Quarterly report pursuant to Section 13 or 15(d)

Property, Plant and Equipment

Property, Plant and Equipment

6 Months Ended

Jun. 30, 2016

Property, Plant and Equipment [Abstract]

NOTE 9 – PROPERTY, PLANT AND EQUIPMENT

At June 30, 2016 and December 31, 2015, property, plant and equipment consisted of the following:

	Useful life	June 30, 2016			December 31, 2015
Fishing vessels	10 - 20 Years	$	106,304,561		$	108,182,380
Vehicles	5 Years		126,840			129,824
Office and other equipment	3 – 5 Years		1,187,749			1,215,692
Construction-in-progress			31,041,836			-
			138,660,986			109,527,896
Less: accumulated depreciation			(17,952,388	)		(14,972,782	)
		$	120,708,598		$	94,555,114

For the three months ended June 30, 2016 and 2015, depreciation expense amounted to $1,620,438 and $2,058,120, respectively, of which $1,302,152 and $2,049,565, respectively, was included in cost of revenue and inventories, and the remainder was included in general and administrative expense, respectively. For the six months ended June 30, 2016 and 2015, depreciation expense amounted to $3,303,423 and $3,586,876, respectively, of which $2,785,604 and $3,571,303, respectively, was included in cost of revenue and inventories, and the remainder was included in general and administrative expense, respectively.

At June 30, 2016 and December 31, 2015, the Company had 28 fishing vessels with net carrying amount of approximately $14.2 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.