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5. FINANCE LEASE RIGHT-OF-USE ASSETS

6 Months Ended

Jun. 30, 2019

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

	June 30, 2019		December 31, 2018
At cost:
Buildings	$	119,701	$	119,899
Plant and machinery		2,189,762		2,193,375
Total		2,309,463		2,313,274
Less: Accumulated depreciation and amortization		(2,124,588)		(2,062,517	)
Net book value	$	184,875	$	250,757

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, 2019, depreciation and amortization expense totaled $1,360 and $66,701, respectively, which was recorded in direct labor and factory overheads incurred during plant shutdown.

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.