NOTE 9 – PROPERTY, PLANT AND EQUIPMENT

At September 30, 2017 and December 31, 2016, property, plant and equipment consisted of the following:

For the three months ended September 30, 2017 and 2016, depreciation expense amounted to $2,161,787 and $1,466,032, respectively, of which $2,142,280 and $1,643,865, respectively, was included in cost of revenue and inventories, and the remainder was included in general and administrative expense, respectively. For the nine months ended September 30, 2017 and 2016, depreciation expense amounted to $6,454,155 and $4,769,455, respectively, of which $6,390,621 and $4,429,469, respectively, was included in cost of revenue and inventories, and the remainder was included in general and administrative expense, respectively.

At September 30, 2017 and December 31, 2016, the Company had 50 and 37 fishing vessels, respectively, with net carrying amount of approximately $49.7 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.