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4. PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended
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Dec. 31, 2018
Property, Plant and Equipment [Abstract] |
4. PROPERTY, PLANT AND EQUIPMENT, NET | Property, plant and equipment, net consist of the following:
|  | As of December 31,
|  | 2018 |  | 2017
At cost: |  |  |  |  |  |  |  |
Mineral rights |  | $ | 2,809,977 |  |  | $ | 4,711,822 |
Buildings |  |  | 60,866,462 |  |  |  | 67,748,512 |
Plant and machinery |  |  | 161,178,816 |  |  |  | 200,742,652 |
Motor vehicles |  |  | 6,230 |  |  |  | 8,792 |
Furniture, fixtures and office equipment |  |  | 3,289,010 |  |  |  | 4,150,588 |
Construction in progress |  |  | 6,535,808 |  |  |  | 183,036 |
Total |  |  | 234,686,303 |  |  |  | 277,545,402 |
Less: accumulated depreciation and amortization |  |  | (134,681,628 | ) |  |  | (163,597,407 | )
Impairment |  |  | (17,722,045 | ) |  |  | (18,833,491 | )
Net book value |  | $ | 82,282,630 |  |  | $ | 95,114,504 |
The Company has certain buildings and salt pans erected on parcels of land located in Shouguang, PRC, and such parcels of land are collectively owned by local townships or the government. The Company has not been able to obtain property ownership certificates over these buildings and salt pans. The aggregate carrying values of these properties situated on parcels of the land are $20,409,998 and $27,432,351 as at December 31, 2018 and 2017, respectively. During the year ended December 31, 2018, depreciation and amortization expense totaled $17,176,306, of which $16,209,588 and $966,718 were recorded in direct labor and factory overheads incurred during plant shutdown and administrative expenses, respectively in the consolidated statement of income (loss). During the year ended December 31, 2017, depreciation and amortization expense totaled $19,930,786 of which $13,443,298 and $1,213,010 were recorded as cost of net revenue and administrative expenses, respectively in the consolidated statement of income (loss). During the year ended December 31, 2017, depreciation and amortization expense related to property, plant and equipment of $5,274,478 was recorded in direct labor and factory overheads incurred during plant shutdown in the consolidated statement of income (loss). In the fiscal year 2018, the Company incurred approximately $16.2 million to perform the rectification and improvements of the bromine and crude salt factories and approximately $1.2 million in relocation cost of the chemical factories. In the fourth quarter of 2018, the Company built new extraction wells for bromine facilities at costs of approximately $5.8 million to replace wells damaged by flood from a typhoon during the third quarter of 2018. The construction of this project was completed as of December 31, 2018. In the fourth quarter of 2018, the Company built new extraction wells for bromine facilities at costs of approximately $5.3 million to replace the old bromine wells. This project is expected to complete in June 30, 2019. In the third quarter of 2017, the Company incurred enhancement works for rectification and improvement in order to meet the new environmental rules in China at costs of approximately $0.6 million. In the fourth quarter of 2017, the Company incurred enhancement works for rectification and improvement in order to meet the new environmental rules in China at costs of approximately $17.3 million. The construction of these projects was completed as of December 31, 2017. For the years ended December 31, 2018 and 2017, ordinary repair and maintenance expenses were $2,590,003 and $130,842, respectively.

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- Definition The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 + Details
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