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Prepaid Land Use Rights, net

6 Months Ended

Jun. 30, 2018

Prepaid Land Use Rights, net [Text Block]

9.	Prepaid Land Use Rights, net

Prepaid land use rights as of December 31, 2017 and June 30, 2018 consisted of the followings:

		December 31,			June 30,
		2017			2018
Prepaid land use rights	$	8,634,993		$	8,488,089
Accumulated amortization		(590,058	)		(664,900	)
	$	8,044,935		$	7,823,189
Less: Classified as current assets		(172,700	)		(169,762	)
	$	7,872,235		$	7,653,427

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 $8,018,312 (RMB53.1 million). Other incidental costs incurred totaled $469,777 (RMB3.1 million).

Amortization expenses of the prepaid land use rights were $40,934 and $44,068 for the three months ended June 30, 2017 and 2018 and $81,712 and $88,242 for the six months ended June 30, 2017 and 2018, respectively.