Property and Equipment

6 Months Ended

Jun. 30, 2012

Property, Plant and Equipment [Abstract]

NOTE 4 - PROPERTY AND EQUIPMENT

At June 30, 2012 and December 31, 2011, property and equipment consisted of the following:

	Useful Life		June 30, 2012			December 31, 2011
Office equipment and furniture	5 Years		$	217,350		$	215,145
Manufacturing equipment	5 – 10 Years			61,354,490			57,347,726
Vehicles	5 Years			125,095			124,211
Construction in progress		-		-			330,730
Building and building improvements	20 Years			20,770,774			20,623,919
				82,467,709			78,641,731
Less: accumulated depreciation				(17,798,960	)		(14,599,652	)
			$	64,668,749		$	64,042,079

For the six months ended June 30, 2012 and 2011, depreciation expense amounted to $3,092,511 and $2,503,759, respectively, of which $2,343,975 and $2,082,964, respectively, is included in inventory and cost of revenues and the remainder is included in general and administrative expenses. For the three months ended June 30, 2012 and 2011, depreciation expense amounted to $1,545,166 and $1,326,757, respectively, of which $1,171,242 and $986,549, respectively, is included in inventory and cost of revenues and the remainder is included in general and administrative expenses. Depreciation is not taken during the period of construction or equipment installation. Upon completion of the installation of manufacturing equipment or any construction in progress, construction in progress balances will be classified to their respective property and equipment category.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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