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 September 30, 2015 and 2014, amortization of land use rights amounted to $23,614 and $24,000, respectively. For the nine months ended September 30, 2015 and 2014, amortization of land use rights amounted to $71,966 and $72,141, respectively. At September 30, 2015 and December 31, 2014, land use rights consisted of the following:

	Useful life	September 30, 2015			December 31, 2014
Land use rights	45 - 50 years	$	4,249,551		$	4,398,598
Less: accumulated amortization			(771,349	)		(726,178	)
		$	3,478,202		$	3,672,420

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

Twelve-month periods ending September 30:	Amount
2016	$	93,037
2017		93,037
2018		93,037
2019		93,037
2020		93,037
Thereafter		3,013,017
	$	3,478,202