NOTE 8 – PREPAYMENT FOR LONG-TERM ASSETS

At March 31, 2016 and December 31, 2015, prepayment for long-term assets consisted of the following:

In March 2016, the Company entered two fishing vessels building agreements for 6 fishing vessels construction. During the three months ended March 31, 2016, the Company made prepayments of approximately $20,109,000 for the 6 fishing vessels construction, which are recorded as prepayment for long-term assets on the accompanying balance sheets. The Company reclassifies the prepayment for fishing vessels’ construction to construction-in-progress using the percentage of completion method. During the first quarter of 2016, the Company reclassified approximately $10,551,000 from prepayment for long-term assets to construction-in-progress.