INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

Income Tax Contingency [Line Items]

Schedule of Income (Loss) before Provision for Income Taxes

Income (loss) before provision for income taxes consisted of:

	2012			2011
USA	$	(12,106	)	$	(36,328	)
China		(18,775	)		(9,239	)
	$	(30,881	)	$	(45,567	)

Schedule of Income Tax Provision (Benefit)

Provision for income taxes consisted of:

	2012		2011
Current provision:
USA	$	-	$	4
China		-		-
Total current provision		-		4
Deferred provision (benefit):
USA		-		-
China		282		(149	)
Total Deferred provision (benefit)		282		(149	)
Total provision for income taxes	$	282	$	(145	)

Schedule of Deferred Tax Assets

The tax effect of temporary differences from USA and China that give rise to significant portions of the deferred tax assets at December 31, 2012 and 2011 is presented below:

	2012			2011
Net operating loss carryovers
- USA	$	59,588		$	56,768
- China		6,837			2,982
Total net operating loss carryovers		66,425			59,750
Timing differences
- USA		(16,396	)		(15,029	)
- China		1,492			523
Total gross deferred tax assets		51,521			45,244
Valuation allowance		(51,280	)		(44,721	)
Deferred tax assets, net of valuation allowance		241			523
Less: current portion		-			331
Non-current portion	$	241		$	192

USA [Member]

Income Tax Contingency [Line Items]

Schedule of Deferred Tax Assets

The tax effect of temporary differences that give rise to significant portions of the deferred tax assets at December 31, 2012 and 2011 is presented below:

	2012			2011
Net operating loss carryovers	$	59,588		$	56,768
Permanent differences, including stock
based compensation, amortization and bad debts		(6,248	)		(5,489	)
Fixed assets, due to differences in depreciation		(288	)		(288	)
Non qualified options and warrants		(6,728	)		(6,728	)
Reserves on investments		(1,877	)		(1,673	)
Intangible assets , due to impairment		(99	)		(99	)
R&D credit		138			138
Other differences		(1,294	)		(890	)
Total gross deferred tax assets	$	43,192		$	41,739
Valuation allowance		(43,192	)		(41,739	)
Net deferred tax assets	$	--		$	--

Schedule of Effective Income Tax Rate Reconciliation

The provision for income taxes for all periods presented in the consolidated statements of operations represents minimum California franchise taxes. Income tax expense differed from the amounts computed by applying the U.S. federal income tax rate of 34% to pretax losses as a result of the following:

	2012			2011
Computed expected tax expense	$	(4,187	)	$	(12,353	)
Losses and credits for which no benefits have been recognized		2,820			9,969
Stock grants and warrants not deductible for income tax purposes		760			1,340
Other amortization and impairments		607			1,044
State tax expense, net of federal income tax benefit		-			4
	$	-		$	4

CHINA [Member]

Income Tax Contingency [Line Items]

Schedule of Deferred Tax Assets

The tax effect of temporary differences that gave rise to significant portions of the deferred tax assets at December 31, 2012 and 2011 is presented below (in thousand):

	December 31, 2012			December 31, 2011
Deferred tax assets:
Property and equipment,
due to differences in depreciation	$	881		$	192
Inventories, due to impairment		369			57
Accrued liabilities		241			274
Net operating loss Carry forward		6,838			2,982
Total deferred tax assets, gross		8,329			3,505
Valuation allowance		(8,088	)		(2,982	)
Deferred tax assets, net of valuation allowance		241			523
Less: current portion		-			331
Non-current portion	$	241		$	192

Schedule of Effective Income Tax Rate Reconciliation

Under the relevant regulations of the Corporate Income Tax Law in China, the corporate income tax rate applicable to Jonway is 25%.

	2012			2011
Computed expected tax expense	$	(4,694	)	$	(2,465	)
Loss for which no benefits have been recognized		3,856			2,159
Change in valuation allowance for temporary differences		1,250
Others (a)		(130	)		157
Income tax expense (benefit)	$	282		$	(149	)

(a) Other represents expenses incurred by the Company that are not deductible for PRC income taxes.