PROPERTY AND EQUIPMENT

9 Months Ended

Dec. 31, 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 5 to 10 years for equipment and 40 years for our building. 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 expense. 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 December 31, 2023 and March 31, 2023:

	December 31, 2023			March 31, 2023
Leasehold Improvements	$	257,009		$	257,009
Building		29,067,369			28,623,329
Furniture and Fixtures		413,746			384,650
Vehicles		153,254			153,254
Equipment		44,104,409			40,233,186
Tooling		143,710			143,710
Construction in Progress		1,952,152			734,781
Total property and equipment	$	76,091,649		$	70,529,919
Less accumulated depreciation		(18,813,046	)		(14,566,664	)
Net property and equipment	$	57,278,603		$	55,963,255

Depreciation Expense for the three and nine months ended December 31, 2023 totaled $1,486,889, and $4,246,935, respectively. For three and nine months ended December 31, 2023 depreciation expense included in Cost of Revenues totaled $1,229,128 and $3,560,117, respectively and $257,761 and $686,818 of depreciation expense was included in Operating Expenses for three and nine months ended December 31, 2023. Depreciation Expense for the three and nine months ended December 31, 2022 totaled $1,089,243, and $3,150,691, respectively. For three and nine months ended December 31, 2022 depreciation expense included in Cost of Revenues totaled $923,564 and $2,630,122, respectively and $165,679 and $520,569 of depreciation expense was included in Operating Expenses for three and nine months ended December 31, 2022.