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6. PROPERTY, PLANT AND EQUIPMENT UNDER CAPITAL LEASES, NET
 3 Months Ended
Mar. 31, 2018
Leases [Abstract]  
6. PROPERTY, PLANT AND EQUIPMENT UNDER CAPITAL LEASES, NET

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

 

    March 31,
2018		   December 31,
2017
At cost:                
Buildings   $ 130,868     $ 125,939  
Plant and machinery     2,404,774       2,314,196  
Total     2,535,642       2,440,135  
Less: Accumulated depreciation and amortization     (2,050,782 )     (1,947,897 )
Net book value   $ 484,860     $ 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-month period ended March 31, 2018, depreciation and amortization expense totaled $69,282, which was recorded in direct labor and factory overheads incurred during plant shutdown. During the three-month period ended March 31, 2017, depreciation and amortization expense totaled $78,996, which was recorded as cost of net revenue.