PROPERTY, PLANT AND EQUIPMENT

9 Months Ended

Sep. 30, 2016

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

NOTE 3. PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment are comprised of the following:

	September 30, 2016		December 31, 2015
Land	$	2,268,039	$	2,268,039
Buildings		4,847,778		4,847,778
Buildings – Superior Auto Body		2,213,729		2,213,729
Leasehold improvements		717,232		717,232
Machinery and equipment		5,022,630		7,200,530
Machinery under capital lease		2,322,340		2,322,340
Furniture and fixtures		507,557		507,554
Transportation assets		965,281		1,317,397
		18,864,586		21,394,599
Accumulated depreciation		(6,151,121)		(6,739,097)
	$	12,713,465	$	14,655,502

Depreciation expense related to PP&E for the three and nine months ended September 30, 2016 was $320,583 and $1,544,215, respectively, and for the three and nine months ended September 30, 2015 was $608,881 and $1,691,028, respectively.

 

As noted in Note 2 – Inventory, the Company executed a distribution agreement with DTI, under which DTI purchases our Drill-N-Ream tool for their rental tool business. As a result, the tools we had manufactured for rental that had been recognized in Machinery and equipment were recategorized as inventory. Also, we sold Transportation assets that were no longer needed for our new business model. The resulting gross impact to PP&E was a reduction in Machinery and equipment of the original cost of the tools of $1,902,081 and $304,000 from sales of Transportation assets.