DISTRIBUTION AGREEMENTS

9 Months Ended

Sep. 30, 2015

NOTE 6 - DISTRIBUTION AGREEMENTS

Distribution agreements are presented below:

	September 30, 2015			December 31, 2014

Better World Products - related party	$	2,160		$	2,160
CNG Products		1,000			1,000
Jonway Products		14,400			14,400
		17,560			17,560
Less: amortization and impairment		(9,241	)		(8,161	)
	$	8,319		$	9,399

Amortization expenses related to these distribution agreements for the three and nine months ended September 30, 2015 and 2014 was $360,000 and $1,080,000 and $360,000 and $1,080,000, respectively. Amortization is based over the term of the agreements. As of December 31, 2014, the company recognized an impairment loss of $5.0 million for the distribution right of CNG Products. No further impairment loss was recorded for the three and nine months ended September 30, 2015 and 2014, respectively. The estimated future amortization expense is as follows:

12 months ended September 30,
2016	$	1,540
2017		1,540
2018		1,540
2019		1,540
2020		1,540
Thereafter		619
Total	$	8,319