Income Taxes, Deferred Tax Assets and Deferred Tax Liabilities (Tables)

9 Months Ended

Sep. 30, 2018

SCHEDULE OF INCOME TAXES [Table Text Block]

		Three months ended September 30,				Nine months ended September 30,
		2017		2018		2017		2018
PRC income tax:
Current	$	-	$	-	$	-	$	-
Deferred		-		-		-		-
	$	-	$	-	$	-	$	-

SCHEDULE OF INCOME TAX RECONCILIATION [Table Text Block]

		Three months ended September 30,						Nine months ended September 30,
		2017			2018			2017			2018
(Loss) Income before income taxes	$	(4,202,753	)	$	7,920,563		$	(10,024,349	)	$	1,907,042
United States federal corporate income tax rate		35%			21%			35%			21%
Income tax (credit) expenses computed at United States statutory corporate income tax rate		(1,470,963	)		1,663,318			(3,508,522	)		400,479
Reconciling items:
Rate differential for PRC earnings		391,875			322,253			897,639			106,397
Non-deductible expenses		48,901			21,333			144,669			118,383
Share based payments		50,500			7,172			222,436			39,691
Recognition of tax losses previously not Recognized		-			(132,104	)		-			(132,104	)
Valuation allowance on deferred tax assets		979,687			(1,881,972	)		2,243,778			(532,846	)
Income tax expenses	$	-		$	-		$	-		$	-

SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES [Table Text Block]

		December 31,			September 30,
		2017			2018
Deferred tax assets
Trade accounts receivable	$	1,098,183		$	888,841
Inventories		1,772,444			1,852,758
Property, plant and equipment		781,227			819,299
Provision for product warranty		569,958			511,284
Net operating loss carried forward		25,892,299			25,509,082
Valuation allowance		(30,114,111	)		(29,581,264	)
Deferred tax assets, non-current	$	-		$	-
Deferred tax liabilities, non-current	$	-		$	-

Schedule of Unrecognized Tax Benefits [Table Text Block]

		Gross UTB			Surcharge		Net UTB
Balance as of January 1, 2018	$	7,537,273		$	-	$	7,537,273
Decrease in unrecognized tax benefits taken in current period		(397,068	)		-		(397,068	)
Balance as of September 30, 2018	$	7,140,205		$	-	$	7,140,205