Property and Equipment

9 Months Ended

Sep. 30, 2014

Property and Equipment [Abstract]

PROPERTY AND EQUIPMENT

NOTE 4 - PROPERTY AND EQUIPMENT

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

	Useful Life		September 30, 2014			December 31, 2013
Office equipment and furniture		5 Years	$	161,702		$	156,810
Manufacturing equipment		5 – 10 Years		75,864,386			74,187,972
Vehicles		5 Years		205,216			129,380
Construction in progress		-		4,647,196			477,299
Building and building improvements		20 Years		26,016,348			21,487,286
				106,894,848			96,438,747
Less: accumulated depreciation				(31,565,694	)		(25,843,609	)
			$	75,329,154		$	70,595,138

For the three months ended September 30, 2014 and 2013, depreciation expense amounted to $2,160,933 and $1,661,740, respectively, of which $1,844,902 and $1,552,088, respectively, was included in cost of revenues, $167,660 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. For the nine months ended September 30, 2014 and 2013, depreciation expense amounted to $6,245,723 and $4,882,899, respectively, of which $5,533,436 and $4,421,360, respectively, was included in cost of revenues, $335,647 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.

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.