XML 55 R36.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 12 - Income Taxes and Other Taxes Payable (Tables)
 12 Months Ended
Dec. 31, 2012
Schedule of Taxes Payable [Table Text Block]
Taxes payable consisted of the following at December 31, 2012 and 2011:

     
2012
     
2011
 
Income tax payables
 
$
255,793
   
$
38,391
 
Other taxes payable
   
16,366
     
160,593
 
                 
Total tax payable - current
 
$
272,159
   
$
198,984
 
                 
Total income tax payable - noncurrent
 
$
4,608,592
   
$
4,016,266
 
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]
The components of income before income taxes consisted of the following for the years ended December 31, 2012 and 2011:

   
2012
   
2011
 
             
Income (Loss) subject to domestic income taxes only
 
$
491,393
   
$
(139,515)
 
Income subject to foreign income taxes only
   
6,014,144
     
6,965,191
 
                 
Total
 
$
6,505,537
   
$
6,825,676
 
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]
The provision for income taxes consisted of the following for the years ended December 31, 2012 and 2011:

   
2012
   
2011
 
Current
           
Federal
 
$
363,780
   
$
707,533
 
State
   
35,187
     
800
 
PRC
   
509,623
     
924,653
 
Total current
   
908,590
     
1,632,986
 
Deferred
               
Federal
   
143,431
     
(151,937)
 
State
   
26,021
     
(26,072)
 
PRC
   
(6,388
) 
   
5,534
 
Total deferred
   
163,064
     
(172,475
)
Total
 
$
1,071,654
   
$
1,460,511
 
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]
The following is a reconciliation of the difference between the actual provision for income taxes and the provision computed by applying the federal statutory rate on income before income taxes for the years ended December 31, 2012 and 2011:

   
2012
   
2011
 
             
Tax at federal statutory rate
 
$
2,211,861
   
$
2,320,730
 
Domestic permanent differences
   
8,666
     
(104,501
)
State tax
   
61,280
     
(25,272
)
Foreign rate differential
   
(541,273
)
   
(626,867
)
Foreign permanent differences
   
7,395
     
(75,612
)
ASC 740-10 uncertain tax position
   
582,672
     
1,508,213
 
Tax exemption
   
(1,397,866
)
   
(1,504,950
)
Other
   
138,919
     
(31,230
)
Total
 
$
1,071,654
   
$
1,460,511
 
Schedule of the Aggregate Dollar and Per Share Effects of Tax Exemption [Table Text Block]
The following presents the aggregate dollar and per share effects of the Company’s tax exemption for the years ended December 31, 2012 and 2011:

   
2012
   
2011
 
             
Aggregate dollar effect of tax exemption
 
$
1,397,866
   
$
1,504,950
 
Basic EPS impact
 
$
0.07
   
$
0.10
 
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]
Deferred taxes are comprised of the following for the years ended December 31, 2012 and 2011:

   
2012
   
2011
 
             
Current deferred tax assets
           
Accrued liabilities
 
$
157,424
   
$
156,974
 
                 
Noncurrent deferred tax assets:
               
Federal & CA state amortization
 
$
8,852
   
$
2,213
 
Federal & CA state NOL
   
-
     
34,849
 
Intercompany payable
   
-
     
131,521
 
Land use rights
   
7,034
     
7,016
 
PRC fixed asset and amortization
   
643
     
962
 
PRC NOL
   
5,045
     
8,129
 
                 
Noncurrent deferred tax liabilities:
               
Federal & CA state depreciation
   
(35,237
)
   
(26,425
)
Purchase accounting
   
(17,000
)
   
(17,000
)
Prepaid expenses
   
(320)
     
(5,672
)
PRC depreciation on building
   
(9,342
)
   
(9,319
)
                 
Net noncurrent deferred tax assets (liabilities) before valuation allowance
   
(40,325
) 
   
126,274
 
Less: valuation allowance
   
(5,045
)
   
(8,130
)
Non-current deferred tax assets (liabilities), net
 
$
(45,370
) 
 
$
118,144