NOTE 4 — FIXED ASSETS:

Fixed assets consist of the following at:

	December 31, 2016			December 31, 2015
Machinery and equipment	$	3,962,051		$	3,862,698
Furniture and fixtures		437,962			436,588
Computer and telephone equipment		343,167			326,170
Leasehold improvements		2,012,945			2,012,945
		6,756,125			6,638,401
Less accumulated depreciation and amortization		(5,046,804	)		(4,264,093	)
	$	1,709,321		$	2,374,308

There were no capital leases at the end of December 31, 2016. Fixed assets at December 31, 2016 also include $199,921 in equipment, which has been delivered and set-up but is undergoing validation and as such is currently not being depreciated. Depreciation expense for the 2016, 2015 and 2014 years aggregated $782,711, $893,305 and $616,943, respectively.

As of December 31, 2016 and 2015, the Company had paid deposits on various pieces of equipment aggregating $31,900 and $30,918, respectively.