5. PLANT, PROPERTY AND EQUIPMENT

12 Months Ended

Sep. 30, 2017

Notes to Financial Statements

5. PLANT, PROPERTY AND EQUIPMENT

Plant, property and equipment consisted of the following at September 30:

	2017	2016
Leased manufacturing facility	$ 21,183,756	$ 21,183,756
Research equipment	3,169,158	3,158,633
Furniture and equipment	124,369	133,499
Leasehold improvements	131,910	131,910
	24,609,193	24,607,798
Accumulated depreciation and amortization	(7,815,973)	(7,256,962)
Net plant, property and equipment	$ 16,793,220	$ 17,350,836

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 11, Commitments and Contingencies–Lease Obligations, for additional information. As of September 30, 2017 and 2016, accumulated depreciation on the manufacturing building is approximately $4.6 million and $4.1 million, respectively. Depreciation expense for the years ended September 30, 2017 and 2016 totaled approximately $593,000 and, $626,000, respectively. Depreciation expense includes depreciation on the leased manufacturing building of approximately $514,000, which is included in research and development costs on the Statements of Operations. During the year ended September 30, 2017, the Company purchased an asset under a lease classified as a capital lease. That asset has a net book value of approximately $21,000 on September 30, 2017. Amortization of the capital lease asset is included in general and administrative expenses on the Statements of Operations.