Property and Equipment

12 Months Ended

Dec. 31, 2012

Property, Plant and Equipment [Abstract]

Property and Equipment

Note 7.  Property and Equipment

Property and equipment consist of the following:

	December 31,
	2012			2011
Machinery and equipment	$	4,626,995		$	3,713,781
Track		65,554			62,376
Accumulated depreciation		(1,959,885	)		(1,126,393	)
	$	2,732,664		$	2,649,764

Depreciation expense was $938,993 and $678,060 for the years ended December 31, 2012 and 2011, respectively and are included in cost of sales in the consolidated statements of operations.

Substantially all of the Company’s property and equipment are being sold in the bankruptcy proceeds described in Note 1.

Management has considered the potential impairment of our property and equipment, primarily held by Wood Energy, as of December 31, 2012. Among other things, management compared the carrying values of such assets to the net orderly liquidation values (“NOLV”) included in third-party appraisals obtained during 2012 in connection with bank financings, and determined that the NOLV exceeded the carrying value. Accordingly, no impairment was recorded as of December 31, 2012. As additional information becomes available, including but not limited to actual sales of equipment as a result of the bankruptcy process, management will continue to assess the carrying value of property and equipment.