Intangible Assets

12 Months Ended

Dec. 31, 2018

Intangible Assets [Abstract]

INTANGIBLE ASSETS

NOTE 8 – INTANGIBLE ASSETS

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

	Useful life	December 31, 2018			December 31, 2017
Land use rights	45 - 50 years	$	3,925,789		$	4,149,181
Patent use rights	10 years		-			2,458,701
Other intangible assets	3 - 5 years		845,180			92,249
Goodwill	-		27,421			-
			4,798,390			6,700,131
Less: accumulated amortization			(1,235,877	)		(1,305,835	)
		$	3,562,513		$	5,394,296

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

Year ending December 31:	Amount
2019	$	355,788
2020		355,788
2021		111,826
2022		85,949
2023		85,949
Thereafter		2,539,792
	$	3,535,092

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 $1,893,625. Management determined that there was a significant adverse change in the extent or manner in which this long-lived asset was being used.

In January 2018, in connection the acquisition of 3D Discovery, the Company acquired their technologies valued at $754,495. The technology of 3D Discovery covers a 3D virtual tour solution for the property industry. Additionally. during the year ended December 31, 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 years ended December 31, 2018 and 2017, amortization of intangible assets amounted to $707,390 and $324,190, respectively.