Property and Equipment

6 Months Ended

Jun. 30, 2014

Property and Equipment [Abstract]

PROPERTY AND EQUIPMENT

NOTE 4 - PROPERTY AND EQUIPMENT

At June 30, 2014 and December 31, 2013, property and equipment consisted of the following:

	Useful Life		June 30, 2014			December 31, 2013
Office equipment and furniture	5 Years		$	161,655		$	156,810
Manufacturing equipment	5 – 10 Years			74,509,161			74,187,972
Vehicles	5 Years			205,156			129,380
Construction in progress		-		3,173,902			477,299
Building and building improvements	20 Years			24,340,232			21,487,286
				102,390,106			96,438,747
Less: accumulated depreciation				(29,562,448	)		(25,843,609	)
			$	72,827,658		$	70,595,138

For the three months ended June 30, 2014 and 2013, depreciation expense amounted to $2,119,516 and $1,651,608, respectively, of which $1,833,119 and $1,406,935, respectively, was included in cost of revenues, $167,987 and $0 which was related to the ESR equipment held for operating lease (see note 6), respectively, was included in other income, and the remainder was included in operating expenses, respectively. For the six months ended June 30, 2014 and 2013, depreciation expense amounted to $4,084,790 and $3,221,159, respectively, of which $3,688,534 and $2,869,272, respectively, was included in cost of revenues, $167,987 and $0 which was related to the ESR equipment held for operating lease (see note 6), respectively, was included in other income, and the remainder was included in operating expenses, respectively.

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.