PROJECT ASSETS

12 Months Ended

Dec. 31, 2015

Notes to Financial Statements

PROJECT ASSETS

NOTE 5 - PROJECT ASSETS

Project assets consisted of the following as of:

	2015			2014
Co-generation equipment	$	4,114,557		$	4,194,764
less: accumulated depreciation		(1,567,582	)		(1,292,487	)
	$	2,546,975		$	2,902,277

Depreciation expense for project assets for the years ended December 31, 2014 and 2015 was $326,865 and $275,096 respectively.  These amounts are included in cost of goods sold in the statements of operations.

During the years ended December 31, 2014, and December 31, 2015 the Company recognized impairment expense on co-generation equipment of $1,684,334 and $159,800, respectively.  The impairment was recognized due to the termination of several energy service contracts related to the co-generation equipment in those locations.