PROPERTY AND EQUIPMENT AND INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Note 5 - PROPERTY AND EQUIPMENT AND INTANGIBLE ASSETS

As of September 30, 2017 and December 31, 2016, property and equipment and intangible assets consisted of the following:

	September 30, 2017			December 31, 2016
Manufacturing equipment	$	779,196		$	769,074
Computer and other equipment		150,191			116,747
Leasehold improvements		36,066			36,066
Less accumulated depreciation		(649,563	)		(551,239	)
Property and Equipment, net	$	315,890		$	370,648

Depreciation expense for the three and nine months ended September 30, 2017 was $21,882 and $98,325, respectively. Depreciation expense for the three and nine months ended September 30, 2016 was $37,984 and $92,046, respectively.

	September 30, 2017			December 31, 2016
Intellectual Property	$	814,582		$	814,582
Patents		213,402			175,047
Less accumulated amortization		(122,472	)		(95,119	)
Intangible assets, net	$	905,512		$	894,510

The Company incurred $43,621 and $45,930 of legal patent costs that were capitalized during the nine months ended September 30, 2017 and the year ended December 31, 2016, respectively. The Company did not write off any intangibles during the nine months ended September 30, 2017 and wrote off $58,522 of intangibles during the year ended December 31, 2016. Amortization expense for the three and nine months ended September 30, 2017 was $10,899 and $30,619, respectively. Amortization expense for the three and nine months ended September 30, 2016 was $10,667 and $31,997, respectively.

The estimated aggregate amortization expense over each of the next five years is as follows:

2017	$	10,899
2018		43,518
2019		43,518
2020		43,518
2021		43,518
Thereafter		557,303
Total Amortization	$	742,273