Quarterly report pursuant to Section 13 or 15(d)

Property, Plant and Equipment

Property, Plant and Equipment

3 Months Ended

Mar. 31, 2016

Property, Plant and Equipment [Abstract]

NOTE 9 – PROPERTY, PLANT AND EQUIPMENT

At March 31, 2016 and December 31, 2015, property, plant and equipment consisted of the following:

	Useful life	March 31, 2016			December 31, 2015
Fishing vessels	10 - 20 Years	$	108,725,001		$	108,182,380
Vehicles	5 Years		130,686			129,824
Office and other equipment	3 – 5 Years		1,223,762			1,215,692
Construction-in-progress			10,816,249			-
			120,895,698			109,527,896
Less: accumulated depreciation			(16,756,083	)		(14,972,782	)
		$	104,139,615		$	94,555,114

For the three months ended March 31, 2016 and 2015, depreciation expense amounted to $1,682,985 and $1,528,756, respectively, of which $1,483,452 and $1,521,738, respectively, was included in cost of revenue and inventories, and the remainder was included in general and administrative expense, respectively.

At March 31, 2016 and December 31, 2015, the Company had 28 fishing vessels with net carrying amount of approximately $22.1 million and $22.3 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.