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5. PROPERTY, PLANT AND EQUIPMENT UNDER CAPITAL LEASES, NET
 3 Months Ended
Mar. 31, 2017
Leases [Abstract]  
5. PROPERTY, PLANT AND EQUIPMENT UNDER CAPITAL LEASES, NET

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

 

   

March 31,

2017

    

December 31,

2016

  
At cost:            
Buildings   $ 119,273     $ 118,623  
Plant and machinery     2,241,995       2,229,775  
Total     2,361,268       2,348,398  
Less: Accumulated depreciation and amortization     (1,882,817 )     (1,794,141 )
Net book value   $ 478,451     $ 554,257  

 

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 period ended March 31, 2017, depreciation and amortization expense totaled $78,996, which was recorded as cost of net revenue. During the three-month period ended March 31, 2016, depreciation and amortization expense totaled $83,320, which was recorded as cost of net revenue.