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17. CAPITAL COMMITMENT AND OPERATING LEASE COMMITMENTS

9 Months Ended

Sep. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

17. CAPITAL COMMITMENT AND OPERATING LEASE COMMITMENTS

As of September 30, 2018, the Company 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 eight parcels of land under non-cancelable operating leases, with fixed rentals and expire through, December 2021, December 2023, December 2030, April 2038, December 2040, February 2059, August 2059 and June 2060, respectively. The remaining lease obligations of lease agreements related to the factories that were not allowed to resume production as required by the government (See Note 1 (b)) were excluded from the Operating Lease Obligations below as the lease agreements are considered terminated.

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

	Capital Lease Obligations			Operating Lease Obligations		Property Management Fees		Capital Expenditure
Payable within:
the next 12 months	$	272,859		$	773,194	$	90,691	$	38,302
the next 13 to 24 months		272,859			783,710		90,691		—
the next 25 to 36 months		272,859			797,622		90,691		—
the next 37 to 48 months		272,859			646,218		90,691		—
the next 49 to 60 months		272,859			653,170		90,691		—
thereafter		1,910,020			12,253,841		—		—
Total	$	3,274,315		$	15,907,755	$	453,455	$	38,302
Less: Amount representing interest		(1,049,107	)
Present value of net minimum lease payments	$	2,225,208

Rental expenses related to operating leases of the Company which were charged to the condensed consolidated statements of income (loss) amounted to $266,875 and $264,113 for the three months ended September 30, 2018 and 2017, respectively. Rental expenses related to operating leases of the Company which were charged to the condensed consolidated statements of income (loss) amounted to $831,540 and $775,680 for the nine months ended September 30, 2018 and 2017, respectively.