Fixed Assets, net

12 Months Ended

Dec. 31, 2012

5. Fixed Assets, net

The components of fixed assets consist of the following at December 31, 2012 and 2011:

	December 31, 2012			December 31, 2011

Depreciable assets:
Office equipment	$	132,255		$	62,679
Computer equipment	414,745			131,226
Vehicles	38,317			38,317
Total cost	585,317			232,222
Less accumulated depreciation	(203,440		)	(74,903		)
Property and equipment, net	$	381,877		$	157,319

Depreciation expense was $128,537 for the year ended December 31, 2012, $25,805 for the Transition Period ended December 31, 2011 and $0 for the year ended June 30, 2011 (includes the depreciation expense of the Holding Company and FRES).

In general, office equipment includes assets with depreciable lives of 5 years, computer equipment includes assets with depreciable lives of 3 to 5 years and vehicles have depreciable lives of 3 years.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References+ Details