Annual report pursuant to Section 13 and 15(d)

Property, Plant and Equipment

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Property, Plant and Equipment
12 Months Ended
Dec. 31, 2017
Property, Plant and Equipment [Abstract]  
PROPERTY, PLANT AND EQUIPMENT

NOTE 9 – PROPERTY, PLANT AND EQUIPMENT

 

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

 

    Useful life     December 31,
2017
    December 31,
2016
 
Fishing vessels     10 - 20 Years     $ 164,748,753     $ 122,989,702  
Vehicles     5 Years       -       121,472  
Office and other equipment     3 – 5 Years       453,927       423,001  
Construction-in-progress     -       -       18,754,740  
              165,202,680       142,288,915  
Less: accumulated depreciation             (30,160,213 )     (20,092,321 )
            $ 135,042,467     $ 122,196,594  

 

For the years ended December 31, 2017, 2016 and 2015, depreciation expense amounted to $8,965,553, $6,613,720 and $6,353,055, respectively, of which $3,889,944, $6,269,983 and $6,120,248, respectively, was included in cost of revenue and inventories, and the remainder was included in general and administrative expense, respectively.

 

At December 31, 2017 and 2016, the Company had 36 and 37 fishing vessels with net carrying amount of approximately $30.3 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.