Land Use Rights

3 Months Ended

Mar. 31, 2013

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 three months ended March 31, 2013 and 2012, amortization of land use rights amounted to $23,511 and $23,383, respectively. At March 31, 2013 and December 31, 2012, land use rights consisted of the following:

	Useful Life	March 31, 2013			December 31, 2012
Land use rights	45 - 50 years	$	4,298,395		$	4,274,916
Less: accumulated amortization			(544,949	)		(518,574	)
		$	3,753,446		$	3,756,342

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

Twelve-month periods ending March 31:	Amount
2014	$	94,106
2015		94,106
2016		94,106
2017		94,106
2018		94,106
Thereafter		3,282,916
	$	3,753,446