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Dehaier Medical Announces Third Quarter 2010 Financial Results
Date:11/12/2010

ained earnings

8,365,9395,298,742Accumulated other comprehensive income

1,185,177773,127Total Dehaier Medical Systems Limited shareholders' equity 22,700,4919,277,036Non-controlling interest

1,303,2621,262,389Total shareholders' equity 24,003,75310,539,425Total liabilities and shareholders' equity 33,565,04417,784,633DEHAIERMEDICAL SYSTEMS LIMITED AND AFFILIATECONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(UNAUDITED)For the nine months ended September 3020102009US$US$Operating ActivitiesNet income

3,081,7582,110,278Adjustment to reconcile net income to net cash provided by (used in) operating activities Depreciation and amortization

261,438210,231Recovery of doubtful accounts

(30,336)-Recovery of inventory obsolescence

(5,756)-Change in fair value of warrants liability

114,806-Provision for warranty reserve

3,68941,662Change in assets and liabilitiesIncrease in accounts receivable

(2,153,214)(642,778)Decrease (increase) in prepayments and other current assets

(4,433,546)498,145Increase in other receivable

(1,608,240)(274,275)Increase in inventories

(1,969,143)(1,050,453)Increase in tax receivable

(1,088,309)(610,511)(Decrease) increase in accounts payable

(56,675)5,536(Decrease) increase in advances from customers

262,372(170,699)(Decrease) increase in accrued expenses and other current liabilities

(80,286)46,609Increase in tax payable

2,005,4201,409,645Net cash provided by (used in) operating activities(5,696,022)1,573,390Investing ActivitiesCapital expenditures and other additions

(839,456)(915,693)Proceeds from (advances to) related parties

(3,861)1,976Net cash used in investing activities(843,317)(913,717)Financing ActivitiesNet proceeds from issuance of common stock

9,944,207-Net cash provided by financing activities9,944,207-Effect of exchange rate fluctuations on cash a
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SOURCE Dehaier Medical Systems Ltd.
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