Annual report pursuant to Section 13 and 15(d)

Property, Plant and Equipment

v2.4.1.9
Property, Plant and Equipment
12 Months Ended
Dec. 31, 2014
Property, Plant and Equipment [Abstract]  
PROPERTY, PLANT AND EQUIPMENT

NOTE 10 – PROPERTY, PLANT AND EQUIPMENT

 

At December 31, 2014 and 2013, property, plant and equipment consisted of the following:

 

    Useful life     December 31, 2014     December 31, 2013  
Fishing vessels     10 - 20 Years     $ 71,960,318     $ 61,840,994  
Fishing vessels pursuant to capital lease – related party     25 Years       26,435,403       26,435,403  
Vehicle     5 Years       137,273       139,196  
Office and other equipment     3 – 5 Years       1,269,089       481,239  
Fishing vessels under construction     -       19,356,241       16,272,875  
              119,158,324       105,169,707  
Less: accumulated depreciation             (9,177,707 )     (3,199,000 )
            $ 109,980,617     $ 101,970,707  

 

For the years ended December 31, 2014, 2013 and 2012, depreciation expense amounted to $6,017,886, $2,394,692 and $2,677,418, respectively, of which $5,988,845, $2,368,010 and $2,653,943, respectively, was included in cost of revenues and inventories, and the remainder was included in general and administrative expense, respectively.

 

The vessels under construction are not subject to depreciation. Upon completion of the construction, fishing vessel under construction balances will be classified to fishing vessels.

 

As of December 31, 2014 and 2013, the Company had 43 and 38 fishing vessels with net carrying amount of approximately $37.5 million and $33.1 million, respectively, pledged as collateral for its bank loans and bank loans of a related party. The bank loans of the related party were in the amount of approximately $16.8 million and $20.7 million as of December 31, 2014 and 2013, respectively (see note 16).