Quarterly report pursuant to Section 13 or 15(d)

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

3 Months Ended

Mar. 31, 2017

Property, Plant and Equipment [Abstract]

NOTE 3 - PROPERTY AND EQUIPMENT

Property and equipment was comprised of the following:

	March 31, 2017			December 31, 2016
Field and shop equipment	$	2,292,700		$	2,292,700
Vehicles		689,700			689,700
Waste destruction equipment, placed in service		1,355,400			1,355,400
Waste destruction equipment, not placed in service		656,200			656,200
Furniture and office equipment		326,600			325,300
Leasehold improvements		65,400			65,400
Building and improvements		21,200			21,200
Land		162,900			162,900
		5,570,100			5,568,800
Less: accumulated depreciation and amortization		(2,774,300	)		(2,607,500	)
Property and equipment, net	$	2,795,800		$	2,961,300

Depreciation expense for the three months ended March 31, 2017 and 2016 was $166,700 and $171,500, respectively. For the three months ended March 31, 2017 depreciation expense included in cost of goods sold and selling, general and administrative expenses was $142,400 and $24,300 respectively. For the three months ended March 31, 2016 depreciation expense included in cost of goods sold and selling, general and administrative expenses was $147,300 and $24,200, respectively.

Accumulated depreciation on leased CoronaLux™ units included in accumulated depreciation and amortization above is $335,875 and $206,300 for the three months ended March 31, 2017 and 2016, respectively.

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

	March 31,			December 31
	2017			2016
Vehicles, field and shop equipment	$	462,700		$	462,700
Less: accumulated amortization		(246,200	)		(222,800	)
	$	216,500		$	239,900