NONCONTROLLING INTEREST (Tables)

6 Months Ended

Jun. 30, 2013

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 six months ended June 30, 2013 and 2012 (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):

	2013		2012
Net Revenue	$	7,512,597	$	7,510,614
Cost of Revenue		4,256,260		4,215,028
Gross Profit		3,256,337		3,295,586
Operating expenses		58,517		28,075
Income from operations		3,197,820		3,267,511
Non-operating income expense		(2,187,350)		(2,361,930)
Income tax expense		(252,617)		(226,395)
Net Income	$	757,853	$	679,186

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

The following is a reconciliation of net income (loss) per Chinese GAAP to net income per US GAAP for the six months ended June 30, 2013 and 2012:

	2013		2012
Net income per Chinese GAAP	$	757,853	$	679,186
Adjustments under US GAAP:
Revenue per sales-type lease		(7,210,036)		(7,134,477)
Cost of revenue		4,185,610		4,190,397
Loss from operation		(3,024,426)		(2,944,080)
Operating income (loss)		(69)		-
Interest income		3,678,975		3,703,026
Income before income tax		654,480		758,946
Deferred income tax expense		(175,912)		(193,443)
Net adjustment		478,568		565,503
Net income per US GAAP	$	1,236,421	$	1,244,689

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 June 30, 2013 and December 31, 2012:

	2013		2012
Assets
Cash and equivalents	$	11,851	$	12,411
Other current assets		17,352,763		12,774,129
Property and equipment		46,073,830		46,558,041
Total Assets	$	63,438,444	$	59,344,581
Liabilities
Accounts payable	$	113,697	$	39,774
Other current liabilities		2,612,474		376,649
Long term loan		39,450,046		38,779,731
Total liabilities		42,176,217		39,196,154
Equity
Paid in capital		17,573,578		17,573,578
Statutory reserve		570,094		570,094
Other comprehensive income		2,109,907		1,753,959
Retained earnings		1,008,648		250,796
Total stockholders’ equity		21,262,227		20,148,427
Total liabilities and stockholders’ equity	$	63,438,444	$	59,344,581