Property and Equipment

9 Months Ended

Sep. 30, 2018

5.	PROPERTY AND EQUIPMENT

Property and equipment is recorded at cost when acquired. Depreciation is provided principally on the straight-line method over the estimated useful lives of the related assets, which is 3-7 years for equipment, furniture and fixtures, hardware and software and leasehold improvements. During the nine months ended September 30, 2018, the Company invested $5,279 in shop machinery and equipment and computers. During that same time period, the company sold a company vehicle for $60,000 cash and wrote off several items of abandoned equipment resulting in a $10,002 loss on disposal of assets. Depreciation expense was $29,238 and $26,350 for the nine months ended September 30, 2018 and 2017, respectively. Property and equipment consists of the following at September 30, 2018 and December 31, 2017:

	September 30, 2018			December 31, 2017
Shop machinery and equipment	$	87,534		$	87,704
Computers and electronics		32,093			35,270
Office furniture and fixtures		37,814			37,814
Vehicle		-			73,142
Leasehold improvements		19,514			19,514
		176,955			253,444
Less - accumulated depreciation		(114,979	)		(97,507	)
	$	61,976		$	155,937