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Property, Plant and Equipment, Net
 12 Months Ended
Dec. 31, 2020
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, 2019 and 2020 consisted of the following:

 

   December 31,   December 31, 
   2019   2020 
Buildings  $27,262,301   $28,150,137 
Machinery and equipment   22,719,932    32,753,952 
Office equipment   204,196    258,458 
Motor vehicles   161,980    197,790 
    50,348,409    61,360,337 
Impairment   (4,126,152)   (8,980,020)
Accumulated depreciation   (8,044,692)   (11,339,947)
Carrying amount  $38,177,565   $41,040,370 

 

During the years ended December 31, 2019 and 2020, the Company incurred depreciation expense of $2,728,224 and $2,677,238, 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 $24,611,468 as of December 31, 2019 and 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 in the years ended December 31, 2019 and 2020, the Company assessed the recoverability of the carrying value of certain property, plant and equipment which resulted in impairment losses of approximately $2.3 million and $4.3 million, respectively. The impairment charge represented the excess of carrying amounts of the Company's property, plant and equipment over the estimated fair value of the Company's production facilities in Dalian primarily for the production of high-power lithium batteries.