PREPAID EXPENSES

9 Months Ended

Sep. 30, 2013

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

PREPAID EXPENSES

5. PREPAID EXPENSES

Prepaid expenses mainly consisted of prepayment for supplies, office rental and decorations, insurance and consulting fees for the Company’s RMB 460 million ($75 million) funding project. Before the Fund releases the money to Zhonghong, Xi'an TCH shall pay 2% of the funds raised, i.e. RMB 9.2 million ($1.5 million) to the Fund Management Company as a consulting fee and it shall pay such 2% on the amount of funds actually contributed as an annual management fee on every 365 day anniversary thereafter until Zhonghong fully repays the loan and the HYREF Fund no longer has an ownership interest in Zhonghong. The Company had prepaid consulting expense for the Fund of $1.25 million as of September 30, 2013.