NOTE 6 – 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, 2016 and 2015, amortization of land use rights amounted to $22,627 and $24,266, respectively. For the six months ended June 30, 2016 and 2015, amortization of land use rights amounted to $45,226 and $48,352, respectively. At June 30, 2016 and December 31, 2015, land use rights consisted of the following:

	Useful life	June 30, 2016			December 31, 2015
Land use rights	45 - 50 years	$	4,064,304		$	4,159,920
Less: accumulated amortization			(804,460	)		(777,849	)
		$	3,259,844		$	3,382,071

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

Twelve-month periods ending June 30:	Amount
2017	$	88,981
2018		88,981
2019		88,981
2020		88,981
2021		88,981
Thereafter		2,814,939
	$	3,259,844