Property and Equipment

3 Months Ended

Mar. 31, 2019

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

NOTE 6 – PROPERTY AND EQUIPMENT

As of March 31, 2019 and December 31, 2018, property and equipment consisted of the following:

	Useful life	March 31, 2019			December 31, 2018
Office equipment and furniture	5 years	$	88,419		$	86,724
Manufacturing equipment	5 -10 years		11,516,742			20,297,029
Vehicles	5 years		179,478			176,884
Building and building improvements	5 - 20 years		-			21,341,612
Manufacturing equipment in progress	-		3,465,848			338,190
Construction in progress	-		1,683,753			4,686,673
			16,934,240			46,927,112
Less: accumulated depreciation			(9,188,037	)		(25,363,692	)
		$	7,746,203		$	21,563,420

For the three months ended March 31, 2019 and 2018, depreciation expense amounted to $693,743 and $1,051,657, respectively, of which $416,410 and $808,654, respectively, was included in cost of revenues, and the remainder was included in operating expenses.

As of March 31, 2019, the Company conducted an impairment assessment on property and equipment. Accordingly, the Company recorded an impairment loss of $13,586,059 on certain equipment and buildings for the three months ended March 31, 2019. For the three months ended March 31, 2018, the impairment loss was $0.