MACHINERY AND EQUIPMENT

6 Months Ended

Jun. 30, 2018

Property, Plant and Equipment [Abstract]

MACHINERY AND EQUIPMENT

NOTE 5. - MACHINERY AND EQUIPMENT

Machinery and equipment at June 30, 2018 and December 31, 2017 consisted of the following:

	Useful Life	June 30, ‎2018		December 31, ‎2017
Cigarette manufacturing equipment	3 - 10 years	$	4,522,479	$	4,302,299
Office furniture, fixtures and equipment	5 years		135,909		110,499
Laboratory equipment	5 years		86,609		32,193
Leasehold improvements	6 years		163,359		106,429
			4,908,356		4,551,420
Less: accumulated depreciation			1,491,194		1,235,373
Machinery and equipment, net		$	3,417,162	$	3,316,047

Depreciation expense was $131,294 and $255,822 for the three and six months ended June 30, 2018, respectively ($88,464 and $176,585 for the three and six months ended June 30, 2017, respectively).