XML 23 R12.htm IDEA: XBRL DOCUMENT v3.22.2.2
Property, Plant and Equipment, Net
 9 Months Ended
Sep. 30, 2022
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment, net

6. Property, Plant and Equipment, net

 

Property, plant and equipment as of December 31, 2021 and September 30, 2022 consisted of the following:

 

   December 31,
2021		   September 30,
2022		 
Buildings  $48,418,782   $40,796,906 
Leasehold Improvements   5,543,792    5,057,194 
Machinery and equipment   58,899,248    68,511,294 
Office equipment   1,200,758    1,133,481 
Motor vehicles   486,570    379,318 
　   114,549,150    115,878,193 
Impairment   (9,194,132)   (8,079,718)
Accumulated depreciation   (15,312,245)   (19,643,898)
Carrying amount  $90,042,773   $88,154,577 

 

During the three months ended September 30, 2021 and 2022, the Company incurred depreciation expense of $604,201 and $2,397,857, respectively

 

During the nine months ended September 30, 2021 and 2022, the Company incurred depreciation expense of $1,993,929 and $6,718,591, respectively

 

The Company has not yet obtained the property ownership certificates of the buildings in its Dalian manufacturing facilities with a carrying amount of $7,548,239 and $6,626,701 as of December 31, 2021 and September 30, 2022, 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, 2021 and 2022.