From IDCX 10Q ( 9/30/2011 ) p.12 & 13. "NOTE 7 – PREPAID LAND USE RIGHT AND LONG-TERM GROW CROP INVENTORIES Prepaid land use right On June 23, 2011, the Company entered into a lease with the Youhao Forestry Bureau, Heilongjiang Province (the “Bureau”) to lease 59 acres of blueberry fields from the Bureau (the “Youhao Land”). The cost of land use right was $620,208, and ( IS BEING AMORTIZED OVER THE 50 YEAR LIFE OF THE LEASE.).
Long term growth crop inventories On August 27, 2011, the Company has signed an agreement with the Bureau and agreed to pay the Bureau for the blueberry plants growing on the Youhao Land when it was leased. As of September 30, 2011, the total fair value of the blueberry plants was determined to be $1,376,661 and was paid to the Bureau. As of September 30, 2011, the plants were approximately three years old. A typical blueberry plant will mature in 6 years, after which it can be harvested. The Company currently plans to maintain the plants and harvest them.
In addition, the Company has agreed to pay a management fee to the Bureau for four years services on behalf of the Company for growing the plants from July 2011 to June 2015. The management fee is $857,966 for the first year, $260,793 for the second year, $288,923 for the third year, and $386,104 for the fourth year." End Quote.
( Interestingly, 20 of the world's last 500 Siberian Tigers hang out wild in Youhao Forest. )
The Youhao Forestry Bureau is (from 128°07'34" E to 128°59'53" E, from 47°45'56" N to 48°33'25" N), located in the east of Heilongjiang Province & the middle of Small Khingan Mountains in northeastern China.
From Youhao Forestry Bureau contract: "The rent duration is : 2011-07-01 to 2061-06-30, total 50 years." -Quoted. ( MY POINT AGAIN IS IT'S AMORTIZED OVER 50 YEARS! )
Enterprise Name: Youhao Forestry Bureau, Heilongjiang. Telephone: 0458-329-8211 Person to Contact: Wang Mingren Corporate headquarters/ main office postal address Fuqian Road, Youhao District, Yichun City, Heilongjiang Province, China, 153031 Contact: Ning Guobin Email: Xl200531@163.com Main telephone 1370-458-5910 Website http://www.yhlyj.com/ Total Area: 242,983 ha. ( Acres X .4 = Hectares. )
2004 YOUHAO FOREST Log production:
Volume (m3) IN CUBIC METERS
Korean Pine (Pinus koraiensis) Spruce (Picea koraiensis) 23,000 Fir (Abies nephrolepis) 27,000 Larch (Larix olgensis) 24,000 Birch (Batula platyphlla) 55,000 Manchurian Ash (Fraxinus mandshurica) 3,000 Manchurian Walnut (Juglans mandshurica) Linden (Tilia amurensis, T. mandshurica) Poplar (Populus davidiana,P. ussuriensis) 11,000 Costata Birch (Betula costata) 14,000 Mongolian Oak (Quercus mongolica) 10,000 Elm (Ulmus propinqua, U. laciniata) 4,000 Total: 170,000 (m3)
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