PROPERTY AND EQUIPMENT

9 Months Ended

Sep. 30, 2013

Property And Equipment

Note 5. PROPERTY AND EQUIPMENT

The components of property and equipment at September 30, 2013 and December 31, 2012 consisted of the following:

	September 30,			December 31,
	2013			2012
	(Unaudited)
Machinery and Equipment	$	6,200,000		$	5,801,000		5 - 8 years
Capital Lease Machinery and Equipment		4,503,000			4,503,000		5 - 8 years
Tools and Instruments		4,567,000			3,968,000		1.5 - 7 years
Automotive Equipment		55,000			55,000		5 years
Furniture and Fixtures		232,000			232,000		5 - 8 years
Leasehold Improvements		612,000			612,000		Term of Lease
Computers and Software		331,000			318,000		4-6 years
Total Property and Equipment		16,500,000			15,489,000
Less: Accumulated Depreciation		(10,848,000	)		(9,606,000	)
Property and Equipment, net	$	5,652,000		$	5,883,000

Depreciation expense for the three months ended September 30, 2013 and 2012 was approximately $441,000 and $413,000, respectively.  Depreciation expense for the nine months ended September 30, 2013 and 2012 was approximately $1,242,000 and $1,097,000, respectively.