NOTE 18. ACQUISITION On September 28, 2012, the Company completed its acquisition of 100% equity interest of Jussey Investments Limited ( Jussey ), a company incorporated in British Virgin Islands, for aggregate purchase consideration of approximately US$2,150,000, payable by way of cash or equivalent in favor to the seller within 5 business days after the completion of the acquisition. Jussey owns 100% equity interest in eVision Telecom Limited ( eVision ), a Hong Kong incorporated company, and 80% equity interest in USmart Electronic Products Limited ( USmart ), a Hong Kong incorporated company. Jussey indirectly owns 80% of Dongguan Kezheng Electronics Limited ( Kezheng ), a wholly foreign-owned enterprise ( WFOE ) organized under the laws of the PRC by USmart. Through the acquisition, the Company has diversified its product portfolio, enhanced its distributor role to a Research and Develop ( R&amp;D ) manufacturer with its own products and brands, entered the telecommunication industry, gained access to the 3G baseband licenses, and design and manufacturing matrix and facility. The Company accounted for this acquisition of Jussey and its subsidiaries by acquisition method of accounting. The balance sheet items were stated at fair value. The fair value was accounted upon the issuance of fair value report from an independent valuator engaged for this acquisition. The purchase price was allocated as follows: Purchase Consideration: Acquisition obligation payable to sellers $ 2,150,000 Direct costs relating to acquiree 20,000 Less: cash acquired (157,259 ) Net purchase consideration $ 2,012,741 Assets Acquired Net tangible assets acquired: Fixed assets $ 355,481 Inventories 654,757 Trade receivables, deposits, prepayment and other receivables 717,369 Restricted cash 132,706 Trade payables, other creditors and accruals (13,328,971 ) Non-controlled interest 2,140,276 Net tangible assets acquired $ (9,328,382 ) Purchase consideration in excess of net tangible assets $ 11,341,123 Allocated to: Trademark $ 53,955 Lice