Property, Plant and Equipment, Net

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment, Net [Abstract]

PROPERTY, PLANT AND EQUIPMENT, NET

NOTE 5 – PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment, net consisted of the following:

	As of			As of
	December 31, 2016			December 31, 2015
Property and Buildings	$	7,040,637		$	7,532,019
Leasehold improvement		1,787,688			1,722,562
Machinery and equipment (1)		23,425,270			19,467,526
Automobiles		919,146			913,888
Office and electric equipment		731,373			736,808
Subtotal		33,904,114			30,372,803
Construction in progress		11,084,794			96,112
Less: accumulated depreciation		(11,186,861	)		(8,912,049	)
Property and equipment, net	$	33,802,047		$	21,556,866

(1) A total amount of $3,591,180 machinery was related to the sale leaseback transaction (see Note 11).

Depreciation expense was $3,016,935 and $2,641,932 for the years ended December 31, 2016 and 2015, respectively.

Construction in progress represents costs of construction incurred for the Company’s new plant and equipment. The construction for the Company’s new plant in the U.S. has been completed and put in use in July 2015. The Construction in progress as of December 31, 2016 represents cost of construction for its facility expansion in China. The Company started the construction in April 2016. The construction is expected to be completed in 2017 with a total value around $13.0 million.