Property & Equipment

9 Months Ended

Sep. 30, 2016

7. NOTE 7: PROPERTY & EQUIPMENT

	September 30, 2016	December 31, 2015
Land	$ 19,700,000	19,700,000
IT Equipment	232,537	185,846
Other equipment and furniture	231,142	278,000
Leasehold improvements	77,846	66,617
Vehicles	74,000	139,000
Construction in-process	45,289,888	41,412,351
Gross	65,605,413	61,781,814
Less accumulated depreciation	(520,986)	(510,390)
Net	$ 65,084,427	61,271,424

Depreciation expenses for the period ended September 30, 2016 and 2015	29,585	16,802

Property and equipment is comprised primarily of land held in Costa Rica that is currently being developed for hotels and capitalized project costs in connection with the Papagayo Gulf Tourism project. The land amounts to $19.7 million related to the concessions held by SunVesta Costa Rica SA. $7 million (~84,000 m2) and $12.7 million (~120,000 m2).

The $7 million concession is a right to use the property for a specific period of time of initially 20 years from the date of grant, which thereafter can be renewed at no further cost, if the landholder is up to date with its obligations and if there is no significant change in government policies. The current concession initially expired in June 2022.

The $12.7 million concession is also a right to use the property for a specific period of time of initially 30 years from the date of grant, which thereafter can be renewed at no further cost, if the landholder is up to date with its obligations and if there is no significant change in government policies. The current concession initially expired in November 2036.

On July 14, 2015, the Consejo del Polo de DesarrolloTuristico Papagayo at ICT (Council of Papagayo Tourism Development Project), unanimously approved the extension of both concessions until 2052.

The construction in process through December 31, 2015 and September 30, 2016, is represented primarily by architectural work related to the hotel and apartments as well as construction work.

Deposit related to construction work

For the quarter ended September 30, 2016, the Company made deposits with several contractors to initiate earth moving groundwork. These deposits will be offset against invoices for such groundwork as completed. As of September 30, 2016 and December 31, 2015, the Company has deposits of $190,577 and $798,874 respectively, which have not yet been set off.