5. PLANT, PROPERTY AND EQUIPMENT

12 Months Ended

Sep. 30, 2018

Notes To Financial Statements Abstract

5. PLANT, PROPERTY AND EQUIPMENT

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

	2018			2017
Leased manufacturing facility	$	21,183,756		$	21,183,756
Research equipment		3,162,150			3,169,158
Furniture and equipment		124,369			124,369
Leasehold improvements		131,910			131,910
		24,602,186			24,609,193
Accumulated depreciation and amortization		(8,383,335	)		(7,815,973	)
Net plant, property and equipment	$	16,218,851		$	16,793,220

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, 2018 and 2017, accumulated depreciation on the manufacturing building is approximately $5.1 million and $4.6 million, respectively. Depreciation expense for the years ended September 30, 2018 and 2017 totaled approximately $575,000 and, $593,000, 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 $16,000 and $21,000 on September 30, 2018 and 2017, respectively. Amortization of the capital lease asset is included in general and administrative expenses on the Statements of Operations.

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