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Property, Plant and Equipment, Net
 9 Months Ended
Sep. 30, 2023
Property, Plant and Equipment, Net [Abstract]  
Property, Plant and Equipment, net

6. Property, Plant and Equipment, net

 

Property, plant and equipment as of December 31, 2022 and September 30, 2023 consisted of the following:

 

   December 31,
2022		   September 30,
2023		 
Buildings  $47,086,680   $44,992,788 
Leasehold Improvements   5,156,705    6,005,380 
Machinery and equipment   71,665,842    85,049,964 
Office equipment   1,545,026    1,880,504 
Motor vehicles   507,882    570,649 
    125,962,135    138,499,285 
Impairment   (13,025,161)   (12,368,063)
Accumulated depreciation   (22,932,447)   (32,543,762)
Carrying amount  $90,004,527   $93,587,460 

 

During the three months ended September 30, 2022 and 2023, the Company incurred depreciation expense of $2,397,857 and $1,872,455, respectively.

 

During the nine months ended September 30, 2022 and 2023, the Company incurred depreciation expense of $6,718,591 and $6,740,160, respectively.

 

The Company has not yet obtained the property ownership certificates of the buildings in its Dalian manufacturing facilities with a carrying amount of $7,360,242 as of December 31, 2022. 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. The Company has obtained the remaining property ownership certificates on July 6, 2023.

  

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, 2022 and 2023.