Property and Equipment

12 Months Ended

Dec. 31, 2014

NOTE 4 – PROPERTY AND EQUIPMENT

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

	Useful life		December 31, 2014			December 31, 2013
Office equipment and furniture		5 years	$	166,734		$	156,810
Manufacturing equipment		5 -10 years		76,870,025			74,187,972
Vehicles		5 years		205,714			129,380
Construction in progress		-		-			477,299
Building and building improvements		5 - 20 years		26,083,624			21,487,286
				103,326,097			96,438,747
Less: accumulated depreciation				(33,697,500	)		(25,843,609	)
			$	69,628,597		$	70,595,138

For the years ended December 31, 2014 and 2013, depreciation expense amounted to $8,469,771 and $6,704,386, respectively, of which $7,244,647 and $6,131,296, respectively, was included in cost of revenues, $503,675 and $0 which was related to the ESR equipment held for operating lease (see note 6), respectively, was included in rental income, net, 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.

- 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.

+ References+ Details