Property and Equipment

3 Months Ended

Mar. 31, 2018

5.	PROPERTY AND EQUIPMENT

Property and equipment is recorded at cost when acquired. Depreciation is provided principally on the straight-line method over the estimated useful lives of the related assets, which is 3-7 years for equipment, furniture and fixtures, hardware and software and leasehold improvements. During the three months ended March 31, 2018, the Company invested $1,930 in shop machinery and equipment. During that same time period, the company sold a company vehicle for $60,000 cash and wrote off several items of abandoned equipment resulting in a $8,417 loss on disposal of assets. Depreciation expense was $11,847 and $8,772 for the three months ended March 31, 2018 and 2017, respectively. Property and equipment consists of the following at March 31, 2018 and December 31, 2017:

	March 31, 2018			December 31, 2017
Shop machinery and equipment	$	87,534		$	87,704
Computers and electronics		31,844			35,270
Office furniture and fixtures		37,814			37,814
Vehicle		0			73,142
Leasehold improvements		19,514			19,514
		176,706			253,444
Less - accumulated depreciation		(99,103	)		(97,507	)
	$	77,603		$	155,937