Prepaid Land Use Rights, net

9 Months Ended

Jun. 30, 2015

Prepaid Land Use Rights, net [Text Block]

8. Prepaid Land Use Rights, net

Prepaid land use rights as of September 30, 2014 and June 30, 2015 consisted of the followings:

		September 30,			June 30,
		2014			2015
Prepaid land use rights	$	9,152,400		$	9,062,926
Accumulated amortization		-			(158,602	)
	$	9,152,400		$	8,904,324
Less: Classified as current assets		(183,048	)		(181,258	)
	$	8,969,352		$	8,723,066

Pursuant to a land use rights acquisition agreement dated August 10, 2014, the Company acquired the rights to use a piece of land with an area of 153,832 m ² in Dalian Economic Zone for 50 years up to August 9, 2064, at a total consideration of $8,561,334 (RMB53.1 million). Other incidental costs incurred totaled $501,592 (RMB3.1 million).

Amortization expenses of the prepaid land use rights were $150,712 and $45,284 for the three months ended June 30, 2014 and 2015 and $418,720 and $158,688 for the nine months ended June 30, 2014 and 2015, respectively.