Annual report pursuant to Section 13 and 15(d)

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2015

Property, Plant and Equipment [Abstract]

NOTE 3 - PROPERTY AND EQUIPMENT

Property and equipment was comprised of the following:

	December 31,
	2015			2014

Field and shop equipment	$	2,188,500		$	1,690,900
Vehicles		750,800			672,300
Waste destruction equipment, placed in service		1,276,600			1,145,600
Waste destruction equipment, not placed in service		1,521,100			2,325,900
Furniture and office equipment		321,400			291,300
Leasehold improvements		65,400			65,400
Building and improvements		18,600			—
Land		162,900			—
		6,305,300			6,191,400
Less: accumulated depreciation and amortization		(1,974,000	)		(1,342,600	)
Property and equipment, net	$	4,331,300		$	4,848,800

Depreciation expense for the years ended December 31, 2015 and 2014 was $632,100 and $406,600, respectively. For the year ended December 31, 2015 depreciation expense included in cost of goods sold and selling, general and administrative expenses was $528,800 and $103,300, respectively. For the year ended December 31, 2014 depreciation expense included in cost of goods sold and selling, general and administrative expenses was $363,600 and $43,000, respectively.

Depreciation expense on leased CoronaLux™ units included in accumulated depreciation and amortization above is $113,600 and $48,400 for the years ended December 31, 2015 and 2014, respectively.

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

	2015			2014

Field and shop equipment	$	462,700		$	229,400
Less: accumulated amortization		(127,800	)		(36,800	)
	$	334,900		$	192,600

In October 2015, the Company acquired certain assets related to materials technology for cost-effective chemical absorbents. The purchase price of the assets was $700,000 and was allocated to the fair market value of the assets acquired. The purchase price of $700,000 consisted of $375,000 in cash and $325,000 in notes payable (see Note10). The allocation of the $700,000 purchase price was as follows:

Current assets	$	18,000
Fixed assets		254,200
Intangible assets (See Note 4)		427,800
	$	700,000