XML 20 R6.htm IDEA: XBRL DOCUMENT v2.3.0.15
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)
6 Months Ended
Jun. 30, 2011
Jun. 30, 2010
Cash Flows from Operating Activities  
Net (loss) income$ (3,678,470)$ 1,452,128
Adjustments to reconcile net income to net cash provided by operating activities:  
Change in allowance for doubtful accounts3,341 
Depreciation and amortization63,17957,324
Common stock issued for services2,491,938 
Amortization of discount on convertible notes payable2,141,040 
Amortization of offering asset615,549 
Changes in operating assets and liabilities:  
Accounts receivable98,710(180,648)
Inventory172,608(74,550)
Prepaid and deferred expenses(565,838)198,707
Government grant(63,425)(78,815)
Accounts payable(3,282)243,095
Accrued expenses and other payables22,023347,087
Income tax payable297,978(250,918)
Deferred tax assets15,822(17,838)
Advance from customer(3,213)4,579
Net cash used in operating activities1,607,9601,700,151
Cash Flows from Investing Activities  
Increase in other receivables(740,433) 
Purchase of property, plant and equipment(100,179)(42,103)
Change in restricted cash(698,646)146,853
Increase in construction in progress (158,514)
Increase in cash due to VIE agreement with China Flying76,075 
Net cash used in investing activities(1,463,183)(53,764)
Cash Flows from Financing Activities  
Due from (to) a related party1,288,062(557,536)
Net proceeds from issuance of convertible notes6,522,563 
Increase (decrease) in bank borrowing458,215(440,558)
Net cash provided by (used in) financing activities8,268,840(998,094)
Effects of foreign currency conversion on cash(116,250)11,767
Net increase in cash and cash equivalents8,297,367660,060
Cash at beginning of period2,222,0251,817,875
Cash at end of period10,519,3922,477,935
Cash paid during the period for:  
Interest paid on bank loan67,40526,041
Income taxes$ 31,562$ 95,803