3. OTHER RECEIVABLES (NET) AND DEPOSITS

3 Months Ended

Mar. 31, 2014

Receivables [Abstract]

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

3. OTHER RECEIVABLES (NET) AND DEPOSITS

Other receivables and deposits consisted of the following at March 31, 2014 and December 31, 2013:

	2014			2013
Deposits for contract bids	$	101,807		$	97,603
Advance to employees		203,348			87,943
Advance to unrelated party companies		1,626,549			295,232
Deposit for land use right bid		-			328,036
Other		1,145,239			2,462,948
Less: bad debt allowance		(508,902	)		(513,509	)
Total, net	$	2,568,041		$	2,758,253

As of March 31, 2014, other of $1,145,239 mainly consisted of retainers for legal expense of $270,000, and the receivables of $785,992 from suppliers, which the Company previously prepaid for raw material purchases in the aggregate of $3,279,060 but the purchase orders were later cancelled by the Company. The Company collected $2.49 million as of March 31, 2014 and expected to collect the full payments in 2014.  Advance to unrelated party companies of $1,626,549 was various short-term loans, bore no interest, and payable upon demand.  As of December 31, 2013, other of $2,462,948 mainly consisted of receivable of $607,040 from sales of equipment, retainers for legal expense of $270,000, and the receivables of $993,808 from suppliers, which the Company previously prepaid in the first quarter of 2013 for raw material purchases but the purchase orders were later cancelled by the Company. Advance to unrelated party companies of $295,232 was various short-term loans, bore no interest, and payable upon demand.  Deposit of $328,036 was an initial deposit for company to bid for a land use right; however, this deposit was refunded to the Company during the three months ended March 31, 2014 due to the Company failed the bidding for the purchase.