Property and Equipment

12 Months Ended

Dec. 31, 2018

Property and Equipment [Abstract]

PROPERTY AND EQUIPMENT

NOTE 7 – PROPERTY AND EQUIPMENT

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

	Useful life	December 31, 2018			December 31, 2017
Office equipment and furniture	5 years	$	86,724		$	71,120
Manufacturing equipment	5 - 10 years		20,297,029			34,419,653
Vehicles	5 years		176,884			253,564
Building and building improvements	5 - 20 years		21,341,612			22,556,026
Manufacturing equipment in progress	-		338,190			3,657,936
Construction in progress	-		4,686,673			1,652,859
			46,927,112			62,611,158
Less: accumulated depreciation			(25,363,692	)		(29,430,039	)
		$	21,563,420		$	33,181,119

For the years ended December 31, 2018 and 2017, depreciation expense amounted to $4,045,881 and $3,950,932, respectively, of which $2,913,829 and $2,849,988, respectively, was included in cost of revenues, and the remainder was included in operating expenses.

At December 31, 2018 and 2017, the Company conducted an impairment assessment on property and equipment based on the guidelines established in ASC Topic 360 to determine the estimated fair market value of property and equipment as of December 31, 2018 and 2017. Such analysis considered future use of such equipment, consultation with equipment resellers, and other industry factors. Upon completion of the 2018 and 2017 impairment analysis, the Company determined that the carrying value exceeded the fair market value on certain equipment formerly used in the Company’s forging and related components, and chemical equipment segments. Accordingly, in connection with the impairment of such equipment, the Company recorded impairment charges of $6,257,583 and $0 for the years at December 31, 2018 and 2017, respectively.