Intangible Assets

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS

NOTE 4 INTANGIBLE ASSETS

Land use rights

In 2006, the Company obtained a fifty-year land use right on 112,442 square meters of land in the Nanjing Jiangning Economic and Technological Development Zone.

In 2014, the Company obtained a fifty-year land use right on 23,333 square meters of land in the Suzhou Kunshan Jinxi Tower Jinxing Road.

In 2015, the Company obtained a fifty-year land use right on 33,427 square meters of land in the Tianjin Wuqing Development Zone.

Land use rights at December 31, 2018 and 2017 consisted of the following:

	2018			2017
	(In thousands of U.S. Dollars)
Land use rights	$	5,702		$	5,475
Less: accumulated amortization		(740	)		(566	)
Land use rights, net	$	4,962		$	4,909

Amortization expense was $0.12 million and $0.12 million for the years ended December 31, 2018 and 2017, respectively. Future expected amortization expense for land use rights is approximately $0.12 million for each of the next five years. 

Impairment of Intangible Assets

The Company acquired and gained effective control of Shanghai Yiduo since March 27, 2015. The value of the designer team and other marketing related intangibles was recorded $0.85 million as intangible assets in the consolidated balance sheet as of March 31, 2015. Subsequently, the Company made further capital contribution to Shanghai Yiduo as required by the acquisition agreement. The value of this capital contribution to Shanghai Yiduo was recorded as intangible assets, and the non-controlling interest increased by $0.23 million. As of December 31, 2018, the Company tested marketing related intangible assets for impairment and determined that fair value was lower than the carrying amount of the marketing related intangible assets. Therefore it was concluded that the carrying amount of marketing related intangible assets of $1.08 million was impaired.