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Property, Plant and Equipment, Net

3 Months Ended

Mar. 31, 2020

Property, Plant and Equipment, Net [Abstract]

Property, Plant and Equipment, net

7. Property, Plant and Equipment, net

Property, plant and equipment as of December 31, 2019 and March 31, 2020 consisted of the following:

		December 31,				March 31,
		2019				2020
Buildings		$	27,262,301			$	26,812,159
Machinery and equipment			22,719,932				22,344,791
Office equipment			204,196				200,824
Motor vehicles			161,980				159,305
			50,348,409				49,517,079
Impairment			(4,126,152	)			(4,058,023	)
Accumulated depreciation			(8,044,692	)			(8,485,131	)
Carrying amount		$	38,177,565			$	36,973,925

During the three months ended March 31, 2019 and 2020, the Company incurred depreciation expense of $674,847 and $581,491, respectively

The Company has not yet obtained the property ownership certificates of the buildings in its Dalian manufacturing facilities with a carrying amount of $24,671,045 and $24,075,465 as of December 31, 2019 and March 31, 2020, 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, the Company assessed the recoverability of the carrying value of the Company’s property, plant and equipment. The impairment charge, if any, represented the excess of carrying amounts of the Company’s property, plant and equipment over the estimated discounted cash flows expected to be generated by the Company’s production facilities. The Company believes that there was no impairment during the three months ended March 31, 2019 and 2020.

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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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