OTHER RECEIVABLES, DEPOSITS AND PREPAYMENTS

3 Months Ended

Mar. 31, 2012

OTHER RECEIVABLES, DEPOSITS AND PREPAYMENTS

NOTE 6 OTHER RECEIVABLES, DEPOSITS AND PREPAYMENTS

Other receivables, deposits and prepayments consisted of the following:

	March 31,		December 31,
	2012		2011
Prepaid research and development costs	$	845,467	$	1,154,704
Utility deposits		79,437		79,354
Other prepayments		33,057		33,023
Other receivables		45,650		24,675
Recoverable input VAT		-		467,858
Prepaid insurance		-		123,250
Less: Allowance for valuation and doubtful debts		-		-
	$	1,003,611	$	1,882,864

In 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 March 31, 2012 represented aggregate installment payments made upon execution of the contracts, net of amortization in 2012 and 2011, pursuant to the terms of these contracts.