Quarterly report pursuant to Section 13 or 15(d)

Property, Plant and Equipment

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Property, Plant and Equipment
9 Months Ended
Sep. 30, 2018
Property, Plant and Equipment [Abstract]  
PROPERTY, PLANT AND EQUIPMENT

NOTE 9 – PROPERTY, PLANT AND EQUIPMENT

 

At September 30, 2018 and December 31, 2017, property, plant and equipment consisted of the following:

 

    Useful life   September 30,
2018
    December 31,
2017
 
Fishing vessels   10 - 20 Years   $ 147,803,075     $ 164,748,753  
Office and other equipment   3 – 5 Years     141,110       453,927  
Vehicles         22,134       -  
Construction-in-progress   -     71,001,465       -  
          218,967,784       165,202,680  
Less: accumulated depreciation         (32,284,948 )     (30,160,213 )
        $ 186,682,836     $ 135,042,467  

 

For the three months ended September 30, 2018 and 2017, depreciation expense amounted to $2,170,841 and $2,161,787, respectively, of which $634,089 and $962,686, respectively, was included in cost of revenue and inventories, and the remainder was included in general and administrative expense, respectively. For the nine months ended September 30, 2018 and 2017, depreciation expense amounted to $6,933,572 and $6,454,155, respectively, of which $2,253,662 and $2,625,602, respectively, was included in cost of revenue and inventories, and the remainder was included in general and administrative expense, respectively.

 

At September 30, 2018 and December 31, 2017, the Company had 19 and 36 fishing vessels with net carrying amount of approximately $35.6 million and $30.3 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.