Property, Plant and Equipment, Net

9 Months Ended

Sep. 30, 2013

Property, Plant And Equipment, Net [Abstract]

PROPERTY, PLANT AND EQUIPMENT, NET

7. PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment as of September 30, 2013 and December 31, 2012 consisted of the following:

	September 30,			December 31,
	2013			2012
	(Unaudited)
Buildings and leasehold improvements	$	5,874,394		$	4,596,527
Plant and equipment		2,087,773			1,365,043
Motor vehicles		181,569			168,984
Office equipment		351,529			340,870
Total property, plant and equipment		8,495,265			6,471,424
Less: accumulated depreciation		(2,155,866	)		(1,658,192	)
Property, plant and equipment, net	$	6,339,399		$	4,813,232

The Company has buildings on the site it occupies, including factory buildings. Due to the lack of a Land Use Right Certificate, the Company is unable to apply for the Property Ownership Certificate for the buildings. However, as the buildings are in use, the Company depreciates them over their expected useful lives.

We recorded depreciation expense of $193,616 and $497,674 for the three and nine months ended September 30, 2013 and we recorded depreciation expense of $118,746 and $363,310 for the three and nine months ended September 30, 2012.

Depreciation expense of $175,694 and $445,508 for the three and nine months ended September 30, 2013 were charged to cost of inventory or cost of sales as production cost.