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Dehaier Medical Announces Record Second Quarter 2011 Financial Results
Date:8/15/2011

40,34118,394Income before provision for income taxes and non-controlling interest  2,345,7871,967,8052,053,5061,338,950Provision for income tax

(396,642)(298,180)(314,105)(203,297)Net income 1,949,1451,669,6251,739,4011,135,653Non-Controlling interest in (income) loss

(5,654)(9,991)(1,324)3,770Net income attributable to Dehaier Medical Systems Limited 1,943,4911,659,6341,738,0771,139,423Net Income1,949,1451,669,6251,739,4011,135,653Other comprehensive incomeForeign currency translation adjustments

511,375127,158324,095125,522Comprehensive Income2,460,5201,796,7832,063,4961,261,175Comprehensive income attributable to the non-controlling interest

(28,591)(8,546)(17,685)(8,335)Comprehensive income attributable to Dehaier Medical Systems Limited2,431,9291,788,2372,045,8111,252,840Earnings per share-Basic

0.430.460.390.27-Diluted

0.430.460.390.27Weighted average number of common shares used in computation-Basic

4,506,3543,575,0004,510,0004,150,000-Diluted

4,506,3543,632,5004,510,0004,265,000The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. DEHAIERMEDICAL SYSTEMS LIMITED AND AFFILIATECONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(UNAUDITED)For the six months ended
June 30,20112010US$US$Cash flows from operating activitiesNet income1,949,1451,669,625Adjustments to reconcile net income to net cash used in operating activitiesStock-based compensation expense59,300-Depreciation and amortization219,976172,314Change in fair value of warrants liability(149,867)(18,394)Recovery of doubtful accounts-(25,680)Recovery of inventory obsolescence-(1,922)Changes in assets and liabilities: Increase in accounts receivable(3,451,269)(1,950,032)Increase in prepayments and other current assets(4,240,759)(2,920,603)   Decrease (Increase) in o
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