EQUIPMENT

9 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

EQUIPMENT

NOTE 5 – EQUIPMENT

We state equipment at historical cost less accumulated depreciation. We compute depreciation using the straight-line method at rates intended to depreciate the cost of assets over their estimated useful lives, which are generally five to ten years. Upon retirement or sale of property and equipment, we remove the cost of the disposed assets and related accumulated depreciation from the accounts and any resulting gain or loss is credited or charged to other income. We charge expenditures for normal repairs and maintenance to expense as incurred.

We capitalize additions and expenditures for improving or rebuilding existing assets that extend the useful life. Leasehold improvements made either at the inception of the lease or during the lease term are amortized over the shorter of their economic lives or the lease term including any renewals that are reasonably assured.

AMMO, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Equipment consisted of the following at December 31, 2021 and March 31, 2021:

	December 31, 2021			March 31, 2021
Construction in progress	$	9,282,292		$	544,939
Leasehold Improvements		257,009			126,558
Furniture and Fixtures		331,490			87,790
Vehicles		153,254			142,691
Equipment		31,238,627			26,425,221
Tooling		143,710			121,790
Total property and equipment	$	41,406,382		$	27,448,989
Less accumulated depreciation		(9,038,251	)		(5,895,763	)
Net equipment	$	32,368,131		$	21,553,226

Depreciation Expense for the three and nine months ended December 31, 2021 totaled $1,087,550, and $3,184,976, respectively. Depreciation Expense for the three and nine months ended December 31, 2020 totaled $731,183, and $ 2,110,125, respectively.