Property and Equipment

12 Months Ended

Dec. 31, 2016

Property and Equipment [Abstract]

PROPERTY AND EQUIPMENT

NOTE 7 – PROPERTY AND EQUIPMENT

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

	Useful life	December 31, 2016			December 31, 2015
Office equipment and furniture	5 years	$	65,209		$	68,310
Manufacturing equipment	5 -10 years		32,240,010			34,481,747
Vehicles	5 years		169,773			181,651
Building and building improvements	5 - 20 years		21,135,718			21,376,122
			53,610,710			56,107,830
Less: accumulated depreciation			(23,732,035	)		(21,472,874	)
		$	29,878,675		$	34,634,956

For the years ended December 31, 2016 and 2015, depreciation expense amounted to $3,829,345 and $4,364,166, respectively, of which $3,311,410 and $3,776,185, respectively, was included in cost of revenues, and the remainder was included in operating expenses.

At December 31, 2016 and 2015, the Company conducted an impairment assessment on property and equipment based on the guidelines established in ASC Topic 360 to determine the estimated fair market value of property and equipment as of December 31, 2016 and 2015. Such analysis considered future use of such equipment, consultation with equipment resellers, and other industry factors. Upon completion of the 2016 and 2015 impairment analysis, the Company determined that the carrying value exceeded the fair market value on certain equipment formerly used in the Company’s forging and related components, and petroleum and chemical equipment segments, which have been accounted for as discontinued operations as of December 31, 2016 and 2015 . Accordingly, in connection with the impairment of such equipment, the Company recorded impairment charges of $1,660,305 and $7,016,658 for the years at December 31, 2016 and 2015, respectively, which was included in loss from discontinued operations on the accompanying consolidated statements of operations and comprehensive loss.