NOTE 3 - PROPERTY AND EQUIPMENT

Property and equipment was comprised of the following:

Depreciation expense for the years ended December 31, 2016 and 2015 was $691,300 and $632,100, respectively. For the year ended December 31, 2016 depreciation expense included in cost of goods sold and selling, general and administrative expenses was $593,100 and $98,100, 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.

Depreciation expense on leased CoronaLux™ units included in accumulated depreciation and amortization above is $136,100 and $113,600 for the years ended December 31, 2016 and 2015, respectively.

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

The capitalize leases have a security interest in their respective equipment.

The Company has evaluated its fixed assets and has determined that an impairment charge was required to five idle CoronaLux™ units of $809,000 for the year ended December 31, 2016. No impairment was required for the year ended December 31, 2015.

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: