26. Capital Lease Obligations

12 Months Ended

Dec. 31, 2012

Debt and Capital Leases Disclosures [Text Block]

26. CAPITAL LEASE OBLIGATION

In November 2009, the Group entered a six-year capital lease agreement for certain equipment under construction. The terms of the lease required an initial payment of RMB5 million (or approximately $802,542) and required a RMB1 million (or approximately $160,508) payment on January 30th of each year after successful completion of production quality tests. The installment and trial run of the equipment was completed in 2010, and the equipment under the capital lease is depreciated over an estimated productive life of 14 years when placed into service after passing production quality tests. As of December 31, 2012 and 2011, the Group had $1,100,366 and $1,453,518, respectively, of equipment subject to the capital lease obligation.

Minimum future lease payments under capital leases as of December 31, 2012, were as follows:

	Future payments
	US$
2013		160,508
2014		160,508
2015		160,509
Total minimum lease payments as of December 31, 2012		481,525
Less amount representing interest		(46,947	)
Net present value of minimum lease payments		434,578
Current portion of capital lease obligation		(137,722	)
Non-current portion of capital lease obligation		296,856

The interest rate on the capital lease is 5.31%. There was $29,629, $35,268 and $39,368 amortization of interest recorded for the years ended December 31, 2012, 2011 and 2010, respectively. Accumulated amortization was $104,265 and $74,636 as of December 31, 2012 and 2011, respectively.