Intangible Assets

9 Months Ended

Sep. 30, 2016

Intangible Assets [Abstract]

INTANGIBLE ASSETS

NOTE 7 – INTANGIBLE ASSETS

At September 30, 2016 and December 31, 2015, intangible assets consisted of the following:

	Useful life	September 30, 2016			December 31, 2015
Land use rights	45 - 50 years	$	4,048,472		$	4,159,920
Patent use rights	10 years		2,399,024			-
			6,447,496			4,159,920
Less: accumulated amortization			(863,469	)		(777,849	)
		$	5,584,027		$	3,382,071

Amortization of intangible assets attributable to future periods is as follows:

Twelve-month periods ending September 30:	Amount
2017	$	328,537
2018		328,537
2019		328,537
2020		328,537
2021		328,537
Thereafter		3,941,342
	$	5,584,027

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.

In August 2016, the Company purchased a patent technology use right for a ten-year term from a third party. The patent covers ozone-ultrasonic textile dyeing equipment. The Company amortizes the exclusive patent use right over the term of the patent.

For the three months ended September 30, 2016 and 2015, amortization of intangible assets amounted to $62,692 and $23,614, respectively. For the nine months ended September 30, 2016 and 2015, amortization of intangible assets amounted to $107,918 and $71,966, respectively.