Income Tax (Tables)

9 Months Ended

Sep. 30, 2012

Income Tax Expense (Benefit) [Abstract]

Schedule of Tax Effects of Temporary Differences that Give Rise to Significant Portions of Deferred Tax Assets and Liabilities

The following table summarizes the temporary differences which result in deferred tax assets and liabilities as at September 30, 2012 and December 31, 2011:

		September 30,		December 31,
		2012		2011
Deferred tax assets:		(Unaudited)
Accounts receivable allowance	$	206,308	$	-
Net operating loss		1,542,316		-
Inventory impairment reserve		-		8,360
Inventory shortage		-		60,688
Long-term investment impairment		-		17,676
		1,748,624		86,724
less: Valuation allowance		(1,748,624)		-
Total deferred tax assets		-		86,724
Deferred tax liabilities:
Developed products		-		(30,575)
Deferred tax assets, net	$	-	$	56,149

Schedule of Effective Income Tax Rate and Amount Reconciliation

The following table reconciles the U.S. statutory rates to the Company's effective tax rate for the nine months ended September 30, 2012 and 2011:

	For the Nine Months Ended September 30,
	2012	2011
US statutory rates	34.00%	34.00%
Tax rate difference	-24.50%	-22.60%
Valuation allowance	37.10%	5.55%
Tax for prior year	2.12%	1.30%
Non-taxable Income of pass through entity	-8.19%	0.00%
Tax per financial statements	40.53%	18.25%