Note 13 - Related Party Transactions

9 Months Ended

Sep. 30, 2011

Related Party Transactions Disclosure [Text Block]

Note 13 - Related Party Transactions

At September 30, 2011, and December 31, 2010, the Company had $0 and $197,776 due to related party, which was an advance for the Company’s operating needs from a shareholder. This $197,776 advance bore no interest, was payable upon demand and was unsecured.

The Company’s president, Ms. Lam, was the co-founder of KTY International Inc. (“KTY”) (DBA: Diamond Sofa), a former customer of the Company until September 2010, at which time KTY ceased doing business with the Company. Ms. Lam subsequently became the Chief Executive Officer of Diamond Bar in October 2010, which had acquired the business of Diamond Sofa. The Company appointed Ms. Lam its president and director on June 30, 2011, and, as of such appointment date, Ms. Lam had no ownership interest in Diamond Sofa or Diamond Bar. The Company acquired all the outstanding capital stock of Diamond Bar on August 31, 2011 (see Note 18). During the nine months ended September 30, 2011 and 2010, Diamond Sofa accounted for the Company’s sales of $0 and $1,154,971, respectively, of the Company’s sales. During the three months ended September 30, 2011 and 2010, Diamond Sofa accounted for $0 and $414,335, respectively, of the Company’s sales. During the nine months ended September 30, 2011 and 2010, Diamond Bar accounted for $902,638 and $0, respectively, of the Company’s sales. During the three months ended September 30, 2011 and 2010, Diamond Bar accounted for $277,056 and $0, respectively, of the Company’s sales. The accounts receivable from Diamond Sofa and Diamond Bar was $263,678 and $565,170 at September 30, 2011, and December 31, 2010, respectively.