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Property, Plant and Equipment, net

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment, Net [Abstract]

Property, Plant and Equipment, net

8. Property, Plant and Equipment, net

Property, plant and equipment as of December 31, 2017 and 2018 consisted of the following:

		December 31,				December 31,
		2017				2018
Buildings		$	24,979,022			$	23,626,924
Machinery and equipment			13,977,734				22,159,752
Office equipment			184,014				218,581
Motor vehicles			206,190				204,368
			39,346,960				46,209,625
Impairment			(1,010,216	)			(1,840,596	)
Accumulated depreciation			(3,371,234	)			(5,460,526	)
Carrying amount		$	34,965,510			$	38,908,503

During the years ended December 31, 2017 and 2018, the Company incurred depreciation expense of $1,569,768 and $2,442,428, respectively.

The Company has not yet obtained the property ownership certificates of the buildings in its Dalian manufacturing facilities with a carrying amount of $23,670,773 and $21,749,145 as of December 31, 2017 and 2018, respectively. The Company built its facilities on the land for which it had already obtained the related land use right. The Company has submitted applications to the Chinese government for the ownership certificates on the completed buildings located on these lands. However, the application process takes longer than the Company expected and it has not obtained the certificates as of the date of this report. However, since the Company has obtained the land use right in relation to the land, the management believe the Company has legal title to the buildings thereon albeit the lack of ownership certificates.

During the course of the Company's strategic review of its operations in the years ended December 31, 2017 and 2018, the Company assessed the recoverability of the carrying value of certain property, plant and equipment which resulted in impairment losses of approximately $1.0 million and $0.9 million, respectively.

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- Definition

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-URI http://asc.fasb.org/topic&trid=2155823

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- References

No definition available.

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