Intangible Assets, Net

9 Months Ended

Sep. 30, 2011

Notes to Financial Statements

Intangible Assets, Net

7.  INTANGIBLE ASSET, NET

The intangible asset as of September 30, 2011 and December 31, 2010 consisted of the following.

	September 30,		December 31,
	2011		2010
Intangible asset	$	301,030	$	286,892

On November 21, 2003, the Company applied to the Government of Huaqiao Town, Huadu District, Guangzhou, for the land use right of No. 2 Industry Area of Huaqiao Town (i.e., Laohutou Lot, Wangongtang) covering an area of around 430,000 square feet. The total consideration for the land use right is $598,536. As of September 30, 2011, the Company has paid $301,030 of this amount.

While the final approval of the application of land use right is pending, the Company entered into an agreement on April 15, 2006 to lease the land from its beneficial owner until such time as a land use certificate is issued by the government or May 21, 2021, whichever occurs first. Until that time, the lease is at will and payments under the terms of the lease are $8,800 per year.