Statutory Reserves

12 Months Ended

Dec. 31, 2013

Statutory Reserves [Abstract]

STATUTORY RESERVES

Note 9   – STATUTORY RESERVES

Pursuant to the laws and regulations of the PRC, the Company’s PRC subsidiaries are required to allocate a portion of their after-tax income to the statutory reserves funds. The minimum statutory reserves allocation is 10% of after tax income until the reserves reach 50% of the entities’ registered capital or members’ equity. The reserve funds are not transferable to the Company in the form of cash dividends, loans or advances. Thus, the reserve funds are not available for distribution except in liquidation. For the year ended December 31, 2013 and 2012, the Company did not allocate any after-tax income to the statutory reserves.