash and cash equivalents consist primarily of high rated money market funds at a variety of well-known institutions with original maturities of three months or less. Restricted cash represents time deposits on account to secure short-term bank loans and notes payable. Management estimates the carrying amounts of the non-related party financial instruments approximate their fair values due to their short-term nature.

Concentration of Credit Risk

Concentration of Credit Risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and equivalents and trade and bills receivables. As of September 30, 2013 and December 31, 2012, substantially all of the Company's cash and equivalents and restricted cash were held by major financial institutions located in the PRC, Hong Kong and the United States, which management believes are of high credit quality. With respect to trade and notes receivables, the Company extends credit based on an evaluation of the customer's financial condition. The Company generally does not require collateral for trade receivables and maintains an allowance for doubtful accounts of trade receivables.

Notes receivable are undertaken by the banks to honor the payments at maturity and the customers are required to place deposits with the banks equivalent to certain percentage of the notes amount as collateral. These notes receivable can be sold to any third party at a discount before maturity. The Company does not maintain an allowance for notes receivable in the absence of bad debt experience and the payments are undertaken by the banks.

Non-controlling Interests

Non-controlling Interests

The Company follows ASC 810 for reporting non-controlling interest ("NCI") in a subsidiary. As a result, the Company reports NCI as a separate component of Equity in the Consolidated Balance Sheet. Additionally, the Company reports the portion of net income and comprehensive income attributed to the Company and NCI separately in the Consolidated Statement of Income.

Statement of Cash Flows

Statement of Cash Flows

In accordance with ASC 230, "Statement of Cash Flows", cash flows from the Company's operations are calculated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the statement of cash flows may not necessarily agree with changes in the corresponding balances on the balance sheet.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In February 2013, the Financial Accounting Standards Board ("FASB") issued amendments under ASU No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (Topic 220). 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 U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. The Company will adopt these amendments in the fourth quarter of 2013.

In March 2013, the FASB issued guidance on a parent's accounting for the cumulative translation adjustment upon derecognition of a subsidiary or group of assets within a foreign entity. This new guidance requires that the parent release any related cumulative translation adjustment into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The Company will adopt these amendments in 2014. The Company has not yet determined if there will be material impacts on its financial statements upon adoption.

Correction of Prior Period Financial Statements

NOTE 18 - CORRECTION OF ERROR FOR ACCOUNTING OF WARRANTS AS DERIVATIVE SECURITIES

Zoom management discovered during the quarter ended September 30, 2012 that in accordance with ASC 815 (formerly EITF 07-5) the Company had incorrectly accounted for warrants issued in the years 2009 and 2010 as equity.  Series A, C, F, and related placement agent warrants contained anti-dilution provision that according to the above guidance required that these derivative securities be accounted for as liabilities and marked to market at each reporting period.  The Series G, and related placement agent warrants contained change of control provisions that required that the warrants be accounted for as liabilities because the securities were no longer indexed to the Company's stock; rather there were characteristics that required them to be accounted for as standalone securities that are considered liabilities to the Company. As a result the results of operations for the three and nine months ended September 30, 2012 have been restated as follows:

		Three Months Ended September 30, 2012
		As Previously				As Currently
		Reported		Adjustment		Reported
Other income (expenses)
Change in fair value of warrants	$	-	$	350,323	$	350,323
Net income attributable to Zoom Technologies, Inc.	$	419,939	$	350,323	$	770,262
Basic and diluted income per common share:
Basic	$	0.02	$	0.01	$	0.03
Diluted	$	0.02	$	0.01	$	0.03

		Nine Months Ended September 30, 2012
		As Previously				As Currently
		Reported		Adjustment		Reported
Other income (expenses)
Change in fair value of warrants	$	-	$	233,370	$	233,370
Net income attributable to Zoom Technologies, Inc.	$	1,061,824	$	233,370	$	1,295,194
Basic and diluted income per common share:
Basic	$	0.04	$	0.01	$	0.05
Diluted	$	0.04	$	0.01	$	0.05

The Company assessed the value of these warrants by using the binomial lattice model. When the Company valued the warrants it used the following assumptions as part of inputs into the valuation model: US treasury rate of 0.34% as a measure of the risk free rate of return. The Company also used the mean of the annualized standard deviation of the log normal returns of comparable companies in the same line of business as measure of volatility which was 44.42% at June 30, 2012. The Company controls whether dilution may occur, so it did not add additional assumptions regarding dilutive events into the future discrete outcomes found in the model. The warrants values were adjusted for the dilutive effect as ratio of the outstanding common stock at the time of measurement. In determining the probabilities of an up movement or down movement in the discrete outcomes, as well as the related magnitude of such up or down movements, the Company used a Cox-Ross-Rubenstein approach in applying the binomial lattice model.

These corrections will be made to applicable prior period financial information in future filings with the SEC including this filing.

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CONSOLIDATED STATEMENT OF CASH FLOWS (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities:
Net (loss) income attributable to Zoom Technologies Inc.	$ (18,282,626)	$ 2,047,508
Adjustments to reconcile net (loss) income attributable to Zoom Technologies Inc. to cash provided by (used in) operating activities:
(Loss) income attributable to non-controlling interest from discontinued operations	(729,690)	177,708
Depreciation and amortization	844,603	1,268,053
Non-cash equity-based compensation	777,924	2,030,151
Provision for inventory obsolescence	0	361,039
Provision on accounts receivable	2,518,987	1,559,674
Loss on disposal	12,708,828	0
Loss on investment in joint venture	158,746	423,630
Fair value adjustment on warrants	(7,340)	(523,078)
Changes in deferred tax assets	0	56,649
Changes in operating assets and liabilities:
Accounts receivable	(3,160,104)	(38,096,887)
Inventories	(6,076,358)	(5,256,775)
Advances to suppliers	(29,449)	(728,846)
Prepaid expenses and other assets	9,431,490	(5,713,871)
Accounts payable	8,768,972	24,834,057
Advance from customers	(203,745)	2,026,810
Related parties-net	(434,012)	3,998,291
Accrued expenses and other current liabilities	2,752,907	6,278,056
Net cash provided by (used in) operating activities	9,039,133	(5,257,831)
Cash flows from investing activities:
Restricted cash	(3,390,538)	(792,581)
Purchase of property and equipment and other long-term assets	(727,785)	(359,098)
Proceeds from collection on notes receivable	234,078	(5,384,577)
Cash disposed upon disposal of subsidiary	(740,616)	0
Equity method investee	0	(12,364,270)
Refund from factory construction deposit	0	10,261,417
Net cash used in investing activities	(4,624,861)	(8,639,109)
Cash flows from financing activities:
Proceeds from loans	23,042,792	3,201,559
Repayment of loans	1,134	(1,506,339)
Repayment on notes payable	0	(4,457,729)
Receipt from related parties	103,721	25,697,445
Payments to related parties	(20,173,332)	(6,379,117)
Repayments on long-term loan	0	(7,250)
Net cash provided by financing activities	2,974,315	16,548,569
Effect of exchange rate changes on cash & cash equivalents	(515,174)	21,228
Net increase in cash and cash equivalents	6,873,413	2,672,857
Cash and cash equivalents, beginning of period	3,676,275	1,131,109
Cash and cash equivalents of continuing components	8,351	22,158
Cash and cash equivalents of discontinued components	3,667,924	1,108,951
Cash and cash equivalents, end of period	10,549,688	3,803,966
Cash and cash equivalents of continuing components	1,818,816	11,484
Cash and cash equivalents of discontinued components	8,730,872	3,792,482
SUPPLEMENTARY DISCLOSURES:
Interest paid	2,136,419	1,924,763
Income tax paid	$ 109,517	$ 2,813,825

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BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES - Note 2

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES - Note 2

NOTE 2 — BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

The Company's accompanying condensed consolidated balance sheet at September 30, 2012, include the accounts of Gold Lion Holding Ltd and its wholly owned subsidiary Jiangsu Leimone, its 100%-owned subsidiary Silver Tech, and its specifically formed, wholly owned subsidiary, Zoom Sub. The Company's condensed consolidated balance sheet also included the accounts of TCB Digital for which the Company owns 80% indirectly held through Jiangsu Leimone which has been classified as discontinued operations held for sale. Accounts related to Portables have not been included in the September 30, 2013 condensed consolidated balance sheet.

The Company's accompanying condensed consolidated balance sheet at December 31, 2012, include the accounts of Gold Lion Holding Ltd and its wholly owned subsidiary Jiangsu Leimone, its 100%-owned subsidiary Silver Tech, and its specifically formed, wholly owned subsidiary, Zoom Sub. The Company's condensed consolidated balance sheet also included the accounts of TCB Digital for which the Company owns 80% indirectly held through Jiangsu Leimone, 100% of Ever Elite which wholly owns Nollec Wireless, indirectly held through Silver Tech, all of which have been classified as discontinued operations held for sale. The accounts of Portables have been reclassified to discontinued operations.

The Company's condensed consolidated results of operations for the three and nine months ended September 30, 2013 from continuing operations included the results of Gold Lion, Silver Tech, Jiangsu Leimone, Zoom Sub; results of operations from Ever Elite and Nollec Wireless, up to the date of their disposition, and TCB Digital have been presented as discontinued operations; the results of operations of Portables, up to June 30, 2013, which was the last date when financial information was available, has been presented as discontinued operations. The Company's condensed consolidated results of operations for the three and nine months ended September 30, 2012 from continuing operations included the results of Gold Lion, Silver Tech, Jiangsu Leimone, Zoom Sub; results of operations from Profit Harvest, CDE, Ever Elite, Nollec Wireless, TCB Digital, and Portables have been presented as discontinued operations.

Equity Method Accounting

In May 2012, the Company invested $12.3 million to establish a joint venture named SpreadZoom Technologies Co. Ltd., ("SpreadZoom"). The Company owns 47.4% of SpreadZoom and accounted for this investment under the equity method of accounting (ASC 323-30). Refer to "Note 15 - Equity Method Investee: SpreadZoom" for details.

Exclusion of Related Party Lessor from Consolidation

Portables commencing in January 2009, subleased its principal facility from one of its noncontrolling member. The member began leasing the facility in December 2005 from a related party, AUM Realty, LLC ("AUM"). The Company's management has assessed whether AUM should be consolidated pursuant to FASB ASC 810 Consolidations. ASC 810 is not a "rules based" standard and thereby includes limited circumstances under which it can be conclusively determined whether an entity should be consolidated. Management believes that AUM is not a variable interest entity ("VIE") as defined in ASC 810 because AUM was adequately capitalized. Equity contributions from AUM's owners exceeded 20% of the acquisition costs of the property. Management believes that this is, according to ASC 810 criteria, "sufficient to permit the entity to finance its activities without additional subordinated financial support." Management believed that the same was true up to the July 15, 2013, when Portables ceased being consolidated in the Company's books.

Based on this assessment, management believes that AUM is not a VIE because the Company does not make decisions that have significant impact on the performance of AUM; therefore, it is not consolidated as a component of these consolidated financial statements. If the matter were to be assessed differently, these consolidated financial statements would have included AUM's assets (principally land and building), liabilities (principally loan payable) and expenses, with the excess of AUM's assets over liabilities shown as a "non-controlling interest". AUM guarantees $1.7 million of the $3 million line of credit with M&T Bank for Portables Unlimited, LLC.

As result of the write off of the Company's investment in Portables, the Company will not perform analysis on a go forward basis, regarding the exclusion of AUM as VIE for consolidation purposes.

Basis of Presentation

The condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("US GAAP"). The functional currency of the Company's continuing operation Jiangsu Leimone and its equity investment SpreadZoom is the Chinese Renminbi ("RMB"). The functional currency of the Company's discontinued operations Portables and Zoom Sub is United States Dollars ("USD" or "$"). The functional currency of the Company's discontinued operations, TCB Digital and Nollec Wireless is the RMB. The functional currency of the Company's discontinued operations Ever Elite and CDE is Hong Kong Dollars ("HKD"). The accompanying consolidated financial statements are translated and presented in the reporting currency of USD.

The interim condensed consolidated financial information as of September 30, 2013 and for the three and nine months ended September 30, 2013 and 2012 have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). Certain information and footnote disclosures, which are normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP, have been omitted pursuant to those rules and regulations. The interim consolidated financial information should be read in conjunction with the financial statements and the notes thereto, included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2012, previously filed with the SEC.

In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the Company's consolidated financial position as of September 30, 2013, its consolidated results of operations for the three and nine months ended September 30, 2013 and 2012, and its consolidated cash flows for the nine months ended September 30, 2013 and 2012, as applicable, have been made. The interim results of operations are not necessarily indicative of the operating results for the full fiscal year or any future periods.

Use of Estimates

The preparation of condensed consolidated 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 dates of the consolidated financial statements and the amount of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. However, actual results could differ materially from those results.

Risks and Uncertainties

The Company is subject to substantial risks from, among other things, intense competition associated with the industry in general, other risks associated with financing, liquidity requirements, rapidly changing customer requirements, limited operating history, foreign currency exchange rates and the volatility of public markets.

Comprehensive Income

The Company follows the provisions of ASC 220 "Reporting Comprehensive Income", establishes standards for the reporting and display of comprehensive income, its components and accumulated balances in a full set of general purpose financial statements.

ASC 220 defines comprehensive income is comprised of net income and all changes to the statements of stockholders' equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders, including adjustments to minimum pension liabilities, accumulated foreign currency translation, and unrealized gains or losses on marketable securities.

Foreign Currency Translation and Transaction

The accounts of the Company's Chinese subsidiaries are maintained in the RMB and the accounts of the U.S. parent company are maintained in the USD. The accounts of the Chinese subsidiaries were translated into USD in accordance with Financial Accounting Standards ("FASB") Accounting Standards Codification ("ASC") Topic 810 with the RMB as the functional currency for the Chinese subsidiaries. According to ASC 810, all assets and liabilities were translated at the exchange rate at the date of the balance sheet; stockholders' equity is translated at historical rates; the line items on the statement of operations are translated at the weighted average exchange rate for the period. The resulting translation adjustments are reported under other comprehensive income in accordance with FASB ASC Topic 220. Gains and losses resulting from the translations of foreign currency transactions and balances are reflected in the income statement.

Cash and Equivalents

For Statement of Cash Flows purposes, the Company considers all cash on hand and in banks, including accounts in book overdraft positions, certificates of deposit and other highly-liquid investments with maturities of three months or less, when purchased, to be cash and cash equivalents. The Company maintains cash with various banks and trust companies located in China, Hong Kong and the United States. Cash accounts in China and Hong Kong are not insured or otherwise protected. Should any bank or trust company holding cash deposits become insolvent, or if the Company is otherwise unable to withdraw funds, the Company would lose the cash on deposit with that particular bank or trust company.

Accounts Receivable

The Company maintains reserves for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. Accounts are written off against the allowance when it becomes evident collection will not occur. For the contracted manufacturing activities, our standard terms for accounts receivable from our customers are between 60 to 75 days from close of the billing cycle; and for sales of own brand phones our terms include prepaid arrangements and extending receivable to customers up to 60 days. We also offer credit terms of up to 150 days in our trading activities to a certain customers. As of September 30, 2013, management concluded that the allowance for doubtful accounts, as disclosed in "Note 5 - Accounts Receivable" was adequate to cover any potential unrecoverable balances as a result of delinquency.

Inventories

Inventories are stated at the lower of cost or market. Cost is determined on a weighted average basis and includes all expenditures incurred in bringing the goods to the point of sale and putting them in a saleable condition. In assessing the ultimate realization of inventories, the management makes judgments as to future demand requirements compared to current or committed inventory levels. Our reserve requirements generally increase as our projected demand requires; or decrease due to market conditions and product life cycle changes. The Company estimates the demand requirements based on market conditions, forecasts prepared by its customers, sales contracts and orders in hand.

In addition, the Company estimates net realizable value based on intended use, current market value and inventory ageing analyses. The Company writes down inventories for estimated obsolescence or unmarketable inventory equal to the difference between the cost of inventories and their estimated market value based upon assumptions about future demand and market conditions.

Property, Plant and Equipment

Property, plant and equipment are recorded at cost. Gains or losses on disposals are reflected as gain or loss in the year of disposal. All ordinary repair and maintenance costs are expensed as incurred. Expenditures for maintenance and repairs are expensed as incurred. Major renewals and betterments are charged to the property accounts while replacements, maintenance and repairs, which do not improve or extend the lives of the respective assets, are expensed in the current period. 

Depreciation for financial reporting purposes is provided using the straight-line method over the estimated useful lives of assets.

Capitalized Interest

Interest associated with major development and construction projects is capitalized and included in the cost of the project. When no debt is incurred specifically for a project, interest is capitalized on amounts expended on the project using weighted-average cost of the Company's outstanding borrowings. Capitalization of interest ceases when the project is substantially complete or development activity is suspended for more than a brief period. There have not been material amounts of capitalized interest for the three and nine months ended September 30, 2013.

Impairment of Long-lived Assets

In accordance with ASC 360, "Property, Plant and Equipment", the Company reviews the carrying values of long-lived assets, including property, plant and equipment and other intangible assets, whenever facts and circumstances indicate that the assets may be impaired. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net undiscounted cash flows expected to be generated by the asset. If an asset is considered impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value. Assets to be disposed of are reported at the lower of the carrying amount or fair value, less costs of disposal. The Company last performed annual reviews of its long-lived assets at December 31, 2012 and 2011. In 2012, the Company determined that certain fixed assets and goodwill were impaired based on the disposal of certain operations. The Company has determined there have been triggering events during the nine months ended September 30, 2013 that would require he Company to perform review for impairment of its long lived assets, such as the default of the promissory note to Portables Unlimited, Inc.; accordingly, the Company has written off its investment in Portables. Except for the assets and investments that have already been written down, the Company believes it remaining long lived assets for continuing operations is fairly stated.

Goodwill

The Company recognizes goodwill for the excess of the purchase price over the fair value of the identifiable net assets of the business acquired. ASC 350 "Intangible Assets-Goodwill and Other", an impairment test for goodwill is undertaken by the Company at the reporting unit level annually, or more frequently if events or changes in circumstances indicate that goodwill might be impaired. The Company recorded impairment of goodwill related to the following subsidiaries: Jiangsu Leimone, CDE, Silver Tech, and Portables. See "Note 3 - Merger and Acquisitions" for details.

Revenue Recognition

The Company recognizes sales in accordance with FASB ASC Topic 605, "Revenue Recognition."

The Company recognizes revenue when the following criteria are met:

(i) persuasive evidence of an arrangement exists;

(ii) delivery has occurred or services were rendered;

(iii) the price to the customer is fixed or determinable and,

(iv) collection of the resulting receivable is reasonably assured. Revenue is not recognized until title and risk of loss is transferred to the customer, which occurs upon delivery of goods, and objective evidence exists that customer acceptance provisions were met.

The Company bases its estimates on historical experience taking into consideration the type of products sold, the type of customer, and the type of specific transaction in each arrangement. Revenues represent the invoiced value of goods, net of value added tax ("VAT").

The Company does not offer promotional payments, customer coupons, rebates or other cash redemption offers to its customers. Deposits or advance payments from customers prior to delivery of goods and passage of title of goods are recorded as advanced from customers.

The Company's discontinued operation, Nollec Wireless is in the mobile phone design, software integration and mobile solution R&D business, Nollec Wireless, recognizes revenue under the percentage of completion method ASC Topic 605- 35-25 (Construction - Type and Production - Type Contracts) when reasonably dependable estimates can be made and all the following conditions exist:

1. Contracts executed by the parties normally include provisions that clearly specify the enforceable rights regarding goods or services to be provided and received by the parties, the consideration to be exchanged, and the manner and terms of settlement.
2. The buyer can be expected to satisfy all obligations under the contract.
3. The contractor can be expected to perform all contractual obligations.

Estimates of cost to complete is reviewed periodically and revised as appropriate to reflect new information. When the current estimates of total contract revenue and contract cost indicate a loss, a provision for the entire loss on the contract is made.

Income is recognized as the percentage of estimated total income, and is determined by dividing incurred costs to date by estimated total costs after giving effect to adjustments, if any, in estimates of costs to completion based upon the most recent information. Percentage of completion is based on labor hours incurred to date divided by total estimated labor hours for the contract.

Royalty income on sales of licensed products by its customers is recorded when the customers report sales to the Company. Royalty income is reported monthly and recorded in the period in which the product is sold. The Company has the right to audit the books of the licensees.

The Company's discontinued operation CDE is in the business of video games and applications for mobile phones and mobile platforms development. Revenue is recognized in accordance with ASC 985-605-55-125. Cost of Software Development Revenue is accounted for under ASC 985-20 to be sold, leased or otherwise marketed.

CDE capitalizes cost of development of software for hosting purpose in accordance with ASC subtopic 350-40 ("ASC 350-40"), Intangibles-Goodwill and Other: Internal-Use. As such, CDE expenses all costs that are incurred in connection with the planning and implementation phases of development and costs that are associated with repair or maintenance. Costs incurred in the development phase are capitalized and amortized over the estimated product life. Since the inception of CDE, the amount of costs qualifying for capitalization has been insignificant and as a result all internally used software development costs have been expensed as incurred.

The Company's subsidiary, Portables is in the business of distribution of mobile phone and provision of wireless service. Revenue from the sale of equipment is recognized upon shipment or when purchased at Portables retail locations. Commission income is recognized upon activation of wireless communication services with T-Mobile.

Income Taxes

The Company accounts for income taxes in accordance with ASC 740 "Income Taxes", previously SFAS No. 109. Under this method, deferred income taxes are recognized for the estimated tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts and each year-end based on enacted tax laws and statutory rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established to reduce deferred tax assets to the amount expected to be realized when, in management's opinion; it is more likely than not that some portion of the deferred tax assets will not be realized. The provision for income taxes represents current taxes payable net of the change during the period in deferred tax assets and liabilities.

Uncertain Tax Positions

The Company accounts for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. The Company classifies the liability for unrecognized tax benefits as current to the extent that the Company anticipates payment (or receipt) of cash within one year. Interest and penalties related to uncertain tax positions are recognized and recorded as necessary in the provision for income taxes. There were no uncertain tax positions in 2012 and 2011. The Company's evaluation of uncertain tax positions was performed for the tax years ended December 31, 2009 and forward, the tax years which remain subject to examination as of September 30, 2013.

Operating Leases

Leases where substantially all the rewards and risks of ownership of assets remain with the leasing company that do not meet the capitalization criteria of ASC 840 "Leases", are accounted for as operating leases. Rental payables under operating leases are expensed on the straight-line basis over the lease term.

Research and Development Costs

Research and development costs are related primarily to the development of cell phone technology, video games and applications for mobile phones and mobile platforms development. Research and development costs are expensed as incurred.

Earnings (Loss) Per Share

The Company reports earnings (loss) per share in accordance with the provisions of ASC 260 "Earnings Per Share". ASC 260 requires presentation of basic and diluted earnings per share in conjunction with the disclosure of the methodology used in computing such earnings per share. Basic earnings per share excludes dilution and is computed by dividing income available to common stockholders by the weighted average common shares outstanding during the period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock using the treasury method.

Common stock equivalents represent the dilutive effect of the assumed exercise of the outstanding stock options and warrants, using the treasury stock method, at either the beginning of the respective period presented or the date of issuance, whichever is later, and only if the common stock equivalents are considered dilutive based upon the Company's net income (loss) position at the calculation dates. When the Company's results from operations are a net loss, dilutive securities are not included in diluted loss per share because they would be considered anti-dilutive.

Fair Values of Financial Instruments

ASC 820 "Fair Value Measurements and Disclosures", defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The carrying amounts reported in the balance sheets for current receivables and payables qualify as financial instruments. Management concluded the carrying values are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and if applicable, their stated interest rate approximates current rates available. The three levels are defined as follows:

• Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

• Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.

• Level 3 inputs to the valuation methodology are unobservable and significant to the fair value.

The assets measured at fair value on a recurring basis subject to the disclosure requirements of ASC 820 as of September 30, 2013 and December 31, 2012 are as follows:

						Significant
				Active Markets		Other		Significant
		Carrying		for Identical		Observable		Unobservable
		Value		Assets		Inputs		Inputs
		2013		(Level 1)		(Level 2)		(Level 3)
Cash and cash equivalents	$	1,818,816	$	1,818,816	$	-	$	-
Restricted cash	$	19,555,440	$	19,555,440	$	-	$	-
Warrants	$	-	$	-	$	-	$	-
						Significant
				Active Markets		Other		Significant
		Carrying		for Identical		Observable		Unobservable
		Value		Assets		Inputs		Inputs
		2012		(Level 1)		(Level 2)		(Level 3)
Cash and cash equivalents	$	8,351	$	8,351	$	-	$	-
Restricted cash	$	19,044,294	$	19,044,294	$	-	$	-
Warrants	$	7,340	$	-	$	7,340	$	-

The Company's financial instruments include cash and equivalents, restricted cash, accounts receivable, notes receivables, other receivables, accounts payable, notes payable, and warrants. Cash and cash equivalents consist primarily of high rated money market funds at a variety of well-known institutions with original maturities of three months or less. Restricted cash represents time deposits on account to secure short-term bank loans and notes payable. Management estimates the carrying amounts of the non-related party financial instruments approximate their fair values due to their short-term nature.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and equivalents and trade and bills receivables. As of September 30, 2013 and December 31, 2012, substantially all of the Company's cash and equivalents and restricted cash were held by major financial institutions located in the PRC, Hong Kong and the United States, which management believes are of high credit quality. With respect to trade and notes receivables, the Company extends credit based on an evaluation of the customer's financial condition. The Company generally does not require collateral for trade receivables and maintains an allowance for doubtful accounts of trade receivables.

Notes receivable are undertaken by the banks to honor the payments at maturity and the customers are required to place deposits with the banks equivalent to certain percentage of the notes amount as collateral. These notes receivable can be sold to any third party at a discount before maturity. The Company does not maintain an allowance for notes receivable in the absence of bad debt experience and the payments are undertaken by the banks.

Non-controlling Interests

The Company follows ASC 810 for reporting non-controlling interest ("NCI") in a subsidiary. As a result, the Company reports NCI as a separate component of Equity in the Consolidated Balance Sheet. Additionally, the Company reports the portion of net income and comprehensive income attributed to the Company and NCI separately in the Consolidated Statement of Income.

Statement of Cash Flows

In accordance with ASC 230, "Statement of Cash Flows", cash flows from the Company's operations are calculated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the statement of cash flows may not necessarily agree with changes in the corresponding balances on the balance sheet.

Recent Accounting Pronouncements

In February 2013, the Financial Accounting Standards Board ("FASB") issued amendments under ASU No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (Topic 220). 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 U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. The Company will adopt these amendments in the fourth quarter of 2013.

In March 2013, the FASB issued guidance on a parent's accounting for the cumulative translation adjustment upon derecognition of a subsidiary or group of assets within a foreign entity. This new guidance requires that the parent release any related cumulative translation adjustment into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The Company will adopt these amendments in 2014. The Company has not yet determined if there will be material impacts on its financial statements upon adoption.

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OTHER RECEIVABLES AND PREPAID EXPENSES - Note 5

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

OTHER RECEIVABLES AND PREPAID EXPENSES - Note 5

NOTE 5 - OTHER RECEIVABLES AND PREPAID EXPENSES

As of September 30, 2013 and December 31, 2012, the Company's other receivables and prepaid expenses consisted of the following:

		September 30,		December 31,
		2013		2012
		(Unaudited)
Deposit	$		$	90,091
Prepaid expenses		191,750		-
Others		1,025,691		3,899,271
Total other receivables and prepaid expenses	$	1,217,441	$	3,989,362

The balances of $1,205,691 and $3,899,271 labeled as "Others" as of September 30, 2013 and December 31, 2012 were receivables owed to the Company by Profit Harvest that arose in the normal course of business where the Company paid for expenses and professional fees on behalf of Profit Harvest. Profit Harvest was previously a subsidiary of the Company. In 2012, it was sold to Beijing Zhumu Culture Communication Company, Ltd. These amounts are expected to be recovered by the Company.

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MERGER AND ACQUISITIONS - Note 3

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

MERGER AND ACQUISITIONS - Note 3

NOTE 3 - MERGER AND ACQUISITIONS

The Company acquired 100% equity in Silver Tech on May 31, 2010. As of May 31, 2010, the net assets of Silver Tech were $2,564,160. The purchase consideration was $10,960,000 which resulted in goodwill of $8,395,840. As of December 31, 2012, the Company has taken action to dispose of Silver Tech's operating subsidiaries Ever Elite and Nollec; accordingly, all goodwill related to Silver Tech has been written off.

The Company acquired 100% ownership of CDE on January 4, 2011. As of January 4, 2011, the net liabilities of CDE were $43,409. The purchase consideration was $1,818,000 which resulted in goodwill of $1,861,409. As of December 31, 2012, as part of the Company's disposal of Profit Harvest the Company has indirectly disposed of CDE, accordingly, all of the goodwill related to CDE has been written off.

The Company acquired 55% ownership of Portables on October 11, 2011. As of October 11, 2011, Portables' liabilities exceeded its assets by $9,290,241. The purchase consideration was $9,851,486 which resulted in goodwill of $27,005,953. The Company acquired Portables for two reasons; (a) to diversify its revenue sources, and (b) to gain access to the most mature mobile handset market in the world. The Company's ownership in Portables had been reduced to 50.1% as of December 31, 2012. At July 15, 2013, the Company was in default of a loan with Portables Unlimited, Inc. and during the three months ended September 30, 2013, the Company decided to write down its investment in Portables. See "Note 1 - Organization and Nature of Business Operations - Dispositions", for further details.

The following table summarizes goodwill as of September 30, 2013 and December 31, 2012 resulting from the acquisitions of Jiangsu Leimone, Silver Tech, and CDE:

		September 30,		December 31,
		2013		2012
		(Unaudited)
Jiangsu Leimone	$	103,057	$	103,057
Silver Tech		8,395,840		8,395,840
CDE		1,861,409		1,861,409
Portables		27,031,492		27,031,492
Total		37,391,798		37,391,798
Less: Impairment		(37,391,798)		(37,391,798)
Total goodwill	$	-	$	-

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Merger and Acquisitions - Goodwill (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Goodwill, Gross	$ 37,391,798	$ 37,391,798
Less: Impairment	(37,391,798)	(37,391,798)
Total goodwill	0	0
Jiangsu Leimone
Goodwill, Gross	103,057	103,057
Silver Tech
Goodwill, Gross	8,395,840	8,395,840
CDE
Goodwill, Gross	1,861,409	1,861,409
Portables
Goodwill, Gross	$ 27,031,492	$ 27,031,492

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Other Receivables and Prepaid Expenses (Tables)

9 Months Ended

Sep. 30, 2013

Other Receivables And Prepaid Expenses Tables

Other receivables and prepaid expenses

As of September 30, 2013 and December 31, 2012, the Company's other receivables and prepaid expenses consisted of the following:

		September 30,		December 31,
		2013		2012
		(Unaudited)
Deposit	$		$	90,091
Prepaid expenses		191,750		-
Others		1,025,691		3,899,271
Total other receivables and prepaid expenses	$	1,217,441	$	3,989,362

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Stock Options (Tables)

9 Months Ended

Sep. 30, 2013

Stock Options Tables

Option plan activity

The following summary represents options activity during the nine months ended September 30, 2013 under the New Plan.

			Weighted-
	Under		Average		Aggregate
	New		Exercise		Intrinsic
	Plan		Price		Value
Balance, December 31, 2012	181,000	$	16.90	$	-
Granted	10,000		6.50
Lapsed	-		-
Exercised	-		-
Cancelled	-		-
Balance, September 30, 2013	191,000	$	16.40	$	-

Option plan summary

The following represents options summary as of September 30, 2013 under the New Plan.

	Options Outstanding				Options Exercisable
		Weighted-		Weighted-			Weighted-
		Average		Average			Average
	Number	Remaining		Exercise	Number		Exercise
	Outstanding	Contractual Life		Price	Exercisable		Price
Options	191,000	1.80 years	$	16.40	107,944	$	15.90

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Organization and Nature of Business Operations (Narrative) (Details)

9 Months Ended

Sep. 30, 2013

Gold Lion Holding Limited

Entity Incorporation, State Country Name

British Virgin Islands

Entity Incorporation, Date of Incorporation

Sep. 22, 2009

Jiangsu Leimone Electronics Co. Ltd

Entity Incorporation, State Country Name

People's Republic of China

Entity Incorporation, Date of Incorporation

Sep. 22, 2009

Tianjin Tong Guang Group Digital Communication Co., Ltd

Entity Incorporation, State Country Name

People's Republic of China

Entity Incorporation, Date of Incorporation

Sep. 22, 2009

Disposal Date

Sep. 30, 2013

Profit Harvest Corporation Limited

Entity Incorporation, State Country Name

Hong Kong

Entity Incorporation, Date of Incorporation

Sep. 22, 2009

Disposal Date

Dec. 31, 2012

Silver Tech Enterprises Ltd

Entity Incorporation, State Country Name

British Virgin Islands

Entity Incorporation, Date of Incorporation

Jun. 01, 2010

Ever Elite Corporation Limited

Entity Incorporation, State Country Name

Hong Kong

Entity Incorporation, Date of Incorporation

Jun. 01, 2010

Disposal Date

Apr. 05, 2013

Nollec Wireless Company Ltd

Entity Incorporation, State Country Name

People's Republic of China

Entity Incorporation, Date of Incorporation

Jun. 01, 2010

Disposal Date

Apr. 05, 2013

Celestial Digital Entertainment, Ltd.

Entity Incorporation, State Country Name

Hong Kong

Entity Incorporation, Date of Incorporation

Jan. 04, 2011

Disposal Date

Dec. 31, 2012

Zoom USA Holdings, Inc.

Entity Incorporation, State Country Name

Delaware

Entity Incorporation, Date of Incorporation

Oct. 11, 2011

Portables Unlimited LLC

Entity Incorporation, State Country Name

New York

Entity Incorporation, Date of Incorporation

Oct. 11, 2011

Loan Default

As of July 15, 2013, the Company was in default of the promissory note for $2,000,000 owed to Portables Unlimited, Inc. The promissory note was collateralized by the Company's ownership percentage in Portables. As of the date of this report, the Company does not believe it is able to recover its control and investment. As a result, Zoom ceased to have a controlling interest in Portables and did not retain an investment in it on the date of default, July 15, 2013, accordingly, the Company deconsolidated Portables' financial statements and recognized a loss of approximately $7.44 million during the quarter ended September 30, 2013 which includes a complete write off of its investment in Portables as of September 30, 2013. However, the Company may decide pursue legal remedies in the future if the Company deems such as action as necessary. The Company has reclassified all results of operations related to Portables prior to the write off as discontinued operations. Assets and liabilities related to Portables in comparative financial statements have been reclassified to assets and liabilities of discontinued operations.

Zoom Technologies, Inc.

Entity Incorporation, State Country Name

Delaware

Entity Incorporation, Date of Incorporation

Feb. 28, 2002

Description and Timing of Disposal

On December 31, 2012, Zoom Technologies, Inc. ("Zoom" or the "Company") entered into a Share Purchase Agreement (the "SPA") with Beijing Zhumu Culture Communication Company, Ltd. (the "Purchaser"), a PRC company that provides services to the telecommunication industry. Pursuant to the SPA, the Company agreed to sell (the "Subsidiary Sale") to the Purchaser all the equity interests the Company holds in its China based subsidiaries (except for SpreadZoom Technologies Co., Ltd. ("SpreadZoom") as mentioned below), which include 100% of the outstanding equity interest of Ever Elite Corporation Limited, an intermediary holding company incorporated in Hong Kong, and its wholly owned subsidiary, Beijing Nollec Wireless Company ("Nollec"), 80% of the outstanding equity interest of Tianjin Tongguang Group Digital Communication Company, Ltd. ("TCBD"), 100% of the outstanding equity interest of Profit Harvest Corporation, Ltd. ("Profit Harvest"), and 100% of the outstanding equity interest of Celestial Digital Entertainment, Ltd. ("CDE"). As consideration for the Subsidiary Sale, the Purchaser agreed to pay to the Company RMB 200 million (approximately US$31.7 million) (the "Prepaid Price"), subject to adjustment pending an appraisal by an independent third party appraiser. The Company on October 24, 2012 received approximately $12.6 million (RMB 80 million) less bank charges; the Company on November 5, 2012, received $19.1 million (RMB 120 million) less transaction fees and bank charges. As of the date of this current report, the Purchaser has remitted the entire amount of RMB 200 million to the Company. A portion of the funds, approximately RMB 80 million, was released to the Company to use; accordingly, in the normal course of business, the Company deployed those funds to SpreadZoom and Tianjian Leimone as detailed in "Note 8 - Related Party Transactions". The RMB 80 million released from escrow was a negotiated amount between the Company and the Purchaser. Upon the final closing of the Subsidiary Sale, which will occur 30 days after the Company receives all the requisites corporate and regulatory approvals with respect to the Subsidiary Sale, the balance of the escrowed funds will be released to the Company.

The Company's ownership interest in SpreadZoom, which owns and operates mobile phone manufacturing facilities in Tianjin, is not included in the Subsidiary Sale.

The closing of the sale of Profit Harvest and CDE occurred on December 31, 2012; the closing of the sale of Ever Elite and Nollec occurred on April 5, 2013. The Company has not completed the sale of TCB Digital as of the date of this report. The Company is currently unable to set a definitive date to the completion of the sale. TCB Digital results of operations continue to be reported under discontinued operations.

As disclosed above, as of November 18, 2013, the Company has written off its investment in Portables Unlimited, LLC.

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Income Tax (Narrative) (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013 Zoom Technologies	Dec. 31, 2012 Zoom Technologies	Sep. 30, 2013 TCB Digital	Sep. 30, 2013 Jiangsu Leimone	Sep. 30, 2013 Nollec Wireless	Sep. 30, 2013 Profit Harvest	Sep. 30, 2013 CDE	Sep. 30, 2013 Portables
Statutory tax rate					34.00%		25.00%	25.00%	25.00%	16.50%	16.50%	34.00%
Net operating loss carry forward period, years					20
Net operating loss ("NOL") carry forwards					$ 1,970,000	$ 1,380,000
Deferred tax asset valuation allowance provided					1,970,000	1,380,000
Pre-tax profit (loss)	$ (385,198)	$ (794,585)	$ (1,967,384)	$ (2,828,073)

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Summary of Warrants Outstanding and Exercisable (Details) (USD $)	9 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Summary Of Warrants Outstanding And Exercisable Details
Balance, September 30, 2013	863,860	863,860
Warrants outstanding, Weighted-average remaining life, in years	1 year 128 days
Warrants outstanding, Weighted-average exercise price	$ 23.00
Warrants exercisable, at September 30, 2013	863,860
Warrants exercisable, Weighted-average exercise price	$ 23.00

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Notes Payable (Narrative) (Details) (USD $)

9 Months Ended

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

STL Loan 1

Sep. 30, 2013

STL Loan 2

Short-term Debt, Lender

CNCG

The prior shareholders of Nollec Wireless

Short-term Debt, Terms

There was note issued to CNCG as part of the Company acquisition of Portables, with an original face amount of $500,000, term from October 11, 2011 to October 11, 2014, and annual interest rate of 2.0%. The outstanding balance of the note is $205,937. As of November 25, 2013, the note is in default.

The Company issued a note for $870,000 on or about June 1, 2010 to the prior shareholders of Nollec Wireless as part of the acquisition consideration for Nollec Wireless. The outstanding balance of the note is $145,000 as of September 30, 2013; the note carries an interest rate 6% per annum. As of November 25, 2013, the note is in default.

Short-term loans

$ 350,937

$ 0

$ 205,937

$ 145,000

Short-term Debt, Interest Rate

2.00%

6.00%

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CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
STOCKHOLDERS' EQUITY
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	60,000,000	60,000,000
Common stock, shares issued	3,008,517	2,932,085
Common stock, shares outstanding	3,008,517	2,931,917
Treasury shares, at cost	0	168

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RELATED PARTY TRANSACTIONS - Note 8

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

RELATED PARTY TRANSACTIONS - Note 8

NOTE 8 - RELATED PARTY TRANSACTIONS

Due from related parties

As of September 30, 2013 and December 31, 2012, due from related parties were:

		September 30,		December 31,
Due from related parties		2013		2012
		(Unaudited)
Beijing Leimone Shengtong Wireless Technology Co., Ltd.	$	35,852	$	91,571
Leimone (Tianjin) Industrial Co., Ltd.		4,212,356		11,034,982
Shenzhen Leimone		324,950		355,564
Spreadzoom		9,046,040		9,046,038
Total due from related parties	$	13,619,198	$	20,528,155

Beijing Leimone Shengtong Wireless Technology Co., Ltd. ("Beijing Leimone") was founded by Gu, the largest shareholder of the Company. Beijing Leimone borrows money from the Company. The borrowings bore no interest and had a maturity of 12 months. The balances are neither collateralized nor personally guaranteed by Gu. The balance is expected to be repaid in full by December 31, 2013.

Leimone (Tianjin) Industrial Co., Ltd. ("Tianjin Leimone") was controlled by Gu, the largest shareholder of the Company. Tianjin Leimone sells raw materials to the Company. As of September 30, 2013 and December 31, 2012, the amounts due from Tianjin Leimone of $4,212,356 and $11,034,982 represented advances for purchases arising in the normal course of business for transactions prior to December 31, 2012. The difference in balances between September 30, 2013 and December 31, 2012, represents the repayment of related party advances. The outstanding balance is expected to begin to reduce materially when the Company has completed its sale of TCB Digital.

Shenzhen Leimone Company, Ltd., formed by individuals including our Chairman, Mr. Gu, is set up with the intention of providing manufacturing services to our Company particularly for exports. $324,950 and $355,564 as of September 30, 2013 and December 31, 2012 was a loan to Shenzhen Leimone for setup costs. The balance is expected to be repaid in full by December 31, 2013.

The balance due from SpreadZoom represents an advance to SpreadZoom for it to purchase components to manufacture handsets in the normal course of business. The advance bears no interest, and is uncollateralized. The difference in balances between September 30, 2013 and December 31, 2012, represents the fluctuation of exchange rates between the functional and reporting currency. Such advances occurred during the early stages of the business. The SpreadZoom has not yet been fully capitalized. Upon completion of the sale of TCB Digital, the Company expects to be repaid these advances.

Due to related parties

As of September 30, 2013 and December 31, 2012, due to related parties were:

		September 30,		December 31,
Due to related parties		2013		2012
		(Unaudited)
Mr. Lei Gu	$	2,863,500	$	2,901,283
Anthony Chan		-		358,814
Beijing Leimone Shengtong Cultural Development Co., Ltd.		102,500		102,500
Portables Unlimited, Inc.		-		2,000,000
Total due to related parties	$	2,966,000	$	5,362,597

Mr. Gu provides funds to the Company with no interest and are due on demand. As of September 30, 2013 and December 31, 2012, the balances of funds provided by Gu was $2,863,500 and $2,901,283 respectively.

At December 31, 2012, the Company owed to Mr. Anthony Chan certain accrued compensation for services rendered in the amount of $358,814. As of September 30, 2013, the balance owed to Mr. Chan has been fully settled.

At December 31, 2012, the Company owed to Portables Unlimited, Inc. a promissory note for $2,000,000. As of July 15, 2013, the Company was in default of this note. Refer to "Note 1 - Organization and Nature of Business Operations" for further details.

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Statement of Comprehensive Income [Abstract]
Net (loss) income attributable to Zoom Technologies Inc.	$ (14,090,817)	$ 752,314	$ (18,282,626)	$ 2,047,508
Net income (loss) attributable to noncontrolling interest	(616,946)	190,633	(729,690)	177,708
Other comprehensive income:
Foreign currency translation adjustments - Zoom Technologies Inc.	(2,097,745)	(333,330)	(1,319,310)	56,387
Foreign currency translation adjustments - noncontrolling interest	(762,769)	588	(568,160)	24,481
Comprehensive (loss) income - Zoom Technologies Inc.	(16,188,562)	418,984	(19,601,936)	2,103,895
Comprehensive income - noncontrolling interest	$ (1,379,715)	$ 191,221	$ (1,297,850)	$ 202,189

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Statutory Reserves (Narrative) (Details) (USD $)

9 Months Ended

Sep. 30, 2013

Sep. 30, 2012

Dec. 31, 2012

Statutory Reserves Narrative Details

Statutory Accounting Practices, Statutory to GAAP, Description of Reconciling Item

As stipulated by the Company Law of the PRC, net income after taxation can only be distributed as dividends after appropriation has been made for the following:

i) Making up cumulative prior years' losses, if any;

ii) Allocations to the "Statutory surplus reserve" of at least 10% of income after tax, as determined under PRC accounting rules and regulations, until the fund amounts to 50% of the Company's registered capital;

iii) Allocations of 5-10% of income after tax, as determined under PRC accounting rules and regulations, to the Company's "Statutory common welfare fund", which is established for the purpose of providing employee facilities and other collective benefits to the Company's employees; and Statutory common welfare fund is no longer required per the new cooperation law executed in 2006.

iv) Allocations to the discretionary surplus reserve, if approved in the shareholders' general meeting.

Statutory surplus reserve

$ 737,623

$ 702,539

Increase in statutory surplus reserve

$ 0

$ 0

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CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2013	Dec. 31, 2012
Current assets
Cash and cash equivalents	$ 1,818,816	$ 8,351
Restricted cash	19,555,440	19,044,294
Other receivables and prepaid expenses	1,217,441	3,989,362
Due from related parties	13,619,198	20,528,155
Current assets of discontinued operations, held for sale	139,390,295	179,884,224
Total current assets	175,601,190	223,454,386
Intangible assets	349,600	349,600
Long-term investments	11,754,210	11,912,956
TOTAL ASSETS	187,705,000	235,716,942
Current liabilities
Notes payable	350,937	0
Accounts payable	36,948	38,695
Accrued expenses and other payables	535,530	1,237,505
Purchase deposit from buyer	8,240,490	8,740,490
Taxes payable	22,951	22,334
Due to related parties	2,966,000	5,362,597
Warrant liability	0	7,340
Current liabilities of discontinued operations	140,007,731	155,343,024
Total current liabilities	152,160,587	170,751,985
Long-term notes payable	0	317,500
TOTAL LIABILITIES	152,160,587	171,069,485
COMMITMENTS
STOCKHOLDERS' EQUITY
Preferred stock: authorized 1,000,000 shares, par value $0.01 none issued and outstanding	0	0
Common stock: authorized 60,000,000 shares, par value $0.01, 3,008,517 shares issued and outstanding at September 30, 2013; 2,932,085 shares issued and 2,931,917 shares outstanding at December 31, 2012	30,085	29,319
Treasury shares: 168 shares at cost	(7,322)	(7,322)
Additional paid-in capital	52,625,042	51,372,282
Statutory surplus reserve	737,623	702,539
Accumulated other comprehensive income	2,739,347	4,058,655
Accumulated deficit	(22,416,508)	(4,098,798)
TOTAL STOCKHOLDERS' EQUITY	33,708,267	52,056,675
Noncontrolling interest	1,836,146	12,590,782
TOTAL EQUITY	35,544,413	64,647,457
TOTAL LIABILITIES AND EQUITY	$ 187,705,000	$ 235,716,942

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Stock Option Grants (Narrative) (Details)

9 Months Ended

Sep. 30, 2013

October 11, 2011

Share-based Compensation Arrangement, Description

On October 11, 2011, the Company's BOD approved of the granting of 150,000 options to employees and executives of Portables Unlimited LLC, the Company's newly acquired subsidiary, with the exercise prices of $18.30 and $37.50 per share, with 25% of the options vesting immediately and the balance equally per quarter over three years. These options expire in four years.

October 8, 2012

Share-based Compensation Arrangement, Description

On October 8, 2012, the Company's BOD approved of the re-pricing of 120,000 out of the above-mentioned 150,000 options from the exercise price of $37.50 to $18.30 per share.

October 26, 2011

Share-based Compensation Arrangement, Description

On October 26, 2011, the Company's BOD approved of the granting of 1,000 options to its new independent director, with the exercise price of $20.40 per share, vesting over one year and expiring in two years.

November 29, 2011

Share-based Compensation Arrangement, Description

On November 29, 2011, the Company's BOD approved of the granting of 30,000 options to a consultant, with the exercise price of $10.00 per share, with 1/3 vesting immediately and the balance equally over two quarters. These options expire in two years.

May 22, 2012

Share-based Compensation Arrangement, Description

On May 22, 2012, the Company issued 30,280 shares of its common stock to its employees, and directors in replacement for cancelling 133,900 outstanding options that were held by the same recipients. The shares have the same vesting schedule as the options and were valued at $11.20 per share, the closing price on the date of Board Approval, which is considered the market price at that time. Based on the difference between the market value of the shares and the Black-Scholes value of the cancelled options as of May 22, 2012, there was no extra non-cash compensation expense for the three months ended September 30, 2013.

February 14, 2013

Share-based Compensation Arrangement, Description

On February 14, 2013, the Company's BOD approved of the granting of 10,000 options to an employee with an exercise price of $6.50, with monthly vesting beginning in February 2013. The options expire four years from the date of grant. The Company determined the grant date fair value of 10,000 options of $1.70 per share which was calculated using the Black Scholes Options Pricing Model as follows: Stock price of $6.50 per share, exercise price of $6.50 per share, expected life of 4.00 years, volatility of 32.48% and discount rate of 0.64%.

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Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2013

Intangible Assets Tables

Carrying values of intangible assets

As of September 30, 2013 and December 31, 2012, the Company's intangible assets were summarized as follows:

	Estimated		September 30,		December 31,
	Useful Life		2013		2012
			(Unaudited)
Domain name, logo and trade mark	Indefinite	$	349,600	$	349,600
Total cost			349,600		349,600
less: Accumulated amortization			-		-
Intangible assets, net		$	349,600	$	349,600

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DEFAULT OF NOTE OWED TO PORTABLES UNLIMITED, INC. - Note 17

9 Months Ended

Sep. 30, 2013

Debt Disclosure [Abstract]

DEFAULT OF NOTE OWED TO PORTABLES UNLIMITED, INC. - Note 17

NOTE 17 - DEFAULT OF NOTE OWED TO PORTABLES UNLIMITED, INC.

As of July 15, 2013, the Company was in default of the promissory note for $2,000,000 owed to Portables Unlimited, Inc. The Company has not been provided financial information for the quarter ended September 30, 2013. The Company has determined that it will not able to recover its investment in Portables; accordingly, the Company has written off its investment in full.

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Intangible Assets (Narrative1) (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Intangible Assets Narrative1 Details
Amortization of intangible assets	$ 0	$ 0	$ 0	$ 0

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Schedule Of Assumptions Used In Black-Scholes Model - Options (Narrative) (Details) (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013 865,000 Options	Sep. 30, 2013 Reprice 865,000 Options	Sep. 30, 2013 235,000 Options	Sep. 30, 2013 Reprice 235,000 Options	Sep. 30, 2013 677,000 Options
Stock price		$ 6.18	$ 3.54	$ 6.18	$ 3.54	$ 3.45
Exercise price		$ 6.18	$ 5.70	$ 6.18	$ 5.392	$ 3.75
Expected life		3 years 3 months 0 days	2 years 3 months 5 days	1 year 6 months 0 days	0 years 6 months 10 days	3 years 3 months 0 days
Volatility		39.18%	33.59%	39.18%	33.59%	33.42%
Discount rate		1.26%	0.78%	0.78%	0.28%	0.84%
Non-cash compensation expense related to stock options	$ 3,817
Non-cash compensation expense related to stock options to be recorded up to 2014	$ 35,296

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Accounting Policies (Fair Value of Financial Instruments) (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011
Cash and cash equivalents	$ 1,818,816	$ 8,351	$ 11,484	$ 22,158
Restricted cash	19,555,440	19,044,294
Warrants	0	7,340
Level 1
Cash and cash equivalents	1,818,816	8,351
Restricted cash	19,555,440	19,044,294
Warrants	0	0
Level 2
Cash and cash equivalents	0	0
Restricted cash	0	0
Warrants	4	7,340
Level 3
Cash and cash equivalents	0	0
Restricted cash	0	0
Warrants	$ 0	$ 0

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Discontinued Operations (Tables)

9 Months Ended

Sep. 30, 2013

Discontinued Operations Tables

Schedule of Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures

The detailed results of operations for discontinued operations shown below for the three and nine months ended September 30, 2013 include the results of TCB Digital, Ever Elite, Nollec Wireless, and Portables. The detailed results of operations for discontinued operations shown below for the three and nine months ended September 30, 2012 include the results of TCB Digital, Profit Harvest, CDE, Ever Elite, Nollec Wireless, and Portables.

Results of Operations		Three Months Ended September 30,				Nine Months Ended September 30,
		2013		2012		2013		2012
		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Net revenues	$	49,633,292	$	117,180,898	$	170,083,852	$	306,717,488
Cost of sales		48,002,298		111,193,306		160,180,706		286,251,895
Gross profit		1,630,994		5,987,592		9,903,146		20,465,593
Operating expenses		4,479,634		3,663,827		11,279,690		12,987,224
Operating (loss) income		(2,848,640)		2,323,765		(1,376,544)		7,478,369
Other income (expenses), net		(831,631)		26,893		(2,828,766)		(908,405)
(Loss) income before taxes from discontinued operations		(3,680,271)		2,350,658		(4,205,310)		6,569,964
less: Provision for income taxes		90		601,837		21,277		1,505,386
(Loss) income from discontinued operations, net of tax	$	(3,680,361)	$	1,748,821	$	(4,226,587)	$	5,064,578
Basic and diluted (loss) income per common share from
discontinued operations:
Basic	$	(4.57)	$	0.54	$	(5.42)	$	1.85
Diluted	$	(4.57)	$	0.54	$	(5.42)	$	1.85

Financial Position		September 30,		December 31,
		2013		2012
		(Unaudited)
Cash and equivalents	$	8,730,872	$	3,667,924
Restricted cash		69,630,402		64,467,142
Accounts receivable, net		36,676,226		38,889,208
Inventories, net		13,320,789		7,988,710
Other receivables and prepaid expenses		2,657,549		10,697,074
Advance to suppliers		478,223		5,027,089
Notes receivable		325,924		548,218
Due from related parties		6,471,812		17,144,272
Construction in progress deposit		-		278,996
Property, plant and equipment, net		1,098,498		3,670,327
Intangible assets, net		-		473,772
Goodwill		-		27,031,492
Total current assets		139,390,295		179,884,224
Total Assets of Discontinued Operations	$	139,390,295	$	179,884,224
Short-term loans	$	42,533,081	$	24,707,679
Notes payable		28,957,279		28,156,022
Accounts payable		26,996,853		22,625,660
Accrued expenses and other payables		932,246		3,591,128
Advances from customers		21,802		1,039,775
Taxes payable		(2,422,890)		(2,341,883)
Interest payable		-		110,835
Dividends payable		628,890		628,890
Due to related parties		42,360,470		76,824,918
Total current liabilities		140,007,731		155,343,024
Total Liabilities of Discontinued Operations		140,007,731		155,343,024
Net Assets of Discontinued Operations	$	(617,436)	$	24,541,200

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Correction of Error (Tables)

9 Months Ended

Sep. 30, 2013

Correction Of Error Tables

Restatement to Prior Year Income

As a result the results of operations for the three and nine months ended September 30, 2012 have been restated as follows:

		Three Months Ended September 30, 2012
		As Previously				As Currently
		Reported		Adjustment		Reported
Other income (expenses)
Change in fair value of warrants	$	-	$	350,323	$	350,323
Net income attributable to Zoom Technologies, Inc.	$	419,939	$	350,323	$	770,262
Basic and diluted income per common share:
Basic	$	0.02	$	0.01	$	0.03
Diluted	$	0.02	$	0.01	$	0.03

		Nine Months Ended September 30, 2012
		As Previously				As Currently
		Reported		Adjustment		Reported
Other income (expenses)
Change in fair value of warrants	$	-	$	233,370	$	233,370
Net income attributable to Zoom Technologies, Inc.	$	1,061,824	$	233,370	$	1,295,194
Basic and diluted income per common share:
Basic	$	0.04	$	0.01	$	0.05
Diluted	$	0.04	$	0.01	$	0.05

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NOTES PAYABLE - Note 7

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

NOTES PAYABLE - Note 7

NOTE 7 - NOTES PAYABLE

There was note issued to CNCG as part of the Company acquisition of Portables, with an original face amount of $500,000, term from October 11, 2011 to October 11, 2014, and annual interest rate of 2.0%. The outstanding balance of the note is $205,937. As of November 25, 2013, the note is in default.

The Company issued a note for $870,000 on or about June 1, 2010 to the prior shareholders of Nollec Wireless as part of the acquisition consideration for Nollec Wireless. The outstanding balance of the note is $145,000 as of September 30, 2013; the note carries an interest rate 6% per annum. As of November 25, 2013, the note is in default.

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Discontinued Operations (Narrative) (Details)

9 Months Ended

Sep. 30, 2013

Profit Harvest and CDE

Description and Timing of Disposal

The sale of all of the business operations to Beijing Zhumu Culture Communication Company, Ltd. covered in the Share Purchase Agreement as described in "Note 1 - Organization and Nature of Business Operations" was for approximately $31.7 million (RMB 200 million) in sales proceeds. The Share Purchase Agreement covers the sale of several business operations in different jurisdictions, with differing regulatory requirements regarding the purchase and sale of businesses. The table of above details the portion of the transaction related to the sale of Profit Harvest and CDE, which closed on December 31, 2012, for proceeds of $23.0 million. The portion of the sale covered in the Share Purchase Agreement for Ever Elite and Nollec Wireless generated proceeds of $500,000. This sales transaction closed on April 5, 2013. The balance of the sales proceeds, approximately $8.2 million will be allocated to TCB Digital upon the closing of that transaction. The Company has also included all the assets and liabilities of Portables at December 31, 2012 in discontinued operations.

The Company recognized revenues from related parties in discontinued operations of $37,842,847 and $50,163,444 for nine months ended September 30, 2013 and 2012, respectively; for the three months ended September 30, 2013 and 2012, the Company recognized revenues of $5,252,769 and $20,101,749 respectively.

Ever Elite and Nollec Wireless

Description and Timing of Disposal

The sale of all of the business operations to Beijing Zhumu Culture Communication Company, Ltd. covered in the Share Purchase Agreement as described in "Note 1 - Organization and Nature of Business Operations" was for approximately $31.7 million (RMB 200 million) in sales proceeds. The Share Purchase Agreement covers the sale of several business operations in different jurisdictions, with differing regulatory requirements regarding the purchase and sale of businesses. The table of above details the portion of the transaction related to the sale of Profit Harvest and CDE, which closed on December 31, 2012, for proceeds of $23.0 million. The portion of the sale covered in the Share Purchase Agreement for Ever Elite and Nollec Wireless generated proceeds of $500,000. This sales transaction closed on April 5, 2013. The balance of the sales proceeds, approximately $8.2 million will be allocated to TCB Digital upon the closing of that transaction. The Company has also included all the assets and liabilities of Portables at December 31, 2012 in discontinued operations.

The Company recognized revenues from related parties in discontinued operations of $37,842,847 and $50,163,444 for nine months ended September 30, 2013 and 2012, respectively; for the three months ended September 30, 2013 and 2012, the Company recognized revenues of $5,252,769 and $20,101,749 respectively.

TCB Digital

Description and Timing of Disposal

The sale of all of the business operations to Beijing Zhumu Culture Communication Company, Ltd. covered in the Share Purchase Agreement as described in "Note 1 - Organization and Nature of Business Operations" was for approximately $31.7 million (RMB 200 million) in sales proceeds. The Share Purchase Agreement covers the sale of several business operations in different jurisdictions, with differing regulatory requirements regarding the purchase and sale of businesses. The table of above details the portion of the transaction related to the sale of Profit Harvest and CDE, which closed on December 31, 2012, for proceeds of $23.0 million. The portion of the sale covered in the Share Purchase Agreement for Ever Elite and Nollec Wireless generated proceeds of $500,000. This sales transaction closed on April 5, 2013. The balance of the sales proceeds, approximately $8.2 million will be allocated to TCB Digital upon the closing of that transaction. The Company has also included all the assets and liabilities of Portables at December 31, 2012 in discontinued operations.

The Company recognized revenues from related parties in discontinued operations of $37,842,847 and $50,163,444 for nine months ended September 30, 2013 and 2012, respectively; for the three months ended September 30, 2013 and 2012, the Company recognized revenues of $5,252,769 and $20,101,749 respectively.

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Related Party Transactions (Tables)

9 Months Ended

Sep. 30, 2013

Related Party Transactions Tables

Due From Related Parties

As of September 30, 2013 and December 31, 2012, due from related parties were:

		September 30,		December 31,
Due from related parties		2013		2012
		(Unaudited)
Beijing Leimone Shengtong Wireless Technology Co., Ltd.	$	35,852	$	91,571
Leimone (Tianjin) Industrial Co., Ltd.		4,212,356		11,034,982
Shenzhen Leimone		324,950		355,564
Spreadzoom		9,046,040		9,046,038
Total due from related parties	$	13,619,198	$	20,528,155

Due To Related Parties

As of September 30, 2013 and December 31, 2012, due to related parties were:

		September 30,		December 31,
Due to related parties		2013		2012
		(Unaudited)
Mr. Lei Gu	$	2,863,500	$	2,901,283
Anthony Chan		-		358,814
Beijing Leimone Shengtong Cultural Development Co., Ltd.		102,500		102,500
Portables Unlimited, Inc.		-		2,000,000
Total due to related parties	$	2,966,000	$	5,362,597

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Other Receivables and Prepaid Expenses (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Other Receivables And Prepaid Expenses Details
Deposit	$ 0	$ 90,091
Prepaid expenses	191,750	0
Others	1,025,691	3,899,271
Total other receivables	$ 1,217,441	$ 3,989,362

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WARRANTS - Note 10

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

WARRANTS - Note 10

NOTE 10 - WARRANTS

The Company granted Series A, B, C, D and E warrants to the accredited investors as part of its private placement offering on October 16, 2009 and November 18, 2009.

Following is the brief description of warrants:

Series A Warrants: The Series A warrants have an exercise price of $60.00 and a term of 5 years from the issue date subject to the Exchange Cap (as defined in the agreement).

Series B Warrants: The Series B warrants have an exercise price of $0.10 and a term of three (3) months from the issue date provided, however, that such date shall be extended indefinitely if the warrant cannot be exercised due to the Beneficial Ownership Limitation (as defined in the agreement) or the Exchange Cap Limitation (as defined in the agreement) until the warrant can be exercised in full by the holder thereof without breaching the Beneficial Ownership Limitation (as defined in the agreement) or the Exchange Cap Limitation (as defined in the agreement). All B Warrants were exercised in December 2009.

Series C Warrants: The Series C warrants shall be exercisable only upon the exercise of the Series B warrants. The Series C warrants shall have an exercise price of $60.00 and a term of 5 years from the issue date.

Series D Warrants: The Series D warrants shall be exercisable if the Company fails to meet certain performance criteria for the year 2009. The Series D warrant shall have an exercise price of $0.10 and a term of exercise equal to three (3) months from the date the Maximum Eligibility Date (as defined in the agreement); provided, however, that such date shall be extended indefinitely if the warrant cannot be exercised due to the Beneficial Ownership Limitation (as defined in the agreement) or the Exchange Cap (as defined in the agreement) until the warrant can be exercised in full by the holder without breaching the Beneficial Ownership Limitation (as defined in the agreement) or the Exchange Cap Limitation (as defined in the agreement). Due to the Net Income of Zoom as reported in the Company's annual report for the year 2009 exceeding the eligibility threshold pursuant to the agreement, the Series D Warrants became ineligible for exercise.

Series E Warrants: The Series E warrants shall be exercisable if the Company fails to meet certain performance criteria for the year 2010. The Series E warrants shall have an exercise price of $0.10 and a term of three (3) months from the date the Maximum Eligibility Date (as defined in the agreement); provided, however, that such date shall be extended indefinitely if the warrant cannot be exercised due to the Beneficial Ownership Limitation (as defined in the agreement) until the Warrant can be exercised in full by the holder thereof without breaching the Beneficial Ownership Limitation (as defined in the agreement). Due to the Net Income of Zoom as reported in the Company's annual report for the year 2010 exceeding the eligibility threshold pursuant to the agreement, the Series E Warrants became ineligible for exercise.

The Company granted on May 6, 2010, Series F warrants to the above investors for their temporary forfeiture of their right to participate in the Company's future financings.

Series F Warrants: The Series F warrants have an exercise price of $60.00 and a term of 5 years from the issue date. The Company issued 37,500 Series F warrants to investors who participated in private placement transaction pursuant to the Securities Purchase Agreement dated October 15, 2009, to temporarily waive their right for a period of eight months to participate in a future offering of the Company. The investors originally have a period of twenty-four months ("Rights Period") in which they have the right to participate, and for providing a temporary waiver, an eight-month duration is added to the original expiration of the Rights Period.

The Company granted Series G warrants to the accredited investors as part of its private place offering on November 15, 2010.

Series G Warrants: The Series G warrants shall have an exercise price of $47.10 and a term of 5 years from the issue date.

Anti-dilution Adjustments for Certain Warrants: Since the private placement in November 2010 involved sales of the Company's stock at a price that activated anti-dilution provisions in the Series A, C, F and certain placement agent warrants, the exercise price of these warrants is adjusted to $37.40 per share and the number of warrants eligible is multiplied by a factor of 60 / 37.40 or 1.60 with fractional shares rounding up.

The following summary represents warrants activity during the three months ended September 30, 2013:

			Weighted-
			Average		Aggregate
	Number of		Exercise		Intrinsic
	Warrants		Price		Value
Balance, December 31, 2012	863,860	$	23.00	$	-
Granted	-		-
Lapsed	-		-
Exercised	-		-
Cancelled	-		-
Balance, September 30, 2013	863,860	$	23.00	$	-

The following presents warrants summary as of September 30, 2013:

	Warrants Outstanding				Warrants Exercisable
		Weighted-		Weighted-			Weighted-
		Average		Average			Average
	Number	Remaining		Exercise	Number		Exercise
	Outstanding	Contractual Life		Price	Exercisable		Price
Warrants	863,860	1.35 years	$	23.00	863,860	$	23.00

The Company has accounted for all of the outstanding Series A, C, F, G, and related placement warrants as liabilities. The Company assessed the value of these warrants by using the binomial lattice model. When the Company valued the warrants it used the following assumptions as part of inputs into the valuation model. US treasury rates as measure of the risk free rate of return. The Company also used the mean of the annualized standard deviation of the log normal returns of comparable companies in the same line of business as measure of volatility. The Company controls whether dilution may occur, so it did not add additional assumptions regarding dilutive events into the future discrete outcomes found in the model. The warrants values were adjusted for the dilutive effect as ratio of the outstanding common stock at the time of measurement. In determining the probabilities of an up movement or down movement in the discrete outcomes, as well as the related magnitude of such up or down movements, the Company used a Cox-Ross-Rubenstein approach in applying the binomial lattice model.

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INTANGIBLE ASSETS - Note 6

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

INTANGIBLE ASSETS - Note 6

NOTE 6 - INTANGIBLE ASSETS

As of September 30, 2013 and December 31, 2012, the Company's intangible assets were summarized as follows:

	Estimated		September 30,		December 31,
	Useful Life		2013		2012
			(Unaudited)
Domain name, logo and trade mark	Indefinite	$	349,600	$	349,600
Total cost			349,600		349,600
less: Accumulated amortization			-		-
Intangible assets, net		$	349,600	$	349,600

Intangible assets are stated at cost less accumulated amortization. The Company acquired domain name "zoom.com" and related logo and trade name for 80,000 shares of common stock valued $349,600 as of the date of purchase. The domain name, logo and trademark have indefinite lives and no amortization was recorded.

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ORGANIZATION AND NATURE OF BUSINESS OPERATIONS - Note 1

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

ORGANIZATION AND NATURE OF BUSINESS OPERATIONS - Note 1

NOTE 1 — ORGANIZATION AND NATURE OF BUSINESS OPERATIONS

Acquisition

Zoom Technologies, Inc. (the "Company") was incorporated in the state of Delaware on February 29, 2002. Until September 22, 2009, the Company was engaged in the design, production, marketing, sales, and support of broadband and dial-up modems, Voice over Internet Protocol or "VoIP" products and services, Bluetooth® wireless products, and other communication-related products.

On September 22, 2009, the Company consummated a share exchange transaction and acquired all the outstanding shares of Gold Lion Holding Limited ("Gold Lion"), a company incorporated in the British Virgin Islands ("BVI"), and its subsidiaries Jiangsu Leimone Electronics Co. Ltd ("Jiangsu Leimone"), Tianjin Tong Guang Group Digital Communication Co., Ltd ("TCB Digital") both incorporated in the (People's Republic of China, ("PRC"), and Profit Harvest Corporation Limited ("Profit Harvest") incorporated in Hong Kong. In connection with the share exchange transaction, the Company spun off its then-existing business to its stockholders, by distributing and transferring all assets and liabilities to its then subsidiary, Zoom Telephonics, Inc., and issuing shares of its then operating subsidiary as a dividend to its stockholders. The subsidiaries of Gold Lion were engaged in the manufacture design, sale and manufacture of mobile devices and handsets in China.

On June 1, 2010, Zoom pursuant to a share exchange agreement dated April 29, 2010, acquired 100% of the shares of Silver Tech Enterprises Ltd, incorporated in the BVI and its wholly owned subsidiaries Ever Elite Corporation Limited, incorporated in Hong Kong, and Nollec Wireless Company Ltd., ("Nollec Wireless"), incorporated in the PRC. Nollec Wireless is engaged in mobile phone and wireless communication device design.

On January 4, 2011, pursuant to a share exchange agreement, the Company via Profit Harvest acquired 100% ownership of Celestial Digital Entertainment, Ltd., ("CDE") a mobile platform video game development company based in Hong Kong.

On October 11, 2011, the Company and Zoom USA Holdings, Inc., a newly formed wholly- owned subsidiary of the Company ("Zoom Sub") entered into a Securities Purchase Agreement ("Securities Purchase Agreement") to purchase from The Cellular Network Communications Group, Inc. ("CNCG") a 50% interest in Portables Unlimited LLC ("Portables"), one of the largest wholesale distributors and direct retailers of T-Mobile products in the United States. Subsequent to the purchase of the 50% stake in ownership from CNCG, the Company increased its stake in Portables to 50.1% by injecting additional capital.

As of July 15, 2013, the Company was in default of the promissory note for $2,000,000 owed to Portables Unlimited, Inc. The promissory note was collateralized by the Company's ownership percentage in Portables. As of the date of this report, the Company does not believe it is able to recover its control and investment. As a result, Zoom ceased to have a controlling interest in Portables and did not retain an investment in it on the date of default, July 15, 2013, accordingly, the Company deconsolidated Portables' financial statements and recognized a loss of approximately $7.44 million during the quarter ended September 30, 2013 which includes a complete write off of its investment in Portables as of September 30, 2013. However, the Company may decide pursue legal remedies in the future if the Company deems such as action as necessary. The Company has reclassified all results of operations related to Portables prior to the write off as discontinued operations. Assets and liabilities related to Portables in comparative financial statements have been reclassified to assets and liabilities of discontinued operations.

Dispositions

On December 31, 2012, Zoom Technologies, Inc. ("Zoom" or the "Company") entered into a Share Purchase Agreement (the "SPA") with Beijing Zhumu Culture Communication Company, Ltd. (the "Purchaser"), a PRC company that provides services to the telecommunication industry. Pursuant to the SPA, the Company agreed to sell (the "Subsidiary Sale") to the Purchaser all the equity interests the Company holds in its China based subsidiaries (except for SpreadZoom Technologies Co., Ltd. ("SpreadZoom") as mentioned below), which include 100% of the outstanding equity interest of Ever Elite Corporation Limited, an intermediary holding company incorporated in Hong Kong, and its wholly owned subsidiary, Beijing Nollec Wireless Company ("Nollec"), 80% of the outstanding equity interest of Tianjin Tongguang Group Digital Communication Company, Ltd. ("TCBD"), 100% of the outstanding equity interest of Profit Harvest Corporation, Ltd. ("Profit Harvest"), and 100% of the outstanding equity interest of Celestial Digital Entertainment, Ltd. ("CDE"). As consideration for the Subsidiary Sale, the Purchaser agreed to pay to the Company RMB 200 million (approximately US$31.7 million) (the "Prepaid Price"), subject to adjustment pending an appraisal by an independent third party appraiser. The Company on October 24, 2012 received approximately $12.6 million (RMB 80 million) less bank charges; the Company on November 5, 2012, received $19.1 million (RMB 120 million) less transaction fees and bank charges. As of the date of this current report, the Purchaser has remitted the entire amount of RMB 200 million to the Company. A portion of the funds, approximately RMB 80 million, was released to the Company to use; accordingly, in the normal course of business, the Company deployed those funds to SpreadZoom and Tianjian Leimone as detailed in "Note 8 - Related Party Transactions". The RMB 80 million released from escrow was a negotiated amount between the Company and the Purchaser. Upon the final closing of the Subsidiary Sale, which will occur 30 days after the Company receives all the requisites corporate and regulatory approvals with respect to the Subsidiary Sale, the balance of the escrowed funds will be released to the Company.

The Company's ownership interest in SpreadZoom, which owns and operates mobile phone manufacturing facilities in Tianjin, is not included in the Subsidiary Sale.

The closing of the sale of Profit Harvest and CDE occurred on December 31, 2012; the closing of the sale of Ever Elite and Nollec occurred on April 5, 2013. The Company has not completed the sale of TCB Digital as of the date of this report. The Company is currently unable to set a definitive date to the completion of the sale. TCB Digital results of operations continue to be reported under discontinued operations.

As disclosed above, as of November 18, 2013, the Company has written off its investment in Portables Unlimited, LLC.

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Stock Option Activity (Details) (USD $)	9 Months Ended
	Sep. 30, 2013
Stock Option Activity Details
Balance, December 31, 2012	181,000
Granted	10,000
Lapsed	0
Exercised	0
Cancelled	0
Balance, September 30, 2013	191,000
Weighted-average exercise price of options outstanding, December 31, 2012	$ 16.90
Weighted-average exercise price of options granted during period	$ 6.50
Weighted-average exercise price of options outstanding, September 30, 2013	$ 16.40
Aggregate Intrinsic Value, December 31, 2012	$ 0
Aggregate Intrinsic Value, september 30, 2013	$ 0

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Stockholders' Equity Common Stock (Narrative) (Details) (USD $)

1 Months Ended

3 Months Ended

9 Months Ended

Nov. 30, 2013

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Share-based Compensation

$ 132,259

$ 758,592

$ 777,924

$ 2,030,151

Options cancelled

0

Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized

35,296

35,296

Stockholders' Equity, Reverse Stock Split

On November 12, 2013, the Company effectuated a 10 for 1 reverse split of its common stock. All share numbers and per share amounts have been retroactively restated to reflect the reverse split.

July 16, 2013

Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures

56,000

Share-based Compensation

$ 280,000

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Income Tax (Tables)

9 Months Ended

Sep. 30, 2013

Income Tax Tables

Schedule of Tax Effects of Temporary Differences that Give Rise to Significant Portions of Deferred Tax Assets and Liabilities

The following table summarizes the temporary differences which result in deferred tax assets and liabilities as at September 30, 2013 and December 31, 2012:

		September 30,		December 31,
		2013		2012
Deferred tax assets:		(Unaudited)
Net operating loss	$	466,275	$	511,035
less: Valuation allowance		(466,275)		(511,035)
Total deferred tax assets		-		-
Deferred tax liabilities:		-		-
Deferred tax assets, net	$	-	$	-

Schedule of Effective Income Tax Rate and Amount Reconciliation

The following table reconciles the U.S. statutory rates to the Company's effective tax rates for the three and nine months ended September 30, 2013 and 2012:

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2013	2012	2013	2012
US statutory rates	34.00%	34.00%	34.00%	34.00%
Tax rate difference	3.24%	-5.51%	-1.20%	-2.05%
Valuation allowance	-37.24%	-28.49%	-32.80%	-31.95%
State taxes	0.00%	-1.42%	-5.57%	-0.40%
Tax per financial statements	0.00%	-1.42%	-5.57%	-0.40%

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Investment in Spreadzoom (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Financial Position of SpreadZoom
Current assets	$ 26,542,710		$ 26,542,710
Non-current assets	3,669,499		3,669,499
Total assets	30,212,209		30,212,209
Current liabilities	13,394,293		13,394,293
Non-current liabilities
Total liabilities	13,394,293		13,394,293
Net ssset value	16,817,916		16,817,916
Results of Operations of SpreadZoom
Net revenues	15,466,008		51,989,850
Cost of goods sold	14,602,540		50,749,207
Gross profit	863,468		1,240,643
Operating expenses	468,792		1,551,314
Operating income (loss)	394,676		(310,671)
Other income (expenses), net	(25,464)		(24,447)
Income (loss) before taxes	369,212		(335,118)
less: Provision for income taxes
Net income (loss)	369,212		(335,118)
Investment loss attributable to Zoom Technologies, Inc.	$ 174,895	$ (423,630)	$ (158,746)	$ (423,630)

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STATUTORY RESERVES - Note 13

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

STATUTORY RESERVES - Note 13

NOTE 13 - STATUTORY RESERVES

As stipulated by the Company Law of the PRC, net income after taxation can only be distributed as dividends after appropriation has been made for the following:

i) Making up cumulative prior years' losses, if any;

ii) Allocations to the "Statutory surplus reserve" of at least 10% of income after tax, as determined under PRC accounting rules and regulations, until the fund amounts to 50% of the Company's registered capital;

iii) Allocations of 5-10% of income after tax, as determined under PRC accounting rules and regulations, to the Company's "Statutory common welfare fund", which is established for the purpose of providing employee facilities and other collective benefits to the Company's employees; and Statutory common welfare fund is no longer required per the new cooperation law executed in 2006.

iv) Allocations to the discretionary surplus reserve, if approved in the shareholders' general meeting.

As of September 30, 2013 and December 31, 2012, the Company's statutory surplus reserve was $737,770 and $702,539 respectively.

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STOCKHOLDERS' EQUITY - Note 9

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

STOCKHOLDERS' EQUITY - Note 9

NOTE 9 - STOCKHOLDERS' EQUITY

COMMON STOCK

On July 16, 2013, the Company issued 560,000 shares as compensation to Mr. Anthony Chan for back pay. The Company recorded $280,000 of compensation expense.

On November 12, 2013, the Company effectuated a 10 for 1 reverse split of its common stock. All share numbers and per share amounts have been retroactively restated to reflect the reverse split.

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DISCONTINUED OPERATIONS - Note 16

9 Months Ended

Sep. 30, 2013

Other income (expenses)

DISCONTINUED OPERATIONS - Note 16

NOTE 16 - DISCONTINUED OPERATIONS

The detailed results of operations for discontinued operations shown below for the three and nine months ended September 30, 2013 include the results of TCB Digital, Ever Elite, Nollec Wireless, and Portables. The detailed results of operations for discontinued operations shown below for the three and nine months ended September 30, 2012 include the results of TCB Digital, Profit Harvest, CDE, Ever Elite, Nollec Wireless, and Portables.

Results of Operations		Three Months Ended September 30,				Nine Months Ended September 30,
		2013		2012		2013		2012
		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Net revenues	$	49,633,292	$	117,180,898	$	170,083,852	$	306,717,488
Cost of sales		48,002,298		111,193,306		160,180,706		286,251,895
Gross profit		1,630,994		5,987,592		9,903,146		20,465,593
Operating expenses		4,479,634		3,663,827		11,279,690		12,987,224
Operating (loss) income		(2,848,640)		2,323,765		(1,376,544)		7,478,369
Other income (expenses), net		(831,631)		26,893		(2,828,766)		(908,405)
(Loss) income before taxes from discontinued operations		(3,680,271)		2,350,658		(4,205,310)		6,569,964
less: Provision for income taxes		90		601,837		21,277		1,505,386
(Loss) income from discontinued operations, net of tax	$	(3,680,361)	$	1,748,821	$	(4,226,587)	$	5,064,578
Basic and diluted (loss) income per common share from
discontinued operations:
Basic	$	(4.57)	$	0.54	$	(5.42)	$	1.85
Diluted	$	(4.57)	$	0.54	$	(5.42)	$	1.85

Financial Position		September 30,		December 31,
		2013		2012
		(Unaudited)
Cash and equivalents	$	8,730,872	$	3,667,924
Restricted cash		69,630,402		64,467,142
Accounts receivable, net		36,676,226		38,889,208
Inventories, net		13,320,789		7,988,710
Other receivables and prepaid expenses		2,657,549		10,697,074
Advance to suppliers		478,223		5,027,089
Notes receivable		325,924		548,218
Due from related parties		6,471,812		17,144,272
Construction in progress deposit		-		278,996
Property, plant and equipment, net		1,098,498		3,670,327
Intangible assets, net		-		473,772
Goodwill		-		27,031,492
Total current assets		139,390,295		179,884,224
Total Assets of Discontinued Operations	$	139,390,295	$	179,884,224
Short-term loans	$	42,533,081	$	24,707,679
Notes payable		28,957,279		28,156,022
Accounts payable		26,996,853		22,625,660
Accrued expenses and other payables		932,246		3,591,128
Advances from customers		21,802		1,039,775
Taxes payable		(2,422,890)		(2,341,883)
Interest payable		-		110,835
Dividends payable		628,890		628,890
Due to related parties		42,360,470		76,824,918
Total current liabilities		140,007,731		155,343,024
Total Liabilities of Discontinued Operations		140,007,731		155,343,024
Net Assets of Discontinued Operations	$	(617,436)	$	24,541,200

The sale of all of the business operations to Beijing Zhumu Culture Communication Company, Ltd. covered in the Share Purchase Agreement as described in "Note 1 - Organization and Nature of Business Operations" was for approximately $31.7 million (RMB 200 million) in sales proceeds. The Share Purchase Agreement covers the sale of several business operations in different jurisdictions, with differing regulatory requirements regarding the purchase and sale of businesses. The table of above details the portion of the transaction related to the sale of Profit Harvest and CDE, which closed on December 31, 2012, for proceeds of $23.0 million. The portion of the sale covered in the Share Purchase Agreement for Ever Elite and Nollec Wireless generated proceeds of $500,000. This sales transaction closed on April 5, 2013. The balance of the sales proceeds, approximately $8.2 million will be allocated to TCB Digital upon the closing of that transaction. The Company has also included all the assets and liabilities of Portables at December 31, 2012 in discontinued operations.

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OPERATING RISK - Note 14

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

OPERATING RISK - Note 14

NOTE 14 - OPERATING RISK

• Industry risk

The industry in which we compete is a rapidly evolving, highly competitive and fragmented market driven by consumer preferences and quickly evolving technology. Increased competition may result in price reductions, reduced gross margin and loss of market share. Failure to compete successfully against current or future competitors could have a material adverse effect on the Company's business, operating results and financial condition.

• Exchange risk

The Company cannot guarantee the Renminbi and USD exchange rate will remain steady; therefore, the Company could post the same profit for two comparable periods and post higher or lower profit depending on exchange rate of Renminbi and USD. The exchange rate could fluctuate depending on changes in the political and economic environments without s

• Political risk

Currently, PRC is in a period of growth and is openly promoting business development in order to bring more business into PRC. Additionally PRC currently allows a Chinese corporation to be owned by a United States corporation. If the laws or regulations relating to ownership of a Chinese corporation are changed by the PRC government, the Company's ability to operate the PRC subsidiaries could be affected.

• Interest risk

The Company is exposed to interest rate risk arising from short-term variable rate borrowings from time to time. The Company's future interest expense will fluctuate in line with any change in borrowing rates.

The Company had outstanding warrants that are accounted for as derivative securities. Their values are re-measured at each reporting period. The quoted U.S. treasury rates with the maturities similar to those of the warrants are used as inputs in calculating their value; accordingly, the value of the warrants, are subject to fluctuations interest rates.

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Document and Entity Information

9 Months Ended

Sep. 30, 2013

Nov. 18, 2013

Document And Entity Information

Entity Registrant Name

ZOOM TECHNOLOGIES INC

Entity Central Index Key

0000822708

Document Type

10-Q

Document Period End Date

Sep. 30, 2013

Amendment Flag

true

Current Fiscal Year End Date

--12-31

Amendment Description

ZOOM TECHNOLOGIES, INC. (the "Company") is filing this Quarterly Report on Form 10-Q/A (the "Form 10-Q/A") for the quarterly period ended September 30, 2013 to include corrections to XBRL instance files that were not included in the Form 10-Q/A filed on November 25, 2013.

Is Entity a Well-known Seasoned Issuer?

No

Is Entity a Voluntary Filer?

No

Is Entity's Reporting Status Current?

Yes

Entity Filer Category

Smaller Reporting Company

Entity Common Stock, Shares Outstanding

3,008,517

Document Fiscal Period Focus

Q3

Document Fiscal Year Focus

2013

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EQUITY METHOD INVESTEE: SPREADZOOM - Note 15

9 Months Ended

Sep. 30, 2013

Investments, Debt and Equity Securities [Abstract]

EQUITY METHOD INVESTEE: SPREADZOOM - Note 15

NOTE 15 - EQUITY METHOD INVESTEE: SPREADZOOM

On May 10, 2012, the Company along with Spreadtrum Communications (Tianjin) Co., Ltd, Tianjin Baoshui District Investment Co, Ltd, and Han & Qin International (BVI) Limited invested in the joint venture SpreadZoom Technologies, Inc ("SpreadZoom"). SpreadZoom is domiciled in Tianjin, China with a registered capital of $47,352,700 (RMB 300,000,000). As of September 30, 2012, $17,520,500 (RMB 111,000,000) in capital had been contributed to SpreadZoom; the Company contributed $12,342,358 (RMB 78,000,000). As of September 30, 2012, the Company has used the equity method to account for its investment in SpreadZoom.

		September 30,
		2013
Financial Position of SpreadZoom		(Unaudited)
Current assets	$	26,542,710
Non-current assets		3,669,499
Total assets		30,212,209
Current liabilities		13,394,293
Non-current liabilities		-
Total liabilities		13,394,293
Net ssset value	$	16,817,916
		Three Months		Nine Months
Results of Operations of SpreadZoom		Ended September 30,		Ended September 30,
		2013		2013
		(Unaudited)		(Unaudited)
Net revenues	$	15,466,008	$	51,989,850
Cost of goods sold		14,602,540		50,749,207
Gross profit		863,468		1,240,643
Operating expenses		468,792		1,551,314
Operating income (loss)		394,676		(310,671)
Other income (expenses), net		(25,464)		(24,447)
Income (loss) before taxes		369,212		(335,118)
less: Provision for income taxes		-		-
Net income (loss)	$	369,212	$	(335,118)
Investment loss attributable to Zoom Technologies, Inc.	$	174,895	$	(158,746)

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Discontinued Operations (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012	Dec. 31, 2011
Results of Operations
Net revenues	$ 49,633,292	$ 117,180,898	$ 170,083,852	$ 306,717,488
Cost of sales	48,002,298	111,193,306	160,180,706	286,251,895
Gross profit	1,630,994	5,987,592	9,903,146	20,465,593
Operating expenses	4,479,634	3,663,827	11,279,690	12,987,224
Operating (loss) income	(2,848,640)	2,323,765	(1,376,544)	7,478,369
Other income (expenses), net	(831,631)	26,893	(2,828,766)	(908,405)
(Loss) income before taxes from discontinued operations	(3,680,271)	2,350,658	(4,205,310)	6,569,964
less: Provision for income taxes	90	601,837	21,277	1,505,386
(Loss) income from discontinued operations, net of tax	(3,680,361)	1,748,821	(4,226,587)	5,064,578
Basic and diluted (loss) income per common share from discontinued operations:
Basic	$ (4.57)	$ 0.54	$ (5.42)	$ 1.85
Diluted	$ (4.57)	$ 0.54	$ (5.42)	$ 1.85
Financial Position
Cash and equivalents	8,730,872	3,792,482	8,730,872	3,792,482	3,667,924	1,108,951
Restricted cash	69,630,402		69,630,402		64,467,142
Accounts receivable, net	36,676,226		36,676,226		38,889,208
Inventories, net	13,320,789		13,320,789		7,988,710
Other receivables and prepaid expenses	2,657,549		2,657,549		10,697,074
Advance to suppliers	478,223		478,223		5,027,089
Notes receivable	325,924		325,924		548,218
Due from related parties	6,471,812		6,471,812		17,144,272
Construction in progress deposit	0		0		278,996
Property, plant and equipment, net	1,098,498		1,098,498		3,670,327
Intangible assets, net	0		0		473,772
Goodwill	0		0		27,031,492
Total current assets	139,390,295		139,390,295		179,884,224
Total Assets of Discontinued Operations	139,390,295		139,390,295		179,884,224
Short-term loans	42,533,081		42,533,081		24,707,679
Notes payable	28,957,279		28,957,279		28,156,022
Accounts payable	26,996,853		26,996,853		22,625,660
Accrued expenses and other payables	932,246		932,246		3,591,128
Advances from customers	21,802		21,802		1,039,775
Taxes payable	(2,422,890)		(2,422,890)		(2,341,883)
Interest payable	0		0		110,835
Dividends payable	628,890		628,890		628,890
Due to related parties	42,360,470		42,360,470		76,824,918
Total current liabilities	140,007,731		140,007,731		155,343,024
Total Liabilities of Discontinued Operations	140,007,731		140,007,731		155,343,024
Net Assets of Discontinued Operations	$ (617,436)		$ (617,436)		$ 24,541,200

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Investment in Spreadzoom (Narrative) (Details)

9 Months Ended

Sep. 30, 2013

Investment In Spreadzoom Narrative Details

Equity Method Investment, Description of Principal Activities

On May 10, 2012, the Company along with Spreadtrum Communications (Tianjin) Co., Ltd, Tianjin Baoshui District Investment Co, Ltd, and Han & Qin International (BVI) Limited invested in the joint venture SpreadZoom Technologies, Inc ("SpreadZoom"). SpreadZoom is domiciled in Tianjin, China with a registered capital of $47,352,700 (RMB 300,000,000). As of September 30, 2012, $17,520,500 (RMB 111,000,000) in capital had been contributed to SpreadZoom; the Company contributed $12,342,358 (RMB 78,000,000). As of September 30, 2012, the Company has used the equity method to account for its investment in SpreadZoom.