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4. PREPAID LAND LEASE	3 Months Ended
Mar. 31, 2016
Notes to Financial Statements
4. PREPAID LAND LEASE	The Company prepaid for land leases with lease terms for periods ranging from one to fifty years to use the land on which the production facilities and warehouses of the Company are situated. The prepaid land lease is amortized on a straight line basis. During the three-month periods ended March 31, 2016 and 2015, amortization of prepaid land leases totaled $131,544 and $126,503, respectively, which amounts 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 the government authority. For parcels of land that are collectively owned by local townships, the Company cannot obtain land use rights certificates. The parcels of land of which the Company cannot obtain land use rights certificates covers a total of approximately 59.43 square kilometers of aggregate carrying value of $905,346 and approximately 59.43 square kilometers of aggregate carrying value of $686,073 as at March 31, 2016 and December 31, 2015, respectively.

4. PREPAID LAND LEASE

3 Months Ended

Mar. 31, 2016

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

During the three-month periods ended March 31, 2016 and 2015, amortization of prepaid land leases totaled $131,544 and $126,503, respectively, which amounts 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 the government authority. For parcels of land that are collectively owned by local townships, the Company cannot obtain land use rights certificates. The parcels of land of which the Company cannot obtain land use rights certificates covers a total of approximately 59.43 square kilometers of aggregate carrying value of $905,346 and approximately 59.43 square kilometers of aggregate carrying value of $686,073 as at March 31, 2016 and December 31, 2015, respectively.