Prepaid Land Use Rights, Net

6 Months Ended

Jun. 30, 2019

Prepaid Land Use Rights, net [Abstract]

Prepaid Land Use Rights, net

9. Prepaid Land Use Rights, net

Prepaid land use rights as of December 31, 2018 and June 30, 2019 consisted of the followings:

	December 31,			June 30,
	2018			2019
Prepaid land use rights	$	8,167,587		$	8,182,640
Accumulated amortization		(721,470	)		(804,626	)
	$	7,446,117		$	7,378,014
Less: Classified as current assets		(163,352	)		(163,653	)
	$	7,282,765		$	7,214,361

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 m² in Dalian Economic Zone for 50 years up to August 9, 2064, at a total consideration of $8,018,312 (RMB53.1 million). Other incidental costs incurred totaled $469,777 (RMB3.1 million).

Amortization expenses of the prepaid land use rights were $44,068 and $41,183 for the three months ended June 30, 2018 and 2019 and $88,242 and $82,798 for the six months ended June 30, 2018 and 2019, respectively.