INTANGIBLE ASSETS, NET

9 Months Ended

Dec. 31, 2011

INTANGIBLE ASSETS, NET

NOTE 9 - INTANGIBLE ASSETS, NET

The intangible assets of the Company consist of land use right and purchased patents.

Net land use right and purchased patent were as follows:

	Amortization		As of,
	Period		Dec 31, 2011			Mar 31, 2011
				(Restated)			(Restated)
Land use right		50 years	$	1,547,801		$	1,547,801
Less: Accumulated amortization				(169,677	)		(139,821	)
Land use right, net				1,378,124			1,407,980
Patent 1		16.5 years		7,016,045			7,016,045
Less: Accumulated amortization for Patent 1				(824,076	)		(337,476	)
Patent 1, net				6,191,969			6,678,569
Patents (non-US No. ZL200510045001.9)		13.75 years		9,839,864			-
Less: Accumulated amortization for Patent (non-US No. ZL200510045001.9)				(178,906	)		-
Patent (non-US No. ZL200510045001.9), net				9,660,958			-
Patents (non-US No. ZL200710013301.8)		14.95 years		1,587,075			-
Less: Accumulated amortization for Patent (non-US No. ZL200710013301.8)				(26,600	)		-
Patent (non-US No. ZL200710013301.8), net				1,560,475			-
Patent (U.S. No. 6,475,531 B1)		9.9 years		35,514,657			32,748,665
Less: Accumulated amortization for Patent (U.S. No. 6,475,531 B1)				(2,898,608	)		(275,199	)
Patent (U.S. No. 6,475,531 B1), net				32,616,049			32,473,466
Intangible assets, net			$	51,407,575		$	40,560,015

On October 1, 2011, two patents were transferred to the Company. The book value for patent – “Treatment to ischemic encephalopathy and its preparation method” (ZL 200510045001.9) is amounted to $9,839,864; and the book value for patent – “Chinese herbal medicine compound to treat renal insufficiency and its preparation” (ZL 200710013301.8) is amounted to $1,587,075.

The amortization expense of land use right for the three months ended December 31, 2011 and 2010 was $9,439 and $18,433, respectively. The amortization expense of patents for the three months ended December 31, 2011 and 2010 was $1,419,727 and $176,513, respectively.

The amortization expense of land use right for the nine months ended December 31, 2011 and 2010 was $29,856 and $26,573, respectively. The amortization expense of patents for the nine months ended December 31, 2011 and 2010 was $3,315,517 and $261,331, respectively.