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5. FINANCE LEASE RIGHT-OF-USE ASSETS

9 Months Ended

Sep. 30, 2019

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

	September 30, 2019		December 31, 2018
At cost:
Buildings	$	116,344	$	119,899
Plant and machinery		2,128,342		2,193,375
Total		2,244,686		2,313,274
Less: Accumulated depreciation and amortization		(2,066,305)		(2,062,517	)
Net book value	$	178,381	$	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 nine months period ended September 30, 2019, depreciation and amortization expense totaled $1,326 and $68,027, respectively, which was recorded in direct labor and factory overheads incurred during plant shutdown.

During the three and nine months period ended September 30, 2018, depreciation and amortization expense totaled $64,874 and $203,271, respectively, which was recorded in direct labor and factory overheads incurred during plant shutdown.