Property and Equipment

9 Months Ended

Sep. 30, 2015

Property, Plant and Equipment Disclosure [Text Block]

Property and Equipment

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

	SEPTEMBER 30,		DECEMBER 31,
	2015		2014
	(Unaudited)
Land and building	$	677,054	$	677,054
Computer hardware and software		3,007,323		2,824,340
Furniture and fixtures		298,266		295,485
Leasehold improvements		550,116		547,087
Automobile		280,029		295,844
Gross property and equipment		4,812,788		4,639,810
Less: accumulated depreciation and amortization		(3,268,698)		(3,025,628)

Property and equipment, net	$	1,544,090	$	1,614,182

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, 2015 and 2014. For each of the three month periods ended September 30, 2015 and 2014, property and equipment depreciation expense recorded was approximately $110,200 and $134,700, respectively. For each of the nine month periods ended September 30, 2015 and 2014, property and equipment depreciation expense recorded was approximately $353,400 and $360,400, respectively. For each of the three and nine month periods ended September 30, 2015 and 2014, 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 8 for additional information about historical capital lease obligations. Total capitalized cost of equipment under capital leases at September 30, 2015 and December 31, 2014 was approximately $529,200 (including reductions in gross cost due to cumulative translation adjustments of approximately $6,900) and $536,100 (including reductions in gross cost due to cumulative translation adjustments of approximately $11,900), respectively. For each of the three and nine month periods ended September 30, 2015 and 2014, the Company did not enter into any capital lease arrangements.

For the three month periods ended September 30, 2015 and 2014, depreciation expense for leased equipment was approximately $4,200 (including reductions in accumulated amortization due to translation adjustments of approximately $1,300) and $19,400, respectively. For the nine month periods ended September 30, 2015 and 2014, depreciation expense for leased equipment was approximately $21,900 (including reductions in accumulated depreciation due to translation adjustments of approximately $3,800) and $52,100, respectively. Accumulated depreciation for leased equipment at September 30, 2015 and December 31, 2014 was approximately $498,400 (including reductions in accumulated amortization due to cumulative translation adjustments of approximately $4,300) and $481,000 (including reductions in accumulated amortization due to cumulative translation adjustments of approximately $500), respectively. For the three and nine month periods ended September 30, 2015 and 2014, there were no disposals of leased equipment. Total net book value of assets under capital leases (including cumulative translation adjustments) at September 30, 2015 and December 31, 2014 was approximately $30,700 and $55,800, respectively.