Land Use Rights, Net

12 Months Ended

Dec. 31, 2018

Land Use Rights [Abstract]

LAND USE RIGHTS, NET

NOTE 8 - LAND USE RIGHTS, NET

	December 31,  2018			December 31,  2017
Cost	$	22,283,776		$	15,477,081
Less: Accumulated amortization		(1,159,321	)		(564,947	)
Land use rights, net	$	21,124,455		$	14,912,134

According to the law of China, the government owns all the land in China. Companies and individuals are authorized to possess and use the land only through land use rights granted by the Chinese government.

In July 2017, Ruian, a subsidiary of the Company, purchased plants and the associated land use rights from Yunding Holding Group Co., Ltd. in cash at the purchase price of RMB 60.06 million (approximately $8.87 million). The title of the plants and land use rights was transferred in July 2017. The allocated cost for the land use rights is RMB 42.35 million (approximately $6.38 million). Also see Note 7 for more details.

In September 2017, the Company entered into an agreement with the Ministry of Land and Resources, Ruian, to purchase the land use rights for the land located at the intersection of Xianghe Road and North Wansong Road, Binhai New District, Ruian City, Zhejiang Province, China with a total area of 17,029 square meters (the "Wansong Land"). The Company prepaid the amount of RMB 51.81 million (approximately $7.93 million) as full payment and RMB 20.00 million (approximately $3.01 million) as a refundable deposit. As of December 31, 2017, the deposit was refunded to the Company and the prepayment was included in prepayments, non-current in the consolidated balance sheets. The Company obtained the title to the land use rights in April 2018.

In December 2017, the Company entered into an agreement with the Ministry of Land and Resources, Ruian, to purchase the land use rights for the land located at the intersection of Fengjin Road and Wenhua Road, Binhai New District, Ruian City, Zhejiang Province, China. Prepayment of RMB 14.40 million (approximately $2.14 million) was made as down payment in 2017. During the year ended December 31, 2018, the Company paid additional amount of RMB 57.62 million (approximately $8.99 million). As of December 31, 2018, the purchase price of RMB 72.02 (approximately $11.13 million) was fully paid. As of the filing date, the title to the land use rights has not been transferred to the Company. The payments were included in prepayment, non-current as of December 31, 2018 on the accompanying consolidated balance sheets.

In April 2018, the Company entered into an agreement with the Ministry of Land and Resources, Ruian, to purchase the land use rights for the land located at the intersection of Tengda Road and Wanghai Road, Economic Development District, Ruian City, Zhejiang Province, China. Prepayment of RMB 42.54 million (approximately $6.43 million) was made during the year ended December 31, 2018. As of the filing date, the title to the land use rights has not been transferred to the Company. The payments were included in prepayment, non-current as of December 31, 2018 on the accompanying consolidated balance sheets.

Amortization expenses were $636,717 and $379,121 for the years ended December 31, 2018 and 2017, respectively.