Annual report pursuant to Section 13 and 15(d)

PROPERTY AND EQUIPMENT

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PROPERTY AND EQUIPMENT
 12 Months Ended
Dec. 31, 2017
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT

NOTE 3 - PROPERTY AND EQUIPMENT

 

Property and equipment was comprised of the following:

 

    December 31,  
    2017     2016  
             
Field and shop equipment   $ 2,213,200     $ 1,907,500  
Vehicles     690,000       690,000  
Waste destruction equipment, placed in service     627,800       1,299,500  
Waste destruction equipment, not placed in service     —       712,100  
Furniture and office equipment     311,000       319,700  
Leasehold improvements     10,000       10,000  
Building and improvements     21,200       21,200  
Land     162,900       162,900  
      4,036,100       5,122,900  
Less: accumulated depreciation and amortization     (2,739,700 )     (2,317,800 )
Property and equipment, net   $ 1,296,400     $ 2,805,100  

 

Depreciation expense for the years ended December 31, 2017 and 2016 was $641,300 and $647,000, 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. For the year ended December 31, 2016 depreciation expense included in cost of goods sold and selling, general and administrative expenses was $548,900 and $98,100, respectively.

 

Depreciation expense on leased CoronaLux™ units included in accumulated depreciation and amortization above is $70,100 and $136,100 for the years ended December 31, 2017 and 2016, respectively.

 

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

 

    2017     2016  
             
Field and shop equipment   $ 407,100     $ 318,300  
Less: accumulated amortization     (232,200 )     (153,800 )
    $ 174,900     $ 164,500  

 

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 to two idle and one licensed CoronaLux™ units and five idle CoronaLux™ units of approximately $354,000 and $809,000 for the years ended December 31, 2017 and 2016, respectively.