MACHINERY AND EQUIPMENT

9 Months Ended

Sep. 30, 2017

Property, Plant and Equipment [Abstract]

MACHINERY AND EQUIPMENT

NOTE 8. - MACHINERY AND EQUIPMENT

Machinery and equipment at September 30, 2017 and December 31, 2016 consisted of the following:

		September 30,		December 31,
	Useful Life	2017		2016
Cigarette manufacturing equipment	3 - 10 years	$	4,109,559	$	3,193,580
Office furniture, fixtures and equipment	5 years		105,096		103,945
Laboratory equipment	5 years		32,193		19,076
			4,246,848		3,316,601
Less: accumulated depreciation			1,147,234		881,938
Machinery and equipment, net		$	3,099,614	$	2,434,663

Depreciation expense was $88,711 and $265,296 for the three and nine months ended September 30, 2017, respectively ($81,354 and $243,018 for the three and nine months ended September 30, 2016, respectively).