Prepayments and Other Current Assets

3 Months Ended

Mar. 31, 2013

Prepayments and Other Non-Current Assets and Other Non-Current Assets [Abstract]

PREPAYMENTS AND OTHER CURRENT ASSETS

6. PREPAYMENTS 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. Before contracts were signed and the following year’s projected purchases were prepaid, we evaluated these suppliers’ financial position and business condition.  We only make prepayment arrangements with companies that are reputable in our industry and have strong financial position.  Due to growth expectation in 2013 and new product launches that require significant amount of  raw materials, and the threat of inflation and material shortages, we increased substantially our prepayments to secure supply of raw materials in 2013.

	March 31,		December 31,
	2013		2012
	(Unaudited)
Prepayments to suppliers	$	9,208,129	$	9,029,524

Other current assets as of March 31, 2013 and December 31, 2012 consisted of the following.

	March 31,		December 31,
	2013		2012
	(Unaudited)
Deferred expenses	$	18,495	$	16,221
Other current assets		-		837
Offering costs, net		-		115,688
	$	18,495	$	132,746