Property and Equipment

9 Months Ended

Sep. 30, 2013

Property and Equipment [Abstract]

Property and Equipment

5. Property and Equipment

Major classes of property and equipment consisted of the following for each of the periods presented below:

	SEPTEMBER 30,			DECEMBER 31,
	2013			2012
	(Unaudited)
Land and building	$	677,054		$	677,054
Computer hardware and software		1,828,396			1,544,233
Furniture and fixtures		218,939			214,000
Leasehold improvements		368,596			368,596
Automobile		2,400			2,400
Gross property and equipment		3,095,385			2,806,283
Less: accumulated depreciation and amortization		(1,666,896	)		(1,377,960	)
Property and equipment, net	$	1,428,489		$	1,428,323

There were no changes in the estimated useful life used to depreciate property and equipment for each of the three or nine month periods ended September 30, 2013 or 2012. For each of the three month periods ended September 30, 2013 and 2012, property and equipment depreciation expense recorded was approximately $100,200 and $104,200, respectively. For the nine month periods ended September 30, 2013 and 2012, property and equipment depreciation expense recorded was approximately $288,900 and $305,200, respectively. For each of the three and nine month periods ended September 30, 2013 and 2012, there were no material sales or disposals of owned property and equipment.

Included in property and equipment are certain equipment purchases acquired under capital lease arrangements. For each of the three and nine month periods ended September 30, 2013, the Company did not enter into any capital lease arrangements. See Note 7 for additional information about historical capital lease obligations. Total capitalized cost of equipment under capital leases at September 30, 2013 and December 31, 2012 was approximately $477,500, respectively. For the three month periods ended September 30, 2013 and 2012 depreciation expense for leased equipment was approximately $14,700 and $17,500, respectively. For the nine month periods ended September 30, 2013 and 2012 depreciation expense for leased equipment was approximately $44,100 and $52,800, respectively. Accumulated depreciation for leased equipment at September 30, 2013 and December 31, 2012 was approximately $394,300 and $350,200, respectively. For the three month and nine month periods ended September 30, 2013, there were no disposals of leased equipment. For the three and nine month periods ended September 30, 2012, equipment under capital leases with cost and accumulated depreciation of approximately $130,700 were disposed of at the end of the lease period, with was no gain or loss recognized upon disposition. Total net book value of assets under capital leases at September 30, 2013 and December 31, 2012 was approximately $83,200 and $127,300, respectively.