OTHER RECEIVABLES, DEPOSITS AND PREPAYMENTS

9 Months Ended

Sep. 30, 2012

Other Receivables Deposits and Prepayments [Abstract]

OTHER RECEIVABLES, DEPOSITS AND PREPAYMENTS

NOTE 6 OTHER RECEIVABLES, DEPOSITS AND PREPAYMENTS

Other receivables, deposits and prepayments consisted of the following:

	September 30,		December 31,
	2012		2011
Prepaid research and development costs	$	506,784	$	1,154,704
Prepaid insurance		378,000		123,250
Other receivables		86,475		24,675
Utility deposits		78,852		79,354
Recoverable input VAT		-		467,858
Other prepayments		-		33,023
Less: Allowance for valuation and doubtful debts		-		-
	$	1,050,111	$	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 varies from approximately 1.5 years to 3 years, with installment payment terms. Prepaid research and development costs as of September 30, 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.