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4. PREPAID LAND LEASE	9 Months Ended
Sep. 30, 2015
Notes to Financial Statements
4. PREPAID LAND LEASE	The Company prepaid its 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 September 30, 2015 and 2014, amortization of prepaid land lease totaled $257,083 and $234,231, respectively, which were recorded as cost of net revenue. During the nine-month period ended September 30, 2015 and 2014, amortization of prepaid land lease totaled $511,170 and $435,642, 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 $943,089 and approximately 59.39 square kilometers with an aggregate carrying value of $742,820 as at September 30, 2015 and December 31, 2014, respectively.

4. PREPAID LAND LEASE

9 Months Ended

Sep. 30, 2015

The Company prepaid its 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 September 30, 2015 and 2014, amortization of prepaid land lease totaled $257,083 and $234,231, respectively, which were recorded as cost of net revenue. During the nine-month period ended September 30, 2015 and 2014, amortization of prepaid land lease totaled $511,170 and $435,642, 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 $943,089 and approximately 59.39 square kilometers with an aggregate carrying value of $742,820 as at September 30, 2015 and December 31, 2014, respectively.