Property and Equipment

6 Months Ended

Jun. 30, 2017

NOTE 7 – PROPERTY AND EQUIPMENT

At June 30, 2017 and December 31, 2016, property and equipment consisted of the following:

	Useful life	June 30, 2017			December 31, 2016
Office equipment and furniture	5 years	$	68,251		$	65,209
Manufacturing equipment	5 -10 years		33,031,395			32,240,010
Vehicles	5 years		173,874			169,773
Building and building improvements	5 - 20 years		21,646,267			21,135,718
			54,919,787			53,610,710
Less: accumulated depreciation			(26,271,427	)		(23,732,035	)
		$	28,648,360		$	29,878,675

For the three months ended June 30, 2017 and 2016, depreciation expense amounted to $971,112 and $869,035, respectively, of which approximately $702,000 and $731,000, respectively, was included in cost of revenues, and the remainder was included in operating expenses. For the six months ended June 30, 2017 and 2016, depreciation expense amounted to $1,939,302 and $1,824,315, respectively, of which approximately $1,402,000 and $1,548,000, respectively, was included in cost of revenues, and the remainder was included in operating expenses.