MACHINERY AND EQUIPMENT

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Abstract]

MACHINERY AND EQUIPMENT

NOTE 8. - MACHINERY AND EQUIPMENT

Machinery and equipment at December 31, 2016 and 2015 consists of the following:

	December 31, 2016		December 31, 2015
Cigarette manufacturing equipment	$	3,193,580	$	3,016,246
Office furniture, fixtures and equipment		103,945		95,361
Laboratory equipment		19,076		-
		3,316,601		3,111,607
Less: accumulated depreciation		881,938		555,814
Machinery and equipment, net	$	2,434,663	$	2,555,793

Depreciation expense was $326,124, $319,699 and $230,012 for the years ended December 31, 2016, 2015 and 2014, respectively.