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INCOME TAXES

9 Months Ended

Sep. 30, 2012

INCOME TAXES [Abstract]

NOTE 15-INCOME TAXES

The Company is subject to United States of America ("US") and People's Republic of China ("PRC") profit tax.

US

The Company is incorporated in the United States of America and is subject to United States federal taxation. No provisions for income taxes have been made as the Company has no taxable income for the year. The applicable income tax rate for the Company for the three and nine months ended September 30, 2012 and 2011 was 35%, respectively. No tax benefit has been realized since a valuation allowance has offset the deferred tax asset resulting from the net operating losses.

PRC

Effective January 1, 2008, the PRC Enterprise Income Tax Law, EIT Law, and Implementing Rules impose a unified enterprise income tax rate of 25% on all domestic-invested enterprises and foreign investment enterprises in PRC, unless they qualify under certain limited exceptions. As such, the Company's subsidiary in PRC is subject to an enterprise income tax rate of 25%.

No provision for income taxes have been made as the Company has no taxable income for the periods. $144 of tax benefits were recognized due to the change in the deferred tax assets.

Loss before income taxes consisted of:

		For Three Months Ended								For Nine months Ended
		September, 30,								September, 30,
		2012				2011				2012				2011
						Restated								Restated

US		$	(3,165	)		$	(7,833	)		$	(7,679	)		$	(25,214	)
PRC			(3,712	)			(2,021	)			(10,684	)			(5,515	)
		$	(6,877	)		$	(9,854	)		$	(18,363	)		$	(30,729	)

Benefit (Provision) for income taxes consisted of:
		For Three Months Ended								For Nine months Ended
		September, 30,								September, 30,
		2012				2011				2012				2011
						Restated								Restated
Current provision:
US		$	--			$	(3	)		$	--			$	(4	)
PRC			--				(2	)			-				14
Total current (provision)			-				(5	)			-				10
Deferred benefit (provision)
US			-				-				-				-
PRC			14				-				144				-
Total deferred benefit ( provision)			14				-				144				-
Total benefit (provision) for income taxes		$	14			$	(5	)		$	144			$	10

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

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Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 109

-Paragraph 43, 44, 45, 46, 47, 48, 49

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef

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+ Details