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4. PREPAID LAND LEASES	6 Months Ended
Jun. 30, 2015
Notes to Financial Statements
4. PREPAID LAND LEASES	The Company prepaid for land leases with lease terms for periods ranging from one to fifty years to use the land on which the office premises, production facilities and warehouses of the Company are situated. The prepaid land lease is amortized on a straight line basis. During the three-month period ended June 30, 2015 and 2014, amortization of prepaid land lease totaled $127,583 and $96,439, respectively, which were recorded as cost of net revenue. During the six-month period ended June 30, 2015 and 2014, amortization of prepaid land lease totaled $254,087 and $201,411, respectively, which were recorded as cost of net revenue. The Company has the rights to use certain parcels of land located in Shouguang, the PRC, through lease agreements signed with local townships or government authority. For parcels of land that are collectively owned by local townships, the Company could not obtain land use rights certificates. The parcels of land that the Company could not obtain land use rights certificates cover a total of approximately 59.43 square kilometers with an aggregate carrying value of $1,172,819 and approximately 59.39 square kilometers with an aggregate carrying value of $742,820 as at June 30, 2015 and December 31, 2014, respectively.

4. PREPAID LAND LEASES

6 Months Ended

Jun. 30, 2015

The Company prepaid for land leases with lease terms for periods ranging from one to fifty years to use the land on which the office premises, production facilities and warehouses of the Company are situated. The prepaid land lease is amortized on a straight line basis.

During the three-month period ended June 30, 2015 and 2014, amortization of prepaid land lease totaled $127,583 and $96,439, respectively, which were recorded as cost of net revenue. During the six-month period ended June 30, 2015 and 2014, amortization of prepaid land lease totaled $254,087 and $201,411, respectively, which were recorded as cost of net revenue.

The Company has the rights to use certain parcels of land located in Shouguang, the PRC, through lease agreements signed with local townships or government authority. For parcels of land that are collectively owned by local townships, the Company could not obtain land use rights certificates. The parcels of land that the Company could not obtain land use rights certificates cover a total of approximately 59.43 square kilometers with an aggregate carrying value of $1,172,819 and approximately 59.39 square kilometers with an aggregate carrying value of $742,820 as at June 30, 2015 and December 31, 2014, respectively.