NOTE 8 – INTANGIBLE ASSETS

At September 30, 2018 and December 31, 2017, intangible assets consisted of the following:

	Useful life	September 30, 2018			December 31, 2017
Land use rights	45 - 50 years	$	3,923,565		$	4,149,181
Patent use rights	10 years		-			2,458,701
Other intangible assets	3 - 5 years		1,529,867			92,249
Goodwill	-		53,143			-
			5,506,575			6,700,131
Less: accumulated amortization			(1,066,192	)		(1,305,835	)
		$	4,440,383		$	5,394,296

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

Year ending September 30:	Amount
2019	$	565,996
2020		565,996
2021		529,522
2022		103,743
2023		97,795
Thereafter		2,524,187
	$	4,387,240

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, value at RMB16,000,000, for a ten-year term from a third party. This patent covers ozone-ultrasonic textile dyeing equipment. The Company amortizes the exclusive patent use right over a term of ten years. Given the current poor market conditions for dying machine industry, customers are either getting shut down for environmental reasons or moving to south east Asia, raw material prices are increasing rapidly, labor cost and related benefit expenses increasing a lot as well, which credit market is extremely tight. The Company believes that the ultra-ozone patent will probably not yield the expecting value. On September 30, 2018, the Company decided to impair the net book value of this patent and recorded an impairment loss of $1,922,674.

In January 2018, in connection the acquisition of 3D Discovery and AnyWorkspace, the Company acquired their technologies valued at $754,495 and $682,411 respectively. The technology of 3D Discovery covers a 3D virtual tour solution for the property industry. The technology of AnyWorkspace covers management software for an online, real-time marketplace that connects workspace providers with clients who need temporary office and meeting spaces. Additionally. during the nine months ended September 30, 2018, Inspirit Studio developed its sharing economy mobile platform, namely BuddiGo, and capitalized costs amounting to $88,983. The BuddiGo application was launched in June 2018. The Company amortizes these technologies over a term of five years.

For the three months ended September 30, 2018 and 2017, amortization of intangible assets amounted to $99,177 and $82,104, respectively. For the nine months ended September 30, 2018 and 2017, amortization of intangible assets amounted to $299,373 and $241,464, respectively.