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18. COMMITMENTS

6 Months Ended

Jun. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

As of June 30, 2018, the Company has leased real property adjacent to Factory No. 1, with the related production facility, channels and ducts, other production equipment and the buildings located on the property, under a capital lease. The future minimum lease payments required under the capital lease, together with the present value of such payments, are included in the table shown below.

The Company has leased ten parcels of land under non-cancelable operating leases, with fixed rentals and expire through December 2021, December 2023, December 2030, December 2031, December 2032, April 2038, December 2040, February 2059, August 2059 and June 2060, respectively.

The following table sets forth the Company’s contractual obligations as of June 30, 2018:

	Capital Lease Obligations			Operating Lease Obligations		Property Management Fees		Capital Expenditure
Payable within:
the next 12 months	$	283,690		$	1,008,208	$	94,291	$	39,822
the next 13 to 24 months		283,690			1,032,548		94,291		—
the next 25 to 36 months		283,690			1,054,710		94,291		—
the next 37 to 48 months		283,690			911,914		94,291		—
the next 49 to 60 months		283,690			927,797		94,291		—
thereafter		1,985,828			15,688,637		—		—
Total	$	3,404,278		$	20,623,814	$	471,455	$	39,822
Less: Amount representing interest		(1,128,887	)
Present value of net minimum lease payments	$	2,275,391

Rental expenses related to operating leases of the Company amounted to $283,051 and $256,447, which were charged to the condensed consolidated statements of income (loss) for the three months ended June 30, 2018 and 2017, respectively. Rental expenses related to operating leases of the Company amounted to $564,664 and $511,566, which were charged to the condensed consolidated statements of income (loss) for the six months ended June 30, 2018 and 2017, respectively.