CAPITAL LEASE OBLIGATIONS

3 Months Ended

Mar. 31, 2014

CAPITAL LEASE OBLIGATIONS [Abstract]

NOTE J - CAPITAL LEASE OBLIGATIONS

	March 31,			December 31,
	2014			2013

Total capital lease obligations	$	10,217,185		$	10,909,463

Less: current portion		(3,715,340	)		(3,636,488	)
Non-current portion	$	6,501,845		$	7,272,975

On September 13, 2011, the Company entered into a leasing agreement with International Far Eastern Leasing Co., Ltd., a subsidiary of China Sinochem Corporation, for a term of 60 months and an interest rate of 7.95% per annum, payable monthly in arrears. To reduce the financing expense, the Company entered into a new leasing agreement with International Far Eastern Leasing Co., Ltd. in December 2012 and terminated the original agreement. The duration of the new agreement is 48 months with an interest rate of 6.4% per annum and is secured with the Company's equipment in the original cost of $28,396,853. The capital lease obligation obtained by the Company is RMB 91,428,571 (approximately $14,545,950) and the Company is required to maintain a security deposit of RMB 11,428,571 (approximately $1,818,244). The Company prepaid all interests of RMB 10,705,357 (approximately $1,703,212) after the discount and is obligated for the payment of RMB 1,904,761.9 (approximately $303,041) monthly. The prepaid interest for capital lease obligation is amortized over the life of capital lease agreement using the effective interest method.