Quarterly report pursuant to Section 13 or 15(d)

Property, Plant and Equipment

v3.19.3
Property, Plant and Equipment
9 Months Ended
Sep. 30, 2019
Property, Plant and Equipment [Abstract]  
PROPERTY, PLANT AND EQUIPMENT

NOTE 7 – PROPERTY, PLANT AND EQUIPMENT

 

At September 30, 2019 and December 31, 2018, property, plant and equipment consisted of the following:

 

    Useful life   September 30,
2019
    December 31,
2018
 
Fishing vessels   10 - 20 Years   $ 298,220,249     $ 203,057,291  
Vehicles   5 Years     21,528       22,186  
Office and other equipment   3 – 5 Years     421,314       423,259  
Construction-in-progress   -     19,033,223       31,044,006  
          317,696,314       234,546,742  
Less: accumulated depreciation         (41,545,213 )     (34,975,317 )
        $ 276,151,101     $ 199,571,425  

 

For the three months ended September 30, 2019 and 2018, depreciation expense amounted to $2,627,985 and $2,170,841, respectively, of which $1,713,999 and $634,089, 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, 2019 and 2018, depreciation expense amounted to $7,699,244 and $6,933,572, respectively, of which $4,814,041 and $2,253,662, respectively, was included in cost of revenue and inventories, and the remainder was included in general and administrative expense, respectively.

 

At September 30, 2019 and December 31, 2018, the Company had 54 and 19 fishing vessels with net carrying amount of approximately $159.1 million and $35.3 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.