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Prepaid Land Use Rights, net

9 Months Ended

Sep. 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 September 30, 2018 consisted of the followings:

		December 31,			September 30,
		2017			2018
Prepaid land use rights	$	8,634,993		$	8,180,096
Accumulated amortization		(590,058	)		(681,675	)
	$	8,044,935		$	7,498,421
Less: Classified as current assets		(172,700	)		(163,602	)
	$	7,872,235		$	7,334,819

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 $7,727,365 (RMB53.1 million). Other incidental costs incurred totaled $452,731 (RMB3.1 million).

Amortization expenses of the prepaid land use rights were $42,085 and $40,764 for the three months ended September 30, 2017 and 2018 and $123,797 and $129,006 for the nine months ended September 30, 2017 and 2018, respectively.