XML 30 R12.htm IDEA: XBRL DOCUMENT v2.4.0.6
INVESTMENT AND DEPOSITS
12 Months Ended
Dec. 31, 2011
INVESTMENT AND DEPOSITS

NOTE 6 – INVESTMENT AND DEPOSITS

 

At December 31, 2011 and December 31, 2010, deposits mainly represented $554,000, through the issuance of 4,000,000 shares (pre-reverse split) of the Company’s’ stock at $0.136 per share, for the deposit of purchasing an acquisition target, Inner Mongolia Wuhai Chengtian Chemical Technology Co., Ltd., (“Wuhai Chengtian”). However, the acquisition was cancelled in 2011, Wuhai Chengtian, which changed name to Inner Mongolia Likang Biological Co., Ltd. (“Wuhai Likang”) in 2011, increased the registered capital from RMB 9 million to RMB 50 million, the deposit was not going to refund to the Company by Wuhai Likang’s selling shareholder; accordingly the deposit of $544,000 together with capital injection of $728,467 by the Company to Wuhai Chengtian which the Company initially treated it as due from related party, have been reclassified into the Company’s investment which was accounted for under the cost method as a result of the Company’s 9.18% ownership in Wuhai Likang. There was no significant impairment of this investment at December 31, 2011.