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OTHER RECEIVABLES
9 Months Ended
Sep. 30, 2014
OTHER RECEIVABLES [Text Block]
5.

OTHER RECEIVABLES

   
 

Other receivables consisted of the following as of September 30, 2014 and December 31, 2013:


    9/30/2014     12/31/2013  
Advances to employees for job/travel disbursements   1,933,576     637,808  
Amount due by a non-related enterprise   28,065     163,656  
Other non-related receivables   3,383,967     333,411  
Other related party receivables   180,257     149,350  
Short-term investment sale receivable   4,382,950     4,413,795  
  $ 9,908,815   $ 5,698,020  

Advances to employees for job/travel disbursements consisted of advances to employees for transportation, meals, client entertainment, commissions, and procurement of certain raw materials. The advances issued to employees may be carried for extended periods of time because employees may spend several months out in the field working to procure new sales contracts or fulfill existing contracts.

Specifically, the company uses every available employee to arrange purchases with desirable chestnut or other raw material growers. However, because many of these growers are in rural farming areas of China where traditional banking and credit arrangements are difficult to implement, the Company must utilize cash purchases and also must contract for its future needs by placing a good faith deposit in cash with the growers. However none of these advances to employees for delivery to the growers on behalf of the Company are “personal loans” to the employees. Advances to employees for purchase of materials in other receivables are adjusted to advances to suppliers as of December 31, 2013.

Related party receivable represented advances issued by management for job or travel disbursement in the normal course of business. The receivable had no impact on earnings. As with other employees, officers sign notes when cash is issued to them as job or travel disbursement. In order to satisfy certain criteria for obtaining the long-term loan with DEG, as noted in footnote 12, Junan Hongrun lent money to Mr. You, Huadong to purchase life insurance. Related party receivable amounts are disclosed as "other related party receivables" in other receivables.

On March 13, 2011, the Company entered into an agreement with Jiangsu Heng An Industrial Investment Group Co., Ltd. to sell the Company’s short-term investment in the amount of $7,764,577 (RMB49,604,000) of a parcel of land located in Junan Town, Shandong Province, to construct residential buildings. The land was sold to Jiangsu Heng An at a total sale price of RMB69,604,000 and a guaranteed gross profit of RMB20,000,000 without consideration of profit/(loss) of the residential building project. The gain on the sale of the short-term investment excluding taxes payable was recorded as other income on the statements of income and comprehensive income. Title of the land transferred from the Company to Jiangsu Heng An with receipt of an initial deposit of RMB15,000,000. As of September 30, 2014, a total of RMB42,029,955 has been received and RMB26,970,045 (USD4,382,950) is classified as Other Receivable. According to the contract, the Company will be entitled to receive RMB9,000,000 within 5 days after the title transfer and construction approval is complete, and RMB27,000,000 within 5 days after the residential building main frame is completed.

Related party receivable consisted of the following as of September 30, 2014 and December 31, 2013:

      9/30/2014     12/31/2013  
  Non-controlling parties of Athena Group $ 8,679,152   $   -  
    $ 8,679,152   $   -