NONCONTROLLING INTEREST (Tables)

3 Months Ended

Mar. 31, 2013

Noncontrolling Interest [Abstract]

Profit and Loss Statement of Erdos TCH, Prepared Under Chinese GAAP

The following is an unaudited profit and loss statement of Erdos TCH, prepared under PRC GAAP for the three months ended March 31, 2013 and 2012 (note: Erdos TCH’s US GAAP basis financial statements are part of the Company’s consolidated financial statements discussed in Note 2 – Basis for Consolidation):

	2013			2012
Net Revenue	$	3,758,993		$	3,711,425
Cost of Revenue		(2,116,686	)		(2,105,057	)
Gross Profit		1,642,307			1,606,368
Operating expenses		37,977			15,506
Income from operations		1,604,330			1,590,862
Non-operating income (expense)		(1,085,990	)		-
Income tax expense		(129,585	)		(397,716	)
Net Income (loss)	$	388,755		$	1,193,146

Reconciliation of Net Income per Chinese GAAP to Net Income per US GAAP

The following is a reconciliation of net income per PRC GAAP to net income per US GAAP for the three months ended March 31, 2013 and 2012:

	2013			2012
Net income per PRC GAAP	$	388,755		$	1,193,146
Adjustments under US GAAP:
Revenue per sales-type lease		(3,583,659	)		(3,567,238	)
Cost of revenue		2,055,270			2,095,199
Loss from operations		(1,528,389	)		(1,472,039	)
Operating income (expense)		(44	)		137
Interest income		1,832,757			673,934
Income (loss) before income tax		304,324			(797,968	)
Deferred income tax benefit (expense)		(88,474	)		199,492
Net adjustments		215,850			(598,476	)
Net income per US GAAP	$	604,605		$	594,670

Balance Sheet of Erdos TCH, Prepared Under Chinese GAAP

The following is an unaudited balance sheet of Erdos TCH, prepared under PRC GAAP as of March 31, 2013 and December 31, 2012:

	2013		2012
Assets
Cash and equivalents	$	10,529	$	12,411
Other current assets		15,390,766		12,774,129
Property and equipment		46,071,286		46,558,041
Construction in process		-		-
Total Assets	$	61,472,581	$	59,344,581
Liabilities
Accounts payable	$	-	$	39,774
Other current liabilities		1,999,030		376,649
Long term loan		38,882,420		38,779,731
Total liabilities		40,881,450		39,196,154
Equity
Paid in capital		17,573,578		17,573,578
Statutory reserve		570,094		570,094
Other comprehensive income		1,807,908		1,753,959
Retained earnings		639,551		250,796
Total stockholders’ equity		20,591,131		20,148,427
Total liabilities and stockholders’ equity	$	61,472,581	$	59,344,581