Universal Solar Technology (UNSS) 10-Q 18 Nov 14 2014 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2014	Nov. 18, 2014
Document and Entity Information [Abstract]	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	30-Sep-14	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q3	'
Trading Symbol	'UNSS	'
Entity Registrant Name	'Universal Solar Technology, Inc.	'
Entity Central Index Key	'0001434389	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock Shares Outstanding	'	22,599,974

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2014	Dec. 31, 2013
CURRENT ASSETS	'	'
Cash and cash equivalents	$4,192	$12,250
Accounts receivable	147,774	19,145
Inventories	148,503	764,267
Prepaid expenses and other current assets	1,042,306	1,151,834
TOTAL CURRENT ASSETS	1,342,775	1,947,496
Land use right, net of accumulated amortization of $58,126 and$52,222, respectively	411,000	424,561
Property, plant and equipment, net of accumulated depreciation of $717,224 and $593,311, respectively	2,734,543	2,914,789
Construction in process	295,815	300,644
TOTAL ASSETS	4,784,133	5,587,490
CURRENT LIABILITIES	'	'
Accounts payable	88,147	128,560
Accrued interest - related party	1,686,446	1,348,701
Accrued expenses and other current liabilities	289,363	283,879
TOTAL CURRENT LIABILITIES	2,063,956	1,761,140
Due to related-parties	13,860,722	14,489,456
TOTAL LIABILITIES	15,924,678	16,250,596
STOCKHOLDERS' DEFICIENCY	'	'
Preferred stock, $0.0001 par value, 10,000,000 shares authorized, none issued and outstanding	'	'
Common stock, $0.0001 par value, 22,599,974 shares issued and outstanding	2,260	2,260
Additional paid-in capital	620,812	620,812
Accumulated deficit	-11,841,533	-11,175,906
Accumulated other comprehensive income	77,916	-110,272
TOTAL STOCKHOLDERS' DEFICIENCY	-11,140,545	-10,663,106
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIENCY	$4,784,133	$5,587,490

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Sep. 30, 2014	Dec. 31, 2013
CONSOLIDATED BALANCE SHEETS [Abstract]	'	'
Land use right, accumulated amortization	$58,126	$52,222
Property, plant and equipment, accumulated depreciation	$717,224	$593,311
Preferred stock, par value	$0.00	$0.00
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, issued	'	'
Preferred stock, outstanding	'	'
Common stock, par value	$0.00	$0.00
Common stock, shares issued	22,599,974	22,599,974
Common stock, outstanding	22,599,974	22,599,974

CONSOLIDATED_STATEMENTS_OF_COM

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS [Abstract]	'	'	'	'
SALES	$85,563	'	$546,434	'
COST OF SALES	152,223	'	598,677	604,018
GROSS LOSS	-66,660	'	-52,243	-604,018
OPERATING EXPENSES	'	'	'	'
General and administrative expenses	60,365	107,928	248,778	342,421
Selling expenses	3,609	667	3,885	2,113
TOTAL OPERATING EXPENSES	63,974	108,595	252,663	344,534
LOSS FROM OPERATIONS	-130,634	-108,595	-304,906	-948,552
Non-operating income	'	'	'	8,829
Interest income	3	25	11	149
Interest expense - related party	-116,898	-124,763	-360,732	-372,478
NET LOSS	-247,529	-233,333	-665,627	-1,312,052
OTHER COMPREHENSIVE INCOME (LOSS)	'	'	'	'
Foreign currency translation adjustment	26,431	-91,175	188,188	-109,147
COMPREHENSIVE LOSS	($221,098)	($324,508)	($477,439)	($1,421,199)
Loss per common share - basic and diluted	($0.01)	($0.01)	($0.03)	($0.06)
Weighted average number of shares outstanding - basic and diluted	22,599,974	22,599,974	22,599,974	22,599,974

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:	'	'
Net loss	($665,627)	($1,312,052)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'
Depreciation of property and equipment	133,341	150,407
Amortization of land use right	6,739	6,691
Inventory allowance	'	609,513
Changes in operating assets and liabilities:	'	'
Accounts receivable	-128,840	143,591
Prepaid expenses and other assets	90,964	-16,372
Inventories	603,038	-40,180
Accounts payable	-38,320	-23,117
Accrued expenses and other current liabilities	370,236	265,690
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	371,531	-215,829
CASH FLOWS USED IN INVESTING ACTIVITIES:	'	'
Acquisition of property and equipment	'	-18,657
NET CASH USED IN INVESTING ACTIVITIES	'	-18,657
CASH FLOWS PROVIDED BY FINANCING ACTIVITES:	'	'
Proceeds from (Repayment of) related parties loans	-379,450	82,290
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	-379,450	82,290
Effect of exchange rate changes on cash	-139	-3,937
Decrease in cash	-8,058	-156,133
Cash - Beginning of period	12,250	160,927
Cash - End of period	4,192	4,794
Supplemental disclosures of cash flow information:	'	'
Interest paid	'	'
Income taxes paid	'	'

INTERIM_FINANCIAL_STATEMENTS

INTERIM FINANCIAL STATEMENTS	9 Months Ended
	Sep. 30, 2014
NTERIM FINANCIAL STATEMENTS [Abstract]	'
NTERIM FINANCIAL STATEMENTS	'
	1	INTERIM FINANCIAL STATEMENTS
	The unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the unaudited financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position as of September 30, 2014 and the results of operations and cash flows for the periods ended September 30, 2014 and 2013. The financial data and other information disclosed in these notes to the interim financial statements related to these periods are unaudited. The results for the nine months ended September 30, 2014 are not necessarily indicative of the results to be expected for any subsequent periods or for the entire year ending December 31, 2014. The balance sheet at December 31, 2013 has been derived from the audited financial statements at that date.
	Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to the Securities and Exchange Commission's rules and regulations. These unaudited financial statements should be read in conjunction with our audited financial statements and notes thereto for the year ended December 31, 2013 as included in our Annual Report on Form 10-K.

BUSINESS_DESCRIPTION_AND_SIGNI

BUSINESS DESCRIPTION AND SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2014
BUSINESS DESCRIPTION AND SIGNIFICANT ACCOUNTING POLICIES [Abstract]	'
BUSINESS DESCRIPTION AND SIGNIFICANT ACCOUNTING POLICIES	'
	2	BUSINESS DESCRIPTION AND SIGNIFICANT ACCOUNTING POLICIES
	Universal Solar Technology, Inc. (the “Company”) was incorporated in the State of Nevada on July 24, 2007. The Company operates through its wholly-owned subsidiaries, Kuong U Science & Technology (Group) Ltd. (“Kuong U”), a company incorporated in Macau, Peoples Republic of China (“PRC”) on May 10, 2007, and Nanyang Universal Solar Technology Co., Ltd. (“NUST”), a company incorporated in Nanyang, PRC on September 8, 2008. The Company manufactures and sells silicon wafers and solar photovoltaic (“PV”) modules.
	Basis of presentation
	The consolidated financial statements include the accounts of the Company and all of its subsidiaries. All significant inter-company accounts and transactions have been eliminated. These financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America.
	Currency translation
	The reporting currency of the Company is the United States dollar (USD). The functional currency of Kuong U is the Hong Kong dollar (HKD). The functional currency of NUST is the Chinese Yuan (RMB). Revenue and expense accounts of our two subsidiaries are translated into United States dollarsat the average rates during the period, and balance sheet items are translated at period-end rates, except for equity accounts which are translated at historical rates. Translation adjustments arising from the use of differing exchange rates from period to period are included as a separate component of shareholders' equity. Gains and losses from foreign currency transactions are recognized in current operations.
	The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into USD at the rates used in translation.
	Going concern
	The financial statements have been prepared on a “going concern” basis, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. As of September 30, 2014, the Company had negative working capital of $721,181 and a stockholders' deficiency of $11,140,545 and has accumulated deficit of $11,841,533 since inception. These factors, among others, raise substantial doubt as to the Company's ability to continue as a going concern. The Company plans to improve its financial condition by raising capital in a private placement of its securities. However, there is no assurance that the Company will be successful in accomplishing this objective. The financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.
	As of September 30, 2014, the Company does not have sufficient capital to meet its planned expansion.  In the short-term, due to low profit margins, the Company does not expect to achieve positive cash flow. In addition, given the Company's short operating history, it is difficult to predict when the Company would begin to generate sufficient cash to support its operations. Therefore, in the foreseeable future related-parities including the Company's CEO, Mr. Wensheng Chen and companies that he controls intend to provide financial resources to meet the Company's daily cash needs.
	Uses of estimates in the preparation of financial statements
	The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of net revenue and expenses during each reporting period. Actual results could differ from those estimates.
	Impairment of long-lived assets
	Long-lived assets are reviewed for impairment when circumstances indicate the carrying value of an asset may not be recoverable. For assets that are to be held and used, an impairment is recognized when the estimated undiscounted cash flows associated with the asset or group of assets is less than their carrying value. If impairment exists, an adjustment is made to write the asset down to its fair value, and a loss is recorded as the difference between the carrying value and fair value. Fair values are determined based on quoted market values, discounted cash flows or internal and external appraisals, as applicable. Assets to be disposed of are carried at the lower of carrying value or estimated net realizable value.

PREPAID_EXPENSES_AND_OTHER_CUR

PREPAID EXPENSES AND OTHER CURRENT ASSETS	9 Months Ended
	Sep. 30, 2014
PREPAID EXPENSES AND OTHER CURRENT ASSETS [Abstract]	'
PREPAID EXPENSES AND OTHER CURRENT ASSETS	'
	3	PREPAID EXPENSES AND OTHER CURRENT ASSETS
	As of September 30, 2014 and December 31, 2013, prepaid expenses and other current assets consist following:
		30-Sep-14			31-Dec-13
	Input Value Added Tax		$	985,640		$	1,095,385
	Other prepaid expenses and other current assets			56,666			56,449
			$	1,042,306		$	1,151,834

DUE_TO_RELATED_PARTIES

DUE TO RELATED PARTIES	9 Months Ended
	Sep. 30, 2014
DUE TO RELATED PARTIES [Abstract]	'
DUE TO RELATED PARTIES	'
	4	DUE TO RELATED PARTIES
	Due to related parties consists of:
	Related parties		Maturity		Interest	30-Sep-14		December 31,
			date		rate			2013
	Mr. Wensheng Chen, Chief Executive		31-Dec	3.50%		$	3,181,685	$	3,201,752
	Officer, Chairman of Board		2016
			31-Dec	3.50%			1,149,208		1,167,964
	Ms. Ling Chen, President		2016
	Zhuhai Yuemao Laser Facility Engineering		31-Dec	3.50%			473,088		481,242
	Co., Ltd. (“Yuemao Laser”)		2016
	Yuemao Science & Technology Group		31-Dec	3.50%			9,056,741		9,638,498
	(“Yuemao Technology”)		2016
	Total					$	13,860,722	$	14,489,456
	Both Yuemao Laser and Yuemao Technology are PRC companies and controlled by the Company's chairman and Chief Executive Officer, Mr. Wensheng Chen.
	Mr. Wensheng Chen, Chairman and Chief Executive Officer of the Company.
	As of December 31, 2013, the amount due to Mr. Wensheng Chen was $3,201,752. During nine months of 2014, the loan increased by $47,215 due to various expenses paid by Mr. Chen on behalf of the Company, offset by approximately $67,000 decrease caused by exchange rate difference. The loans borrowed from Mr. Wensheng Chen bear an interest rate of 3.5% per annum. As of September 30, 2014, amount due to Mr. Chen was $3,181,685. Mr. Chen has agreed that the Company can pay the accrued interest when its cash flow status allows.
	Ms. Ling Chen, President of the Company
	During fiscal 2013, Ms. Ling Chen paid various expenses on behalf of the Company, the amount due to Ms. Ling Chen was $1,167,964 as of December 31, 2013. All loans borrowed from Ms. Ling Chen bear an interest rate of 3.5% per annum. During nine months of 2014, no additional loans were borrowed from Ms. Chen and the difference was due to exchange rate difference. As of September 30, 2014, amount due to Ms. Ling Chen was $1,149,208. Ms. Chen has agreed that the Company can make payment of accrued interest when its cash flow status allows.
	Yuemao Science & Technology Group (“Yuemao Technology”)
	Yuemao Technology is a private company established under the laws of the PRC and controlled by our Chairman and Chief Executive Officer, Mr. Wensheng Chen. As of December 31, 2013, the amount due to Yuemao Technology was $9,638,498. During nine months of 2014, the company repaid RMB 2,950,000 (approximately $480,000) loans to Yuemao Technology. As of September 30, 2014, the amount due to Yuemao Technology was $9,056,741.Yuemao Technology agreed that the Company can pay the accrued interest when its cash flow status allows.
	Zhuhai Yuemao Laser Facility Engineering Co., Ltd. (“Yuemao Laser”)
	Yuemao Laser is a private company established under the laws of the PRC and controlled by our Chairman and Chief Executive Officer, Mr. Wensheng Chen. As of December 31, 2013, the amounts due to Yuemao Laser were $481,242. During nine months of 2014, no additional loans were borrowed from Yuemao Laser. As of September 30, 2014, the amounts due to Yuemao Laser were $473,088 and the difference was due to exchange rate difference. Yuemao Laser agreed that the Company can pay the accrued interest when its cash flow status allows.

MAJOR_CUSTOMERS

MAJOR CUSTOMERS	9 Months Ended
	Sep. 30, 2014
MAJOR CUSTOMERS [Abstract]	'
MAJOR CUSTOMERS	'
	5	MAJOR CUSTOMERS
	The Company sold all of its products to customers located in China. During the three months ended September 30, 2014, two customers accounted for 82% and 18% of total sales. During the nine months ended September 30, 2014, two customers accounted for 80% and 13% of total sales.
	During the three months and nine months ended September 30, 2013, the Company did not sell any of its products and had no customer.

INCOME_TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2014
INCOME TAXES [Abstract]	'
INCOME TAXES	'
	6	INCOME TAXES
	The Company's Chinese subsidiaries are governed by Income Tax Law of the PRC concerning private-run enterprises, which are generally subject to taxes at a statutory rate of 25% on income reported in the statutory financial statements prepared in accordance with PRC GAAP after appropriate tax adjustments. Applicable income tax rate of Kuong U is 15%. Operating loss carryforwards can be utilized for five years in China and 20 years in the U.S.
	As of September 30, 2014, the Company had approximately $11,419,000 and $653,000 of net operating loss carryforwards for income tax purposes in China and the United States, respectively, which will expire between 2014 to 2034.
	Based on management's present assessment, the Company has determined it to be more likely than not that a deferred tax asset attributable to the future utilization of the net operating loss carry-forward as of September 30, 2014 and December 31, 2014 will be realized. Accordingly, the Company has provided a 100% allowance against the deferred tax asset in the financial statements at September 30, 2014 and December 31, 2013. The Company will continue to review this valuation allowance and make adjustments as appropriate.

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2014
COMMITMENTS AND CONTINGENCIES [Abstract]	'
COMMITMENTS AND CONTINGENCIES	'
	7	COMMITMENTS AND CONTINGENCIES
	Vulnerability due to operations in PRC
	The Company's operations may be adversely affected by significant political, economic and social uncertainties in the PRC. Although the PRC government has been pursuing economic reform policies for more than 20 years, there is no guarantee that the PRC government's pursuit of economic reforms will be consistent or effective.
	The PRC has adopted currency and capital transfer regulations. These regulations require that the Company comply with complex regulations for the movement of capital. Because most of the Company's future revenues will be in RMB, any inability to obtain the requisite approvals, or any future restrictions on currency exchanges, will limit the Company's ability to fund its business activities outside China or to pay dividends to its shareholders.
	The Company's assets will be predominantly located inside China. Under the laws governing foreign invested enterprises in China, dividend distribution and liquidation are allowed, but subject to special procedures under the relevant laws and rules. Any dividend payment will be subject to the decision of the board of directors and subject to foreign exchange rules governing such repatriation. Any liquidation is subject to both the relevant government agency's approval and supervision, as well as the foreign exchange control.
	In addition, the results of business and prospects are subject, to a significant extent, to the economic, political and legal developments in China.
	While China's economy has experienced significant growth in the past twenty years, growth has been irregular, both geographically and among various sectors of the economy. The Chinese government has implemented various measures to encourage economic growth and guide the allocation of resources. Some of these measures benefit the overall economy of China, but may also have a negative effect on the Company. The Company's sales and financial condition may be adversely affected by the government control over capital investments or changes in tax regulations.
	Foreign companies conducting operations in the PRC face significant political, economic and legal risks. The Communist regime in the PRC includes a stifling bureaucracy which may hinder Western investment. Any new government regulations or utility policies pertaining to the Company's PV products may result in significant additional expenses to the Company, Company distributors and end users and, as a result, could cause a significant reduction in demand for the Company's PV products.

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2014
SUBSEQUENT EVENTS [Abstract]	'
SUBSEQUENT EVENTS	'
	8	SUBSEQUENT EVENTS
	The Company has evaluated subsequent events through the date of these financial statements were issued and determined that there were no subsequent events to recognize or disclose in these financial statements.

BUSINESS_DESCRIPTION_AND_SIGNI1

BUSINESS DESCRIPTION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2014
BUSINESS DESCRIPTION AND SIGNIFICANT ACCOUNTING POLICIES [Abstract]	'
Basis of presentation	'
	Basis of presentation
	The consolidated financial statements include the accounts of the Company and all of its subsidiaries. All significant inter-company accounts and transactions have been eliminated. These financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America.
Currency translation	'
	Currency translation
	The reporting currency of the Company is the United States dollar (USD). The functional currency of Kuong U is the Hong Kong dollar (HKD). The functional currency of NUST is the Chinese Yuan (RMB). Revenue and expense accounts of our two subsidiaries are translated into United States dollarsat the average rates during the period, and balance sheet items are translated at period-end rates, except for equity accounts which are translated at historical rates. Translation adjustments arising from the use of differing exchange rates from period to period are included as a separate component of shareholders' equity. Gains and losses from foreign currency transactions are recognized in current operations.
	The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into USD at the rates used in translation.
Going concern	'
	Going concern
	The financial statements have been prepared on a “going concern” basis, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. As of September 30, 2014, the Company had negative working capital of $721,181 and a stockholders' deficiency of $11,140,545 and has accumulated deficit of $11,841,533 since inception. These factors, among others, raise substantial doubt as to the Company's ability to continue as a going concern. The Company plans to improve its financial condition by raising capital in a private placement of its securities. However, there is no assurance that the Company will be successful in accomplishing this objective. The financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.
	As of September 30, 2014, the Company does not have sufficient capital to meet its planned expansion.  In the short-term, due to low profit margins, the Company does not expect to achieve positive cash flow. In addition, given the Company's short operating history, it is difficult to predict when the Company would begin to generate sufficient cash to support its operations. Therefore, in the foreseeable future related-parities including the Company's CEO, Mr. Wensheng Chen and companies that he controls intend to provide financial resources to meet the Company's daily cash needs.
Uses of estimates in the preparation of financial statements	'
	Uses of estimates in the preparation of financial statements
	The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of net revenue and expenses during each reporting period. Actual results could differ from those estimates.
Impairment of long-lived assets	'
	Impairment of long-lived assets
	Long-lived assets are reviewed for impairment when circumstances indicate the carrying value of an asset may not be recoverable. For assets that are to be held and used, an impairment is recognized when the estimated undiscounted cash flows associated with the asset or group of assets is less than their carrying value. If impairment exists, an adjustment is made to write the asset down to its fair value, and a loss is recorded as the difference between the carrying value and fair value. Fair values are determined based on quoted market values, discounted cash flows or internal and external appraisals, as applicable. Assets to be disposed of are carried at the lower of carrying value or estimated net realizable value.

PREPAID_EXPENSES_AND_OTHER_CUR1

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)	9 Months Ended
	Sep. 30, 2014
PREPAID EXPENSES AND OTHER CURRENT ASSETS [Abstract]	'
Schedule of Prepaid Expenses and Other Current Assets	'
	As of September 30, 2014 and December 31, 2013, prepaid expenses and other current assets consist following:
		30-Sep-14			31-Dec-13
	Input Value Added Tax		$	985,640		$	1,095,385
	Other prepaid expenses and other current assets			56,666			56,449
			$	1,042,306		$	1,151,834

DUE_TO_RELATED_PARTIES_Tables

DUE TO RELATED PARTIES (Tables)	9 Months Ended
	Sep. 30, 2014
DUE TO RELATED PARTIES [Abstract]	'
Schedule of Due to Related Parties	'
	Due to related parties consists of:
	Related parties	Maturity		Interest	30-Sep-14		December 31,
		date		rate			2013
	Mr. Wensheng Chen, Chief Executive	31-Dec	3.50%		$	3,181,685	$	3,201,752
	Officer, Chairman of Board	2016
		31-Dec	3.50%			1,149,208		1,167,964
	Ms. Ling Chen, President	2016
	Zhuhai Yuemao Laser Facility Engineering	31-Dec	3.50%			473,088		481,242
	Co., Ltd. (“Yuemao Laser”)	2016
	Yuemao Science & Technology Group	31-Dec	3.50%			9,056,741		9,638,498
	(“Yuemao Technology”)	2016
	Total				$	13,860,722	$	14,489,456

BUSINESS_DESCRIPTION_AND_SIGNI2

BUSINESS DESCRIPTION AND SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
BUSINESS DESCRIPTION AND SIGNIFICANT ACCOUNTING POLICIES [Abstract]	'	'
Stockholders' deficit	($11,140,545)	($10,663,106)
Accumulated deficit	-11,841,533	-11,175,906
Working capital	($721,181)	'

PREPAID_EXPENSES_AND_OTHER_CUR2

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
PREPAID EXPENSES AND OTHER CURRENT ASSETS [Abstract]	'	'
Input Value Added Tax	$985,640	$1,095,385
Other prepaid expenses and other current assets	56,666	56,449
Total	$1,042,306	$1,151,834

DUE_TO_RELATED_PARTIES_Schedul

DUE TO RELATED PARTIES (Schedule of Due to Related Parties) (Details) (USD $)	9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
Related Party Transaction [Line Items]	'	'
Due to related parties	$13,860,722	$14,489,456
Mr. Wensheng Chen [Member]	'	'
Related Party Transaction [Line Items]	'	'
Interest rate	3.50%	'
Due to related parties	3,181,685	3,201,752
Ms. Ling Chen [Member]	'	'
Related Party Transaction [Line Items]	'	'
Interest rate	3.50%	'
Due to related parties	1,149,208	1,167,964
Yuemao Laser [Member]	'	'
Related Party Transaction [Line Items]	'	'
Interest rate	3.50%	'
Due to related parties	473,088	481,242
Yuemao Technology [Member]	'	'
Related Party Transaction [Line Items]	'	'
Interest rate	3.50%	'
Due to related parties	$9,056,741	$9,638,498

DUE_TO_RELATED_PARTIES_Narrati

DUE TO RELATED PARTIES (Narrative) (Details) (USD $)	9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
Related Party Transaction [Line Items]	'	'
Due to related parties	$13,860,722	$14,489,456
Mr. Wensheng Chen [Member]	'	'
Related Party Transaction [Line Items]	'	'
Due to related parties	3,181,685	3,201,752
Increase of loan from related party	47,215	'
Decrease of related party loan caused by exchange rate difference	67,000	'
Ms. Ling Chen [Member]	'	'
Related Party Transaction [Line Items]	'	'
Due to related parties	1,149,208	1,167,964
Yuemao Technology [Member]	'	'
Related Party Transaction [Line Items]	'	'
Due to related parties	9,056,741	9,638,498
Yuemao Laser [Member]	'	'
Related Party Transaction [Line Items]	'	'
Due to related parties	473,088	481,242
Repayment of related party debt	$480,000	'

MAJOR_CUSTOMERS_Details

MAJOR CUSTOMERS (Details) (Sales [Member], Customer Concentration Risk [Member])	3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2014
China Customer One [Member]	'	'
Concentration Risk [Line Items]	'	'
Concentration risk percentage	82.00%	80.00%
China Customer Two [Member]	'	'
Concentration Risk [Line Items]	'	'
Concentration risk percentage	18.00%	13.00%

INCOME_TAXES_Narrative_Details

INCOME TAXES (Narrative) (Details) (USD $)	9 Months Ended
	Sep. 30, 2014
Operating Loss Carryforwards [Line Items]	'
Statutory income tax rate	25.00%
Deferred tax asset valuation allowance percentage	100.00%
Minimum [Member]	'
Operating Loss Carryforwards [Line Items]	'
Operating loss carryforwards, expiration date	31-Dec-14
Maximum [Member]	'
Operating Loss Carryforwards [Line Items]	'
Operating loss carryforwards, expiration date	31-Dec-34
Kuong U [Member]	'
Operating Loss Carryforwards [Line Items]	'
Applicable income tax rate	15.00%
China [Member]	'
Operating Loss Carryforwards [Line Items]	'
Operating loss carryforwards, net	11,419,000
United States [Member]	'
Operating Loss Carryforwards [Line Items]	'
Operating loss carryforwards, net	653,000