Property and Equipment

6 Months Ended

Jun. 30, 2016

NOTE 5 – PROPERTY AND EQUIPMENT

At June 30, 2016 and December 31, 2015, property and equipment consisted of the following:

	Useful life	June 30, 2016			December 31, 2015
Manufacturing equipment	5 - 10 years	$	64,864,789		$	66,381,394
Building and building improvements	5 - 20 years		24,101,262			24,668,268
Vehicles	5 years		190,080			194,552
Office equipment and furniture	5 years		161,601			165,403
			89,317,732			91,409,617
Less: accumulated depreciation			(42,041,431	)		(39,655,653	)
		$	47,276,301		$	51,753,964

For the three months ended June 30, 2016 and 2015, depreciation expense amounted to $1,677,033 and $2,070,007, respectively, of which $1,302,898 and $1,902,611, respectively, was included in cost of revenues, and the remainder was included in operating expenses. For the six months ended June 30, 2016 and 2015, depreciation expense amounted to $3,351,761 and $4,144,514, respectively, of which $2,816,888 and $3,632,422, respectively, was included in cost of revenues, and the remainder was included in operating expenses