Quarterly report pursuant to Section 13 or 15(d)

Property, Plant and Equipment

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Property, Plant and Equipment
3 Months Ended
Mar. 31, 2017
Property, Plant and Equipment [Abstract]  
PROPERTY, PLANT AND EQUIPMENT

NOTE 9 – PROPERTY, PLANT AND EQUIPMENT

 

At March 31, 2017 and December 31, 2016, property, plant and equipment consisted of the following:

 

    Useful life     March 31, 2017     December 31, 2016  
Fishing vessels     10 - 20 Years     $ 153,791,784     $ 122,989,702  
Vehicles     5 Years       122,135       121,472  
Office and other equipment     3 – 5 Years       425,312       423,001  
Construction-in-progress     -       -       18,754,740  
              154,339,231       142,288,915  
Less: accumulated depreciation             (22,288,957 )     (20,092,321 )
            $ 132,050,274     $ 122,196,594  

 

For the three months ended March 31, 2017 and 2016, depreciation expense amounted to $2,112,525 and $1,682,985, respectively, of which $2,112,340 and $1,483,452, respectively, was included in cost of revenue and inventories, and the remainder was included in general and administrative expense, respectively.

 

At March 31, 2017 and December 31, 2016, the Company had 37 fishing vessels with net carrying amount of approximately $29.2 million and $29.4 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.