PROPERTY, PLANT AND EQUIPMENT, NET

12 Months Ended

Mar. 31, 2017

NOTE 3 - PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment, net consisted of the following as of March 31:

	2017		2016
Land	$	110,113	$	110,113
Building and improvements		3,252,908		3,252,908
Machinery equipment, furniture and fixtures		8,601,199		8,418,243
Construction in progress		487,331		—
Equipment under capital leases		54,376		65,568
Total property, plant and equipment		12,505,927		11,846,832
Less: accumulated depreciation		(7,593,725)		(7,032,648)
Total property, plant and equipment, net	$	4,912,202	$	4,814,184

Depreciation expense, which includes amortization of equipment under capital leases, for the years ended March 31, 2017 and 2016 was $689,293 and $747,553, respectively. On March 31, 2017 and 2016 we classified certain machinery and equipment as assets held for sale. See Note 6 – Other Noncurrent Assets.

Capitalized leases included in machinery and equipment were $54,376 and $65,568 at March 31, 2017 and 2016, respectively. Accumulated depreciation on all property, plant and equipment accounted for as capitalized leases was $2,719 and $42,443 at March 31, 2017 and 2016, respectively.

We capitalize interest on borrowings during the active construction period of major capital projects. Capitalized interest is added to the cost of the underlying assets and is amortized over the useful lives of the assets. Capitalized interest for the year ended March 31, 2017 was $7,158.

In fiscal 2016, the Company purchased LED lighting which qualified for a capital incentive grant of $146,000 and a financing component of $58,064 (included in accrued expenses current and non- current) for total funds received of $204,064. The net cost of the purchase of the LED lighting of $58,064 is recorded in property, plant and equipment.