Annual report pursuant to Section 13 and 15(d)

Property, Plant and Equipment

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Property, Plant and Equipment
12 Months Ended
Dec. 31, 2016
Property, Plant and Equipment [Abstract]  
PROPERTY, PLANT AND EQUIPMENT

NOTE 9 – PROPERTY, PLANT AND EQUIPMENT

 

At December 31, 2016 and 2015, property, plant and equipment consisted of the following:

 

    Useful life   December 31, 2016     December 31, 2015  
Fishing vessels   10 - 20 Years   $ 122,989,702     $ 108,182,380  
Vehicles   5 Years     121,472       129,824  
Office and other equipment   3 – 5 Years     423,001       1,215,692  
Construction-in-progress   -     18,754,740       -  
          142,288,915       109,527,896  
Less: accumulated depreciation         (20,092,321 )     (14,972,782 )
        $ 122,196,594     $ 94,555,114  

 

For the years ended December 31, 2016, 2015 and 2014, depreciation expense amounted to $6,613,720, $6,353,055 and $6,017,886, respectively, of which $6,269,983, $6,120,248 and $5,988,845, respectively, was included in cost of revenue and inventories, and the remainder was included in general and administrative expense, respectively.

 

At December 31, 2016 and 2015, the Company had 37 and 28 fishing vessels with net carrying amount of approximately $29.4 million and $22.3 million, respectively, pledged as collateral for its bank loans.

 

Included in construction-in-progress are fishing vessels under construction which includes the costs of construction and any interest charges arising from borrowings used to finance these assets during the period of construction of the assets. No provision for depreciation is made on fishing vessels under construction until such time as the relevant assets are completed and ready for their intended use.