Property and Equipment

3 Months Ended

Mar. 31, 2017

NOTE 7 – PROPERTY AND EQUIPMENT

At March 31, 2017 and December 31, 2016, property and equipment consisted of the following:

	Useful life	March 31, 2017			December 31, 2016
Office equipment and furniture	5 years	$	67,146		$	65,209
Manufacturing equipment	5 -10 years		32,484,174			32,240,010
Vehicles	5 years		171,059			169,773
Building and building improvements	5 - 20 years		21,295,786			21,135,718
			54,018,165			53,610,710
Less: accumulated depreciation			(24,879,267	)		(23,732,035	)
		$	29,138,898		$	29,878,675

For the three months ended March 31, 2017 and 2016, depreciation expense amounted to $968,190 and $955,279, respectively, of which $699,825 and $817,370, respectively, was included in cost of revenues, and the remainder was included in operating expenses.