Income Taxes

6 Months Ended

Jun. 30, 2012

Income Taxes [Abstract]

Income Taxes

16. Income Taxes

 

As of June 30, 2012, the Company had net operating tax losses carried forward of approximately $17.2 million, which includes $12.5 million and $4.7 million in the US and PRC, respectively.  Those losses carried forward in the US and PRC will expire between years 2012 and 2025.  

As of June 30, 2012 and December 31, 2011, the Company has the following deferred tax assets and liabilities:

	June 30,			December 31,
	2012			2011
	(unaudited)
Deferred tax assets	$	11,683,887			9,548,645
Less valuation allowance		(11,093,231	)		(9,057,657	)
Deferred tax liabilites		(1,197,668	)		(1,279,729	)
Net deferred tax liability	$	(607,012	)		(788,741	)

The Company has established a valuation allowance against its net deferred tax assets due to the Company's history of pre-tax losses and the resulting likelihood that deferred tax assets are not realizable.  As of June 30, 2012 and December 31, 2011, the Company accrued penalties and interest on unrecognized tax position in the amount of $22,759 and $21,875, respectively.

The Company is not aware of any income tax audits in various jurisdictions, including the United States. The tax periods open to examination by the major taxing jurisdictions to which the Company, subsidiaries and joint ventures are subject include fiscal years 1997 through 2011.  Management does not anticipate any potential future adjustments in the next twelve months which would result in a material change to its financial tax position.