Property and Equipment

6 Months Ended

Jun. 30, 2018

NOTE 7 – PROPERTY AND EQUIPMENT

At June 30, 2018 and December 31, 2017, property and equipment consisted of the following:

	Useful life		June 30, 2018			December 31, 2017
Office equipment and furniture		5 years	$	87,099		$	71,120
Manufacturing equipment		5 - 10 years		33,907,781			34,419,653
Vehicles		5 years		250,498			253,564
Building and building improvements		5 - 20 years		22,174,384			22,556,026
Manufacturing equipment in progress		-		3,595,438			3,657,936
Construction in progress		-		1,625,500			1,652,859
				61,640,700			62,611,158
Less: accumulated depreciation				(30,962,455	)		(29,430,039	)
			$	30,678,245		$	33,181,119

For the three months ended June 30, 2018 and 2017, depreciation expense amounted to $1,049,914 and $971,112, respectively, of which $704,169 and $701,763, respectively, was included in cost of revenues, and the remainder was included in operating expenses. For the six months ended June 30, 2018 and 2017, depreciation expense amounted to $2,101,654 and $1,939,302, respectively, of which $1,512,906 and $1,401,588, respectively, was included in cost of revenues, and the remainder was included in operating expenses.