5. PLANT, PROPERTY AND EQUIPMENT

12 Months Ended

Sep. 30, 2016

Notes to Financial Statements

5. PLANT, PROPERTY AND EQUIPMENT

Research and office equipment consisted of the following at September 30:

	2016			2015
Manufacturing building	$	21,183,756		$	21,783,756
Research equipment		3,158,633			3,268,757
Furniture and equipment		133,499			141,347
Leasehold improvements		131,910			131,910
		24,607,798			24,725,770
Accumulated depreciation and amortization		(7,256,962	)		(6,779,939	)
Net plant, property and equipment	$	17,350,836		$	17,945,831

The Company is not the legal owner of the manufacturing building, but is deemed to be the owner for accounting purposes based on the accounting guidance for build-to-suit leases. See Note 10, Commitments and Contingencies – Lease Obligations for additional information. As of September 30, 2016 and 2015, accumulated depreciation on the manufacturing building is approximately $4.1 million and $3.5 million, respectively. Depreciation expense for the years ended September 30, 2016, 2015 and 2014 totaled approximately $626,000, $680,000 and $703,000, respectively. Depreciation expense includes depreciation on the leased manufacturing building of approximately $514,000, which is included in research and development costs on the Statement of Operations. One asset is recorded under capital lease with a net book value of $0 and approximately $8,000 on September 30, 2016 and 2015, respectively. Amortization of the capital lease asset is included in general and administrative expenses on the Statements of Operations.