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Prepaid Land Use Rights, net

9 Months Ended

Jun. 30, 2016

Prepaid Land Use Rights, net [Text Block]

9.	Prepaid Land Use Rights, net

Prepaid land use rights as of September 30, 2015 and June 30, 2016 consisted of the followings:

		September 30,			June 30,
		2015			2016
Prepaid land use rights	$	8,838,220		$	8,449,661
Accumulated amortization		(206,225	)		(323,904	)
	$	8,631,995		$	8,125,757
Less: Classified as current assets		(176,764	)		(168,993	)
	$	8,455,231		$	7,956,764

Pursuant to a land use rights acquisition agreement dated August 10, 2014, the Company acquired the rights to use a piece of land with an area of 153,832 m ² in Dalian Economic Zone for 50 years up to August 9, 2064 at a total consideration of $8,234,000 (RMB53.1 million). Other incidental costs incurred totaled $482,000 (RMB3.1 million).

Amortization expenses of prepaid land use rights were $45,284 and $42,997 for the three months ended June 30, 2015 and 2016 and $158,688 and $129,888 for the nine months ended June 30, 2015 and 2016, respectively.