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PREPAID ACCOUNTS
9 Months Ended
Dec. 31, 2011
PREPAID ACCOUNTS

NOTE 4 – PREPAID ACCOUNTS

 

The prepaid account in amount of $67,627 is a cash payment to Jining Tianruitong Technology Development Limited Company. On October 26, 2010, Shandong Spring Pharmaceutical signed an agreement to purchase three patents relating to Chinese herbal formulas from Jining Tianruitong Technology Development Limited Company for $15,557,318. Pursuit to this agreement, the Company made an advance payment of $15,557,318 in October 2010. Subsequently, this purchase agreement was amended and restated on March 14, 2011. According to the amended terms, $10,050,910 of the total purchase price is returned to the Company by the owner of the patents because certain governmental approvals for the transfer patents were not completed and the patents are being purchased as a group. As of December 31, 2011, only $67,627 remains in the prepaid account. The rest of the prepayment has been returned.