PROPERTY AND EQUIPMENT

3 Months Ended

Jun. 30, 2023

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

NOTE 5 – PROPERTY AND 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

Property and Equipment consisted of the following at June 30, 2023 and March 31, 2023:

	June 30, 2023			March 31, 2023
Leasehold Improvements	$	257,009		$	257,009
Building		28,980,156			28,623,329
Furniture and Fixtures		384,650			384,650
Vehicles		153,255			153,254
Equipment		40,979,806			40,233,186
Tooling		143,710			143,710
Construction in Progress		945,272			734,781
Total property and equipment	$	71,843,858		$	70,529,919
Less accumulated depreciation		(15,919,991	)		(14,566,664	)
Net property and equipment	$	55,923,867		$	55,963,255

Depreciation Expense for the three months ended June 30, 2023 and 2022 totaled $1,353,327, and $1,033,363, respectively. Of these totals, $1,152,678 and $826,401 were included in cost of goods sold for the three months ending June 30, 2023 and 2022. Additionally, $200,648 and $206,962 were included in depreciation and amortization expenses in operating expenses.