Annual report pursuant to Section 13 and 15(d)

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

NOTE 4 – PROPERTY AND EQUIPMENT

Property and equipment was comprised of the following:

	December 31,
	2018			2017

Field and shop equipment	$	2,272,100		$	2,213,300
Vehicles		690,000			690,000
Waste destruction equipment, placed in service		557,100			627,800
Furniture and office equipment		312,400			311,000
Leasehold improvements		10,000			10,000
Building and improvements		21,200			21,200
Land		162,900			162,900
		4,025,700			4,036,200
Less: accumulated depreciation and amortization		(3,193,800	)		(2,739,700	)
Property and equipment, net	$	831,900		$	1,296,500

Depreciation expense for the years ended December 31, 2018 and 2017 was $454,100 and $641,300, respectively. For the year ended December 31, 2018 depreciation expense included in cost of goods sold and selling, general and administrative expenses was $381,300 and $72,800, respectively. For the year ended December 31, 2017 depreciation expense included in cost of goods sold and selling, general and administrative expenses was $551,400 and $89,900, respectively.

Depreciation expense on leased CoronaLux™ units included in accumulated depreciation and amortization above is $70,100 and $70,100 for the years ended December 31, 2018 and 2017, respectively.

Property and equipment includes the following amounts for leases that have been capitalized at December 31:

	2018			2017

Field and shop equipment	$	407,100		$	407,100
Less: accumulated amortization		(298,100	)		(232,200	)
	$	109,000		$	174,900

The capitalized leases have a security interest held by the lessor in their respective equipment.

The Company has evaluated its fixed assets and has determined that an impairment charge was required for one licensed CoronaLux™ unit of approximately $70,700 in the year ended December 31, 2018 and three idle units of approximately $354,000 for the year ended December 31, 2017.