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)