Property and Equipment

6 Months Ended

Jun. 30, 2019

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

NOTE 9 – PROPERTY AND EQUIPMENT

As of June 30, 2019 and December 31, 2018, property and equipment consisted of the following:

	Useful life	June 30, 2019			December 31, 2018
Office equipment and furniture	5 years	$	88,503		$	86,724
Manufacturing equipment	5 -  10 years		11,257,906			20,297,029
Vehicles	5 years		177,071			176,884
Building and building improvements	5 - 20 years		-			21,341,612
Manufacturing equipment in progress	-		3,387,954			338,190
Construction in progress	-		1,645,911			4,686,673
			16,557,345			46,927,112
Less: accumulated depreciation			(9,674,689	)		(25,363,692	)
		$	6,882,656		$	21,563,420

For the three months ended June 30, 2019 and 2018, depreciation expense amounted to $694,953 and $1,049,914, respectively, of which $596,479 and $704,169, respectively, was included in cost of revenues, and the remainder was included in operating expenses.

For the six months ended June 30, 2019 and 2018, depreciation expense amounted to $1,388,696 and $2,101,654, respectively, of which $1,012,889 and $1,512,906, respectively, was included in cost of revenues, and the remainder was included in operating expenses.

As of June 30, 2019, the Company conducted an impairment assessment on property and equipment. Accordingly, the Company recorded an impairment loss of $13,507,553 on certain equipment and buildings for the six months ended June 30, 2019. For the six months ended June 30, 2018, the impairment loss was $0.