PROPERTY AND EQUIPMENT, NET

9 Months Ended

Sep. 30, 2013

PROPERTY AND EQUIPMENT, NET [Abstract]

NOTE 5 – PROPERTY AND EQUIPMENT, NET

At September 30, 2013 and December 31, 2012, property and equipment, net consists of the following:

	9/30/2013			12/31/2012
Production, engineering and other equipment	$	6,422,110		$	6,426,432
Leasehold improvements		2,904,188			2,904,188
Office equipment and furniture		603,182			603,182
Computer equipment and related software		140,238			140,238
	$	10,069,718		$	10,074,040
Accumulated depreciation	$	(8,108,650	)	$	(7,628,075	)
Property and equipment, net	$	1,961,068		$	2,445,965

Depreciation expense was $160,834 and $167,907 for the three months ended September 30, 2013 and June 30, 2012, respectively. Depreciation expense was $482,813 and $518,824 for the nine months ended September 30, 2013 and 2012, respectively.

During 2013, the Company sold equipment with a net book value of $2,084 for a total of $750. The Company recognized a loss of $1,334 with respect to such sale of equipment. During the comparable period in 2012, the Company sold equipment with a net book value of $60,899 for a total of $110,000. The Company recognized a gain of $49,101 with respect to this equipment sale.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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