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NONCONTROLLING INTEREST (Tables)

12 Months Ended

Dec. 31, 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 PRC GAAP for the years ended December 31, 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	$	15,041,035		$	13,664,259
Cost of Revenue		(8,425,034	)		(7,818,027	)
Gross Profit		6,616,001			5,846,232
Operating expenses		64,695			29,990
Income from operations		6,551,306			5,816,242
Non-operating income (expense)		(11,275,169	)		10,473
Income tax expense		(327,524	)		(1,456,679	)
Net Income (loss)	$	(5,051,386	)	$	4,370,036

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

The following is a reconciliation of net income per PRC GAAP to net income per US GAAP for the years ended December 31, 2012 and 2011:

	2012			2011
Net income (loss) per PRC GAAP	$	(5,051,386	)	$	4,370,036
Adjustments under US GAAP:
Revenue per sales-type lease		(14,257,426	)		(1,788,667	)
Cost of revenue		8,374,023			(1,044,251	)
Loss from operations		(5,883,403	)		(2,832,918	)
Operating expense		(3,587,774	)		-
Interest income		7,369,626			3,331,647
Income before income tax		5,073,997			498,729
Deferred income tax expense		(945,064	)		(127,958	)
Net adjustments		4,128,933			370,771
Net income (loss) per US GAAP	$	(922,453	)	$	4,740,807

Balance Sheet of Erdos TCH, Prepared Under Chinese GAAP

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

	2012		2011
Assets
Cash and equivalents	$	12,411	$	78,243
Other current assets		12,774,129		-
Property and equipment		46,558,041		49,069,745
Construction in process		-		23,481,662
Total Assets	$	59,344,581	$	72,629,650
Liabilities
Accounts payable	$	39,774	$	442,080
Other current liabilities		376,649		5,009,894
Long term loan		38,779,731		42,017,808
Total liabilities		39,196,154		47,469,782
Equity
Paid in capital		17,573,578		17,573,578
Statutory reserve		570,094		570,094
Other comprehensive income		1,753,959		1,714,014
Retained earnings		250,796		5,302,182
Total stockholders’ equity		20,148,427		25,159,868
Total liabilities and stockholders’ equity	$	59,344,581	$	72,629,650