Property and Equipment, Net, and Other Assets

12 Months Ended

Dec. 31, 2020

Property Plant And Equipment [Abstract]

Property and Equipment, Net, and Other Assets

4. Property and Equipment, net, and Other Assets

At December 31, 2020 and 2019, Property and equipment, net, and other assets consisted of the following:

	As of December 31,
	2020			2019
Vehicles	$	493,373		$	493,373
Computer equipment		306,122			247,776
Office furniture and fixtures		545,897			541,464
Machinery and equipment		2,278,777			688,137
Leasehold improvements		558,035			558,035
Property and equipment, gross		4,182,204			2,528,785
Accumulated depreciation		(2,195,198	)		(1,994,320	)
Property and equipment, net		1,987,006			534,465
Right-of-use operating lease assets		1,103,761			1,595,044
Security deposits and other assets		293,288			306,585
Property and equipment, net, and other assets	$	3,384,055		$	2,436,094

We compute depreciation using the straight-line method over the estimated useful lives of the property and equipment.  Depreciation expense for the year ended December 31, 2020 was $261,809, including $112,619 of depreciation expense reflected within “Cost of revenue” in our consolidated statement of operations as it related to assets used directly in servicing customer contracts.  Depreciation expense for the year ended December 31, 2019 was $225,061, including $87,053 depreciation expense recorded in “Cost of revenue.”  

We recorded right-of-use operating lease assets related to our corporate office lease and the office lease space in Burlington, NC in accordance with ASC 842.  Refer to Note 8, Leases for additional information.

On February 20, 2018 (the “Closing Date”), we entered into an Asset Purchase Agreement with Earth Media Partners, LLC to sell certain assets of our wholly owned subsidiary, Earth911, Inc., in exchange for a 19% interest in Earth Media Partners, LLC, which was recorded as an investment in the amount of $246,585 as of the Closing Date, and a potential future earn-out amount of approximately $350,000.  The net assets sold related to the Earth911.com website business and consisted primarily of the website and its content and customers, deferred revenues, and accounts receivable as of the Closing Date.  Earth911, Inc. was subsequently renamed Quest Sustainability Services, Inc.  The carrying amount of our investment in Earth Media Partners, LLC is included in “Security deposits and other assets” and we have an accrued receivable in the amount of $259,017 and $163,781 related to the earn-out included in “Accounts receivable” as of December 31, 2020 and December 31, 2019, respectively.