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6. PROPERTY, PLANT AND EQUIPMENT UNDER CAPITAL LEASES, NET | 9 Months Ended
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Sep. 30, 2013
Leases [Abstract] |
6. PROPERTY, PLANT AND EQUIPMENT UNDER CAPITAL LEASES, NET | Property, plant and equipment under capital leases, net consist of the following:
|  | September 30, 2013 |  | December 31, 2012
At cost: |  |  |  |  |  |
Buildings |  | $ | 133,848 |  |  | $ | 130,925 |
Plant and machinery |  |  | 2,515,941 |  |  |  | 2,461,028 |
Total |  |  | 2,649,789 |  |  |  | 2,591,953 |
Less: Accumulated depreciation and amortization |  |  | (874,194 | ) |  |  | (595,475 | )
Net book value |  | $ | 1,775,595 |  |  | $ | 1,996,478 |
The above buildings erected on parcels of land located in Shouguang, PRC, are collectively owned by local townships. The Company has not been able to obtain property ownership certificates over these buildings as the Company could not obtain land use rights certificates on the underlying parcels of land. During the three-month periods ended September 30, 2013 and 2012, depreciation and amortization expense totaled $88,194 and $85,877, respectively, which was recorded as cost of net revenue. During the nine-month periods ended September 30, 2013 and 2012, depreciation and amortization expense totaled $262,500 and $258,366, respectively, which was recorded as cost of net revenue.

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