Quarterly report pursuant to Section 13 or 15(d)

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

6 Months Ended

Jun. 30, 2016

Property, Plant and Equipment [Abstract]

NOTE 3 - PROPERTY AND EQUIPMENT

Property and equipment was comprised of the following:

	June 30, 2016			December 31, 2015
Field and shop equipment	$	2,303,300		$	2,188,500
Vehicles		689,900			750,800
Waste destruction equipment, placed in service		1,283,600			1,276,600
Waste destruction equipment, not placed in service		1,521,100			1,521,100
Furniture and office equipment		322,800			321,400
Leasehold improvements		65,400			65,400
Building and improvements		21,200			18,600
Land		162,900			162,900
		6,370,200			6,305,300
Less: accumulated depreciation and amortization		(2,253,300	)		(1,974,000	)
Property and equipment, net	$	4,116,900		$	4,331,300

Depreciation expense for the three months ended June 30, 2016 and 2015 was $165,500 and $126,600, respectively and for the six months ended June 30, 2016, $337,100 and $253,200, respectively. For the three months ended June 30, 2016 depreciation expense included in cost of goods sold and selling, general and administrative expenses was $141,400 and $24,100 respectively. For the six months ended June 30, 2016 depreciation expense included in cost of goods sold and selling, general and administrative expenses was $288,800 and $48,300 respectively. For the three months ended June 30, 2015 depreciation expense included in cost of goods sold and selling, general and administrative expenses was $106,900 and $19,600 respectively. For the six months ended June 30, 2015 depreciation expense included in cost of goods sold and selling, general and administrative expenses was $213,900 and $39,300 respectively.

Accumulated depreciation on leased CoronaLux™ units included in accumulated depreciation and amortization above is $238,800 and $125,000 as of June 30, 2016 and 2015, respectively.

Property and equipment included the following amounts for leases that have been capitalized at:

	June 30, 2016			December 31, 2015
Vehicles, field and shop equipment	$	462,700		$	462,700
Less: accumulated amortization		(175,600	)		(127,800	)
	$	287,100		$	334,900