Noncontrolling Interest (Tables)

6 Months Ended

Jun. 30, 2012

Profit and Loss Statement of Erdos TCH, Prepared Under Chinese GAAP

The following is an unaudited profit and loss statement of Erdos TCH, prepared under Chinese GAAP for the six months ended June 30, 2012 and 2011 (note: Erdos TCH’s US GAAP basis financial statements are part of the Company’s consolidated financial statements discussed in Note 2 – Basis for Consolidation):

	2012			2011
Net Revenue	$	7,510,614		$	6,387,265
Cost of Revenue		(4,215,028	)		(3,663,910	)
Gross Profit		3,295,586			2,724,355
Operating expenses		28,075			10,907
Income from operations		3,267,511			2,713,448
Non-operating income (expense)		(2,361,930	)		4,477
Income tax expense		(226,395	)		(679,481	)
Net Income	$	679,186		$	2,038,444

Reconciliation of Net Income per Chinese GAAP to Net Income per US GAAP

The following is a reconciliation of net income per Chinese GAAP to net income per US GAAP for the six months ended June 30, 2012 and 2011:

	2012			2011
Net income per Chinese GAAP	$	679,186		$	2,038,444
Adjustments under US GAAP:
Revenue per sales-type lease		(7,134,477	)		5,125,394
Cost of revenue		4,190,397			(5,072,460	)
Income from operation		(2,264,894	)		2,091,378
Interest income		3,703,026			1,785,208
Income before income tax		1,438,132			3,876,586
Deferred income tax expense		(193,443	)		(460,095	)
Net income per US GAAP	$	1,244,689		$	3,416,491

Balance Sheet of Erdos TCH, Prepared Under Chinese GAAP

The following is an unaudited balance sheet of Erdos TCH, prepared under Chinese GAAP as of June 30, 2012 and December 31, 2011:

	2012		2011
Assets
Cash and equivalents	$	19,676	$	78,243
Other current assets		1,275,179		-
Property and equipment		47,575,714		49,069,745
Construction in process		23,413,713		23,481,662
Total Assets	$	72,284,282	$	72,629,650
Liabilities
Accounts payable	$	39,526	$	442,080
Other current liabilities		4,644,682		5,009,894
Long term loan		41,858,369		42,017,808
Total liabilities		46,542,577		47,469,782
Equity
Paid in capital		17,573,578		17,573,578
Statutory reserve		570,094		570,094
Other comprehensive income		1,616,665		1,714,014
Retained earnings		5,981,368		5,302,182
Total stockholders’ equity		25,741,705		25,159,868
Total liabilities and stockholders’ equity	$	72,284,282	$	72,629,650