Land Use Rights

9 Months Ended

Sep. 30, 2011

NOTE 6 – LAND USE RIGHTS

There is no private ownership of land in China. Land is owned by the government and the government grants land use rights for specified terms. The Company’s land use rights have terms of 45 and 50 years and expire on January 1, 2053 and October 30, 2053. The Company amortizes the land use rights over the term of the respective land use right. For the nine months ended September 30, 2011 and 2010, amortization of land use rights amounted to $68,145 and $65,042, respectively. For the three months ended September 30, 2011 and 2010, amortization of land use rights amounted to $23,007 and $21,797, respectively. At September 30, 2011 and December 31, 2010, land use rights consist of the following:

	Useful Life	September 30, 2011			December 31, 2010
Land use rights	45 - 50 years	$	4,217,688		$	4,083,728
Less: accumulated amortization			(396,208	)		(316,569	)
		$	3,821,480		$	3,767,159

Amortization of land use rights attributable to future periods is as follows:

Twelve-month periods ending September 30:
2012	$	92,339
2013		92,339
2014		92,339
2015		92,339
2016		92,339
Thereafter		3,359,785
	$	3,821,480