5. PROPERTY, EQUIPMENT AND LEASEHOLDS

12 Months Ended

Dec. 31, 2012

Notes to Financial Statements

Note 5. PROPERTY, EQUIPMENT AND LEASEHOLDS

	2012		Accumulated		2012
	Cost		Depreciation		Net
Buildings	$	5,372,327	$	2,122,396	$	3,249,931
Computer hardware		106,457		88,811		17,646
Furniture and fixtures		28,385		22,155		6,230
Office equipment		23,946		20,795		3,151
Manufacturing equipment		6,039,836		2,725,324		3,314,512
Trailer		17,353		13,930		3,423
Technology		137,308		27,461		109,847
Truck		11,951		9,512		2,439
Land		478,551		—		478,551
	$	12,216,114	$	5,030,384	$	7,185,730

	2011		Accumulated		2011
	Cost		Depreciation		Net
Buildings	$	3,216,859	$	1,731,782	$	1,485,077
Plant under construction and equipment		5,520,598		—		5,520,598
Computer hardware		103,614		80,475		23,139
Furniture and fixtures		27,953		20,268		7,685
Office equipment		23,427		19,573		3,854
Manufacturing equipment		2,447,864		1,900,110		547,754
Trailer		27,447		20,260		7,187
Technology		134,327		—		134,327
Truck		11,691		8,283		3,408
Land		472,485		—		472,485
	$	11,986,265	$	3,780,751	$	8,205,514

Amount of depreciation expense for 2012: $1,256,238 (2011: $330,939)

The following capitalized costs pertaining to the Company’s new plant in Taber, Alberta are classified as Plant Under Construction and Equipment at December 31, 2011 and included contracted costs and supplies.  The Company began depreciating the Plant and Equipment as of January 1, 2012.

	December 31, 2011 Cost
Building	$	1,040,078
Building improvements		1,068,606
Manufacturing equipment		3,411,914
	$	5,520,598

The following carrying amount of property, equipment and leaseholds held by Flexible Solutions Ltd. serves as collateral for the AFSC loan (see Note 9b):

Land	$	273,458
Building		927,117
Building improvements		983,083
Manufacturing equipment		2,903,462
Trailer		3,422
Truck		2,439
Technology		109,846