Property and Equipment

9 Months Ended

Sep. 30, 2014

Property and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

6. Property and Equipment  

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

	SEPTEMBER 30,		DECEMBER 31,
	2014		2013
	(Unaudited)
Land and building	$	677,054	$	677,054
Computer hardware and software		2,158,411		2,052,280
Furniture and fixtures		299,342		218,939
Leasehold improvements		528,293		368,596
Automobile		139,688		2,400
Gross property and equipment		3,802,788		3,319,269
Less: accumulated depreciation and
amortization		(2,091,998)		(1,773,318)
Property and equipment, net	$	1,710,790	$	1,545,951

There were no changes in the estimated useful life used to depreciate property and equipment during the three and nine month periods ended September 30, 2014 and 2013. For each of the three month periods ended September 30, 2014 and 2013, property and equipment depreciation expense recorded was approximately $134,700 and $100,200, respectively. For each of the nine month periods ended September 30, 2014 and 2013, property and equipment depreciation expense recorded was approximately $360,400 and $288,900, respectively. For each of the three and nine month periods ended September 30, 2014 and 2013, 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. See Note 7 for additional information about historical capital lease obligations. In conjunction with the Company’s acquisition of SCL on May 1, 2014, the Company assumed capital lease assets with a net book value of approximately $70,700. Total capitalized cost of equipment under capital leases at September 30, 2014 and December 31, 2013 was approximately $548,000 and $477,500, respectively. For each of the three and nine month periods ended September 30, 2014 and 2013, the Company did not enter into any capital lease arrangements.

For the three month periods ended September 30, 2014 and 2013 depreciation expense for leased equipment was approximately $19,400 and $14,700, respectively. For the nine month periods ended September 30, 2014 and 2013, depreciation expense for leased equipment was approximately $52,100 and $44,100, respectively. Accumulated depreciation for leased equipment at September 30, 2014 and December 31, 2013 was approximately $461,000 and $408,900, respectively. For the three month periods ended September 30, 2014, there were no disposals of leased equipment. Total net book value of assets under capital leases at September 30, 2014 and December 31, 2013 was approximately $87,000 and $68,600, respectively.