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Property, Plant and Equipment, Net
 9 Months Ended
Sep. 30, 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 September 30, 2020 consisted of the following:

 

   December 31,   September 30, 
   2019   2020 
Buildings  $27,262,301   $27,066,419 
Machinery and equipment   22,719,932    31,481,636 
Office equipment   204,196    212,499 
Motor vehicles   161,980    177,912 
    50,348,409    58,938,466 
Impairment   (4,126,152)   (4,219,008)
Accumulated depreciation   (8,044,692)   (10,074,520)
Carrying amount  $38,177,565   $44,644,938 

 

During the three months ended September 30, 2019 and 2020, the Company incurred depreciation expense of $681,089 and $695,950, respectively

 

During the nine months ended September 30, 2019 and 2020, the Company incurred depreciation expense of $2,064,576 and $1,838,357, 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 $23,853,446 as of December 31, 2019 and September 30, 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 and nine months ended September 30, 2019 and 2020.