Property, Plant and Equipment

6 Months Ended

Jun. 30, 2016

Property Plant And Equipment [Abstract]

Note 4 – Property, Plant and Equipment:

Property, plant and equipment, net are summarized as follows:

	June 30, 2016			December 31, 2015
Refrigeration Equipment	$	58,067,264		$	55,020,179
Machinery and Equipment		21,417,697			21,324,085
Building, Land, and Improvements		17,671,397			15,205,494
Furniture and Office Equipment		2,742,492			2,287,396
Automotive Equipment		317,615			317,292
Leasehold Improvements		141,726			140,672
Construction in Progress		32,872,634			19,388,195
		133,230,825			113,683,313
Less: Accumulated Depreciation and Amortization		(34,111,671	)		(30,890,306	)
	$	99,119,154		$	82,793,007

Depreciation expense related to property, plant and equipment totaled $2,127,220 and $4,161,502 for the three and six months ended June 30, 2016, of which $740,099 and $1,418,777 was recorded to cost of goods sold for the three and six months ended June 30, 2016, with the remainder of depreciation and amortization expense recorded to selling, general and administrative expense.

Depreciation expense related to property, plant and equipment totaled $1,840,270 and $3,567,245 for the three and six months ended June 30, 2015, of which $632,476 and $1,251,730 was recorded to cost of goods sold for the three and six months ended June 30, 2015, with the remainder of depreciation and amortization expense recorded to selling, general and administrative expense.

Due to the continued growth of the Company’s fresh pet food sales, the company has undertaken a capital expansion project at its Freshpet Kitchens manufacturing facility to expand plant capacity and increase distribution. The Company invested $15.3 million during the first half of 2016. We expect to spend an additional approximately $2.5 million to complete the project on time and on budget by the end of the third quarter.