PROPERTY AND EQUIPMENT

3 Months Ended

Mar. 31, 2014

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

NOTE 10 – PROPERTY AND EQUIPMENT 

Property and equipment consists of the following as of:

	March 31, 2014			December 31, 2013
	(Unaudited)
Machines and equipment	$	63,172		$	63,172
Furniture and fixtures		49,787			49,787
Computer equipment		52,304			52,304
Leasehold improvements		56,965			53,040
Total property and equipment		222,228			218,303
Less accumulated depreciation and amortization		(174,376	)		(164,545	)
Net property and equipment	$	47,852		$	53,758

As a result of the Company’s acquisition of Rocky Mountain Hydroponics, LLC and Evergreen Garden Center, LLC (“RMH/EGC”) (see “NOTE 3 – PURCHASE – ROCKY MOUNTAIN HYDROPONICS and EVERGREEN GARDEN CENTER”), the Company acquired property and equipment totaling $109,318 in the aggregate. Subsequent to its acquisition of RMH/EGC, the Company purchased an additional $5,500 of property and equipment related to its RMH/EGC stores during the year ended December 31, 2013 and an additional $3,925 during the three month period ended March 31, 2014. The Company has not purchased any property and equipment related to its non-RMH/EGC business units since fiscal year 2012. 

As the result of the Company’s acquisition of RMH/EGC, the Company acquired accumulated depreciation and amortization totaling $58,205 in the aggregate. Subsequent to its acquisition of RMH/EGC, the Company recorded $10,374 of depreciation and amortization expense related to the property and equipment of RMH/EGC while recording $11,855 of depreciation and amortization expense related to its non-RMH/EGC property and equipment during the year ended December 31, 2013. During the three month period ended March 31, 2014, the Company recorded total non-cash depreciation expense of $9,831 while recording $2,843 during the same three month period in fiscal year 2013. 

The following is a summary of the Company’s property and equipment transactions through March 31, 2014: 

Property and equipment as of December 31, 2012	$	103,485
Property and equipment acquired via RMH/EGC acquisition		109,318
RMH/EGC property and equipment purchased post RMH/EGC acquisition		5,500
Total property and equipment as of December 31, 2013		218,303
Accumulated depreciation and amortization as of December 31, 2012		(84,111	)
Accumulated depreciation and amortization acquired via RMH/EGC acquisition		(58,205	)
RMH/EGC depreciation and amortization post acquisition		(10,374	)
Non-RMH/EGC depreciation and amortization FY 2013		(11,855	)
Total accumulated depreciation and amortization as of December 31, 2013		(164,545	)
Net property and equipment as of December 31, 2013	$	53,758
Property and equipment acquired during the three month period ended March 31, 2014		3,925
Depreciation and amortization expense during the three month period ended March 31, 2014		(9,831	)
Net property and equipment as of March 31, 2014	$	47,852