Intangible Assets, Net

9 Months Ended

Sep. 30, 2013

8. INTANGIBLE ASSET, NET

The intangible asset as of September 30, 2013 and December 31, 2012 consisted of the following:

	September 30,			December 31,
	2013			2012
	(Unaudited)

Deposit for land use right	$	1,248,434		$	1,215,480
New production technology, net		488,433			475,540
Other		7,689			1,330
		1,744,556			1,692,350
Less: accumulated amortization		(598,367	)		(454,325	)
Intangible assets, net	$	1,146,189		$	1,238,025

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 Company has not obtained the land use right certificate as of November 13, 2013.

On October 22, 2010, the Company applied to the Administration Committee of Qingyuan Huaqiao Industrial District for the land use right covering an area of around 60 mu (approximately 9.9 acres). The Company has not obtained the land use right certificate as of November 13, 2013.

The Company has been amortizing the land use right at Huadu facility. The amortization of the land use right for the Qingyuan facility began in the third quarter of 2013 when construction of the new manufacturing facility started.

We recorded amortization expense of $49,415 and $131,725 for the three and nine months ended September 30, 2013 and we recorded amortization expense of $39,530 and $40,813 for the three and nine months ended September 30, 2012.