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Property, Plant and Equipment and Construction in Progress | 12 Months Ended
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Dec. 31, 2022
Property, Plant and Equipment [Abstract] |
PROPERTY, PLANT AND EQUIPMENT AND CONSTRUCTION IN PROGRESS | NOTE 8 – PROPERTY, PLANT AND EQUIPMENT AND CONSTRUCTION IN PROGRESS (a) As of December 31, 2022 and 2021, property, plant and equipment consisted of the following:
|  | As of |
|  | December 31, 2022 |  |  | December 31, 2021 |
Buildings |  | $ | 11,781,256 |  |  | $ | 12,751,105 |
Machinery |  |  | 21,010,613 |  |  |  | 21,930,452 |
Motor vehicles |  |  | 315,708 |  |  |  | 341,697 |
Electronic equipment |  |  | 223,806 |  |  |  | 206,122 |
Fixed assets decoration* |  |  | - |  |  |  | - |
Total property plant and equipment, at cost |  |  | 33,331,383 |  |  |  | 35,229,376 |
Less: accumulated depreciation |  |  | (17,763,247 | ) |  |  | (16,679,022 | )
Property, plant and equipment, net |  | $ | 15,568,136 |  |  | $ | 18,550,354 |
Construction in process |  |  | 17,078 |  |  |  | 407,199 |
Total |  | $ | 15,585,214 |  |  | $ | 18,957,553 |
For the years ended December 31, 2022 and 2021, depreciation expense amounted to $2.44 million and $2.51 million, respectively, of which $1.47 million and $1.53 million, respectively, was included in cost of revenue and inventories, and the remainder was included in general and administrative expense, respectively. For the years ended December 31, 2022 and 2021, $0.38 million and $0 million of construction in progress were converted into fixed assets. Restricted assets consist of the following:
|  | As of |
|  | December 31, 2022 |  |  | December 31, 2021 |
Buildings, net |  | $ | 9,599,313 |  |  | $ | 11,314,916 |
Machinery, net |  |  | - |  |  |  | 2,201,707 |
Total |  |  | 9,599,313 |  |  |  | 13,516,623 |
As of December 31, 2022, 2022, the Company pledged its ownership interests in certain buildings for the book value of RMB65.00 million ($9.14 million) as security to ABC Xinchang and Rural Commercial Bank of PRC Co., Ltd., for loan facilities with an aggregate maximum principal amount of RMB167.73 million. On January 3, 2019, the Company sold a set of manufacturing equipment to third parties for aggregate proceeds of $3.08 million (RMB21.25 million) and the Company entered into lease agreements under which the Company agreed to lease back each of the properties for an initial term of 3 years. On April 26, 2019, the Company sold various equipment including the general assembly line and the differential assembly line to third parties for aggregate proceeds of $2.12 million (RMB14.66 million) and the Company entered into lease agreements under which the Company agreed to lease back each of the properties for an initial term of 2 years. On May 27, 2020, the Company sold various equipment including the general assembly line and the differential assembly line to third parties for aggregate proceeds of $1.42 million (RMB10.00 million) and the Company entered into lease agreements under which the Company agreed to lease back each of the properties for an initial term of 2 years. The Company determined that it did not relinquish control of the assets to the buyer-lessor. Therefore, the Company accounted for the transactions as failed sale-leaseback transactions whereby the Company continues to depreciate the assets and recorded a financing obligation for the consideration received from the buyer-lessor.

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- Definition The entire disclosure for long-lived, physical asset used in normal conduct of business and not intended for resale. Includes, but is not limited to, work of art, historical treasure, and similar asset classified as collections. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 958 -SubTopic 360 -Section 50 -Paragraph 6 -URI https://asc.fasb.org/extlink&oid=126982197&loc=d3e99893-112916 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI https://asc.fasb.org/topic&trid=2155823 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 958 -SubTopic 360 -Section 50 -Paragraph 7 -URI https://asc.fasb.org/extlink&oid=126982197&loc=SL120174063-112916 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 958 -SubTopic 360 -Section 50 -Paragraph 1 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126982197&loc=d3e99779-112916 + Details
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