EQUITY METHOD INVESTEE: SPREADZOOM - Note 22

6 Months Ended

Jun. 30, 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 June 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). 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 a loss from investment of $81,053 and $333,641 for the three and six months ended June 30, 2013 respectively.

		June 30,
		2013
Financial Position of SpreadZoom		(Unaudited)
Current assets	$	34,783,363
Non-current assets		3,466,061
Total assets		38,249,424
Current liabilities		21,906,369
Non-current liabilities		-
Total liabilities		21,906,369
Net ssset value	$	16,343,055
		Three Months		Six Months
Results of Operations of SpreadZoom		Ended June 30,		Ended June 30,
		2013		2013
		(Unaudited)		(Unaudited)
Net revenues	$	18,417,376	$	36,523,842
Cost of goods sold		18,222,696		36,146,667
Gross profit		194,680		377,175
Operating expenses		366,619		1,082,522
Operating loss		(171,939)		(705,347)
Other income (expenses), net		832		1,017
Income (loss) before taxes		(171,107)		(704,330)
less: Provision for income taxes		-		-
Net loss	$	(171,107)	$	(704,330)
Investment loss attributable to Zoom Technologies, Inc.	$	(81,053)	$	(333,641)