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Prepaid Land Use Rights, net

6 Months Ended

Jun. 30, 2017

Prepaid Land Use Rights, net [Text Block]

9.	Prepaid Land Use Rights, net

Prepaid land use rights as of December 31, 2016 and June 30, 2017 consisted of the followings:

		December 31,			June 30,
		2016			2017
Prepaid land use rights	$	8,089,516		$	8,285,294
Accumulated amortization		(390,993	)		(483,309	)
	$	7,698,523		$	7,801,985
Less: Classified as current assets		(161,790	)		(165,706	)
	$	7,536,733		$	7,636,279

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 $7,826,741 (RMB53.1 million). Other incidental costs incurred totaled $458,553 (RMB3.1 million).

Amortization expenses of the prepaid land use rights were $42,997 and $40,934 for the three months ended June 30, 2016 and 2017 and $85,933 and $81,712 for the six months ended June 30, 2016 and 2017, respectively.