NOTE 6

OTHER RECEIVABLES, DEPOSITS AND PREPAYMENTS

Other receivables, deposits and prepayments consisted of the following:

	As of December 31,
	2011		2010
Prepaid research and development costs	$	1,154,704	$	-
Recoverable input VAT		467,858		-
Prepaid insurance		123,250		-
Utility deposits		79,354		-
Other prepayments		33,023		-
Other receivables		24,675		21,967
Less: Allowance for valuation and doubtful debts		-		-

	$	1,882,864	$	21,967

During the year ended December 31, 2011, the Company signed various research and development contracts with Shanghai Electric Cable Research Institute. The service periods of the contracts vary from approximately 1.5 years to 3 years, with installment payment terms. Prepaid research and development costs as of December 31, 2011 represented aggregate installment payments made upon execution of the contracts, net of amortization in 2011, pursuant to the terms of these contracts.