Prepayment and Other Current Assets

6 Months Ended

Jun. 30, 2012

Prepayment and Other Current Assets [Abstract]

Prepayment and Other Current Assets

7. PREPAYMENT AND OTHER CURRENT ASSETS

In order to secure key raw materials and supplies and to lock in rising purchase prices, the Company paid substantial amounts of cash in advance on purchase orders. In addition, a few major R&D projects were paid in advance for developers’ work.

	June 30,		December 31,
	2012		2011
Prepayment to suppliers	$	3,325,391	$	3,633,674

Other current assets as of June 30, 2012 and December 31, 2011 consisted of the following.

	June 30,		December 31,
	2012		2011
Deferred expenses		25,630		-
Offering costs, net		517,323		914,594
	$	542,953	$	914,594

In connection with the private placement, the Company incurred $1,624,002 of offering 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, 2012, the remaining book value of these offering costs amounted to $517,323.