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5. PROPERTY, PLANT AND EQUIPMENT UNDER CAPITAL LEASES, NET
 12 Months Ended
Dec. 31, 2014
Leases [Abstract]  
5. PROPERTY, PLANT AND EQUIPMENT UNDER CAPITAL LEASES, NET

Property, plant and equipment under capital leases, net consist of the following:

 

    As of December 31,  
    2014     2013  
At cost:            
Buildings   $ 134,489     $ 134,975  
Plant and machinery     2,528,007       2,537,133  
Total     2,662,496       2,672,108  
Less: accumulated depreciation and amortization     (1,322,894 )     (970,780 )
Net book value   $ 1,339,602     $ 1,701,328  

 

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 year ended December 31, 2014, depreciation and amortization expense totaled $354,246, which was recorded as cost of sales.

 

During the year ended December 31, 2013, depreciation and amortization expense totaled $351,238, which was recorded as cost of sales.