Property, Plant & Equipment

9 Months Ended

Sep. 30, 2021

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT & EQUIPMENT

3. PROPERTY, PLANT & EQUIPMENT

The Company’s property, plant and equipment at September 30, 2021 and December 31, 2020 consisted of the following:

	Estimated Useful Life	September 30, 2021			December 31, 2020
Land		$	278,325		$	278,325
Building and improvements	30 years		9,696,070			9,563,406
Manufacturing and warehouse equipment	6-20 years		12,889,187			11,959,563
Office equipment and furniture	3-5 years		1,907,868			1,880,387
Leasehold improvements	10-15 years		587,183			587,183
Finance leases – right to use	5 years		113,741			113,741
Vehicles	3 years		10,020			10,020
Construction in process			4,313,064			464,203
Property, plant and equipment, gross			29,795,458			24,856,828
Less accumulated depreciation			(15,614,570	)		(14,754,866	)
Property, plant and equipment, net		$	14,180,888		$	10,101,962

The Company’s wholly owned subsidiary, Kinpak Inc. (“Kinpak”), has started a 69,000 square foot expansion of its manufacturing, warehouse and distribution facilities in Montgomery, AL. The expansion is expected to be completed in early 2022. For more information see our Current Report on Form 8-K filed on February 3, 2021.

Depreciation expense totaled $302,866 (of which $277,931 is included in cost of goods sold and $24,935 is included in selling and administrative expenses) and $273,490 (of which $248,528 is included in cost of goods sold and $24,962 is included in selling and administrative expenses) for the three months ended September 30, 2021 and 2020, respectively, and $877,176 (of which $803,302 is included in cost of goods sold and $73,874 is included in selling and administrative expenses) and $791,981 (of which $717,907 is included in cost of goods sold and $74,074 is included in selling and administrative expenses) for the nine months ended September 30, 2021 and 2020, respectively.