Property and Equipment

3 Months Ended

Mar. 31, 2015

NOTE 4 – PROPERTY AND EQUIPMENT

At March 31, 2015 and December 31, 2014, property and equipment consisted of the following:

	Useful life	March 31, 2015			December 31, 2014
Office equipment and furniture	5 years	$	172,312		$	166,734
Manufacturing equipment	5 -10 years		77,239,961			76,870,025
Vehicles	5 years		206,704			205,714
Building and building improvements	5 - 20 years		26,209,151			26,083,624
			103,828,128			103,326,097
Less: accumulated depreciation			(35,943,243	)		(33,697,500	)
		$	67,884,885		$	69,628,597

For the three months ended March 31, 2015 and 2014, depreciation expense amounted to $2,074,507 and $1,965,274, respectively, of which $1,729,811 and $1,855,415, respectively, was included in cost of revenues, 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.

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