NOTE 2 - RESTATEMENT OF MARCH 2011 UNAUDITED QUARTERLY FINANCIAL STATEMENTS

On January 21, 2011(the "Closing Date"), the Company completed the acquisition of 51% of the equity shares of Jonway. The transaction was accounted for in accordance with the provisions of ASC 805-10, Business Combinations. The Company retained independent appraisers to advise management in the determination of the fair value of the various assets acquired and liabilities assumed. The values assigned in the unaudited financial statements for the three and six months ended June 30, 2011 represented management's best estimate of fair values as of the Closing Date.

As required by ASC 805-20, Business Combinations—Identifiable Assets and Liabilities, and Any Noncontrolling Interest, management conducted a review for the year ended December 31, 2011 to reassess whether they identified all the assets acquired and all the liabilities assumed, and followed ASC 805-20's measurement procedures for Closing Date recognition of the fair value of net assets acquired.

The revaluation of the fair value at December 31, 2011, of the various assets acquired and liabilities assumed, resulted in restated financial information in this quarterly report. The table below illustrates the calculation of the adjustments.


Account	Provisional amount as of January 21, 2011			Adjustment based on final valuation report			Revised amount recorded as of January 21, 2011
Inventory	$	12,715		$	25		$	12,740
Property and Equipment		46,322			10,749			57,071
Other liabilities assumed		(14,524	)		166			(14,358	)
Goodwill and Intangible Assets		23,794			(18,412	)		5,382
Purchase option		2,695			(310	)		2,385
Non controlling interest		(31,875	)		3,662			(28,213	)

	$	39,127		$	(4,120	)	$	35,007


	As reported at June 30, 2011			Adjustments to the six months ended June 30, 2011			As restated at June 30, 2011
Cost of goods sold	$	25,359		$	25		$	25,384
Amortization and Depreciation		6,063			(2,777	)		3,286

	$	31,422		$	(2,752	)	$	28,670

As a result, the Company restated its 2011 first quarter financial information to reflect the final measurement of the fair value of the assets acquired. The financial information in this quarterly report reflects the restated financial information.


Amounts in ('000s)	June 30, 2011
Net assets as reported	$	61,936
Adjustments		(4,342	)

Restated net assets	$	57,594


	Three Months Ended June 30, 2011			Six Months Ended June 30, 2011
Net loss as reported	$	(13,715	)	$	(23,613	)
Adjustments		36			2,752

Restated loss	$	(13,679	)	$	(20,861	)