Intangible Assets

6 Months Ended

Jun. 30, 2013

Intangible Assets, Net (Excluding Goodwill) [Abstract]

Note 7– Intangible Assets

Net intangible assets at June 30, 2013 and December 31, 2012 were as follows:

	June 30,			December 31,
	2013			2012
Rights to use land	$	5,613,681		$	5,406,639
Fertilizers proprietary technology rights		1,294,400			1,268,000
		6,908,081			6,674,639
Less accumulated amortization		(2,089,198	)		(1,897,660	)
Intangibles, net	$	4,818,883		$	4,776,979

The Company’s office and manufacturing site is located in Yang Ling Agricultural High-Tech Industries Demonstration Zone in the province of Shaanxi, People’s Republic of China. The Company leases land under a real estate contract with the Yang Ling Government of People’s Republic of China for a period from November 2001 through November 2051. In accordance with the People’s Republic of China’s Governmental regulations, the Government owns all land.

During July 2003, the Company leased another parcel of land under a real estate contract with the Yang Ling government of the People’s Republic of China for a period from July 2003 through June 2053.

The Company has recognized the amounts paid for the acquisition of rights to use land as intangible asset and amortizing over a period of fifty years.

The Company acquired Fluid and Compound Fertilizers proprietary technology rights on January 1, 2001 with a life ended December 31, 2011. The amortization of Fertilizers proprietary technology rights was over a period of ten years and was amortized in full during 2011.

On July 15, 2008, the Company entered into a 50 year land rights agreement.

Amortization expense for the Company’s intangible assets amounted to $28,943 and $56,985 and $28,845 and $56,341 for the three and six months ended June 30, 2013 and 2012, respectively. Amortization of intangible assets for the next five years are as follows:

Year End	Amount
2013		57,554
2014		115,109
2015		115,109
2016		115,109
2017		115,109
Thereafter		4,300,893
	$	4,818,883

BODISEN BIOTECH, INC 10-Q