China Pharma (CPHI) 10-Q/A 28 Dec 15 2015 Q2 Quarterly report (amended) Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 11, 2015
Document and Entity Information
Entity Registrant Name	CHINA PHARMA HOLDINGS, INC.
Entity Trading Symbol	CPHI
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	true
Entity Central Index Key	1,106,644
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		43,579,557
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Amendment Description	Amendment No. 1

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Current Assets:
Cash and cash equivalents	$ 4,549,200	$ 5,295,790
Banker's acceptances	90,330	458,233
Trade accounts receivable, less allowance for doubtful accounts of $48,667,814 and $44,347,451, respectively	11,351,607	13,853,744
Other receivables, less allowance for doubtful accounts of $81,605 and $60,325, respectively	401,223	272,199
Advances to suppliers	8,450,189	7,889,009
Inventory, less allowance for obsolescence of $7,222,881 and $6,934,044, respectively	13,623,919	15,321,856
Prepaid expenses	58,102	404,370
Total Current Assets	38,524,570	43,495,201
Advances for purchases of intangible assets	43,136,305	42,390,186
Property and equipment, net of accumulated depreciation of $8,413,910 and $6,640,718, respectively	32,596,716	33,881,878
Intangible assets, net of accumulated amortization of $4,389,602 and $4,186,273, respectively	1,154,782	1,317,221
TOTAL ASSETS	115,412,373	121,084,486
Current Liabilities:
Trade accounts payable	3,698,993	2,550,816
Accrued expenses	253,012	269,870
Other payables	1,527,045	1,401,470
Advances from customers	1,042,971	2,078,866
Other payables - related parties	1,354,567	1,354,567
Current portion of construction loan facility	1,642,360	1,629,062
Short-term notes payable	4,927,079	4,887,187
Total Current Liabilities	14,446,027	14,171,838
Non-current Liabilities:
Construction loan facility	11,496,518	11,403,438
Deferred revenue	2,536,923	2,516,383
Long-term deferred tax liability	293,634	252,707
Total Liabilities	28,773,102	28,344,366
Stockholders' Equity:
Preferred stock, $0.001 par value; 5,000,000 shares authorized;no shares issued or outstanding	0	0
Common stock, $0.001 par value; 95,000,000 shares authorized;43,579,557 shares and 43,579,557 shares outstanding, respectively	43,580	43,580
Additional paid-in capital	23,590,204	23,590,204
Retained earnings	42,498,895	49,345,516
Accumulated other comprehensive income	20,506,592	19,760,820
Total Stockholders' Equity	86,639,271	92,740,120
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 115,412,373	$ 121,084,486

CONSOLIDATED BALANCE SHEETS PAR

CONSOLIDATED BALANCE SHEETS PARENTHETICALS - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Parentheticals
Allowance for doubtful accounts on trade accounts receivables	$ 48,667,814	$ 44,347,451
Allowance for doubtful accounts on other receivables	81,605	60,325
Allowance for obsolescence of inventory	7,222,881	6,934,044
Accumulated depreciation on property and equipment	8,413,910	6,640,718
Accumulated amortization on intangible assets	$ 4,389,602	$ 4,186,273
Preferred Stock, par or stated value	$ 0.001	$ 0.001
Preferred Stock, shares authorized	5,000,000	5,000,000
Common Stock, par or stated value	$ 0.001	$ 0.001
Common Stock, shares authorized	95,000,000	95,000,000
Common Stock, shares outstanding	43,579,557	43,579,557

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenue
Revenue	$ 5,674,175	$ 6,130,544	$ 11,369,105	$ 13,236,059
Cost of revenue	4,511,951	3,713,147	8,946,657	8,158,276
Inventory obsolescence	1,218,051	0	1,419,148	0
Gross (loss) profit	(55,827)	2,417,397	1,003,300	5,077,783
Operating expenses:
Selling expenses	1,012,463	627,442	2,001,416	1,447,847
General and administrative expenses	459,026	382,832	931,455	806,759
Research and development expenses	174,850	1,902,027	335,678	2,346,434
Bad debt expense (benefit)	(3,141,116)	8,032,315	3,963,540	11,340,444
Total operating expenses	(1,494,777)	10,944,616	7,232,089	15,941,484
Income (loss) from operations	1,438,950	(8,527,219)	(6,228,789)	(10,863,701)
Other income (expense):
Interest income	30,222	16,828	57,077	38,611
Interest expense	(322,422)	(113,363)	(636,197)	(169,810)
Net other expense	(292,200)	(96,535)	(579,120)	(131,199)
Loss before income taxes	1,146,750	(8,623,754)	(6,807,909)	(10,994,900)
Income tax expense	(19,428)	(19,196)	(38,712)	(38,543)
Net income (loss)	1,127,322	(8,642,950)	(6,846,621)	(11,033,443)
Other comprehensive income (loss) - foreign currency translation adjustment	259,216	153,664	745,772	(961,320)
Comprehensive income (loss)	$ 1,386,538	$ (8,489,286)	$ (6,100,849)	$ (11,994,763)
Income (loss) per share:
Basic	$ 0.03	$ (0.20)	$ (0.16)	$ (0.25)
Diluted	$ 0.03	$ (0.20)	$ (0.16)	$ (0.25)

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash Flows from Operating Activities:
Net loss	$ (6,846,621)	$ (11,033,443)
Depreciation and amortization	1,884,749	596,819
Bad debt expense	3,963,540	11,340,444
Inventory obsolencence reserve	231,326	0
Deferred income taxes	38,712	38,543
Changes in assets and liabilities:
Trade accounts and other receivables	(2,437,248)	(3,707,678)
Advances to suppliers	(494,834)	429,998
Inventory	2,508,519	4,781,501
Trade accounts payable	1,231,153	714,380
Accrued taxes payable	81,600	(35,513)
Other payables and accrued expenses	23,927	(124,072)
Advances from customers	(1,048,730)	(587,165)
Prepaid expenses	348,196	0
Net Cash Provided by Operating Activities	(515,711)	2,413,814
Cash Flows from Investing Activities:
Purchases of property and equipment	0	0
Construction in process	(264,869)	(4,543,490)
Net Cash Used in Investing Activities	(264,869)	(4,543,490)
Cash Flows from Financing Activity:
Proceeds from construction term loan	0	605,347
Net Cash Provided by Financing Activity	0	605,347
Effect of Exchange Rate Changes on Cash	9,790	(43,066)
Net (Decrease) Increase in Cash and Cash Equivalents	(770,790)	(1,567,395)
Cash and Cash Equivalents at Beginning of Period	5,319,990	5,993,139
Cash and Cash Equivalents at End of Period	4,549,200	4,425,744
Supplemental Cash Flow Information:
Cash paid for interest	629,424	621,841
Cash paid for income taxes	0	0
Supplemental Noncash Investing and Financing Activities:
Accounts payable for purchases of property and equipment	108,224	35,275
Accounts receivable collected with banker's acceptances	952,353	944,624
Inventory purchased with banker's acceptances	924,000	1,235,956
Advances for intangible assets purchased with banker's acceptances	$ 398,537	$ 0

RESTATEMENT

RESTATEMENT	6 Months Ended
	Jun. 30, 2015
RESTATEMENT:
RESTATEMENT	NOTE 1 – RESTATEMENT Restatement of June 30, 2015 Consolidated Financial Statements Additionally, the Company previously had not properly evaluated the reasonableness of the allowance for doubtful accounts. As a result of the process review of estimating the allowance for doubtful accounts, the Company has changed its estimate of allowance for doubtful accounts. As a result of revisions to the Company’s reporting processes related to the above referenced items, the Company has adjusted its consolidated financial statements as of June 30, 2015 and for the six months then ended. The adjustments were as follows: As Previously As Balance Sheet Amounts Reported Restatement restated June 30, 2015 Accounts receivable, net of allowance $ 17,175,376 $ (5,823,769 ) $ 11,351,607 Total current assets 44,348,339 (5,823,769 ) 38,524,570 Total assets 121,236,142 (5,823,769 ) 115,412,373 Deferred revenue - 2,536,923 2,536,923 Total liabilities 26,236,179 (2,536,923 ) 28,773,102 Retained earnings 50,759,606 8,260,711 42,498,895 Accumulated other comprehensive income - foreign currency translation adjustment 20,606,573 99,981 20,506,592 Total stockholders' equity 94,999,963 8,360,692 86,639,271 Total liabilities and stockholders' equity $ 121,236,142 $ 5,823,769 $ 115,412,373 Statement of Operations and As Previously As Comprehensive Income Amounts Reported Restatement restated For the six months ended June 30, 2015 Bad debt expense 9,206,214 (5,242,674 ) 3,963,540 Total operating expenses 12,474,763 (5,242,674 ) 7,232,089 Loss from operations (11,471,463 ) 5,242,674 (6,228,789 ) Loss before income taxes (12,050,583 ) 5,242,674 (6,807,909 ) Net loss (12,089,295 ) 5,242,674 (6,846,621 ) Other comprehensive income - foreign currency translation adjustment 835,413 (89,641 ) 745,772 Basic and diluted loss per share $ (0.28 ) 0.12 $ (0.16 ) As Previously As Statement of Cash Flows Amounts Reported Restatement restated For the six months ended June 30, 2015 Net loss $ (12,089,295 ) 5,242,674 $ (6,846,621 ) Bad debt expense 9,206,214 (5,242,674 ) 3,963,540

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2015
BASIS OF PRESENTATION
BASIS OF PRESENTATION	NOTE 2 - BASIS OF PRESENTATION Organization and Nature of Operations – On December 31, 2012, China Pharma Holdings, Inc consummated a reincorporation merger for the purpose of changing its state of incorporation from Delaware to Nevada pursuant to the terms and conditions of an Agreement and Plan of Merger dated December 27, 2012. The reincorporation merger was approved by stockholders holding the majority of the Company’s outstanding shares of common stock on December 21, 2012. The Foreign Investment Industrial Catalogue Helpson manufactures and markets generic and branded pharmaceutical products as well as biochemical products primarily to hospitals and private retailers located throughout the PRC. The Company believes Helpson’s business is not subject to any ownership restrictions prescribed under the Catalogue. Onny acquired 100% of the ownership in Helpson on May 25, 2005 by entering into an Equity Transfer Agreement with Helpson’s three former shareholders. The transaction was approved by the Commercial Bureau of Hainan Province on June 12, 2005 and Helpson received the Certificate of Approval for Establishing of Enterprises with Foreign Investment in the PRC on the same day and its business license evidencing its WFOE (Wholly Foreign Owned Enterprise) status on June 21, 2005. The Company has acquired and continues to acquire well-accepted medical formulas to add to its diverse portfolio of Western and Chinese medicines. Consolidation and Basis of Presentation Helpson’s functional currency is the Chinese Renminbi. Helpson’s revenue and expenses are translated into United States dollars at the average exchange rate for the period. Assets and liabilities are translated at the exchange rate as of the end of the reporting period. Gains or losses from translating Helpson’s financial statements are included in accumulated other comprehensive income, which is a component of stockholders’ equity. Gains and losses arising from transactions denominated in a currency other than the functional currency of the entity that is a party to the transaction are included in the results of operations. Condensed Financial Statements These unaudited condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) that, in the opinion of Management, are necessary to present fairly the consolidated financial position and results of operations of the Company for the periods presented. Operating results for the six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. Accounting Estimates - Basic and Diluted Loss per Common Share - The following table is a presentation of the numerators and denominators used in the calculation of basic and diluted (loss) earnings per share: For the Three Months For the Six Months Ended June 30, Ended June 30, 2015 2014 2015 2014 (As restated) (As restated) Net income (loss) $ 1,127,322 $ (8,642,950 ) $ (6,846,621 ) $ (11,033,443 ) Basic weighted-average common shares outstanding 43,579,557 43,579,557 43,579,557 43,579,557 Effect of dilutive securities: Warrants - - - - Options - - - - Diluted weighted-average common shares outstanding 43,579,557 43,579,557 43,579,557 43,579,557 Basic income (loss) per share $ 0.03 $ (0.20 ) $ (0.16 ) $ (0.25 ) Diluted income (loss) per share $ 0.03 $ (0.20 ) $ (0.16 ) $ (0.25 )

INVENTORY.

INVENTORY.	6 Months Ended
	Jun. 30, 2015
INVENTORY
INVENTORY	NOTE 3 – INVENTORY Inventory consisted of the following: June 30, December 31, 2015 2014 Raw materials $ 17,016,993 $ 18,819,570 Work in process - - Finished goods 3,829,807 3,436,330 20,846,800 22,255,900 Obsolescence reserve (7,222,881 ) (6,934,044 ) Total Inventory $ 13,623,919 $ 15,321,856

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	6 Months Ended
	Jun. 30, 2015
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT	NOTE 4 - PROPERTY AND EQUIPMENT Property and equipment consisted of the following: June 30, December 31, 2015 2014 Permit of land use $ 462,600 $ 458,853 Building 11,371,775 11,279,704 Plant, machinery and equipment 28,638,117 28,358,694 Motor vehicle 258,890 150,976 Office equipment 273,348 268,521 Construction in progress 5,896 5,848 Total 41,010,626 40,522,596 Less: accumulated depreciation (8,413,910 ) (6,640,718 ) Property and Equipment, net $ 32,596,716 $ 33,881,878 A reconciliation of total interest cost incurred to interest expense as recognized in the consolidated statement of operations is as follows: For the Three Months For the Six Months Ended June 30, Ended June 30, 2015 2014 2015 2014 Total interest cost incurred $ 322,422 $ 345,626 $ 636,197 $ 621,841 Interest cost capitalized - 232,263 - 452,031 Interest expense $ 322,422 $ 113,363 $ 636,197 $ 169,810 Depreciation is computed on a straight-line basis over the estimated useful lives of the assets as follows: Asset Life - years Permit of land use 40 - 70 Building 20 - 49 Plant, machinery and equipment 5 - 10 Motor vehicle 5 - 10 Office equipment 3-5 For the three and six months ended June 30, 2015 and 2014, depreciation expense was $857,752 and, $201,580, $1,712,237 and $403,489, respectively.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	6 Months Ended
	Jun. 30, 2015
INTANGIBLE ASSETS
INTANGIBLE ASSETS	NOTE 5 - INTANGIBLE ASSETS Intangible assets represent the cost of medical formulas approved for production by the China Food and Drug Administration (“CFDA”) in China. During the six months ended June 30, 2015, the Company did not obtain CFDA production approval for any medical formula and therefore there were no costs reclassified from advances to medical formulas. Approved medical formulas are amortized from the date CFDA approval is obtained over their individually identifiable estimated useful life, which ranges from ten to thirteen years. It is at least reasonably possible that a change in the estimated useful lives of the medical formulas could occur in the near term due to changes in the demand for the drugs and medicines produced from these medical formulas. For the three and six months ended June 30, 2015 and 2014, amortization expense relating to intangible assets was $75,785 and $96,284, $172,511 and $193,330, respectively. Medical formulas typically do not have a residual value at the end of their amortization period. The Company evaluates each approved medical formula for impairment at the date of CFDA approval, when indications of impairment are present and at the date of each financial statement. The Company’s evaluation is based on an estimated undiscounted net cash flow model, considering currently available market data for the related drug and the Company’s estimated market share. If the carrying value of the medical formula exceeds the estimated future net cash flows, an impairment loss is recognized for the excess of the carrying value over the discounted estimated future net cash flows. As a result of the evaluation, the Company has determined that each medical formula continues to provide benefits to the Company and no impairment was recognized during the six months ended June 30, 2015 or 2014. As of June 30, 2015 and December 31, 2014, intangible assets consisted solely of CFDA approved medical formulas as follows: June 30, December 31, 2015 2014 Gross carrying amount $ 5,544,384 $ 5,499,494 Accumulated amortization (4,389,602 ) (4,182,273 ) Net carrying amount $ 1,154,782 $ 1,317,221

ADVANCES FOR PURCHASES OF INTAN

ADVANCES FOR PURCHASES OF INTANGIBLE ASSETS.	6 Months Ended
	Jun. 30, 2015
ADVANCES FOR PURCHASES OF INTANGIBLE ASSETS
ADVANCES FOR PURCHASES OF INTANGIBLE ASSETS.	NOTE 6 – ADVANCES FOR PURCHASES OF INTANGIBLE ASSETS In order to expand the number of medicines the Company manufactured and marketed, the Company has entered into contracts with independent laboratories for the purchase of medical formulas. Although CFDA approval had not been obtained for certain medical formulas as of the dates of the respective contracts, the objective of the contracts is for the Company to purchase CFDA-approved medical formulas once the CFDA approval process is completed. Some of the medical formulas currently under the CFDA’s review also come with patents. As of June 30, 2015, the Company had received the title to two unexpired patents that relate to medical formulas currently in the CFDA approval process. Prior to entering into contracts with the Company, laboratories typically are required to complete all research and development to determine the content of the medical formula and the method to produce the generic medicine. The application for CFDA’s production approval must be made by the production facility that will produce the related product. As a result, a contract typically provides that once the Company buys the medical formula from the laboratory, the laboratory is required to assist the Company in applying for and obtaining the production approval from the CFDA. A typical CFDA approval process for the production of a generic medical product involves a number of steps that generally require three to five years to complete. If the medical formula is purchased at the point when the generic medical product receives the CFDA’s approval for a clinical study, which is very typical for the Company, the clinical study that follows will usually take from one and a half to three years to complete. After completing the clinical study, the results are submitted to the CFDA and a production approval application is filed with the CFDA. In most cases, it will take between eight to eighteen months to prepare and submit the application and finally obtain the CFDA production approval. Upon approving the generic medical product, the CFDA issues a production certificate and the Company can commence the production and sales of the generic medical product. As a result of this process, CFDA approval is expected to be received in approximately two to five years from the date the Company signs the medical formula contracts. Under the terms of the contracts, the laboratories are required to assist the Company in obtaining production approval for the medical formulas from the CFDA. Management monitors the status of each medical formula on a regular basis in order to assess whether the laboratories are performing adequately under the contracts. If a medical product is not approved by the CFDA, as evidenced by their issuance of a denial letter, or if the laboratory breaches the contract, the laboratory is required under the contract to provide a refund to the Company of the full amount of the payments made to the laboratory for that formula, or the Company can require the application of those payments to another medical formula with the same laboratory. As a result of the refund right, the Company is ultimately purchasing an approved medical product. Accordingly, payments made prior to the issuance of production approval by the CFDA are recorded as advances for purchases of intangible assets. To date, no formula has failed to receive CFDA production approval nor has the Company been informed or become aware of any formula that may fail to receive such approval. However, there is no assurance that the medical products will receive production approval and if the Company does not receive such approval, it will enforce its contractual rights to receive the refund from the laboratory or have the payments applied to another medical formula with the same laboratory. As of June 30, 2015, the Company was obliged to pay laboratories and others approximately $4.2 million upon completion of various phases of contracts to provide CFDA production approval of medical formulas.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2015
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	NOTE 7 – RELATED PARTY TRANSACTIONS Total advances owing to a board member were $1,354,567 as of June 30, 2015 and December 31, 2014, respectively, and are recorded as “other payables – related parties” on the accompanying condensed consolidated balance sheets. The advances bear interest at a rate of 1.0% per year and is payable on December 31, 2015. Total interest expense of $3,386 and $3,386, $6,772 and $6,772 was recognized for the three and six months ended June 30, 2015 and 2014, respectively.

NOTES PAYABLE

NOTES PAYABLE	6 Months Ended
	Jun. 30, 2015
NOTES PAYABLES
NOTES PAYABLES	NOTE 8 – NOTES PAYABLE In November 2014, the Company entered into a line of credit with a bank in the amount of RMB 30,000,000. The amounts advanced under the line of credit are due November 24, 2015. Advances on the line of credit are due one year from the date of the advance and are collateralized by certain land use rights, buildings and accounts receivable and bear interest at an annual rate of 6.16% (based upon 110% of the PRC government’s current short term rate of 5.6%). In addition, the Company’s Chief Executive Officer and Chair of the board of directors personally guaranteed the line of credit. The outstanding balance due under the revolving line of credit was RMB 30,000,000 as of June 30, 2015 and December 31, 2014 ($4,927,079 as of June 30, 2015 and $4,887,187 as of December 31, 2014). The Company has no additional amounts available to it under this line of credit. This amount has been classified as short-term notes payable in the accompanying condensed consolidated balance sheets at June 30, 2015 and December 31, 2014.

CONSTRUCTION LOAN FACILITY.

CONSTRUCTION LOAN FACILITY.	6 Months Ended
	Jun. 30, 2015
CONSTRUCTION LOAN FACILITY
CONSTRUCTION LOAN FACILITY	NOTE 9 – CONSTRUCTION LOAN FACILITY The Company obtained a construction loan facility in the amount of RMB 80,000,000 (approximately $13.0 million at June 30, 2015) from a construction loan facility dated June 21, 2013. The loan facility is for an eight-year term, which commenced on the initial draw-down date of July 11, 2013, and is from the same bank that currently provides the line of credit as discussed in Note 7. The proceeds of the loan were used for and are collateralized by the construction of the Company’s new production facility and the included production line equipment and machinery. The loan bears interest at 7.205% based upon 110% of the PRC government’s eight-year term rate effective on the actual draw-down date, and is subjected to annual adjustments based on 110% of the floating rate for the same type of loan on the anniversary from the draw-down date and its subsequent anniversary dates. On July 10, 2015 the interest rate was adjusted to 5.94%. The loan requires interest only payments for the first two years. Beginning July 11, 2015, the balance of the principal will be due in annual installments which are due prior to July 10 of the following year over the next six years through July 11, 2021. No principal payments have been made under the facility as of the date of this report on Form 10-Q. As of June 30, 2015, the Company had no additional amounts available to it under this facility. Principal payments required for the next five years as of June 30, 2015 are as follows: Year Amount 2015 1,642,360 2016 1,642,360 2017 2,463,540 2018 2,463,540 2019 2,463,540 Thereafter 2,463,540 $ 13,138,878 Fair Value of Notes Payable and Construction Loan Facility

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2015
INCOME TAXES
INCOME TAXES	NOTE 10 - INCOME TAXES Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax laws or rates are recognized in operations in the period that includes the enactment date. Undistributed earnings of Helpson, the Company’s foreign subsidiary, since its acquisition, amounted to approximately $48.2 million at June 30, 2015. Those earnings, as well as the investment in Helpson of approximately $23.3 million, are considered to be indefinitely reinvested and, accordingly, no U.S. federal or state income taxes have been provided thereon. Upon distribution of those earnings in the form of dividends or otherwise, the Company would be subject to U.S. federal and state income taxes (net of an adjustment for foreign tax credits) and withholding taxes payable to the PRC. Determination of the amount of unrecognized deferred U.S. income tax liability is not practicable because of the complexities associated with its hypothetical calculation; however, unrecognized foreign tax credits may be available to reduce a portion of the U.S. tax liability. Under current tax law in the PRC, the Company is and will be subject to the following enterprise income tax rates: Enterprise Income Year Tax Rate 2014 15% 2015 15% 2016 15% 2017 25% Thereafter 25% The provision for income taxes consisted of the following: Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 Current $ - $ - $ - $ - Deferred (19,428 ) (19,196 ) (38,712 ) (38,543 ) Total income tax (benefit) expense $ (19,428 ) $ (19,196 ) $ (38,712 ) $ (38,543 ) The Company has net operating loss carry forwards for PRC tax purposes of approximately $13.9 million at June 30, 2015, of which approximately $6.9 million, $4.4 million and $2.6 million is available to offset future taxable income through 2018, 2019 and 2020, respectively. In assessing the realizability of deferred tax assets, Management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those differences become deductible or tax loss carry forwards are utilized. Management considers projected future taxable income and tax planning strategies in making this assessment. Based upon an assessment of the level of historical taxable income and projections for future taxable income over the periods on which the deferred tax assets are deductible or can be utilized, Management believes it is not likely the Company will realize all of the benefits of the deferred tax assets as of June 30, 2015 and December 31, 2014. Therefore, the Company has provided for a valuation allowance against its deferred tax assets of $12,147,117 and $10,968,262 as of June 30, 2015 and December 31, 2014, respectively. The Company also incurred various other taxes, comprised primarily of business taxes, value-added taxes, urban construction taxes, education surcharges and others. Any unpaid amounts are reflected on the balance sheets as accrued taxes payable.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2015
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	NOTE 11 – FAIR VALUE MEASUREMENTS Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. To measure fair value, a hierarchy has been established which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs. This hierarchy uses three levels of inputs to measure the fair value of assets and liabilities as follows: Level 1 – Quoted prices in active markets for identical assets or liabilities; Level 2 – Observable inputs other than Level 1 including quoted prices for similar assets or liabilities, quoted prices in less active markets, or other observable inputs that can be corroborated by observable market data; Level 3 – Unobservable inputs supported by little or no market activity for financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. The Company uses fair value to measure the value of the banker’s acceptance notes it holds. The banker’s acceptance notes are recorded at cost which approximates fair value. The Company held the following assets recorded at fair value as of June 30, 2015 and December 31, 2014: Fair Value Measurements at Reporting Date Using Description June 30, 2015 Level 1 Level 2 Level 3 Banker's acceptance notes $ 90,330 $ - $ 90,330 $ - Total $ 90,330 $ - $ 90,330 $ - Fair Value Measurements at Reporting Date Using Description December 31, 2014 Level 1 Level 2 Level 3 Banker's acceptance notes $ 458,233 $ - $ 458,233 $ - Total $ 458,233 $ - $ 458,233 $ -

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2015
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY	NOTE 12 - STOCKHOLDERS' EQUITY Preferred and Common Stock Stock and Stock Options There were no securities issued from the Plan during the six months ended June 30, 2015 and at June 30, 2015 there was no unrecognized compensation expense related to securities granted under the Plan.

CONTINGENCIES

CONTINGENCIES	6 Months Ended
	Jun. 30, 2015
CONTINGENCIES
CONTINGENCIES	NOTE 13 – CONTINGENCIES Economic environment - In addition, all of the Company's revenue is denominated in the PRC's currency of Renminbi (RMB), which must be converted into other currencies before remittance out of the PRC. Both the conversion of RMB into foreign currencies and the remittance of foreign currencies abroad require approval of the PRC government.

CONCENTRATIONS

CONCENTRATIONS	6 Months Ended
	Jun. 30, 2015
CONCENTRATIONS
CONCENTRATIONS	NOTE 14 – CONCENTRATIONS At June 30, 2015, two customers accounted for 17.3% and 10.7% of accounts receivable. At December 31, 2014, one customer accounted for 17.7% of accounts receivable. For the six months ended June 30, 2015 and 2014, one customer accounted for 12.7% and 15.9% of sales, respectively. For the six months ended June 30, 2015 and 2014, purchases from one supplier accounted for 25.7% and 14.4% of raw material purchases, respectively.

ACCOUNTING POLICIES (POLICIES)

ACCOUNTING POLICIES (POLICIES)	6 Months Ended
	Jun. 30, 2015
ACCOUNTING POLICIES (POLICIES)
Organization and Nature of Operations	Organization and Nature of Operations – On December 31, 2012, China Pharma Holdings, Inc consummated a reincorporation merger for the purpose of changing its state of incorporation from Delaware to Nevada pursuant to the terms and conditions of an Agreement and Plan of Merger dated December 27, 2012. The reincorporation merger was approved by stockholders holding the majority of the Company’s outstanding shares of common stock on December 21, 2012. The Foreign Investment Industrial Catalogue Helpson manufactures and markets generic and branded pharmaceutical products as well as biochemical products primarily to hospitals and private retailers located throughout the PRC. The Company believes Helpson’s business is not subject to any ownership restrictions prescribed under the Catalogue. Onny acquired 100% of the ownership in Helpson on May 25, 2005 by entering into an Equity Transfer Agreement with Helpson’s three former shareholders. The transaction was approved by the Commercial Bureau of Hainan Province on June 12, 2005 and Helpson received the Certificate of Approval for Establishing of Enterprises with Foreign Investment in the PRC on the same day and its business license evidencing its WFOE (Wholly Foreign Owned Enterprise) status on June 21, 2005. The Company has acquired and continues to acquire well-accepted medical formulas to add to its diverse portfolio of Western and Chinese medicines.
Consolidation and Basis of Presentation	Consolidation and Basis of Presentation Helpson’s functional currency is the Chinese Renminbi. Helpson’s revenue and expenses are translated into United States dollars at the average exchange rate for the period. Assets and liabilities are translated at the exchange rate as of the end of the reporting period. Gains or losses from translating Helpson’s financial statements are included in accumulated other comprehensive income, which is a component of stockholders’ equity. Gains and losses arising from transactions denominated in a currency other than the functional currency of the entity that is a party to the transaction are included in the results of operations.
Condensed Financial Statements	Condensed Financial Statements These unaudited condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) that, in the opinion of Management, are necessary to present fairly the consolidated financial position and results of operations of the Company for the periods presented. Operating results for the six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015.
Accounting Estimates	Accounting Estimates -
Basic and Diluted (Loss) Earnings per Common Share	Basic and Diluted Loss per Common Share - The following table is a presentation of the numerators and denominators used in the calculation of basic and diluted (loss) earnings per share: For the Three Months For the Six Months Ended June 30, Ended June 30, 2015 2014 2015 2014 (As restated) (As restated) Net income (loss) $ 1,127,322 $ (8,642,950 ) $ (6,846,621 ) $ (11,033,443 ) Basic weighted-average common shares outstanding 43,579,557 43,579,557 43,579,557 43,579,557 Effect of dilutive securities: Warrants - - - - Options - - - - Diluted weighted-average common shares outstanding 43,579,557 43,579,557 43,579,557 43,579,557 Basic income (loss) per share $ 0.03 $ (0.20 ) $ (0.16 ) $ (0.25 ) Diluted income (loss) per share $ 0.03 $ (0.20 ) $ (0.16 ) $ (0.25 )

RESTATEMENT (TABLES)

RESTATEMENT (TABLES)	6 Months Ended
	Jun. 30, 2015
RESTATEMENT (TABLES):
RESTATEMENT (TABLES)	As a result of revisions to the Company’s reporting processes related to the above referenced items, the Company has adjusted its consolidated financial statements as of June 30, 2015 and for the six months then ended. The adjustments were as follows: As Previously As Balance Sheet Amounts Reported Restatement restated June 30, 2015 Accounts receivable, net of allowance $ 17,175,376 $ (5,823,769 ) $ 11,351,607 Total current assets 44,348,339 (5,823,769 ) 38,524,570 Total assets 121,236,142 (5,823,769 ) 115,412,373 Deferred revenue - 2,536,923 2,536,923 Total liabilities 26,236,179 (2,536,923 ) 28,773,102 Retained earnings 50,759,606 8,260,711 42,498,895 Accumulated other comprehensive income - foreign currency translation adjustment 20,606,573 99,981 20,506,592 Total stockholders' equity 94,999,963 8,360,692 86,639,271 Total liabilities and stockholders' equity $ 121,236,142 $ 5,823,769 $ 115,412,373 Statement of Operations and As Previously As Comprehensive Income Amounts Reported Restatement restated For the six months ended June 30, 2015 Bad debt expense 9,206,214 (5,242,674 ) 3,963,540 Total operating expenses 12,474,763 (5,242,674 ) 7,232,089 Loss from operations (11,471,463 ) 5,242,674 (6,228,789 ) Loss before income taxes (12,050,583 ) 5,242,674 (6,807,909 ) Net loss (12,089,295 ) 5,242,674 (6,846,621 ) Other comprehensive income - foreign currency translation adjustment 835,413 (89,641 ) 745,772 Basic and diluted loss per share $ (0.28 ) 0.12 $ (0.16 ) As Previously As Statement of Cash Flows Amounts Reported Restatement restated For the six months ended June 30, 2015 Net loss $ (12,089,295 ) 5,242,674 $ (6,846,621 ) Bad debt expense 9,206,214 (5,242,674 ) 3,963,540

BASIS OF PRESENTATION (TABLES)

BASIS OF PRESENTATION (TABLES)	6 Months Ended
	Jun. 30, 2015
BASIS OF PRESENTATION (Tables)
Presentation of the numerators and denominators used in the calculation of basic and diluted earnings per share	The following table is a presentation of the numerators and denominators used in the calculation of basic and diluted (loss) earnings per share: For the Three Months For the Six Months Ended June 30, Ended June 30, 2015 2014 2015 2014 (As restated) (As restated) Net income (loss) $ 1,127,322 $ (8,642,950 ) $ (6,846,621 ) $ (11,033,443 ) Basic weighted-average common shares outstanding 43,579,557 43,579,557 43,579,557 43,579,557 Effect of dilutive securities: Warrants - - - - Options - - - - Diluted weighted-average common shares outstanding 43,579,557 43,579,557 43,579,557 43,579,557 Basic income (loss) per share $ 0.03 $ (0.20 ) $ (0.16 ) $ (0.25 ) Diluted income (loss) per share $ 0.03 $ (0.20 ) $ (0.16 ) $ (0.25 )

INVENTORY (TABLES)

INVENTORY (TABLES)	6 Months Ended
	Jun. 30, 2015
INVENTORY (Tables)
Inventory consists	Inventory consisted of the following: June 30, December 31, 2015 2014 Raw materials $ 17,016,993 $ 18,819,570 Work in process - - Finished goods 3,829,807 3,436,330 20,846,800 22,255,900 Obsolescence reserve (7,222,881 ) (6,934,044 ) Total Inventory $ 13,623,919 $ 15,321,856

PROPERTY AND EQUIPMENT (TABLES)

PROPERTY AND EQUIPMENT (TABLES)	6 Months Ended
	Jun. 30, 2015
PROPERTY AND EQUIPMENT (Tables)
Property and equipment consists	Property and equipment consisted of the following: June 30, December 31, 2015 2014 Permit of land use $ 462,600 $ 458,853 Building 11,371,775 11,279,704 Plant, machinery and equipment 28,638,117 28,358,694 Motor vehicle 258,890 150,976 Office equipment 273,348 268,521 Construction in progress 5,896 5,848 Total 41,010,626 40,522,596 Less: accumulated depreciation (8,413,910 ) (6,640,718 ) Property and Equipment, net $ 32,596,716 $ 33,881,878
A reconciliation of total interest cost incurred to interest expense	A reconciliation of total interest cost incurred to interest expense as recognized in the consolidated statement of operations is as follows: For the Three Months For the Six Months Ended June 30, Ended June 30, 2015 2014 2015 2014 Total interest cost incurred $ 322,422 $ 345,626 $ 636,197 $ 621,841 Interest cost capitalized - 232,263 - 452,031 Interest expense $ 322,422 $ 113,363 $ 636,197 $ 169,810
Useful lives of the assets	Depreciation is computed on a straight-line basis over the estimated useful lives of the assets as follows: Asset Life - years Permit of land use 40 - 70 Building 20 - 49 Plant, machinery and equipment 5 - 10 Motor vehicle 5 - 10 Office equipment 3-5

INTANGIBLE ASSETS (TABLES)

INTANGIBLE ASSETS (TABLES)	6 Months Ended
	Jun. 30, 2015
Intangible Assets (Tables)
Intangible Assets Medical Formulas	As of June 30, 2015 and December 31, 2014, intangible assets consisted solely of CFDA approved medical formulas as follows: June 30, December 31, 2015 2014 Gross carrying amount $ 5,544,384 $ 5,499,494 Accumulated amortization (4,389,602 ) (4,182,273 ) Net carrying amount $ 1,154,782 $ 1,317,221

SCHEDULE OF LONG - TERM DEBT IN

SCHEDULE OF LONG - TERM DEBT INSTRUMENTS (TABLES)	6 Months Ended
	Jun. 30, 2015
Schedule of Long-term Debt Instruments:
Principal payments required for the next five years	Principal payments required for the next five years as of June 30, 2015 are as follows: Year Amount 2015 1,642,360 2016 1,642,360 2017 2,463,540 2018 2,463,540 2019 2,463,540 Thereafter 2,463,540 $ 13,138,878

INCOME TAXES (TABLES)

INCOME TAXES (TABLES)	6 Months Ended
	Jun. 30, 2015
INCOME TAXES (Tables)
Current Taxes	Under current tax law in the PRC, the Company is and will be subject to the following enterprise income tax rates: Enterprise Income Year Tax Rate 2014 15% 2015 15% 2016 15% 2017 25% Thereafter 25%
Provision For Income Taxes	The provision for income taxes consisted of the following: Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 Current $ - $ - $ - $ - Deferred (19,428 ) (19,196 ) (38,712 ) (38,543 ) Total income tax (benefit) expense $ (19,428 ) $ (19,196 ) $ (38,712 ) $ (38,543 )

FAIR VALUE MEASUREMENTS (TABLES

FAIR VALUE MEASUREMENTS (TABLES)	6 Months Ended
	Jun. 30, 2015
FAIR VALUE MEASUREMENTS (Tables)
Assets Fair Value	The banker’s acceptance notes are recorded at cost which approximates fair value. The Company held the following assets recorded at fair value as of June 30, 2015 and December 31, 2014: Fair Value Measurements at Reporting Date Using Description June 30, 2015 Level 1 Level 2 Level 3 Banker's acceptance notes $ 90,330 $ - $ 90,330 $ - Total $ 90,330 $ - $ 90,330 $ - Fair Value Measurements at Reporting Date Using Description December 31, 2014 Level 1 Level 2 Level 3 Banker's acceptance notes $ 458,233 $ - $ 458,233 $ - Total $ 458,233 $ - $ 458,233 $ -

BASIS OF PRESENTATION (DETAILS)

BASIS OF PRESENTATION (DETAILS)	Jun. 30, 2015
Organization and operations
Percentage of share owned by China Pharma Holdings Inc of Onny Investment Limited	100.00%
Percentage of share owned by China Pharma Holdings Inc of Helpson Medical & Biotechnology Co., Ltd.	100.00%
Percetage of acquired by Onny in Helpson	100.00%

BASIC AND DILUTED EARNINGS PER

BASIC AND DILUTED EARNINGS PER COMMON SHARE (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Basic and Diluted Earnings per Common Share
Net income (loss)	$ 1,127,322	$ (8,642,950)	$ (6,846,621)	$ (11,033,443)
Basic weighted-average common shares outstanding	43,579,557	43,579,557	43,579,557	43,579,557
Effect of dilutive securities:
Warrants	$ 0		$ 0	$ 0
Options	$ 0		$ 0	$ 0
Diluted weighted-average common shares outstanding	43,579,557	43,579,557	43,579,557	43,579,557
Basic income (loss) per share	$ 0.03	$ (0.20)	$ (0.16)	$ (0.25)
Diluted income (loss) per share	$ 0.03	$ (0.20)	$ (0.16)	$ (0.25)

INVENTORY CONSISTED OF THE FOLL

INVENTORY CONSISTED OF THE FOLLOWING (DETAILS) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
INVENTORY CONSISTED OF THE FOLLOWING (DETAILS)
Raw materials	$ 17,016,993	$ 18,819,570
Work in process	0
Finished goods	3,829,807	3,436,330
Inventory Gross	20,846,800	22,255,900
Obsolescence reserve	(7,222,881)	(6,934,044)
Total Inventory	$ 13,623,919	$ 15,321,856

PROPERTY AND EQUIPMENT CONSISTE

PROPERTY AND EQUIPMENT CONSISTED OF THE FOLLOWING (DETAILS) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
PROPERTY AND EQUIPMENT CONSISTED OF THE FOLLOWING (DETAILS)
Permit of land use	$ 462,600	$ 458,853
Building	11,371,775	11,279,704
Plant, machinery and equipment	28,638,117	28,358,694
Motor vehicle	258,890	150,976
Office equipment	273,348	268,521
Construction in progress	5,896	5,848
Total	41,010,626	40,522,596
Less: accumulated depreciation	(8,413,910)	(6,640,718)
Property and Equipment, net	$ 32,596,716	$ 33,881,878

RECONCILIATION OF TOTAL INTERES

RECONCILIATION OF TOTAL INTEREST INCURRED COST (DETAILS) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
RECONCILIATION OF TOTAL INTEREST INCURRED COST (DETAILS)
Total interest cost incurred	$ 322,422	$ 345,626	$ 636,197	$ 621,841
Interest cost capitalized		232,263		452,031
Interest expense	$ 322,422	$ 113,363	$ 636,197	$ 169,810

PROPERTY AND EQUIPMENT ASSETS L

PROPERTY AND EQUIPMENT ASSETS LIFE (DETAILS)	Jun. 30, 2015
PROPERTY AND EQUIPMENT Assets Life
Permit of land use minimum life	40
Permit of land use maximum life	70
Building minimum life	20
Building maximum life	49
Plant, machinery and equipment minimum life	5
Plant, machinery and equipment maximum life	10
Motor vehicle minimum life	5
Motor vehicle maximum life	10
Office equipment minimum life	3
Office equipment maximum life	5

ASSETS DEPRECIATION (DETAILS)

ASSETS DEPRECIATION (DETAILS) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Assets Depreciation
Depreciation Expense property and equipment	$ 857,752	$ 201,580	$ 1,712,237	$ 403,489

INTANGIBLE ASSETS CFDA APPROVED

INTANGIBLE ASSETS CFDA APPROVED MEDICAL FORMULAS (DETAILS) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
INTANGIBLE ASSETS CFDA APPROVED MEDICAL FORMULAS (DETAILS)
Gross carrying amount	$ 5,544,384	$ 5,499,494
Accumulated amortization	(4,389,602)	(4,182,273)
Net carrying amount	$ 1,154,782	$ 1,317,221

AMORTIZATION EXPENSE (DETAILS)

AMORTIZATION EXPENSE (DETAILS) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
AMORTIZATION EXPENSE
Amortization expenses relating to intangible assets	$ 75,785	$ 96,284	$ 172,511	$ 193,330

ADVANCES FOR PURCHASES OF INT38

ADVANCES FOR PURCHASES OF INTANGIBLE ASSETS (DETAILS)	Jun. 30, 2015USD ($)
Advances for purchase of intangible assets details
Company was obligated to pay laboratories	$ 4,200,000

RELATED PARTY TRANSACTIONS OWIN

RELATED PARTY TRANSACTIONS OWINGS (DETAILS) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
RELATED PARTY TRANSACTIONS OWINGS
Adavances owing to board member	$ 1,354,567	$ 1,354,567
Interest rate on advances from Member of BOD	1.00%	1.00%

RELATED PARTY TRANSACTIONS MEMB

RELATED PARTY TRANSACTIONS MEMBER OF BOD (DETAILS) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
RELATED PARTY TRANSACTIONS Member Of BOD
Total interest expense recognized for the period	$ 3,386	$ 3,386	$ 6,772	$ 6,772

NOTES PAYABLES (DETAILS)

NOTES PAYABLES (DETAILS) - USD ($)	Jun. 30, 2015	Dec. 31, 2014	Nov. 30, 2014
NOTES PAYABLES {2}
Revolving line of credit with a bank (RMB)			$ 30,000,000
Annual interest rate			6.16%
Outstanding balance due under revolving line of credit (RMB 30,000,000)	$ 4,927,079	$ 4,887,187

CONSTRUCTION LOAN FACILITY (DET

CONSTRUCTION LOAN FACILITY (DETAILS)	Jun. 30, 2015USD ($)
Construction loan facility details
Total loan facility amount (RMB 80,000,000)	$ 13,000,000
Loan interest for an eight-year term	7.21%

PRINCIPAL PAYMENTS REQUIRED FOR

PRINCIPAL PAYMENTS REQUIRED FOR THE NEXT FIVE YEARS ARE AS FOLLOWS: (DETAILS)	Jun. 30, 2015USD ($)
Principal payments required for the next five years are as follows:
Principal Payments 2015	$ 1,642,360
Principal Payments 2016	1,642,360
Principal Payments 2017	2,463,540
Principal Payments 2018	2,463,540
Principal Payments 2019	2,463,540
Principal Payments Thereafter	2,463,540
Total principal payments due	$ 13,138,878

INCOME TAXES UNDISTRIBUTED EARN

INCOME TAXES UNDISTRIBUTED EARNINGS AND INCOME TAX RATES (DETAILS)	Jun. 30, 2015USD ($)
Income Taxes Undistributed Earnings
Undistributed earnings of Helpson	$ 48,200,000
Investment in Helpson, a foreign subsidiary for the company	$ 23,300,000
Enterprise Income Tax Rates for the year 2014	15.00%
Enterprise Income Tax Rates for the year 2015	15.00%
Enterprise Income Tax Rates for the year 2016	15.00%
Enterprise Income Tax Rates for the year 2017	25.00%
Enterprise Income Tax Rates There after	25.00%
Net operating loss carryforwards for PRC tax purposes	$ 13,900,000
Offset uture taxable income for the year 2018	6,900,000
Offset future taxable income for the year 2019	4,400,000
Offset future taxable income for the year 2020	$ 2,600,000

INCOME TAXES PROVISION (DETAILS

INCOME TAXES PROVISION (DETAILS) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Taxes Provision
Current tax provision	$ 0			$ 0
Deferred tax provision	(19,428)	$ (19,196)	$ (38,712)	(38,543)
Total income tax (benefit) expense	$ (19,428)	$ (19,196)	$ (38,712)	$ (38,543)

DEFERRED INCOME TAX ASSETS AND

DEFERRED INCOME TAX ASSETS AND LIABILITY (DETAILS) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Deferred Income Tax Assets And Liability
Valuation allowance against deferred tax assets	$ 12,147,117	$ 10,968,262

FAIR VALUE MEASUREMENTS AT REPO

FAIR VALUE MEASUREMENTS AT REPORTING DATE USING (DETAILS) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
FAIR VALUE MEASUREMENTS AT REPORTING DATE USING
Bankers acceptance notes	$ 90,330	$ 458,233
Total	90,330	458,233
Bankers acceptance notes Level 1	0	0
Total Level 1	0	0
Bankers acceptance notes Level 2	90,330	458,233
Total Level 2	90,330	458,233
Bankers acceptance notes Level 3	0	0
Total Level 3	$ 0	$ 0

PREFERRED COMMON STOCK (DETAILS

PREFERRED COMMON STOCK (DETAILS)	Jun. 30, 2015shares
Preferred Common Stock And Warrants
Common shares authorized	95,000,000
Preferred shares authorized	5,000,000

2010 STOCK OPTION PLAN (DETAILS

2010 STOCK OPTION PLAN (DETAILS) - shares	Jun. 30, 2015	Nov. 12, 2010
Stockholders Equity 2010 Stock Option Plan
Number of common shares		4,000,000
Shares of restricted stock granted and outstanding under the 2010 Incentive Plan	175,000

CONCENTRATIONS (DETAILS)

CONCENTRATIONS (DETAILS)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Concentrations Details
Customer accounted for sales	12.70%	15.90%
Supplier accounted for raw material purchases	25.70%	14.40%
Customer accounted accounts receivable	17.30%	10.70%