Lotus Pharmaceuticals Inc (LTUS)

[olivernoyes]

LAND USE RIGHT HELD FOR DEVELOPMENT


We purchased 1,000 MU (approximately 667,000 square meters) of land in Inner Mongolia in 2008. The area for Inner Mongolia land which was held for development is 900 MU (approximately 600,000 square meters). The area for the rest of Inner Mongolia land on which we expect to build a facility is 100 MU (approximately 67,000 square meters).


Land use right held for development is accounted for at the lower of cost or market. It is considered as long-term asset and free of amortization as it is not used in operations. Management would like to co-develop the land with another entity, but such partner has not been found yet.