EQUITY METHOD INVESTEE: SPREADZOOM - Note 22

3 Months Ended

Mar. 31, 2013

Investments, Debt and Equity Securities [Abstract]

EQUITY METHOD INVESTEE: SPREADZOOM - Note 22

NOTE 22 - 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 December 31, 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). The Company has committed to invest an additional $10,117,700 (RMB 64,100,000) in SpreadZoom. Management and control of the business have not been fully determined. The Company has used the equity method to account for its investment in SpreadZoom and has recorded and loss from investment of $252,588 for the three months ended March 31, 2013.

		March 31, 2013
Financial Position of SpreadZoom		(Unaudited)
Current assets	$	41,454,107
Non-current assets		2,422,513
Total assets		43,876,620
Current liabilities		27,609,965
Non-current liabilities		-
Total liabilities		27,609,965
Net ssset value	$	16,266,655
		For the Three Months
Results of Operations of SpreadZoom		Ended March 31, 2013
		(Unaudited)
Net revenues	$	18,106,466
Cost of goods sold		17,923,971
Gross profit		182,495
Operating expenses		715,903
Operating loss		(533,408)
Other income (expenses), net		185
Income (loss) before taxes		(533,223)
less: Provision for income taxes		-
Net loss	$	(533,223)
Investment loss attributable to Zoom Technologies, Inc.	$	(252,588)