Property and Equipment

12 Months Ended

Dec. 31, 2013

Major classes of property and equipment consisted of the following:

	DECEMBER 31,
	2013			2012

Land and building	$	677,054		$	677,054
Computer hardware and software		2,052,280			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		3,319,269			2,806,283
Less: accumulated depreciation and amortization		(1,773,318	)		(1,377,960	)

Property and equipment, net	$	1,545,951		$	1,428,323

For the years ended December 31, 2013 and 2012, depreciation expense recorded was approximately $395,400 and $400,160, respectively. For the year ended December 31, 2013 there were no disposals of equipment. For the year ended December 31, 2012 there were disposals of fully depreciated equipment with gross historical cost and accumulated depreciation of approximately $206,900 and $206,200, respectively. For the years ended December 31, 2013 and 2012 there were no material sales of property and equipment.

The gross value of assets under capital leases at December 31, 2013 and 2012 were approximately $477,500, respectively. For the year ended December 31, 2013 there was no capital lease acquisitions, expiration or disposals of equipment leases. For the year ended December 31, 2012 we entered into an equipment capital lease agreement with a net present value of approximately $176,200. For the year ended December 31, 2012 there were disposals of certain expired equipment leases with a gross value and accumulated depreciation of approximately $130,700, respectively. Depreciation expense for leased equipment for the years ended December 31, 2013 and 2012 was approximately $58,700 and $66,700, respectively, and accumulated depreciation at December 31, 2013 and 2012 was $408,900 and $350,200, respectively. Total net book value of assets under capital leases at December 31, 2013 and 2012 was approximately $68,600 and $127,300, respectively.

- Definition

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

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