LAND USE RIGHTS, NET

3 Months Ended

Sep. 30, 2011

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets Disclosure [Text Block]

NOTE 8 – LAND USE RIGHTS, NET

Land use rights consist of the following:

	September 30, 2011			June 30, 2011

Cost of land use rights	$	2,546,046		$	1,087,939
Less: Accumulated amortization		(176,047	)		(162,699	)
Land use rights, net	$	2,369,999		$	925,240

Amortization expense for the three months ended September 30, 2011 and 2010 was $13,347 and $5,685, respectively.

Amortization expense for the next five years and thereafter is as follows:

2012 (nine months)	$	40,042
2013		53,388
2014		53,388
2015		53,388
2016		53,388
Thereafter		2,116,405
Total	$	2,369,999

Two land use rights with an aggregate net book value of $53,198 and $52,995 at September 30, 2011 and June 30, 2010, respectively, were registered in the names of two members of management of the Company. The Company’s legal counsel has confirmed the ownership of these two land use rights by the Company. The Company estimates that the application for the transfer of the certificates of these two land use rights will be completed by the end of December 2011. One of the land use rights has been pledged as collateral for bank loans borrowed by Li Zengshan (shareholder and officer of the Company) in the amount of $293,856. Also see Note 14.

- Definition

The entire disclosure for all or part of the information related to intangible assets.

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Xinde Technology Co 10-Q/A