Note 3 - Property and Equipment

3 Months Ended

Sep. 30, 2012

Note 3 - Property and Equipment:

Note 3 - Property and Equipment

NOTE 3 – PROPERTY AND EQUIPMENT

At September 30, 2012 and December 31, 2011, property and equipment consisted of the following:

	Estimated Useful Life (In years)	September 30, 2012	December 31, 2011
Office equipment and furniture	3-7	$        584,018	$                    -
Autos and trucks	5	383,492	-
Manufacturing equipment	2-10	1,180,490	-
Building	5-20	1,895,553	-
Construction in progress		52,830	-
Property and equipment, gross		4,096,383	-
Less: Accumulated depreciation		(1,552,285)	-
Property, plant and equipment, net		$     2,544,098	$                    -

For the three months ended September 30, 2012 and 2011, depreciation expense amounted to approximately $81,200 and $0, respectively. For the nine months ended September 30, 2012 and 2011, depreciation expense amounted to $239,000 and $0, respectively.

As of September 30, 2012 and December 31, 2011, the Company had construction in progress of $52,830 and $0, respectively, for constructing a warehouse for storage of the finished products, a workshop, and research and development center. The estimated total cost for the construction in progress would be approximately $360,000, and the Company would be required to pay an additional $20,000 by December 31, 2012-see NOTE 13.