OTHER RECEIVABLES, DEPOSITS AND PREPAYMENTS

6 Months Ended

Jun. 30, 2013

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:

	June 30, 2013		December 31, 2012
Prepaid insurance	$	439,446	$	162,000
Other receivables		158,073		118,031
Utility deposits		80,923		79,548
Prepaid research and development costs		-		200,376
Less: Allowance for valuation and doubtful debts		-		-
	$	678,442	$	559,955

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 June 30, 2013 and December 31, 2012 represented aggregate installment payments made upon execution of the contracts, net of amortization in 2013 and 2012, pursuant to the terms of these contracts.