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Intangible Assets
9 Months Ended
Sep. 30, 2017
Intangible Assets [Abstract]  
INTANGIBLE ASSETS

NOTE 8 – INTANGIBLE ASSETS

 

At September 30, 2017 and December 31, 2016, intangible assets consisted of the following:

 

    Useful life   September 30, 2017     December 31, 2016  
Land use rights   45 - 50 years   $ 4,059,049     $ 3,887,915  
Patent use rights   10 years     2,405,292       2,303,882  
          6,464,341       6,191,797  
Less: accumulated amortization         (1,195,120 )     (908,102 )
        $ 5,269,221     $ 5,283,695  

 

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

 

Twelve-month periods ending September 30:   Amount  
2018   $ 323,129  
2019     323,129  
2020     323,129  
2021     323,129  
2022     323,129  
Thereafter     3,653,576  
    $ 5,269,221  

 

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, 2017 and 2016, amortization of intangible assets amounted to $82,104 and $62,692, respectively. For the nine months ended September 30, 2017 and 2016, amortization of intangible assets amounted to $241,464 and $107,918, respectively.