|
Note 2 - Summary of Significant Accounting Policies (Tables)
|
6 Months Ended |
|
Jun. 30, 2012
|
Jun. 30, 2011
|
| Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] |
The table below provides account receivable roll forward
schedules for our three largest customers ---- Gome, Tianhong
and Reed Sea
|
Customer
|
|
December
31, 2011 Receivable
|
|
|
2012
Sales
|
|
|
2012
collection
|
|
|
Bad
debt allowance
|
|
|
June
30, 2012 Receivable
|
|
|
Gome
|
|
$
|
2,802,821
|
|
|
$
|
33,475,031
|
|
|
$
|
27,573,395
|
|
|
|
-
|
|
|
$
|
8,704,457
|
|
|
Tianhong
|
|
$
|
1,587,777
|
|
|
$
|
27,338,740
|
|
|
$
|
13,819,473
|
|
|
|
-
|
|
|
$
|
15,107,044
|
|
|
Reed
Sea
|
|
$
|
4,236,537
|
|
|
$
|
20,812,698
|
|
|
$
|
16,151,498
|
|
|
|
-
|
|
|
$
|
8,897,737
|
|
|
|
| Schedule of property, plant and equipment, useful lives [Table Text Block] |
Depreciation of property and equipment is provided using the
straight-line method for substantially all assets with
estimated lives as follows:
|
Buildings
|
5-20
years
|
|
Equipment
|
5-10
years
|
|
Vehicles
|
5
years
|
|
Office
equipment
|
5-10
years
|
|
|
| Property, Plant and Equipment [Table Text Block] |
The following are the details of property and equipment at June
30, 2012 and December 31, 2011:
|
|
|
2012
|
|
|
2011
|
|
|
Building
|
|
$
|
21,173,915
|
|
|
$
|
21,254,566
|
|
|
Equipment
|
|
|
25,026,708
|
|
|
|
25,072,857
|
|
|
Vehicle
|
|
|
452,544
|
|
|
|
454,267
|
|
|
Office
equipment
|
|
|
567,069
|
|
|
|
566,054
|
|
|
Total
|
|
|
47,220,236
|
|
|
|
47,347,744
|
|
|
Less
accumulated depreciation
|
|
|
(12,907,664
|
)
|
|
|
(11,210,135
|
)
|
|
Property
& equipment, net
|
|
$
|
34,312,572
|
|
|
$
|
36,137,609
|
|
|
|
| Schedule of Intangible Assets and Goodwill [Table Text Block] |
The following are the details of intangible assets at June 30,
2012 and December 31, 2011:
|
|
|
2012
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
Right
to use land
|
|
$
|
36,695,047
|
|
|
$
|
36,834,817
|
|
|
Computer
software
|
|
|
93,426
|
|
|
|
83,201
|
|
|
Total
|
|
|
36,788,473
|
|
|
|
36,918,018
|
|
|
Less
accumulated amortization
|
|
|
(1,386,470
|
)
|
|
|
(1,022,490
|
)
|
|
Intangibles,
net
|
|
$
|
35,402,003
|
|
|
$
|
35,895,528
|
|
|
|
| Schedule of Finite-Lived Intangible Assets [Table Text Block] |
A summary of Company’s land use rights are as follows:
|
Name
|
|
Site
use right
Phase
I
|
|
Site
use right
Phase
II
|
|
Land
use right
|
|
Land
use right
|
|
Size
(In
Square Meters)
|
|
33,728
|
|
52,597
|
|
289,416
|
|
150,224
|
|
Location
|
|
Yangjiang
City
|
|
Yangjiang
City
|
|
Wuhu
City
|
|
Wuhu
City
|
|
Owner
|
|
Winder
|
|
Winder
|
|
Deer
Technology
|
|
Deer
Technology
|
|
Useful
life in months
|
|
600
|
|
600
|
|
600
|
|
600
|
|
Purpose
|
|
Plant
and workshop
|
|
Plant
and workshop
|
|
Plant
and workshop
|
|
Plant
and workshop
|
|
Purchase
date
|
|
November
2002
|
|
June
2005 & March 2010
|
|
September
2010
|
|
December
2010
|
|
Price
in RMB/USD
|
|
RMB
1.7 million
($0.3
million)
|
|
RMB
3.9 million
($0.6
million)
|
|
RMB
149.1 million
($23
million)
|
|
RMB
77.4 million
($12
million)
|
|
|
| Schedule of Expected Amortization Expense [Table Text Block] |
The following table summarizes the expected amortization over
the next five years as of June 30, 2012:
|
|
|
Amount
|
|
|
2013
|
|
$
|
736,583
|
|
|
2014
|
|
|
736,583
|
|
|
2015
|
|
|
736,583
|
|
|
2016
|
|
|
736,583
|
|
|
2017
|
|
|
736,583
|
|
|
Thereafter
|
|
|
31,719,088
|
|
|
Total
|
|
$
|
35,402,003
|
|
|
|
| Schedule of subsidy [Table Text Block] |
Set forth below are the grants recorded in the six months ended
June 30, 2012. The Company did not receive subsidiary income in
the three months ended June 30, 2012.
|
Item
|
|
Amount
in ($)
|
|
|
|
|
|
|
|
|
Development
fund from Yangjiang Hi-Tech Industrial Development
Zone Administration Committee
|
|
$
|
79,272
|
|
|
|
|
|
|
|
|
From
Yangjiang Hi-Tech Industrial Development Zone for
business development reward
|
|
|
150,617
|
|
|
Others
|
|
|
6,341
|
|
|
Total
|
|
$
|
236,230
|
|
|
Set forth below are the grants recorded in the six months
ended June 30, 2011. Subsidy income for the three months ended
June 30, 2011 was $7,960, and was received from Guangdong
Strategy Special Fund for Technology Implementation.
|
Item
|
|
Amount
in ($)
|
|
|
|
|
|
|
|
|
Development
fund from Yangjiang Hi-Tech Industrial Development
Zone Administration Committee
|
|
$
|
269,406
|
|
|
|
|
|
|
|
|
From
Hi-Tech Bureau of Finance for rewarding of plant
construction
|
|
|
704,564
|
|
|
Others
|
|
|
33,222
|
|
|
Total
|
|
$
|
1,007,192
|
|
|
| Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] |
The following is a reconciliation of the number of shares
(denominator) used in the basic and diluted EPS calculations:
|
Six
months ended June 30,
|
|
2012
|
|
|
2011
|
|
|
|
|
Shares
|
|
Per Share
Amount
|
|
|
Shares
|
|
Per Share
Amount
|
|
|
Basic
EPS
|
|
$
|
33,592,562
|
|
|
$
|
0.40
|
|
|
$
|
33,592,562
|
|
|
$
|
0.39
|
|
|
Effect
of dilutive warrants and stock options
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Diluted
EPS
|
|
|
33,592,562
|
|
|
$
|
0.40
|
|
|
|
33,592,562
|
|
|
$
|
0.39
|
|
|
The following is a reconciliation of the number of shares
(denominator) used in the basic and diluted EPS calculations:
|
Three
months ended June 30,
|
|
2012
|
|
|
2011
|
|
|
|
|
Shares
|
|
Per Share
Amount
|
|
|
Shares
|
|
Per Share
Amount
|
|
|
Basic
EPS
|
|
$
|
33,592,562
|
|
|
$
|
0.17
|
|
|
$
|
33,592,562
|
|
|
$
|
0.22
|
|
|
Effect
of dilutive warrants and stock options
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Diluted
EPS
|
|
|
33,592,562
|
|
|
$
|
0.17
|
|
|
|
33,592,562
|
|
|
$
|
0.22
|
|
|