Land Use Rights

9 Months Ended

Sep. 30, 2012

NOTE 5 – 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, 2012 and 2011, amortization of land use rights amounted to $70,068 and $68,145, respectively. For the three months ended September 30, 2012 and 2011, amortization of land use rights amounted to $23,341 and $23,007, respectively. At September 30, 2012 and December 31, 2011, land use rights consisted of the following:

	Useful Life	September 30, 2012			December 31, 2011
Land use rights	45 - 50 years	$	4,262,835		$	4,242,273
Less: accumulated amortization			(493,777	)		(421,737	)
		$	3,769,058		$	3,820,536

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

Twelve-month periods ending September 30:
2013	$	93,328
2014		93,328
2015		93,328
2016		93,328
2017		93,328
Thereafter		3,302,418
	$	3,769,058