Bad debt expense for the third quarter was $767,691. This bad debt expense results from delayed payments from our five major customers. As a result of these delayed payments, the Company has suspended shipments of raw jade to two of our customers. The Company will continue to monitor this situation and periodically reevaluate the adequacy of the bad debt reserve.
Having previously experienced a slowing in its growth rate, Chinese economy now appears to be recovering and showing improvement. This is having a positive impact on the commercial and residential construction markets and the jewelry market into which the Company sells raw jade. Also, comparing to the first quarter of 2009, the weather conditions in the first quarter of 2010 have been less disruptive, enabling the mining and delivery of the jade to proceed more smoothly.