NOTE 8 – PROPERTY, PLANT AND EQUIPMENT

At June 30, 2019 and December 31, 2018, property, plant and equipment consisted of the following:

For the three months ended June 30, 2019 and 2018, depreciation expense amounted to $2,331,141 and $2,329,605, respectively, of which $1,582,085 and $805,767, 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, 2019 and 2018, depreciation expense amounted to $5,071,259 and $4,762,731, respectively, of which $3,100,042 and $1,619,573, respectively, was included in cost of revenue and inventories, and the remainder was included in general and administrative expense, respectively.

At June 30, 2019 and December 31, 2018, the Company had 39 and 19 fishing vessels with net carrying amount of approximately $111.2 million and $35.3 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.