INCOME TAXES

3 Months Ended

Mar. 31, 2013

INCOME TAXES [Abstract]

INCOME TAXES

NOTE 12-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 months ended March 31, 2013 and 2012 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 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 provisions for income taxes have been made as the Company has no taxable income for the periods. $13,000 of tax benefits were recognized due to the change in the deferred tax assets.

Loss before income taxes consisted of:

	For Three Months Ended
	March 31
	2013			2012
US	$	(1,557	)	$	(2,321	)
PRC		(2,371	)		(2,229	)
	$	(3,928	)	$	(4,550	)
Benefit for income taxes consisted of:

	For Three Months Ended
	March 31.
	2013		2012
Current provision:
US	$	--	$	--
PRC		--		--
Total current		-		--
Deferred benefit
US		-		-
PRC		13		38
Total Deferred benefit		13		38
Total benefit for income taxes	$	13	$	38