Prepaid Land Use Rights, net

3 Months Ended

Mar. 31, 2018

Prepaid Land Use Rights, net [Text Block]

9. Prepaid Land Use Rights, net

Prepaid land use rights as of December 31, 2017 and March 31, 2018 consisted of the followings:

		December 31,			March 31,
		2017			2018
Prepaid land use rights	$	8,634,993		$	8,952,443
Accumulated amortization		(590,058	)		(656,512	)
	$	8,044,935		$	8,295,931
Less: Classified as current assets		(172,700	)		(179,049	)
	$	7,872,235		$	8,116,882

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 $8,456,966 (RMB53.1 million). Other incidental costs incurred totaled $495,477 (RMB3.1 million).

Amortization expenses of the prepaid land use rights were $40,778 and $44,174 for the three months ended March 31, 2017 and 2018, respectively.