LAND USE RIGHTS, NET

9 Months Ended

Sep. 30, 2014

LAND USE RIGHTS, NET [Text Block]

8.	INTANGIBLE ASSETS, NET
	Land use rights consisted of the following as of September 30, 2014 and December 31, 2013:

		9/30/2014			12/31/2013
Land use rights, at cost	$	17,477,949		$	17,600,945
Utilities rights, at cost		50,554			50,909
Software, at cost		468,856			59,496
Patent, at cost		1,650,860			1,543
		19,648,219			17,712,893
Less : Accumulated amortization		(1,977,721	)		(1,305,350	)
	$	17,670,498		$	16,407,543

All lands are owned by the government in China. Land use rights represent the Company’s purchase of usage rights for a parcel of land for a specified duration of time, typically 50 years. The land use rights are then amortized over the period of usage. Amortization expense for the three month periods ended September 30, 2014 and 2013 were $485,916 and $55,950, respectively. Amortization expense for the nine month periods ended September 30, 2014 and 2013 were $672,370 and $98,469, respectively.