Property and Equipment

3 Months Ended

Mar. 31, 2018

NOTE 7 – PROPERTY AND EQUIPMENT

At March 31, 2018 and December 31, 2017, property and equipment consisted of the following:

	Useful life	March 31, 2018			December 31, 2017
Office equipment and furniture	5 years	$	90,272		$	71,120
Manufacturing equipment	5 -10 years		35,680,028			34,419,653
Vehicles	5 years		259,906			253,564
Building and building improvements	5 - 20 years		23,345,633			22,556,026
Manufacturing equipment in progress	-		3,785,348			3,657,936
Construction in progress	-		1,711,359			1,652,859
			64,872,546			62,611,158
Less: accumulated depreciation			(31,531,203	)		(29,430,039	)
		$	33,341,343		$	33,181,119

For the three months ended March 31, 2018 and 2017, depreciation expense amounted to $1,051,740 and $968,190, respectively, of which $808,654 and $699,825, respectively, was included in cost of revenues, and the remainder was included in operating expenses.