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 years ended December 31, 2014 and 2013, amortization of land use rights amounted to $96,226 and $95,491, respectively. At December 31, 2014 and 2013, land use rights consisted of the following:

	Useful life	December 31, 2014			December 31, 2013
Land use rights	45 - 50 years	$	4,398,598		$	4,418,826
Less: accumulated amortization			(726,178	)		(632,775	)
		$	3,672,420		$	3,786,051

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

Years ending December 31:	Amount
2015	$	96,300
2016		96,300
2017		96,300
2018		96,300
2019		96,300
Thereafter		3,190,920
	$	3,672,420