Property and Equipment

3 Months Ended

Mar. 31, 2014

NOTE 4 - PROPERTY AND EQUIPMENT

At March 31, 2014 and December 31, 2013, property and equipment consisted of the following:

	Useful Life	March 31, 2014			December 31, 2013
Office equipment and furniture	5 Years	$	161,009		$	156,810
Manufacturing equipment	5 – 10 Years		74,066,465			74,187,972
Vehicles	5 Years		204,933			129,380
Construction in progress	-		2,531,687			477,299
Building and building improvements	20 Years		21,781,008			21,487,286
			98,745,102			96,438,747
Less: accumulated depreciation			(27,578,120	)		(25,843,609	)
		$	71,166,982		$	70,595,138

For the three months ended March 31, 2014 and 2013, depreciation expense amounted to $1,965,274 and $1,569,551, respectively, of which $1,855,415 and $1,462,337, respectively, is included in cost of revenues and the remainder is included in operating 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 used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

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