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Prepaid Land Use Rights, net

9 Months Ended

Sep. 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 September 30, 2017 consisted of the followings:

		December 31,			September 30,
		2016			2017
Prepaid land use rights	$	8,089,516		$	8,441,790
Accumulated amortization		(390,993	)		(534,647	)
	$	7,698,523		$	7,907,143
Less: Classified as current assets		(161,790	)		(168,836	)
	$	7,536,733		$	7,738,307

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 153,832m ² in Dalian Economic Zone for 50 years up to August 9, 2064, at a total consideration of $7,974,575 (RMB53.1 million). Other incidental costs incurred totaled $467,214 (RMB3.1 million).

Amortization expenses of the prepaid land use rights were $42,111 and $42,085 for the three months ended September 30, 2016 and 2017 and $128,044 and $123,797 for the nine months ended September 30, 2016 and 2017, respectively.