Quarterly report pursuant to Section 13 or 15(d)

Property, Plant and Equipment

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Property, Plant and Equipment
6 Months Ended
Jun. 30, 2017
Property, Plant and Equipment [Abstract]  
PROPERTY, PLANT AND EQUIPMENT

NOTE 9 – PROPERTY, PLANT AND EQUIPMENT

 

At June 30, 2017 and December 31, 2016, property, plant and equipment consisted of the following:

 

    Useful life   June 30,
2017
    December 31,
2016
 
Fishing vessels   10 - 20 Years   $ 153,187,911     $ 122,989,702  
Vehicles   5 Years     -       121,472  
Office and other equipment   3 – 5 Years     433,154       423,001  
Construction-in-progress         3,022,815       18,754,740  
          156,643,880       142,288,915  
Less: accumulated depreciation         (24,699,558 )     (20,092,321 )
        $ 131,944,322     $ 122,196,594  

 

For the three months ended June 30, 2017 and 2016, depreciation expense amounted to $2,179,843 and $1,620,438, respectively, of which $2,136,001 and $1,302,152, respectively, was included in cost of revenue and inventories, and the remainder was included in general and administrative expense, respectively. For the six months ended June 30, 2017 and 2016, depreciation expense amounted to $4,292,368 and $3,303,423, respectively, of which $4,248,341 and $2,785,604, respectively, was included in cost of revenue and inventories, and the remainder was included in general and administrative expense, respectively.

 

At June 30, 2017 and December 31, 2016, the Company had 45 and 37 fishing vessels, respectively, with net carrying amount of approximately $39.5 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.