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6. PROPERTY, PLANT AND EQUIPMENT UNDER CAPITAL LEASES, NET | 6 Months Ended
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Jun. 30, 2018
Leases [Abstract] |
6. PROPERTY, PLANT AND EQUIPMENT UNDER CAPITAL LEASES, NET | Property, plant and equipment under capital leases, net consist of the following:
|  | June 30, 2018 |  | December 31, 2017
At cost: |  |  |  |  |  |  |  |
Buildings |  | $ | 124,375 |  |  | $ | 125,939 |
Plant and machinery |  |  | 2,285,465 |  |  |  | 2,314,196 |
Total |  |  | 2,409,840 |  |  |  | 2,440,135 |
Less: Accumulated depreciation and amortization |  |  | (2,015,660 | ) |  |  | (1,947,897 | )
Net book value |  | $ | 394,180 |  |  | $ | 492,238 |
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 and six months period ended June 30, 2018, depreciation and amortization expense totaled $69,115 and $138,397, respectively, which was recorded in direct labor and factory overheads incurred during plant shutdown. During the three and six months period ended June 30, 2017, depreciation and amortization expense totaled $75,413 and $150,470, respectively, which was recorded as cost of net revenue.

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