NOTE 6 - INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2012

Intangible Assets Disclosure [Text Block]

NOTE 6 – INTANGIBLE ASSETS

Intangible assets, consist of:

	December 31,			December 31,
	2012			2011
Technical know-how	$	237,944		$	236,053
Amorphous Transformer Technique		364,848			361,948
Total		602,792			598,001
Less: accumulated amortization		(359,002	)		(296,348	)
Intangible assets, net	$	243,790		$	301,653

On June 18, 2009, Zhongxi purchased an amorphous transformer aluminum wire technology for $237,944. The technology is being amortized over 10 years based on estimated useful life.

On April 14, 2005, Zhongxi purchased technical know-how from Xi’an Northwest Industry University Gaoshang Science & Technology Co., Ltd for $79,315. The technical know-how is being amortized over 10 years based on useful life estimation.

On September 2, 2004, Zhongxi purchased technical know-how from Xi'an Amorphous Alloy Science And Technology Co., Ltd. (“Alloy Science”), which is a related party of the Company, with common owners and directors for $158,629. The technical know-how is being amortized over 10 years based on useful life estimation.

On July 24, 2004, Zhongxi purchased amorphous transformer core manufacturing technology from Advanced Technology & Materials Co., Ltd. (“AT&M”) for $126,904.  The technology is being amortized over 10 years based on useful life estimation.

The estimated future amortization expenses related to intangible assets as of December 31, 2012 are as follows:

Years Ending December 31,
2013	$	60,278
2014		54,990
2015		37,666
2016		31,368
2017		23,794
Thereafter		35,694