6. INVESTMENTS

9 Months Ended

Sep. 30, 2012

Accounting Policies [Abstract]

6. INVESTMENTS

Marketable Equity Securities

Marketable equity securities consist of shares in Alpha Lujo, Inc. and Wonder International Education & Investment Group Corporation (Wonder) received by the Company for services rendered.  The following is a summary of available-for-sale marketable securities as of September 30, 2012 and December 31, 2011:

September 30, 2012	Cost		Unrealized Gain		Unrealized (Losses)			Market or Fair Value
Equity securities	$	5,887,395	$	-	$	(45,694	)	$	5,841,701
Total	$	5,887,395	$	-	$	(45,694	)	$	5,841,701
December 31, 2011	Cost		Unrealized Gain		Unrealized (Losses)			Market or Fair Value
Equity securities	$	137,082	$	-	$	(22,847	)	$	114,235
Total	$	137,082	$	-	$	(22,847	)	$	114,235

The following is a summary of the net unrealized gains and losses as presented in Other Comprehensive Income as of September 30, 2012 and December 31, 2011:

			Unrealized			Unrealized		Other
September 30, 2012	Unrealized		(Losses)			(Losses)		Comprehensive
	Gains		Short Term			Long Term		Income (Loss)
Equity securities	$	-	$	(45,694	)	$	-	$	(45,694	)
Total	$	-	$	(45,694	)	$	-	$	(45,694	)
			Unrealized			Unrealized		Other
December 31, 2011	Unrealized		(Losses)			(Losses)		Comprehensive
	Gains		Short Term			Long Term		Income (Loss)
Equity securities	$	-	$	(22,847	)	$	-	$	(22,847	)
Total	$	-	$	(22,847	)	$	-	$	(22,847	)

The Company  sold 200,000 shares of Wonder securities during the three and nine months ended September 30, 2012 resulting in a realized loss of $400,000. The Company did not sell any such securities during the year ended December 31, 2011.

In, 2012, the Company did issue 899,875 shares of Wonder as a dividend, with a value of $2,249,688.

Non-marketable Equity Securities

Non-marketable equity securities consist of shares of Tsingda eEDU Corp. received by the Company for services rendered during 2010.  These shares are carried at a cost of $1,477,000 which was estimated to be the value of the securities at the date of receipt.

In 2011, the Company issued 300,018 shares of Tsingda to the shareholders of the Company as a dividend, with a value of $284,074.  The Company also exchanged 26,875 shares of Tsingda for cash, per subscription agreements the Company had entered into with a cost of $19,086.  The Company exchanged 86,603 shares of Tsingda for outstanding liabilities with a cost of $61,504.

In 2012, the Company repurchased one of the subscription agreements for 23,750 shares of Tsingda.  Those shares were recorded at the original carrying value of $16,867.