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Property, Plant and Equipment, Net
 12 Months Ended
Dec. 31, 2023
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, 2022 and 2023 consisted of the following:

 

   December 31,
2022		   December 31,
2023		 
Buildings  $47,086,680   $45,843,428 
Leasehold improvements   5,156,705    7,214,436 
Machinery and equipment   71,665,842    83,625,645 
Office equipment   1,545,026    1,983,601 
Motor vehicles   507,882    727,452 
    125,962,135    139,394,562 
Impairment   (13,025,161)   (17,358,096)
Accumulated depreciation   (22,932,447)   (30,407,634)
Carrying amount  $90,004,527   $91,628,832 

 

During the years ended December 31, 2022 and 2023, the Company incurred depreciation expense of $9,414,421 and $10,422,306, 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 in the years ended December 31, 2022 and 2023, the Company assessed the recoverability of the carrying value of certain property, plant and equipment which resulted in impairment losses of approximately $4,831,708 and $7,070,236, 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 Hitrans primarily for the production of materials used in manufacturing of lithium batteries due to underperformance of Hitrans reporting unit. No impairment charge was recorded on the Company’s production facilities in Dalian and Nanjing in the years ended December 31, 2022 and 2023.