Intangible Assets

3 Months Ended

Mar. 31, 2017

NOTE 8 – INTANGIBLE ASSETS

At March 31, 2017 and December 31, 2016, intangible assets consisted of the following:

	Useful life	March 31, 2017			December 31, 2016
Land use rights	45 - 50 years	$	3,917,360		$	3,887,915
Patent use rights	10 years		2,321,330			2,303,882
			6,238,690			6,191,797
Less: accumulated amortization			(994,454	)		(908,102	)
		$	5,244,236		$	5,283,695

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

Twelve-month periods ending March 31:	Amount
2018	$	317,897
2019		317,897
2020		317,897
2021		317,897
2022		317,897
Thereafter		3,654,751
	$	5,244,236

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 March 31, 2017 and 2016, amortization of intangible assets amounted to $79,531 and $22,599, respectively.