Prepaid Land Use Rights, net and Intangibles Assets, net

12 Months Ended

Sep. 30, 2015

Prepaid Land Use Rights, net and Intangibles Assets, net [Text Block]

10. Prepaid Land Use Rights, net and Intangibles Assets, net

(a) Prepaid Land Use Rights, net

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

		2014			2015
Prepaid land use rights	$	9,152,400		$	8,838,220
Accumulated amortization		-			(206,225	)
	$	9,152,400		$	8,631,995
Less: Classified as current assets		(183,048	)		(176,764	)
	$	8,969,352		$	8,455,231

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 $8,349,000 (RMB53.1 million). Other incidental costs incurred totaled $489,000 (RMB3.1 million).

Amortization expenses of the prepaid land use rights were $418,720 and $210,666 for the years ended September 30, 2014 and 2015, respectively.

(b) Intangible Assets, net

Intangible assets as of September 30, 2014 and 2015 consisted of the followings:

		2014		2015
Computer software at cost	$	-	$	27,984
Accumulated amortization		-		(1,166	)
	$	-	$	26,818

Amortization expenses were $154,662 and $1,191 for the years ended September 30, 2014 and 2015, respectively.