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5. PROPERTY, PLANT AND EQUIPMENT UNDER CAPITAL LEASES, NET | 12 Months Ended
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Dec. 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:
| As of December 31,
|  | 2017 |  |  | 2016 |
At cost: |  |  |  |  |  |
Buildings |  | $ | 125,939 |  |  | $ | 118,623 |
Plant and machinery |  |  | 2,314,196 |  |  |  | 2,229,775 |
Total |  |  | 2,440,135 |  |  |  | 2,348,398 |
Less: accumulated depreciation and amortization |  |  | (1,947,897 | ) |  |  | (1,794,141 | )
Net book value |  | $ | 492,238 |  |  | $ | 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 year ended December 31, 2017, depreciation and amortization expense totaled $266,527, of which $198,998 and $67,529 were recorded as cost of net revenue and administrative expenses, respectively. During the year ended December 31, 2016, depreciation and amortization expense totaled $327,738, which was recorded as cost of sales.

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