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CAPITAL COMMITMENT AND OPERATING LEASE COMMITMENTS | 6 Months Ended
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Jun. 30, 2012
CAPITAL COMMITMENT AND OPERATING LEASE COMMITMENTS | NOTE 19 – CAPITAL COMMITMENT AND OPERATING LEASE COMMITMENTS As of June 30, 2012, the Company has leased a real property adjacent to Factory No. 1, with the related production facility, channels and ducts, other production equipment and the buildings located on the property, under capital lease. The future minimum lease payments required under capital lease, together with the present value of such payments, are included in the table show below. The Company has leased seven pieces of land under non-cancelable operating leases, which are fixed in rentals and expired through December 2021, December 2030, December 2031, December 2040, February 2059, August 2059 and June 2060, respectively. The Company accounts for the leases as operating leases. The Company has committed approximately $13,097,126 for the second phase enhancement projects to the Company’s existing bromine extraction and crude salt production facilities as of June 30, 2012. The following table sets forth the Company’s contractual obligations as of June 30, 2012:
|  | Capital Lease Obligations |  |  | Operating Lease Obligations |  |  | Purchase Obligations |
Payable within: |  |  |  |  |  |  |  |  |  |  |  |
the next 12 months |  | $ | 296,772 |  |  | $ | 391,919 |  |  | $ | 13,097,126 |
the next 13 to 24 months |  |  | 296,772 |  |  |  | 774,856 |  |  |  | - |
the next 25 to 36 months |  |  | 296,772 |  |  |  | 785,560 |  |  |  | - |
the next 37 to 48 months |  |  | 296,772 |  |  |  | 797,566 |  |  |  | - |
the next 49 to 60 months |  |  | 296,772 |  |  |  | 809,241 |  |  |  | - |
thereafter |  |  | 3,858,042 |  |  |  | 18,736,421 |  |  |  | - |
Total |  | $ | 5,341,904 |  |  | $ | 22,295,563 |  |  | $ | 13,097,126 |
Less: Amount representing interest |  |  | (2,316,826 | ) |  |  |  |  |  |  |  |
Present value of net minimum lease payments |  | $ | 3,025,078 |  |  |  |  |  |  |  |  |
Rental expenses related to operating leases of the Company amounted to $194,450 and $157,480, which were charged to the income statements for the three-month ended June 30, 2012 and 2011, respectively. Rental expenses related to operating leases of the Company amounted to $388,766 and $261,488, which were charged to the income statements for the six-month ended June 30, 2012 and 2011, respectively.

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- Definition The entire disclosure for significant arrangements with third parties, which includes operating lease arrangements and arrangements in which the entity has agreed to expend funds to procure goods or services, or has agreed to commit resources to supply goods or services, and operating lease arrangements. Descriptions may include identification of the specific goods and services, period of time covered, minimum quantities and amounts, and cancellation rights. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 17 -Article 9 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.9-03.17) -URI http://asc.fasb.org/extlink&oid=6876686&loc=d3e534808-122878 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.25) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.7-03.(a)(19)) -URI http://asc.fasb.org/extlink&oid=6879938&loc=d3e572229-122910 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 25 -Article 5 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 19 -Article 7 + Details
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