Property and Equipment

9 Months Ended

Sep. 30, 2018

NOTE 7 – PROPERTY AND EQUIPMENT

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

	Useful life	September 30, 2018			December 31, 2017
Office equipment and furniture	5 years	$	85,252		$	71,120
Manufacturing equipment	5 - 10 years		32,617,253			34,419,653
Vehicles	5 years		243,712			253,564
Building and building improvements	5 - 20 years		21,329,517			22,556,026
Manufacturing equipment in progress	-		3,458,448			3,657,936
Construction in progress	-		1,563,567			1,652,859
			59,297,749			62,611,158
Less: accumulated depreciation			(30,756,627	)		(29,430,039	)
		$	28,541,122		$	33,181,119

For the three months ended September 30, 2018 and 2017, depreciation expense amounted to $979,203 and $998,394, respectively, of which $705,648 and $721,042, respectively, was included in cost of revenues, and the remainder was included in operating expenses. For the nine months ended September 30, 2018 and 2017, depreciation expense amounted to $3,080,857 and $2,937,696, respectively, of which $2,218,554 and $2,123,042, respectively, was included in cost of revenues, and the remainder was included in operating expenses.