OTHER RECEIVABLES & PREPAID EXPENSES - Note 8

9 Months Ended

Sep. 30, 2012

Notes to Financial Statements

OTHER RECEIVABLES & PREPAID EXPENSES - Note 8

NOTE 8 - OTHER RECEIVABLES & PREPAID EXPENSES

As of September 30, 2012 and December 31, 2011, the Company's other receivables and prepaid expenses consisted of the following:

	September 30,		December 31,
	2012		2011
	(Unaudited)
Advance to employees	$	74,329	$	23,882
Deposit		-		211,583
Prepaid expenses		364,288		238,857
Bank notes (a)		6,441,170		9,226,641
Tax Reimbursement		69,993		-
Other		796,691		83,044
Total other receivables and prepaid expenses	$	7,746,471	$	9,784,007

(a) Per purchase contract signed in 2010, CECCC provided mobile phone components to the Company. The Company paid in advance to CECCC by payment of ' bank notes'. During 2011, no purchase transaction was completed. As of September 30, 2012, the total outstanding amount is $6.4 million (RMB 40.7 million).