Quarterly report pursuant to sections 13 or 15(d)

PROPERTY, PLANT AND EQUIPMENT,NET

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PROPERTY, PLANT AND EQUIPMENT,NET
9 Months Ended
Sep. 30, 2013
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment Disclosure [Text Block]
10.
PROPERTY, PLANT AND EQUIPMENT, NET
 
Property, plant and equipment as of September 30, 2013 and December 31, 2012 consisted of the following:
 
Merchant Supreme 
 
 
September 30, 2013
 
December 31, 2012
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
Externally purchased fishing vessels
 
$
61,807,621
 
$
20,934,880
 
Office and other equipments
 
 
140,564
 
 
134,684
 
Fishing vessels under construction
 
 
8,720,789
 
 
17,436,515
 
 
 
 
70,668,974
 
 
38,506,079
 
Less: Accumulated depreciation
 
 
(3,689,693)
 
 
(1,364,173)
 
 
 
$
66,979,281
 
$
37,141,906
 
 
Depreciation expense was $738,340 and $725,558 for the three months ended September 30, 2013 and 2012, respectively; $2,268,063 and $2,596,876 for the nine months ended September 30, 2013 and 2012, respectively.
 
As of September 30, 2013 and December 31, 2012, Merchant Supreme had 16 fishing vessels which were fully depreciated which had estimated useful lives of 10 years.  These fishing vessels were contributed by registered equity owners in exchange for Merchant Supreme's paid-in capital and were recorded at the equity owners' historical cost of $nil at the time of contribution.
 
As of September 30, 2013 and December 31, 2012, Merchant Supreme had 38 and 20 fishing vessels with net carrying amount of $33,270,299 and $17,334,990 pledge as collateral for term loans of Merchant Supreme and term loans of a related party in the amount of approximately $20.5 million and $10.6 million respectively (Note 13(c)).