OTHER CURRENT ASSETS

6 Months Ended

Jun. 30, 2011

5. OTHER CURRENT ASSETS

Other current assets consisted of the following:

	As of		As of
	June 30, 2011		December 31, 2010
	(Unaudited)

Prepayment to suppliers	$	674,659	$	115,079
Deferred expenses		55,024		49,767
Offering costs, net		1,008,454		-
	$	1,738,137	$	164,846

Deferred expenses primarily represent accrued input VAT which has not been declared to the tax bureau.

In connection with the private placement, the Company incurred $1,624,002 of closing costs. These costs have been reflected as other current assets and are being amortized using the interest method over the expected life of the related convertible notes payable. Amortization of these costs is recorded as interest expense. As of June 30, 2011, the remaining book value of these closing costs amounted to $1,008,454.