Property and Equipment, Net, and Other Assets

6 Months Ended

Jun. 30, 2017

Property Plant And Equipment [Abstract]

Property and Equipment, Net, and Other Assets

3. Property and Equipment, Net, and Other Assets

At June 30, 2017 and December 31, 2016, property and equipment, net, and other assets consisted of the following:

	June 30,		December 31,
	2017		2016
	(Unaudited)
Property and equipment, net of accumulated depreciation of $2,588,002      and $2,442,549 as of June 30, 2017 and December 31, 2016,      respectively	$	1,148,089	$	1,340,850
Security deposits and other assets		708,232		1,074,071
Property and equipment, net, and other assets	$	1,856,321	$	2,414,921

We compute depreciation using the straight-line method over the estimated useful lives of the property and equipment. Depreciation expense for the three months ended June 30, 2017 was $113,444, inclusive of $42,224 of depreciation expense reflected within “Cost of revenue” in our condensed consolidated statement of operations as it related to assets used in directly servicing customer contracts, and was $228,690 for the six months ended June 30, 2017, inclusive of $83,299 of depreciation expense reflected within “Cost of revenue.” Depreciation expense for the three months ended June 30, 2016 was $122,296, inclusive of $38,848 of depreciation expense reflected within “Cost of revenue,” and was $231,212 for the six months ended June 30, 2016, inclusive of $48,265 reflected within “Cost of revenue”. At June 30, 2017, our capital lease assets were $295,419, net of $204,679 of accumulated depreciation. At December 31, 2016, our capital lease assets were $347,135, net of $152,962 of accumulated depreciation.