Land Use Rights

6 Months Ended

Jun. 30, 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 June 30, 2014 and 2013, amortization of land use rights amounted to $23,976 and $23,796, respectively. For the six months ended June 30, 2014 and 2013, amortization of land use rights amounted to $48,141 and $47,307, respectively. At June 30, 2014 and December 31, 2013, land use rights consisted of the following:

	Useful Life	June 30, 2014			December 31, 2013
Land use rights	45 - 50 years	$	4,386,664		$	4,418,826
Less: accumulated amortization			(676,188	)		(632,775	)
		$	3,710,476		$	3,786,051

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

Twelve-month periods ending June 30:	Amount
2015	$	96,039
2016		96,039
2017		96,039
2018		96,039
2019		96,039
Thereafter		3,230,281
	$	3,710,476