Property and Equipment

9 Months Ended

Sep. 30, 2016

NOTE 6 – PROPERTY AND EQUIPMENT

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

	Useful life	September 30, 2016			December 31, 2015
Manufacturing equipment	5 - 10 years	$	39,652,919		$	66,381,394
Building and building improvements	5 - 20 years		24,007,378			24,668,268
Vehicles	5 years		189,339			194,552
Office equipment and furniture	5 years		161,612			165,403
			64,011,248			91,409,617
Less: accumulated depreciation			(26,737,042	)		(39,655,653	)
		$	37,274,206		$	51,753,964

For the three months ended September 30, 2016 and 2015, depreciation expense amounted to $1,107,211 and $2,022,385, respectively, of which $835,220 and $1,861,821, respectively, was included in cost of revenues, and the remainder was included in operating expenses. For the nine months ended September 30, 2016 and 2015, depreciation expense amounted to $4,458,972 and $6,166,899, respectively, of which $3,652,108 and $5,494,243, respectively, was included in cost of revenues, and the remainder was included in operating expenses.