Intangible Assets

12 Months Ended

Dec. 31, 2016

NOTE 8 – INTANGIBLE ASSETS

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

	Useful life	December 31, 2016			December 31, 2015
Land use rights	45 - 50 years	$	3,887,915		$	4,159,920
Patent use rights	10 years		2,303,882			-
			6,191,797			4,159,920
Less: accumulated amortization			(908,102	)		(777,849	)
		$	5,283,695		$	3,382,071

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

Year ending December 31:	Amount
2017	$	315,508
2018		315,508
2019		315,508
2020		315,508
2021		315,508
Thereafter		3,706,155
	$	5,283,695

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 years ended December 31, 2016 and 2015, amortization of intangible assets amounted to $189,329 and $95,076, respectively.