Land Use Rights

3 Months Ended

Mar. 31, 2014

NOTE 5 – LAND USE RIGHTS

There is no private ownership of land in China. Land is owned by the government and the government grants land use rights for specified terms. The Company’s land use rights have terms of 45 and 50 years and expire on January 1, 2053 and October 30, 2053. The Company amortizes the land use rights over the term of the respective land use right. For the three months ended March 31, 2014 and 2013, amortization of land use rights amounted to $24,165 and $23,511, respectively. At March 31, 2014 and December 31, 2013, land use rights consisted of the following:

	Useful Life	March 31, 2014			December 31, 2013
Land use rights	45 - 50 years	$	4,381,894		$	4,418,826
Less: accumulated amortization			(651,470	)		(632,775	)
		$	3,730,424		$	3,786,051

Amortization of land use rights attributable to future periods is as follows:

Twelve-month periods ending March 31:	Amount
2015	$	95,934
2016		95,934
2017		95,934
2018		95,934
2019		95,934
Thereafter		3,250,754
	$	3,730,424