Intangible Assets, Net

9 Months Ended

Sep. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

8. Intangible Assets, Net

The Company’s Intangible Assets are summarized as follows:

	September 30, 2013		December 31, 2012
Land use rights	$	5,209,375	$	4,501,882
Leasehold right		4,131,087		3,777,979
Licenses and permits		1,140,734		1,110,917
Software		38,733		27,881
Total		10,519,929		9,418,659
Less: accumulated amortization		(1,127,314)		(465,057)
Intangible assets, net	$	9,392,615	$	8,953,602

The details of land use rights are as follows:

Location	Land Size		Amount		Term
	(square meters)
Nanhui Village, Shipu Town, Zhejiang Province		8,906.90	$	467,864		April 1, 2004 – May 12, 2047
Development Zone, Donggang, Liaoning Province		21,994.80	$	2,449,319		July 16, 2008 – May 15, 2058
Mashan Village, Chengshan Town, Shandong Province		3,659.57	$	623,649		Government assignment
Linzi borough, Linzi City, Shandong Province		15,130.70	$	121,667		Government assignment
Linzi District Qincheng Town, Shangdong Province		14,994.9		960,213		Expires on October 31, 2062
Pingwang Town Suzhou City, Jiangsu Province		9,624.30	$	586,663		September1, 2011–January 30, 2055
Total Land Use Rights			$	5,209,375

Land use rights with a net book value of $1,637,768 and $2,812,287 were pledged as collateral for certain loans and bank notes at September 30, 2013 and December 31, 2012 (see Note 12 “Short-term bank borrowings” and Note 14 “Bank Notes Payable”).

Amortization expenses for the three months ended September 30, 2013 and 2012 were $139,491 and $127,223, respectively. Amortization expenses for the nine months ended September 30, 2013 and 2012 were $393,147 and $262,740, respectively.

The estimated future amortization expenses are as follows:

For the twelve months ending September 30,
2014	$	496,741
2015		497,692
2016		497,692
2017		491,396
2018		491,396
Thereafter		6,917,698
Total	$	9,392,615