RESTATEMENTS (Tables)

3 Months Ended

6 Months Ended

12 Months Ended

Jun. 30, 2011

Dec. 31, 2011

Schedule of Restatement of Prior Period Income Statement [Table Text Block]

		Three Months Ended June 30, 2011
		As restated			Reported			Changes
Net sales	$	11,634,463		$	11,634,463		$	-
Cost of Sales		10,292,859			10,292,859			-
Gross profit		1,341,604			1,341,604			-
Selling expenses		50,504			50,504			-
Administrative expenses		475,163			475,163			-
Income from operations		815,937			815,937			-
Other income / (expenses)		74,697			74,697			-
Derivative income		1,008,400			-			1,008,400
Interest income		1,005			1,005			-
Interest expense		(54,043	)		(54,043	)		-
Reversal of value added tax		170,401			-			170,401
Income before tax		2,016,397			837,596			1,178,801
Income tax		289,487			214,210			75,277
Net Income		1,726,910			623,386			1,103,524
Other Comprehensive income (loss)
Foreign currency translation adjustments		(35,134	)		149,492			(184,626	)
Total Comprehensive Income	$	1,691,776		$	772,878		$	918,898
Basic Earnings per Common Share
Weighted average number of common shares outstanding		59,510,035			59,510,035			-
Earnings per share - Basic	$	0.0290		$	0.0130		$	0.0185
Diluted earnings per common share
Adjusted weighted average number of shares		59,510,035			68,363,699			(8,853,664	)
Earnings per share - Diluted	$	0.0290		$	0.0116		$	0.0199

		Six Months Ended June 30, 2011
		As restated			Reported			Changes
Net sales	$	19,018,642		$	19,727,527		$	(708,885	)
Cost of Sales		16,375,637			17,891,272			(1,515,635	)
Gross profit		2,643,005			1,836,255			806,750
Selling expenses		694,627			694,627			-
Administrative expenses		1,001,928			1,001,928			-
Income from operations		946,450			139,700			806,750
Other income / (expenses)		93,796			93,796			-
Derivative income		832,845			-			832,845
Interest income		6,307			6,307			-
Interest expense		(77,797	)		(77,797	)		-
Reversal of value added tax		170,401			-			170,401
Income before tax		1,972,002			162,006			1,809,996
Income tax		581,970			293,967			288,003
Net Income (Loss)		1,390,032			(131,961	)		1,521,993
Other Comprehensive income (loss)
Foreign currency translation adjustments		(175,190	)		183,076			(358,266	)
Total Comprehensive Income	$	1,214,842		$	51,115		$	1,163,727
Basic Earnings per Common Share
Weighted average number of common shares outstanding		57,418,241			57,418,241			-
Earnings per share - Basic	$	0.0242		$	(0.0009	)	$	0.0265
Diluted earnings per common share
Adjusted weighted average number of shares		57,418,241			62,132,501			(4,714,260	)
Earnings per share - Diluted	$	0.0242		$	(0.0008	)	$	0.0263

Schedule of Restatement of Prior Period Balance Sheet [Table Text Block]

		December 31,			December 31,
		2011			2011
		As restated			Reported			Change
ASSETS
Current Assets
Cash and cash equivalents	$	3,641,120		$	3,641,120		$	-
Restricted cash		1,003,545			1,003,545			-
Accounts receivable– net		1,776,649			1,776,649			-
Notes receivable– short term - net		125,895			125,895			-
Due from related parties		2,277,647			9,475,094			(7,197,447	)
Receivable from related party		2,240,261			2,240,261			-
Prepayments		867,566			867,566			-
Inventories		707,075			707,075			-
Total Current Assets		12,639,758			19,837,205			(7,197,447	)

Non-current Assets
Notes receivable – long term		119,782			119,782			-
Equipment, net		63,303			63,303			-
Intangible assets, net		3,379			3,379
Total Non-current Assets		186,464			186,464			-

Total Assets	$	12,826,222		$	20,023,669			(7,197,447	)

LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current Liabilities
Short-term borrowings	$	-		$	-			-
Accounts payable		1,368,767			1,368,767			-
Other payables and accrued liabilities		1,003,634			1,003,634			-
Value added tax payable		3,930,978			11,434,703			(7,503,725	)
Advance receipts		510,415			510,415			-
Due to shareholder		191,630			191,630			-
Notes payable		2,136,600			2,136,600			-
Loans payable		3,604,981			3,604,981			-
Income tax payable		2,174,347			2,174,347			-
Total Current Liabilities		14,921,352			22,425,077			(7,503,725	)

Non-current Liabilities
Convertible promissory notes		1,045,907			1,045,907			-
Warrants –derivative liability		639,528			639,528			-
Total Non-current Liabilities		1,685,435			1,685,435			-

Total Liabilities		16,606,787			24,110,512			(7,503,725	)

Commitments and contingencies

STOCKHOLDERS’ DEFICIT
Common stock $0.001 par value; 200,000,000 shares authorized as of June 30, 2012 and December 31, 2011; 59,664,480 shares issued and outstanding as of June 30, 2012 and December 31, 2011.		59,664			59,664			-
Additional paid-in capital		727,062			727,062			-
Retained deficit		(4,688,256	)		(4,991,938	)		303,682
Accumulated other comprehensive income - foreign currency translation adjustments		120,965			118,369			2,596

Total Stockholders’ Deficit		(3,780,565	)		(4,086,843	)		306,278

Total Liabilities and Stockholders’ Deficit	$	12,826,222		$	20,023,669			(7,197,447	)

Schedule of Restatement of Prior Period Cash Flows [Table Text Block]

		Six Months ended June 30, 2011
		As restated			reported			Changes
Cash Flows from Operating Activities
Net income	$	1,390,032		$	(131,961	)	$	1,521,993
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		2,932			2,932			-
Provision for bad debts
Interest expense on convertible notes		-			8,477			(8,477	)
Derivative loss (income)		(832,845	)					(832,845	)
Share–based payments expense		11,332			11,332			-
Changes in operating assets and liabilities:
Accounts receivable		2,471,349			1,018,641			1,452,708
Due from related parties		-			(4,991,949	)		4,991,949
Other receivable		-			1,636,187	)		1,636,187
Deferred expenses		-			(700,705	)		700,705
Prepayments		(289,881	)		4,937,108	)		4,647,227
Inventories		4,891,254			5,724,717			(833,463	)
Other payable and accrued liabilities		(892,564	)		901,077			(1,793,641	)
Notes payable		-			1,394,991			(1,394,991	)
Accounts payable		1,680,759			-			1,680,759
Advance receipts		114,745			-			114,745
Value added tax payable		(6,958,519	)		-			(6,958,519	)
Income tax payable		365,849			293,967			71,882
Net cash provided by (used in) operating activities		1,954,443			(3,041,776	)		4,996,219

Cash Flows from Investing Activities
Notes receivable		(667,066	)		-			(667,066	)
Additions to intangibles		-			(95,000	)		95,000
Purchases of equipment		(11,766	)		(11,766	)		-
Net cash used in investing activities		(678,832	)		(106,766	)		(572,066	)

Cash Flows from Financing Activities
Proceeds (repayments) / of short term borrowings, including accrued interest		(54,470	)		(52,457	)		(2,013	)
Proceeds of note payable		1,420,605			-			1,420,605
Net proceeds from convertible notes		143,477			135,000			8,477
Due from related parties		(4,837,384	)		-			(4,837,384	)
Due to related parties		126,477			-			126,477
Net proceed from private offering units		3,633,500			3,528,230			105,270
Net (repayments)/proceeds from loans payable		1,942,472						1,942,472
Increase in restricted cash		(568,857	)		(570,867	)		2,010
Net cash provided by financing activities		1,805,820			3,039,906			(1,234,086	)
Effect of foreign currency translation on cash and cash equivalents		10,102			10,102			-
Net increase in cash and cash equivalents		3,091,533			(98,534	)		3,190,067
Cash and cash equivalents - beginning of period		1,125,056			1,125,056			-
Cash and cash equivalents at the end of period	$	4,216,589		$	1,026,522		$	3,190,067

- Definition

Tabular disclosure of prior period adjustments to previously issued financial statements including (1) the effect of the correction on each financial statement line item and any per-share amounts affected for each prior period presented (2) the cumulative effect of the change on retained earnings or other appropriate components of equity or net assets in the statement of financial position, as of the beginning of the earliest period presented, and (3) the effect of the prior period adjustments (both gross and net of applicable income tax) on the net income of each prior period presented in the entity's annual report for the year in which the adjustments are made.

+ References+ Details

FIRST CHINA PHARMACEUTICAL GROUP, INC. 10-Q/A