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ESTABLISHMENT OF JOINT VENTURE IN CHINA
12 Months Ended
Sep. 30, 2014
Establishment of Joint Venture in China [Abstract]  
Establishment of Joint Venture in China
(10) ESTABLISHMENT OF JOINT VENTURE IN CHINA

During the third quarter of 2014, the Company received the required government approvals in China to formally establish a joint-venture company which will source from Sevcon and supply, market and sell in China, current and future Sevcon products for on-road electric and hybrid vehicle applications. The joint-venture company, in which Sevcon and Xuchang Fuhua Glass Company Limited each own a 50% stake, will operate as Sevcon New Energy Technology (Hubei) Company Limited. Xuchang Fuhua Glass Company Limited is a Chinese Tier 1 automotive supplier based in Hubei Province.
 
The activities of the joint-venture company in the third and fourth quarters have been limited to the investment of initial capital of $320,000 by each party to the joint-venture, the sourcing of business premises, the hiring of engineering and sales and marketing staff and initial shipments to customers which were largely product prototypes designed specifically for the unique requirements of the Chinese market. In the fourth quarter, the Company recognized the initial establishment costs of the joint-venture company which amounted to $481,000; this represented the legal costs associated with the joint-venture agreement, the cost of sourcing and establishing business premises and the hiring cost of initial staff.
 
The financial statements of the joint-venture company have been consolidated with the Company’s as at September 30, 2014.