Property and Equipment, Net, and Other Assets

9 Months Ended

Sep. 30, 2016

Property Plant And Equipment [Abstract]

Property and Equipment, Net, and Other Assets

3. Property and Equipment, Net, and Other Assets

At September 30, 2016 and December 31, 2015, property and equipment, net, and other assets consisted of the following:

	September 30,		December 31,
	2016		2015
	(Unaudited)
Property and equipment, net of accumulated depreciation of $2,328,033      and $1,973,538 as of September 30, 2016 and December 31, 2015,      respectively	$	1,438,437	$	1,308,236
Security deposits and other assets		1,243,498		300,396
Property and equipment, net, and other assets	$	2,681,935	$	1,608,632

We compute depreciation using the straight-line method over the estimated useful lives of the property and equipment. The depreciation expense for the three months ended September 30, 2016 was $123,283, inclusive of $38,490 of depreciation expense reflected within “Cost of revenue” in our condensed consolidated statement of operations as it related to assets used in directly servicing customer contracts.  The depreciation expense for the nine months ended September 30, 2016 was $354,495, inclusive of $86,754 of depreciation expense recorded to “Cost of revenue.”  The depreciation expense for the three and nine months ended September 30, 2015 was $71,844 and $218,225, respectively, with no depreciation expense recorded to “Cost of revenue.” At September 30, 2016, our capital lease assets were $373,573, net of $126,525 of accumulated depreciation. At December 31, 2015, our capital lease assets were $426,757, net of $34,041 of accumulated depreciation.