Subsequent Events

6 Months Ended

Jun. 30, 2013

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE 16 – SUBSEQUENT EVENTS

On July 10, 2013, the Company sold a total of 150,518 shares of common stock at a price of $4.70 per share to an investor and received net proceeds of approximately $620,000. The shares were issued pursuant to a prospectus supplement for the Company’s registration statement on Form S-3.  The Company paid a fee of 10% and a non-accountable expense allowance of 2%, for a total of $84,892, to an individual in connection with sales made to investors introduced to the Company by this individual who is not a U.S. citizen or resident.  The net proceeds received by the Company from the sale of the shares were approximately $620,000. 

On July 29, 2013, the Company issued a total of 30,000 shares of common stock pursuant to its 2010 long-term incentive plan, of which 8,000 shares were issued to the chief executive officer’s wife, 8,000 shares were issued to the chief financial officer and 14,000 shares were issued to other employees. The shares were valued at the fair market value on the grant date, and the Company recorded stock-based compensation of $78,600 in the third quarter of fiscal 2013 and prepaid expenses of $78,600 which will be amortized in the fourth quarter of fiscal 2013. 

On July 24, 2013, the Company made the payment of $161,598 to Bank of China in order to pay off the bank acceptance note payable which was collateralized by 100% of restricted cash deposited.

On August 6, 2013, the Company made the payment of $807,989 to Jiangsu Huishan Mintai Village Town Bank in order to pay off the bank acceptance note payable which was collateralized by 100% of restricted cash deposited.